Evaluating the Success Factors for Establishing a Thriving - Scottish ...

1.13 Early attention was paid to the structure and governance of the Trust.
Measures were taken to ensure the Trust’s board was robustly constituted and
accountable to the wider community. In late 2004 the Trust also formed North
Harris Trading Company Ltd to take forward new business ventures (principally
energy projects), while safeguarding the Trust’s charitable status and
minimising its exposure to risk.
1.14 With a robust structure in place, the overriding priority for the Trust was to
deliver on its stated purpose and to cultivate a range of earned income streams
from the land and assets in its ownership. It explored all options and
demonstrated a willingness to assess all business ideas on their merits.
1.15 Agency partners have highlighted the early, open, positive, and proactive
engagement on the part of the Trust, leading to the exploration of new
opportunities and subsequently a very productive and mutually beneficial
working relationship.
1.16 The decision was taken to concentrate initially on eight main areas of potential
that were identified in the feasibility study from the previous year:
• Whaling Station
• Property
• Energy projects
• Leases
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• Land management
• Crofting development
• Deer herd
• Land release
1.17 These areas of focus were consistent with the business case set out in the
Trust’s earlier feasibility study and business plan. This highlights the
importance of investing sufficient time in advance of start-up to establish a
robust business plan.
Early organic growth
1.18 The Trust was established with a strong ethos of self-reliance and a strong
focus on achieving financial sustainability. There was a collective
understanding that it was important not to become over-reliant on short-term
funding from others, as the community had relied on the benevolence of
absentee landlords in the past.
1.19 In its early years the Trust followed a business strategy based on what has
been described by staff members as “organic growth”. This meant:
• progressing small-scale projects likely to generate new income and become
self-sustaining after a period of up to three years of grant subsidy;
• taking on new ventures only when resources permitted, with financial
‘prudence’ the watchword; and
• only taking on activities that were likely to generate a ‘social return’ for the
community, and which commanded clear community support.
1.20 While this approach meant that visible achievements were not seen quickly by
the wider community as some projects took time to come to fruition, the