6.3. A business plan

The aim of the business plan is to show that the rental and other income will be sufficient to meet the CCLH scheme’s costs over the lifetime of the loan.

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Before putting a spade in the ground to build homes, there needs to be a business plan that will enable the CCLH scheme to manage the scheme over at least the period of loan funding.  A business plan will be particularly needed for investors to the CCLH scheme.

What needs to be covered in the business plan

Issues that need to be considered in a business plan include:

  • The aims and objectives of the CCLH scheme
  • A summary of how the CCLH scheme will work
  • How the CCLH scheme will be governed, include key personnel at the outset
  • A long-term finance plan showing how the loan will be repaid, the scheme managed and asset management costs covered
  • Risk management – ie. what might go wrong and what will happen if it does


The main costs that any CCLH scheme would need to consider in the finance plan include:

  • costs of repayment of loan finance
  • public liability and other insurance costs
  • legal, audit, training, social and administration costs

Other costs that would need to be considered in a rental scheme, and possibly in other schemes dependent on how much they are the responsibility of the CCLH scheme:

  • costs of long term maintenance and replacement of components of the homes
  • costs of day to day repairs
  • buildings insurance
  • any staffing or agency costs
  • costs for homes being empty for short periods
  • bad debts for tenants who leave owing arrears

Many of these costs become the responsibility of either individual residents where they are full or shared homeowners, a housing association if the CCLH scheme grants a long-term lease to a housing association, or a management company if the CCLH scheme employs one to provide a management service. Nonetheless, the CCLH scheme will want to know that these costs are provided for.