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Business Structure Guide

Understand your options — from sole trader to CIC.

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Why this guide exists

A CIC isn't just a legal structure. It's how you turn your lived experience into a funded, sustainable business — and get paid well doing it.

Most social entrepreneurs spend months figuring out who their community is and why they're best placed to help them. If you've been through the justice system, you already know. That's your competitive advantage. Here's what one person did with it.

Founder spotlight

Derrick Twum

Founder, MEM Academy CIC

“I founded MEM Academy CIC in 2015 while working as a personal trainer. As an ex-offender, I knew the barriers to employment better than anyone in the room — and I used that to build something funders actually wanted to back.”

What he built

  • £350,000 — National Lottery Community Fund
  • £80,000 — London Marathon Charitable Trust
  • £50,000 — Social investment, Big Issue Invest
  • £800,000+ total raised as an ex-offender PT turned social entrepreneur

“Not bad for an ex-offender, right? Your lived experience isn't a weakness. It's the reason you'll succeed where others won't even know where to start.”

Now go through the guide below — and build yours.

Section 01

Structure Picker

Three quick questions. We'll match you to a recommended structure.

Question 1 of 3

Are you planning to work alone or with a team?

Section 02

Mock CIC36 Application

An interactive practice run of the Companies House CIC36 form.

Locked

Complete Section 01 to unlock this section.

Section F

Who funds people like you — and how much

The funding landscape for lived-experience-led CICs.

There are funders who don't just accept applications from people with lived experience of the justice system — they actively prioritise them. Here's who they are, what they fund, and what they need to see.

You've already drafted your community interest statement above. You'll use it in every one of these applications.

Do It Award

UnLtd

Up to £15,000 (no repayment)

Early-stage social entrepreneurs and CICs.

Lived experience advantage

UnLtd explicitly prioritises founders with lived experience of the issues they're addressing. Your background is a strength in their assessment — not a risk.

Visit funder

Awards for All

National Lottery Community Fund

£300 – £20,000

Community projects with clear local need.

Lived experience advantage

The Lottery funded MEM Academy with £350,000. They fund what communities actually need — and a justice-leaver knows that need better than any consultant.

Visit funder

Tackling Inequalities Fund

Sport England

£10,000 – £50,000

Projects removing barriers to physical activity.

Lived experience advantage

Justice-leavers are explicitly named in Sport England's priority cohorts. Your CIC directly addresses their stated funding priorities.

Visit funder

Grants programme

London Marathon Charitable Trust

£5,000 – £100,000

Sport and physical activity with community impact.

Lived experience advantage

LMCT gave MEM Academy £80,000. They fund sport that changes lives — justice-leaver fitness programmes are exactly what they mean by that.

Visit funder

Social investment

Big Issue Invest

£50,000 – £500,000 (repayable finance, not a grant)

Social enterprises with a trading model and clear impact.

Lived experience advantage

Big Issue Invest was founded to back people the mainstream won't touch. They provided £50,000 social investment to MEM Academy. Understanding your background is core to their mission.

Visit funder

Enterprise grants + readiness support

Access — The Foundation for Social Investment

£5,000 – £25,000 plus investment readiness support

Social enterprises building toward social investment.

Lived experience advantage

Access specifically supports organisations that struggle to access mainstream finance. A justice-leaver-led CIC is exactly the profile they exist to back.

Visit funder

Outcomes-based payments

Better Futures Fund (2025)

Outcomes-based payments

Services achieving measurable outcomes for vulnerable people including justice-leavers.

Lived experience advantage

This fund pays you when your CIC gets people into work and keeps them out of the system. Your lived experience makes your outcomes more credible to commissioners.

Visit funder

Realistic funding journey

  • 1Year 1 — New CIC: £15,000–£35,000 (UnLtd Do It Award + Awards for All)
  • 2Year 2 — Established CIC with impact data: £50,000–£150,000 (Sport England + LMCT + local authority contracts)
  • 3Year 3 — Social investment ready: £150,000–£500,000 (Big Issue Invest / Access blended finance + outcomes contracts)

These ranges are based on MEM Academy's own funding journey and comparable lived experience-led CICs. They are realistic — not guaranteed. Build your trading income first. The grants follow the evidence.

Section G

What you could actually earn — in numbers

Model PT trading income + grant funding across three years.

Let's be specific. Here's what a lived experience fitness CIC looks like financially across three years — combining PT trading income with grant funding and eventually social investment.

Annual trading income

£25,920

12 × £45 × 48 weeks

Estimated grant income

£15,000 – £35,000

Year 1 · Major city

Total estimated income

£40,920 – £60,920

Trading + grant range

The dividend cap means you can distribute up to 20% of CIC profits to yourself as a shareholder on top of your director's salary. Trading income is in your control. Build it first — the grants follow.

Section H

Write your first real grant application

Mock UnLtd Do It Award — up to £15,000, no repayment, no equity.

The UnLtd Do It Award is the best first grant for a justice-leaver starting a fitness CIC — up to £15,000, no repayment, no equity. Your community interest statement from Section 2 is your foundation. Now build the application around it.

0/80 min

Be specific. Quote a statistic. Connect it to your personal experience. 'Around 50% of people released from prison reoffend within 12 months — I know because I nearly became that statistic' is stronger than any third-party needs assessment.

0/80 min

Name specific activities, not goals. 'I will run 3 fitness sessions per week for people on probation at [venue]' is better than 'improve outcomes for justice-leavers.'

0/60 min

This is your lived experience section. Be honest, be specific, be proud. UnLtd funds founders with personal connection to the problem. This is where you win.

0/50 min

Name 2-3 measurable outcomes: sessions delivered, participants, employment rate, reoffending comparison. UnLtd wants to see you've thought about impact from day one.

Go to UnLtd application

Complete every field to the minimum word count to unlock the UnLtd application link. Your draft auto-saves as you type.

Section I

People who've done it

Social enterprises built by people with lived experience.

You're not the first person with a record to build something fundable. Here are social enterprises built by people with lived experience of the justice system or disadvantage — who turned that into funded, sustainable organisations.

Derrick Twum

MEM Academy CIC

Founded MEM Academy CIC in 2015 as a working PT and ex-offender. Raised over £800,000 in grant and social investment funding — £350,000 National Lottery, £80,000 London Marathon Charitable Trust, £50,000 social investment from Big Issue Invest. MEM Academy now operates a national digital platform connecting fitness professionals with facilities and delivering self-employment pathways for justice-leavers.

FitnessJustice-leaver led£800,000+ raised

What you can learn

Start as a PT. Build the evidence that the model works. Then use that evidence to unlock the funding.

Redemption Roasters

Coffee roastery + training

The world's first prison coffee roastery — founded inside HMP The Mount. Now a B2B coffee brand supplying major hospitality chains and training prisoners in barista and entrepreneurship skills.

HospitalityPrison-basedTrading model

What you can learn

You don't need to wait until you're out. The enterprise can start inside.

Bounce Back

Construction & employment

A social enterprise employing ex-offenders in construction, cleaning and decorating. Founded by an ex-offender — now holds contracts with housing associations and local authorities.

EmploymentJustice-leaver ledPublic sector contracts

What you can learn

Local authority contracts are accessible to lived experience-led CICs — they are actively looking for providers who understand the cohort.

Fine Cell Work

Needlework + reinvestment

A social enterprise teaching needlework skills to prisoners — selling products commercially and reinvesting profits into prison programmes.

CreativePrison-basedTrading model

What you can learn

A trading model makes you fundable and financially resilient. Grants are a bonus — not the foundation.

Running a fitness social enterprise or CIC already? Share your story — we'll feature it here for the next cohort.

Share my story

Section 03

Companies House Submission Walkthrough

A read-only explainer of exactly what happens when you file.

Locked

Complete Section 02 to unlock this section.

Section 04

CIC Annual Report Simulator

Practice the report you'll file every year.

Locked

Complete Section 03 to unlock this section.

Section 05

Knowledge Check

10 questions to check it stuck.

Locked

Complete Section 04 to unlock this section.

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