Frequently Asked Questions

The Plunkett Foundation is able to support you at every step when setting up or running a community-owned shop. We have a website and network packed with valuable information and case studies, a central advisory service, specialist advisers, an IPS registration service, signposting to valuable resources and organisations, a funding programme for start-ups and a forum for you to communicate with other community-owned shops. The Plunkett Foundation manages a range of programmes which can offer additional and on-going support to shops and their committees such as Local Food and Local Shops, Specialist Enterprise Support and Skillshare. The Plunkett Foundation is always looking to enhance the services we offer so keep up to date on the support available via our network.

The start-up committee should try and engage a wide variety of skills from within the village. A committee should ideally include some professional people such as an accountant, a solicitor, somebody with retail know-how, marketing skills or project management experience. However don’t forget the importance of enthusiasm and having a group of people willing to get stuck in and do things. Particular skills can always be co-opted in as and when necessary.

When you have identified a committee, it is beneficial to allocate clear roles to each member such as fundraising, budgeting, marketing or legal issues.

Regular meetings are fundamental for driving the project forward and ensuring that everybody is kept up to date and are consulted on key issues.

A business plan is a statement of your objectives and your projected viability including the identification of customer need, competition, staffing, financial data and timescale of work.

A business plan is a valuable tool for developing your business. It can be used for a variety of purposes, but essentially it is a management tool to help run the business as efficiently as possible and meet your organisations aims and objectives. For detailed guidance on what to include in a business plan, download our guidelines here. If you have further questions, why not contribute to our forum and access support from our specialist advisers.

For a Community-owned shop to be a success it is paramount that the local community is on board from the outset. By selling shares to your community, you immediately instil a sense of ownership which encourages involvement. Try and encourage local residents to donate time and skill to the project, for example, is there somebody that can build shelves, or paint the walls, or lay the flooring? As well as creating a real sense of community and ownership, this can help save the project money which can be put towards other things.

Marketing of the shop should be considered from the very first village meeting. Ensure that you communicate how the project is progressing, fundraising achievements and celebrate success along the way. A regular update in a village newsletter is a great way to keep everyone informed. Arrange village fundraising events such as a coffee morning, or an auction of promises (again draw upon the skills within the village).

When it comes round to opening day, make sure you celebrate and invite everybody who has contributed to the project. A launch event acts a thank you and is also a great way to get the local media involved. Try and identify a unique selling point to raise the profile of the shop, such as sourcing local food to stock in the shop (Making Local Food Work).

The best form of marketing is of course word of mouth - so ensure that the shops meets local needs and encourages customers to return. If you have any suggestions or advice on how to promote a shop either in the early stages, or further down the line when it is up and running, please let us know on our forum.

The Plunkett Foundation manages the Village Core Programme which is a grant programme available to communities wishing to establish a Community-owned shop. The Village Core Programme consists of up to a £20,000 grant, which is matched by both a loan of equal value from Co-operative and Community Finance and by community matched fundraising. To find out more on the Village Core Programme click here.

It is very important to research what other funds and resources are available, both nationally and regionally. Visit our Useful Resources page on the website.

It is important to make contact with your local councils, including your Rural Community Council, as they will be able to signpost you to local sources of funding.

Grants and funding programmes are continually changing so routinely revisit websites to see if further funding has become available.

There are a number of options with regards to legal structures and it is important to do your homework and choose a structure which best reflects your needs.
The majority of community shops (70%) have selected an Industrial and Provident Society for the Benefit of the Community; this is a tailor-made option for community shops and the Plunkett Foundation can organise this for you. For further information read our advice sheet on Industrial and Provident Societies for the Benefit of the Community or contact our central office.
Other options are an Industrial and Provident Society Co-operative, a Community Interest Company or a Company limited by guarantee.
Further details can be found through our advice sheets on legal structures.

As a trading shop, the committee and management staff will need to keep up to date with relevant legislation. The Rural Retailer publication, by the Rural Shops Alliance, is a great source of information. You can view the recent publication here.

Legislation to consider includes:

• Alcohol licensing
• Underage sales
• Disability Access
• Food Safety
• Everyday recordings (such as waste and temperatures)
• Recording incidents
• Insurance required for volunteers

If there is any legislation that your committee is unsure of you can always pose a question on our retail forum or contact us directly and we will be able to find an answer for you.

Many community shops run with a mix of full-time or part-time paid staff and a team of volunteers. It can sometimes be difficult to manage large teams, with a variety of skills and different expectations.

The advantage of employing a paid shop manager is that it ensures there is continuity when running the business; there is a clear structure which helps reassure volunteers and it acts to relieve volunteers of many responsibilities. When paid staff absorb more responsibility, the volunteers find their time in the shop more straight-forward and relaxing.

It is important to thank volunteers for the time they contribute to the shop. The best way is to host an event, maybe drinks and nibbles in the shop, or a garden party. Don’t be tempted to thank volunteers by offering a discount or by giving away stock. This would constitute employment and therefore require the shop to adhere to a range of employment legislation.

It is always good to have a rota drawn up which is easily accessible so that it is always clear who is doing what and when. Try and allocate one person to do the shop rota to minimise any mis-understandings.

Share what works well and not quite so well on our people forum.

The Plunkett Foundation aims to support Community-owned shops at all stages of development. We are always available for shops to direct any questions or queries at. We have a wealth of knowledge and expertise at the Plunkett Foundation, as well as tapping into a network of specialist advisers who can offer you advice on a range of issues including retail, merchandising, financial and legal.

You can access support via our forum pages (our specialist advisers routinely check to contribute where applicable) as well as accessing the experience of other community-owned shops who, more than likely, have encountered similar issues whilst running their own shop.

The Plunkett Foundation is always looking for opportunities to enhance the service we offer. If you are a shop looking to increase your local food offering, we can support you in a variety of ways through our Making Local Food Work Programme, including Local Shops and Local Food, Specialist Enterprise Support and Skillshare.

Community-owned shops are subject to the same rates of corporation tax on taxable profits as any other commercially trading company. Taxable profits are not the same as accounting profits so this may provide some room for manoeuvre. Taxable profits may be reduced by gift aiding charitable donations or spending on improvements in the shop. Any taxable profits retained by the company for further improvements will be subject to corporation tax.