1. NW Co-op Development Center
Co-ops 101
Peoples Food Co-op
Mar. 13th
, 2013
Eric Bowman, Cooperative Development Specialist
eric@nwcdc.coop
1063 S Capitol Way # 211
Olympia, WA 98501
360.943.4241
2. Presentation: Co-ops 101
1. Intro
2. Overview and History
3. Co-op Economy and Models
4. Development Process
5. Resources
6. Q&A
3. NWCDC
The Center
a 501(c)3 nonprofit which provides development services
for new and existing co-ops
Our mission
to foster community economic development through the
co-op business model
We’re
a team of co-op developers with skills specific to start-up
and organizational business development
6. Co-op Role
U.S. Facts:
– 250 purchasing co-ops procure for 50,000 businesses
– 3,000 farmer co-ops market 30% of farmers’ products
– 8,000 housing co-ops provide 1 m homes
– 7,500 credit unions provide services to 90 m members
– 1,000 rural electrics operate ½ the nation’s distribution
– 29,000 co-ops serve 43% of the population
Top 100 co-ops’ 2010 revenues = $194 Billion!
7. Internationally Recognized Principles
1. Voluntary and Open Membership
2. Democratic Member Control
3. Member Economic Participation
4. Autonomy and Independence
5. Education, Training and Information
6. Co-operation among Co-operatives
7. Concern for Community
12. Why form an entity?
Creating:
• Something bigger and beyond oneself
• Economy of scale
• Solid foundation for growth
• Legitimacy
• Commitment
• Limited liability
• Formal structure to work together
13. When not to form…
• Too small to cover admin
• Dependant on volunteer and/or grant
• Less than 3 members
• Don’t need structure
• No compelling economic need
14.
15. Estimated Timeline
• 6 to 12 months (or more for each):
1. Organizing
2. Planning
3. Implementation
• Total of 1 ½ to 3 years
16. Co-op Development Stages
• Identify a need a co-op could
meet
• Form Steering Committee
• Research Feasibility
• Review Findings (Go/No Go)
• Membership Drive
• Planning and Financing
• Begin Operations (Go/No Go)
Project LifecycleProject Lifecycle
17. Co-op Development Stages
• Identify a need a co-op could
meet
• Form Steering Committee
• Research Feasibility
• Review Findings (Go/No Go)
• Membership Drive
• Planning and Financing
• Begin Operations (Go/No Go)
How We Assist
• Facilitate identifying mission and
goals
• Train founding Board members
• Market and feasibility research
• Assist with organizing
• Professional, 3rd
party perspective
• General business consulting
Project LifecycleProject Lifecycle
19. Organizing
• Form committee
– A “proto board”
– May or may not be potential members
– Role is:
• Advisory
• Exploratory
• Planning
• Networking
• Visionary
• Fundraising
22. Planning & Feasibility
• Studying:
– Technical
• Location, management, etc.
– Economic/financial
• Projections on profit and loss, cash flow, start up
– Market
• Competition, sales, etc.
23. Feasibility
• More risk = more complex research
• Industry specific
– e.g. food co-ops: market analysis
• Who wants it?
– Potential members may
– Lenders
– Member lenders/investors
26. Membership Drive Phases
1. Highly motivated early adopters
2. Friends, family and fools are super easy
3. Tap out networks
4. Community organizing and it’s uphill
– It’s P.R., outreach, communications, etc.
– Need a plan
– “Political campaign without an election”
27.
28.
29. Resources
1. How to Start a Food Co-op; CGIN
2. How to Start a Cooperative; USDA
3. The Worker Cooperative Toolbox; NCDF
• Resources/toolboxes
– Food Co-op Initiative
– US Federation of Worker Co-ops
• Magazines
– Cooperative Grocer
– The Cooperator; Co-op and Condo monthly
30. Thank You!
Eric Bowman
eric@nwcdc.coop
Northwest Cooperative Development Center
1063 Capitol Way S # 211
Olympia, WA 98501
360.943.4241 | www.nwcdc.coop
Fostering community economic development through the
cooperative business model
Hinweis der Redaktion
<Remember: slooooooowwww and be natural> I appreciate the opportunity to be here… Very timely event!
<Go slow>
<…slowly…> Intro self and sectors
What does this mean: the equity owners of a co-op are the same people who: - democratically govern the business thru 1-member = 1-vote - are the beneficiaries of the services provided
Building blocks of economic cooperation Authority: - basic authority and responsibility imposed by law, in other words the incorporating statute - Bylaws and policy provide guidance and clarify authority Ultimate authority from 2 places: Comes from members and this overall system The co-op is theirs and without their desire to create and perpetuate co-op, the board wouldn’t exist Members place their needs, trust and Board of their choosing.
<ehm, breath> Co-ops are dynamic and relevant in today’s economy
<are you going slowly enough> Co-ops are defined by ownership In this collection of cooperative business’s logo’s, I see groups of people who had a need: - they could not meet individually and - which was unfulfilled by the traditional investor-owned private sector
<S.L.O.W.> Because co-op businesses are: - comprised of the community - they are representative of the community - and they are a part of the community Co-ops: - Keep profits, ownership and control local - Are less vulnerable to take-over and closure by outside decision-makers ; often stay long after others leave - Are trusted business partners; people like to deal with the producer Co-ops have an innate edge on investor-owned corporations and they have an opportunity to sell it!