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: How to develop the financial model? Case for Vulnerable Children and Young People
I'd like to jointly create this type of social venture in my home town:
You can create a Social Venture in your home town based on the business model in this page. The Social Entrepreneur Institute will assist you to make a business plan, funding the project and provide a More information on the Social Entrepreneurship Institute

ActivityID:

City:

Chapter:

Full Name:

PartnerLong:

Country :

About Your Project: Reference Project:

Company/Organization: How to develop the financial model? Case for Vulnerable Children and Young People

Project Code:

CategoryID:
United_Kingdom

County:

City:

Please write about your business concept in five paragraphs with sub-title for each

Answer: Briefly describe the usefulness and uniqueness of your social venture The financial model aims to reflect the economics of the SIB. It estimates the costs of interventions, overheads and other fixed costs which together determine the level of investment required over the period of the SIB. Set against this will be the share of the cost savings agreed by the commissioner to be distributed to investors should a sufficient improvement in outcomes be achieved.

1: The financial model requiresconsideration of threefactors:

1: Issues to be addressed by this social venture (or case) - Intervention costs
- Outcome values
- Time horizon to realise investment returnsish

2: Cost should substantially below the savings

2: What is the unique idea to solve the issues? SIBs work when the costs of achieving the target outcome (intervention costs plus overheads and fixed costs) are substantially lower than the level of the resulting public sector savings (outcome value).
This is essential to developing a financially viable investment proposition on which to raise capital.

3: Usually commissioners prefer 5 year time horizen

3: Revenue Model & Organization A reasonable time horizon for the investment is critical. Investors would prefer to see a SIB that matures within a time horizon of around 5 years. Therefore there needs to be a tight timescale between intervention, measurement of impact and payment on outcomes achieved.
This is a consideration particularly in examples such as early years intervention (0-5 year olds). If the outcome metric is educational attainment, but it is necessary to wait 11 years (age 5 to 16 years old) to measure GCSE results for the target population, this will not make for a feasible SIB. For such a model to work, an earlier measure regarded as a reliable predictor of future performance is necessary.

4: measure placement-related outcomes

4: Targeted Benefit & Outcome The focus on adolescents (aged 10.15 years old) provides a relatively compact time frame over which to measure outcomes. For this age group, research shows that if a young person remains looked after for more than a short time period (e.g. 3 months), the likelihood of remaining looked after on a long-term basis increases.
Outcomes for the young person become much worse with long-term care. Therefore one approach could be to measure placement-related outcomes at 3 or 6 months postintervention.

5: Next steps

5: Strengths and Risks of the business model We hope the process outlined above is helpful in developing a feasible SIB model. Social Finance would be delighted to engage with you in order to support progress towards implementation. As a first step we would ask you to submit your responses to the key questions set out in the appendix.
For more information please review our publications: Towards a New Social Economy . Blended value creation through Social Impact Bonds (March 2010). Social Impact Bonds . Unlocking Investment in Rehabilitation (September 2010). We invite you to join the Social Impact Bond forum to connect with other interested stakeholders, or participate in our ongoing series of webinars. www.socialfinance.org.uk/forum We wish you all the best with your SIB development and look forward to working together..

The Project Owner: Explain your experience and skills within 150 words.

Business_Partners: Describe what types of business partners are you seeking

Position1 (Investors):

Position2 (Management & Staff):

Position3 (Management & Staff):

Position4 (Professional Staff):

Position4 (Professional Staff):

Position6 (Outside Experts):

Business Partners can jointly develop a business plan

Mode:

I'd like to jointly create this type of social venture in my home town:
You can create a Social Venture in your home town based on the business model in this page. The Social Entrepreneur Institute will assist you to make a business plan, funding the project and provide a More information on the Social Entrepreneurship Institute

ActivityID:
City:
Chapter:
Full Name:
PartnerLong:
Country :

About Your Project:		Reference Project:
Company/Organization:		How to develop the financial model? Case for Vulnerable Children and Young People
Project Code:
CategoryID:		United_Kingdom
County:
City:
Please write about your business concept in five paragraphs with sub-title for each
Answer: Briefly describe the usefulness and uniqueness of your social venture		The financial model aims to reflect the economics of the SIB. It estimates the costs of interventions, overheads and other fixed costs which together determine the level of investment required over the period of the SIB. Set against this will be the share of the cost savings agreed by the commissioner to be distributed to investors should a sufficient improvement in outcomes be achieved.
1:		The financial model requiresconsideration of threefactors:
1: Issues to be addressed by this social venture (or case)		- Intervention costs - Outcome values - Time horizon to realise investment returnsish
2:		Cost should substantially below the savings
2: What is the unique idea to solve the issues?		SIBs work when the costs of achieving the target outcome (intervention costs plus overheads and fixed costs) are substantially lower than the level of the resulting public sector savings (outcome value). This is essential to developing a financially viable investment proposition on which to raise capital.
3:		Usually commissioners prefer 5 year time horizen
3: Revenue Model & Organization		A reasonable time horizon for the investment is critical. Investors would prefer to see a SIB that matures within a time horizon of around 5 years. Therefore there needs to be a tight timescale between intervention, measurement of impact and payment on outcomes achieved. This is a consideration particularly in examples such as early years intervention (0-5 year olds). If the outcome metric is educational attainment, but it is necessary to wait 11 years (age 5 to 16 years old) to measure GCSE results for the target population, this will not make for a feasible SIB. For such a model to work, an earlier measure regarded as a reliable predictor of future performance is necessary.
4:		measure placement-related outcomes
4: Targeted Benefit & Outcome		The focus on adolescents (aged 10.15 years old) provides a relatively compact time frame over which to measure outcomes. For this age group, research shows that if a young person remains looked after for more than a short time period (e.g. 3 months), the likelihood of remaining looked after on a long-term basis increases. Outcomes for the young person become much worse with long-term care. Therefore one approach could be to measure placement-related outcomes at 3 or 6 months postintervention.
5:		Next steps
5: Strengths and Risks of the business model		We hope the process outlined above is helpful in developing a feasible SIB model. Social Finance would be delighted to engage with you in order to support progress towards implementation. As a first step we would ask you to submit your responses to the key questions set out in the appendix. For more information please review our publications: Towards a New Social Economy . Blended value creation through Social Impact Bonds (March 2010). Social Impact Bonds . Unlocking Investment in Rehabilitation (September 2010). We invite you to join the Social Impact Bond forum to connect with other interested stakeholders, or participate in our ongoing series of webinars. www.socialfinance.org.uk/forum We wish you all the best with your SIB development and look forward to working together..
The Project Owner: Explain your experience and skills within 150 words.
Business_Partners: Describe what types of business partners are you seeking
Position1 (Investors):
Position2 (Management & Staff):
Position3 (Management & Staff):
Position4 (Professional Staff):
Position4 (Professional Staff):
Position6 (Outside Experts):