How to Plan a Business Co-op
Business co-ops are autonomous organizations owned by members for the mutual benefit of all persons involved. Cooperatives are democratically run by owners and focus on the needs of members and the community as well as making a profit.
The democratic structure and member-oriented interest offers different challenges to business planning than other small businesses. Consensus much be reached among members. Some issues may require an elected body or steering committee to focus on planning, if planning by all members is not feasible.
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Instructions
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Business Organization
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1
Gather individuals that are interested in forming a co-op. Cooperatives must have the input of the members in order to be democratically run and representative.
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2
Form a steering committee or board. The members should be elected to handle the task of forming the structure and bylaws of the co-op. The committee is especially important when there are a large number of members or if few members have co-op experience.
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3
Have the committee develop bylaws, membership requirements and the structure for the cooperative. These rules will govern how decisions are made and plans are laid out. Consulting with co-op development agencies can make the process easier.
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4
Have members vote to approve the bylaws and a board of directors. With an approval vote the cooperative board is established.
Co-op Business Planning
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5
Ensure all members have the same view of the cooperative's purpose. Cooperative members should be in the same business and have similar goals of what the cooperative seeks to establish. The shared vision makes planning the coordinating co-op activities much easier.
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6
Have the members or the board sit down to write a business plan. Make sure all members have the opportunity to give input in the process.
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7
Do an industry and market analysis for the cooperatives market. Examine what competitors are doing and what the trends are. Consider how other co-ops in the industry conduct business and how non-cooperative businesses work.
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8
Develop a marketing strategy. Use information gathered and cooperative resources to promote the cooperative in the industry and marketplace.
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9
Examine the cooperative financial position and consider getting financing if needed to reach the goals.
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Tips & Warnings
Always keep members informed about business decisions and seek input.
References
- Photo Credit union image by arabesque from Fotolia.com
