Starting A Cooperative

Getting Started

The following are issues to consider when getting started:

• Is there an economic and/or service need for the cooperative?
• Are the services you are looking for otherwise available?
• Is there a cooperative already in place which could serve your needs?
• Can you put together an organization that will have a sound economic base?
• Do the organizers understand or have access to those who have had experience in organizing a cooperative?
• Are you willing to accept risk and take leadership in accomplishing your objectives?
• Do you have the dedication and time to follow through?

Going Ahead

• The initial organizers need to seek out other people with the interest and skills necessary to transform their ideas into a functioning co-op.
• Select leaders carefully and determine who shall serve as the lead organizer.
• Do your homework
• Identify purpose of the co-op.
• Identify the potential membership base. (Who will the co-op serve?)
• Analyze potential for business success. (What are the financial benefits to members?)
• Define how the operations will work. (Prepare a Business Plan)
• Develop a yearly operating plan and budget.
• Create a capitalization plan. (Include finance sources and costs)
• Determine staffing needs.
• Identify startup costs.

Dealing with Red Tape

• Select competent legal and accounting professionals to help put the organizational structure in place.
• Develop a legal structure that will enable you to accomplish your objectives (Articles of Incorporation and Bylaws).
• Agree on a governance structure which provides equitable treatment to all members.
• File all documents necessary to meet legal requirements.

Operating the Cooperative