Key facts

Getting involved in trading can provide a number of benefits but it is important to remember that trading is not for everyone

  • Income from trading is unrestricted - it can be used to meet an organisation's needs rather than being specific to an individual grant funded project
  • Increased independence - unrestricted income can help to drive growth and further an organisation's independence
  • Refreshment of skills - fostering an entrepreneurial culture and developing skills such as marketing, negotiation and financial management
  • User involvement - often allows service users and other stakeholders to be involved in planning of service delivery
  • Efficiency - maximising infrequently used assets to generate an income (e.g. room space or equipment) 

Key facts about trading: 

  • Some organisations decide to trade solely to generate profit but others trade to secure a profit and to further their aims, objectives and mission at the same time.
  • Organisations will not be told by a consumer on how the profit from their purchases should be spent
  • Consumers will always have high expectations and require high standards in return for their money. Goods or services must be associated with quality provision at all times
  • All stakeholders must be signed up to the idea of generating income from trading. Considerable cultural change is often needed to develop a successful commercial approach
  • Planning is key to success. Trading activities that have been properly planned have a far greater chance of success than those which have been put together impulsively.