Social enterprises are businesses, and as such, you should have some capital right from the start to cover certain expenses. These include:
Companies House registration: Charitable companies and CICs typically need to be registered with Companies House. This can cost between £27 to £40.
Charity Commission registration: In addition, charitable companies earning over £5,000 annually and CIOs need to file their business with the UK’s Charity Commission. Registration is free of charge.
Office space and equipment: You may be able to set up the business at home, to begin with, but as it grows, renting office space or premises may become a necessity. Unincorporated charities cannot lease premises. Office equipment such as a telephone and a laptop should also be included in any preliminary budget calculations.
Staff: If your charity scales successfully, you may have to hire staff to help you manage daily tasks. An estimated 91% of UK charities rely solely on volunteers to help them whilst 9% pay employees. If you are an unincorporated charity, you cannot hire employees.