Money money money… The potential and pitfalls of generating income
It’s one of the trickiest areas the Future Parks Accelerator is grappling with. Mollie Dodd, FPA’s Commercial and Business Development Consultant, is helping our places think about opportunities to generate income.
Mollie Dodd in a workshop with some of our cohort at our event in October 2021
FPA website blog, December 2021
Words from Mollie Dodd, FPA Commercial and Business Development Consultant, edited by Claire Graves, FPA Advisory Services Manager
“I really believe that commercial income generation could be a significant part of funding for most Local Authorities. Reticence to fully explore opportunities comes, I think, from concerns around perception; an income stream, such as catering, can be seen as ‘too commercial’ or the approach to how it is managed as ‘privatisation’. However, if we look at other benefits that could also be realised from that income stream or development, such as the creation of jobs and volunteering opportunities as well as various community initiatives that we can tie in, then we start to see a more holistic picture of how so-called commercial ventures can contribute not only financially but can help meet local authorities’ aims and objectives in other ways.
The key to achieving maximum income generation is confidence and real belief in the development or changes and the realisation of those wider benefits; the ‘buy-in’ from all levels has to be there to enable successful delivery and result. Nervousness about being seen as too commercial can undermine projects. Getting the buy in from the start is so important and ensuring that internal teams feel comfortable and even excited about exploring opportunities before any external consultation is considered will ensure a smoother approach.
Procurement and ‘red-tape’ can also get in the way, but the bigger challenges come in the form of changing leadership and priorities. Short-term thinking, driven by political timetables, can make it hard to pursue strategies to achieve long term sustainability and create something meaningful for future generations. This can also be off-putting for investors or potential partners who want to see that their investment will be realised and need confidence in a long-term view.
The investment required can be a barrier, this can be seen really early on in terms of time and resources. Local authority staffing structures don’t always allow for fully focused commercial roles which can mean the necessary skills sets are lacking or just that people struggle with capacity. One thing I have heard many times is that people don’t know where to start with commercial elements; they don’t know what they don’t know, so they need commercial expertise to help them form a direction of travel and road map for how they approach the process to start with.
There’s a proven dedication in our FPA places to exploring how to break these challenges down and we’re starting to see the benefits of that. Teams have shown real commitment to looking at things differently and being innovative, this, along with an approach that starts with considering the bigger picture, the long term aims and the audiences, will mean they really benefit from the biggest slice of pie.
The FPA places have really opened my eyes; do people realise and appreciate how many green spaces we have and what benefits they can bring? Or do we take it for granted, even though we’ve used them more during lockdowns? I think there are pockets of places and people that really value these spaces and want to offer support, but how can this be harnessed in a way that the local authority can manage and that is also sustainable?”
Watch this space…
