Advice on Creating Local Authority and other Public Sector Companies

Local authorities and other public organisations are responding to budget cuts by setting up local authority companies. Staff are transferred from the local authority, which is the company's only customer and the services provided by the new company may in the future be put out to competitive tender. We can use our experience of creating local authority companies to help you.

We can help you in the following ways:

Defining Company Objectives: Company objectives need to be as broad as possible. This enables the local authority or other body to transfer other activities to the company in the future if it wishes to. It also allows the activities of the company to evolve over time. Companies with narrow objectives are at far greater risk of failure. We can help you work through these issues.

Producing a Strategy and Business Plan: The new company will need a business plan setting out its activities, staff and other costs and income and expenditure for each activity. Financial projections need to be produced monthly and annually and performance monitored against these. We can help in plan production and in devising ways to ensure that there is effective financial management.

Creating the Company Structure: The legal structure of the company is important. A company limited by guarantee cannot distribute surpluses, although it can repay loans. One limited by shares provides the option of selling shares to the staff of the company, bringing in an external partner or selling the company completely. Our practical experience can help you in deciding on the best model for you.

Auditing Staff Skills: Managing and working within a local authority company requires a different skill set from working within the local authority itself. An ability to deliver activities within a prescribed budget becomes much more important. In addition entrepreneurship training is useful in order to introduce basic business concepts to staff. We can help you address these issues.

Asset Transfer: Transferring assets to a local authority company is a way of creating a capital base for the company, against which it can borrow. However this is only worth considering if the assets being transferred have real value.

Ongoing Support: We can offer ongoing advice and support as and when you need it, in order to help you overcome problems when they arise. Utilise our experience to help you achieve your objectives.

Contact Us

Call us today on 01384 259308 or email info@geonomics.co.uk. Alternatively please use our Contact Form 

Geonomics Ltd, 105 Liberty Place, 26-38 Sheepcote Street, Birmingham B16 8JT. Company Registration Number 6297158.