Financial Plan

Initial Fleet Purchase

£8,000

Purchase of two working diesel buses (£4,000 each) and one parts bus (£2,000) for spares to ensure service reliability. Buses have high mileage (~800,000 km) but are operational, minimizing upfront costs.

Marketing & Legal Fees

£5,500 - £25,000

Covers legal registration of the CIC, branding, website creation, route promotion, and initial community engagement campaigns. Lower end assumes minimal online presence; higher end includes more extensive marketing.

Vehicle Infrastructure

£10,000 - £50,000

Depot setup for fueling and maintenance of 2-3 buses, basic workshop tools, initial maintenance spares, and preparation for eventual electric bus transition. Cost depends on whether a small rented depot is used or a more permanent setup is purchased/upgraded.

Initial Operating Costs

£77,400 - £100,000

Covers driver wages (£32,000/year per driver for 2 drivers), fuel (~£6,300/year for 2 buses), licensing, insurance, routine maintenance, administrative overhead, and minor contingencies. Range reflects uncertainties in maintenance and insurance costs for high-mileage buses.

Community Bonds

Raise ~£120,000 via local residents. Bonds offer 5% annual interest over 10 years, creating a shared ownership model and covering the majority of startup costs including fleet purchase, depot setup, and initial operations.

Tendered Route Revenue

Guaranteed income from council-contracted routes. Initial operation covers 2 buses on 1 tendered route around Weston-Super-Mare. Ensures stable cash flow for Year 1.

Total Startup Funding Needed

Total funds required to launch: £111,000 – £201,300. Covers fleet purchase, depot setup, staffing, marketing, and initial operating costs with 10% contingency.

Depot

Small facility sufficient for 2-3 buses. Fueling, overnight storage, and routine maintenance done in-house to reduce costs. Future expansion planned for electric charging infrastructure.

Staffing

Two drivers for initial 2 buses. Add additional drivers as fleet expands. Part-time admin and maintenance staff included. Driver scheduling optimized for morning/evening peak loops.

Insurance & Licensing

Operator license £209/year. Liability and vehicle insurance estimated closer to launch; budget includes contingency. Roadside assistance managed in-house to reduce costs.

Breakdowns & Maintenance

High-mileage buses (~800,000 km) may need repairs. Spare parts bus ensures operational continuity. Routine maintenance scheduled weekly; minor breakdowns managed in-house.

Fuel Costs

Each Optare Solo consumes 7.4 liters of diesel per 100 km.

• Annual distance per bus: 25,000 km
• Fuel used per bus: 25,000 km × 7.4 L/100 km = 1,850 L/year
• Fuel cost per bus: 1,850 L × £1.70/L = £3,145/year
• Total for 2 buses: 2 × £3,145 = £6,290/year

Year 1

Operate 2 buses on council-tendered routes only. Focus on building operational reliability, community trust, and cashflow. Save profits for fleet expansion. Target coverage: Weston Loop, Seafront Loop, Woods Loop as trial routes.

Year 2

Acquire additional 2 buses using profits/community bonds. Expand driver team and route coverage. Marketing and community engagement increases.

Year 3

Expand fleet to 5-6 buses, fully operational on tendered routes + loops. Plan electric bus transition for 1-2 buses. Aim for break-even by Year 4.

Affordable Transport

Provide reliable, low-cost transport alternatives to car ownership. Fares capped at £3 per journey in line with government guidelines.

Job Creation

Employ drivers, maintenance staff, and administrative support. Potential expansion creates additional local employment opportunities.

Environmental Impact

Reduce emissions over time by replacing diesel with electric buses. High-mileage diesel buses initially used to minimize purchase costs, with planned electric transition.

Local Investment

Community Bond Scheme allows residents to invest in transport infrastructure, aligning financial and social returns, fostering community ownership.