The Co-op Federation

The co-operative model business plan

This appendix provides a model business plan outline. Make the plan your own. Your cooperative is unique in many ways so you don’t want the business plan to look just like everyone else’s; you want it to be an expression of your co-operative’s unique structure, products, plans, principles, values, environment and people.

coop business plan

The business plan itself does not need to have all the sections listed in the Table of Contents below, but you should put some effort into every section listed in it to have the co-operative well prepared before it is open for business.

Following the title page, the business plan should, at a minimum, have an executive summary, co-operative overview, market analysis, and plans for marketing, operations, production and finances.

coop business plan

Executive summary 

Write the executive summary after you have finished the rest of the business plan. It’s an overview of the business plan, highlighting the main points and putting them into context. Consider organising the executive summary in the same order as the business plan.

The executive summary is placed at the start of the business plan to entice the reader to read the entire business plan, making it one of the most important sections.

It is not new information; it is a summary of information which is discussed in more depth throughout the business plan.

The executive summary should be able to stand on its own, and succinctly explain in one or two pages the distinctive characteristics of the co-operative and its products and why it will be successful.

It may include:

  • the reason(s) the business plan has been written
  • an overview of the co-operative and its market opportunities
  • a description of the products or services
  • a summary of its expected financial performance.

Complete it with conclusions and recommendations and a summary of how you’ve arrived at your conclusions.

Another way of looking at what the executive summary says is: What is the problem? What is the solution? What will be the outcomes?

Introduction 

This section provides background information about the co-operative and could very briefly describe the co-operative type, when it was formed, who formed it and why, its location, mission, vision, values and principles, objectives and strategy to achieve them, industry, products and services, target market, development stage and achievements to date, summary of members and management, and capital raised to date.

The mission statement should say what you do, how you do it, and why you do it.

The vision statement should be somewhat loftier – describing what you want the co-operative to be in the long-term; it should be a “planned wish”.

The objectives state what the co-operative wants to achieve, usually within a certain timeframe, and are guided by the mission and vision. Objectives are business, social and financial objectives. They should be measurable, and there should be both short-term and long-term goals.

Values are statements about why the co-operative is in business, and who it serves. Values consider the social and environmental factors which the co-operative will be mindful of in achieving its objectives.

The introduction may also explain why the business plan is being written, and for whom. If it is written to support an application for finance include the name of the bank or other financier, the amount of funding sought, the term of the loan, the use of the loan, how it will be repaid, and the security the co-operative will provide.

Make it brief; one to two pages should do.

The co-operative 

Co-operative structure

Outline the co-operative’s structure. Remember that many people do not understand the democratic and social principles of co-operatives, so briefly explain how it works, its rules, and how it will support your business and social objectives.

Describe the location, size and capacity of premises and any warehouse facilities. If the premises are leased state the cost of rent and length of the lease; if they have been purchased, state the value of the property. Explain how long the co-operative has been at the premises, if there is a strategic advantage in its location and, if any renovations or extensions are required, what they will cost.

Registrations and licences

List the registrations and licences that the co-operative has. If others are needed, explain what they are and when they will obtained.

Describe the insurance that the co-operative has and will be getting. It could include cover for premises, contents, workers’ compensation, liability, professional indemnity, business interruption, and motor vehicles.

Plant and equipment

Itemise the plant and equipment that the co-operative has and needs. If the business plan supports an application for funds, explain the importance of acquiring the equipment and provide details of quotes for their supply and installation. Consider listing the equipment in two tables: the first table showing the equipment already acquired and its cost and written down value; the second table listing equipment to be acquired, its value and when it is planned to be purchased or leased.

Products and services

In simple terms, describe the features of the products and services the co-operative currently provides, and those to be developed in the future. You may like to include photographs. Explain how they are different to others available in the marketplace, and why customers will buy products or services from your co-operative instead of from a competitor.

Describe the key components or raw materials used in making products, where they come from, and whether there are any restrictions on supply or agreements with suppliers. If there are likely to be price fluctuations, you might explain how they will be dealt with. You may wish to explain if there is a backup supplier available.

If it’s a new product under development, explain the progress made in research, product design and development, what tests are required and have been done, and any regulations applicable or licences or approvals that are needed. List any intellectual property protection sought to avoid duplication by competitors. Provide a timetable.

If there has been product testing in the marketplace, explain the results. Describe plans to upgrade the product or service or increase the range on offer. Describe quality assurance controls to be instigated.

If the co-operative provides a service, explain what it is, why it is needed, and how it is or will be delivered, monitored and improved.

If you have a product inventory, list the items in a table, or include an inventory list in the appendices.

coop business plan

You may wish to include here how you are going to minimise shrinkage of inventory due to theft, damage, loss or accounting errors.

Current performance

If the co-operative has already been trading, include a short summary of the co-operative’s turnover, gross profit and net profit for the current year and last year. More detailed information will be put into the financial section of the business plan. If the co-operative hasn’t begun trading yet, use the projected financial figures.

Members and directors

If the business plan is being written to assist you to ask for finance, use this section to show that the people who own and run the co-operative are competent and qualified. Give an overview of the number of members, active membership provisions, who the directors are, and the offices they hold.

Include a summary of their skills, qualifications, experience and industry knowledge. Consider including résumés in the appendices.

Key personnel

If you plan to engage employees or already have staff, list the positions, names (if already employed) and skills of employees, and whether their employment is full-time, part-time or casual. Résumés for managerial positions could be included in the appendices. If your cooperative is fairly large, draw an organisational chart which shows who reports to whom, and the positions they hold, and include it in the appendices.

Co-operative advisors

Include the business names and addresses of professional advisers who have helped to establish and grow the co-operative. These might be bankers, solicitors, financial advisors or planners, insurance agents, accountants, chambers of commerce, another co-operative or a co-operative peak body. This section shows that your co-operative is supported by a professional  team.

Risk management

List the risks, in order of likelihood that they could occur, that the co-operative faces. State the impact the risk could have, how likely it is to occur, and what action you will take to prevent or minimise the risk to the co-operative. Key risks may include property damage, theft, electrical outages, pollution, legal liability, injury, loss of data, shifts in the economy, loss of customers, loss of suppliers, security, theft of copyright or inability to raise capital.

Operational plan

A new co-operative should explain how the co-operative will be run: the daily routines, people and functions that will make the co-operative run smoothly and successfully. Keep in mind the democratic nature of your co-operative and its social purpose; make it the focus of your actions. Directors and managers should use the operational plan to lead and inspire members and staff.

Break your operational plan down into actionable steps so it will easier to implement. Identify what each task is, who will do it, when it will be done by, and how you’ll know it has been done. Attention to detail will make the co-operative’s operations run more efficiently.

The operational plan might include ways in which you intend to devise and implement operating, accounting and management systems required for the first year of activities. Plan for staff selection and recruitment, duties and salary policies, performance monitoring, training, health and safety policies, technologies, record-keeping, banking, taxation, accounts payable and receivable, meeting legal obligations, finding suitable premises and office equipment, use of professionals, service to customers, orders and delivery management, promoting innovation, further research and development, meeting schedules, developing a co-operative culture, appropriate management style, working with members and directors, conflict resolution, compliance with regulations and inspections, and alliances with other co-operatives.

Existing co-operatives will need to consider many of the same issues, but have the advantage of having procedures already in place. They should develop an operational plan to improve the day-to-day operations of the co-operative, reduce overheads, plan for growth, alleviate risk and increase efficiency.

Production plan 

The production plan will describe how the co-operative will manufacture, procure products or provide services, and provide the final product or service to customers.

It will describe:

  • the complexity of the manufacturing
  • the equipment and tools required
  • the cost of raw materials and labour per unit
  • the cost to produce a product or deliver a service
  • the number of hours of production daily or weekly
  • the number of units to be produced or the number of services to be delivered
  • average selling price
  • managing inventory levels
  • forecast number of days stock is to be held
  • cost control
  • manufacturing staff requirements
  • source and delivery partners and contract terms
  • the time taken to produce the required stock levels
  • environmental plans
  • disposal of waste.

Quality assurance is crucial, whether the co-operative is providing a product or service. The co-operative relies on the loyalty of members and/or customers for repeat orders, so it needs to provide value for money and consistently high quality products or services. A strong quality assurance system will consider employee motivation and skills, standards and testing, feedback from customers, and minimising waste and product returns.

The market 

This is an important section of the business plan, as it demonstrates that you have done your homework and it is likely that your product or service will be accepted by customers. There’s not much point in having a great product if you don’t have a market.

Much research is involved: you’ll need to understand who your customers will be, what will make them spend their money on your products or services, who your competitors are, what environmental factors could affect you, and how you are going to sell and promote your product or service. There are many places to go for information – try the Australian Bureau of Statistics, government departments, councils, Regional Development Australia, trade and professional associations, chambers of commerce and consumer organisations.

Find which ANZSIC code is used for your business. ANZSIC is used by the government to produce and analyse industry statistics. ANZSIC codes for all industries are found at www.abs.gov.au .

An industry sector contains a range of other businesses which supply similar services or products. Provide an overview of the industry sector the co-operative is in, such as the size, growth, key clients and markets, the largest providers, and demand and supply trends that affect the industry now, or may in the future. Describe any other relevant factors that drive the industry, such as innovation, regulations, seasons, financial and technical issues, distribution and supply and whether the industry is new or mature.

Provide a summary of where the co-operative is positioned within that industry, and its vulnerability to competition and trends.

The environment

Describe important trends and issues that could affect your co-operative’s operations and identify how you plan to deal with them.

Issues may include changes of government, international relations and trade, employment, environment and competition regulations, taxation legislation, new policies and laws, consumer protection, and industrial relations.

Issues may include interest rates, government spending, consumer confidence, unemployment, exchange rates, inflation, national and state economic growth, global economic outlook, materials availability, import substitution and skills shortages.

Issues may include demographics, education, standards of living, multiculturalism, housing availability, fashion, health awareness and income distribution.

Environmental

Issues may include environmental awareness, waste, pollution, energy, climate change and water.

Technological

Issues may include efficiencies, obsolescence, NBN, costs, savings, research, innovation and social networks.

Market research

It’s crucial to understand the marketplace and your customers, whether they are likely to buy the co-operative’s products or services, and possible ways to motivate them. There are two types of research you can do that will help with this: primary research, done by observing competitors, meeting with potential customers, or by survey; and secondary research, which is gathered from existing data.

What you will research will depend on what your products and services are, who your customers are, where your market is, and the level of competition in the marketplace.

Your market research might include:

  • customer profiles and characteristics – age groups, gender, occupation, income, location, buying habits
  • customer preferences, needs and expectations
  • target markets
  • the customer fit, and demand for products and services
  • your fit, barriers to entry and influence on the market
  • product specifications, acceptance and new opportunities
  • product pricing and sales forecasts
  • market size (units and value)
  • market growth and trends
  • market segmentation and definition
  • competitor analysis
  • advertising and promotional opportunities
  • seasonal variations
  • methods of distribution.

Describe the research you have done, and what it has revealed.

Competitors

Do not underestimate your competition. You need to understand and describe who your competitors are and the effects they will have on the co-operative’s business. Provide details of their market share, resources, products and target market, strategies, strengths and weaknesses.

Explain where the co-operative fits within the industry, what level of market share you expect, any barriers to entry and how you will address them.

Also describe how the competitors are likely to react at your co-operative’s entry into the market and the co-operative’s response strategy.

Competitive advantage

Describe what is different about your products or services compared to those of competitors. Explain why customers are likely to buy enough of your products or services to make the co-operative sustainable.

  • Do you have a different target market?
  • Is there an unmet need in the target market you can fulfil?
  • Do you offer something different or new?
  • Does your product or service have superior quality or features?
  • Will the co-operative advantage work for you?
  • If your product or service is unique, describe difficulties competitors will have in copying it, giving a lead time from product launch to when a competitor can duplicate your product.

coop business plan

List the co-operative’s internal strengths and weaknesses.

Then list the external factors that could affect the co-operative’s activities – the opportunities (e.g. market trends) and threats (e.g. competitors, economic uncertainty).

Describe how you can capitalise on the strengths and opportunities, and reduce the effect of weaknesses and threats.

Target markets

Describe the target markets for your product or service. Who are your customers? If you already know who they are, list the major clients if they agree to this information being made available to external parties. If you don’t have major clients, or there are potentially many of them, you should define the markets you will be selling to.

How have you identified your target markets? What are the characteristics of the target markets? Are your customers a certain age or gender, do they live in a particular location, have a certain type of job, ethnicity or income level? Are they members of the co-operative? What are their needs and preferences? How big is your target market? How often will they buy from you? Why and how will they buy your product or service? Are they end-users?

Consider if there are different segments to your target market. For example, would both students and professionals buy your products? Each segment may have different needs, and may be willing to pay different prices. If you understand the needs of each segment, you can adapt your marketing mix to provide what each segment wants.

Product pricing and terms

In determining the prices of your products or services, consider the costs to produce, or to deliver services, your customers’ sensitivity to the price and to price changes, and what the price reveals about the product’s value or quality. Will you offer quantity discounts, or discounts for repeat sales? Will co-operative members receive a discount or rebate?

Describe the expected payment terms for customers, e.g. direct customers pay cash while distributors and members pay within 30 days from invoice date.

Product sales, margins and distribution

If your co-operative is new, estimate the number of products or services to be sold in the first year, and consider using a table to show your estimates. If the co-operative is already established, use both past and projected performance levels. You may wish to break the table down into weeks or months. The table can form the basis of sales volume records and pricing over time, and identify changes to help you to plan future sales targets and purchases of raw materials.

coop business plan

Describe how your products will be distributed – whether through direct sales, online marketing, direct mail, agents, wholesalers, representatives, retailers or consignments. Describe commissions or other fees involved.

Estimate the cost of other expenses such as shipping, warranties, contracts and liabilities.

Strategic alliances

List strategic partnerships the co-operative has, or plans to form, with other co-operatives or businesses.

These may be to work together in major ventures, or on market access, supplies or other resources. Provide information about the arrangements.

List key suppliers, and describe their history and reliability, location, what and how much they can supply, credit policy and delivery details, and the cost and availability of materials.

Marketing plan 

Explain your marketing objectives – what you aim to achieve and what you will do to achieve them. Ensure they can be measured and evaluated. An example might be “to obtain 20% of market share by the end of the first year”, or “to ensure 50% of our target market recognise our brand, and 10% buy our products”. Then determine what marketing activities will help you achieve your aim.

Determine your marketing strategies and activities for each month of the first year to create awareness and sales. This is your marketing mix, and relates to product, place, price, promotion, people and process.

Product strategy : consider the products’ qualities, consistency, features, adaptability, packaging and design, how the customers will perceive the products’ features, and how you will market them.

Place strategy : consider distribution channels, location of retail outlets, the geographic area your products will be available in.

Price strategy : consider the selling price to various customers and markets, including discounts for quantity and early payment.

Promotion strategy : consider what advertising, selling, sales promotion, trade shows, website, media and public relations activities you will undertake to differentiate your product and make consumers aware of your product or service.

People strategy : consider who will sell the product and delivery it. People may include staff, strategic partners and agents.

Process strategy : this is the strategy where you plan, target, cost, develop, implement, document and review the systems to attain the other aspects of the marketing plan. You’ll plan to have the right product, in the right place, at the right price, in the right quantity, at the right time for the right customers.

The finances 

Often the last part in the business plan, the finance section is important as it demonstrates the likely financial viability of the co-operative, and is vital information for anyone considering investing in the co-operative.

It shows what financial resources are needed to set up and operate the co-operative, forecasts of the co-operative’s performance based on expected sales levels, and it details the timing and the amount of investment needed from external sources.

Commencement capital – new co-operatives

List the amount of capital that has been raised and will be raised from members, and funding confirmed from other sources.

List the costs to start the co-operative (below) in a table, and show the month when the costs are expected to be paid.

  • Set up the co-operative: these costs might include accounting and legal fees, registration of the co-operative and domain name, website, insurances and licences.
  • Set up the premises: these costs might include a bond and advance rent, fit-out, electricity connection, telecommunications connections and stationery.
  • Purchase plant and equipment: these costs might include machinery, tools, office furniture, vehicles, telecommunications, computers and software.
  • Start of operations: these costs might include advertising, raw materials and supplies, wages, interest – and working capital to tide the co-operative over until it trades sustainably.

Subtract the set-up costs from the confirmed capital raised; the balance is the amount of borrowings you will require.

Financial objectives

List the co-operative’s financial objectives and how long you expect to take to achieve them. These may be profit targets, investment levels, returns to members and debt repayment.

Assumptions

Explain the key assumptions made in developing your financial forecasts:

  • sales and purchases forecasts
  • the time it will take to collect from debtors
  • the time it will take to pay creditors
  • interest rates
  • time between manufacture and sale
  • timing of member contributions
  • timing of external capital injections
  • increasing membership.

If the co-operative has already been trading, describe its financial history, including equity, debt and profit levels.

Include at least four key financial ratios:

  • Debt equity ratio = total liabilities/members’ equity
  • Return on investment = % of interest over total loans received, and % dividend over members’ capital injected
  • Break-even point = the sales volume level where revenues and expenses are equal and provide no profit or loss. This will change each year with changes in costs, income, and interest levels.
  • Working capital = current assets – current liabilities

Monthly cash flow forecasts

The cash flow forecast demonstrates how and when cash comes into and goes out of the co-operative. Hopefully it also shows that income from sales will pay for bank loan repayments and other expenses. It will show you when you need an injection of cash to cover monthly bills, and when you need to conserve cash to pay for upcoming bills.

For the first year of trading, present monthly cash flow forecasts. After the first year, show yearly forecasts for at least two years.

coop business plan

Monthly income and expenditure forecasts

Also called profit and loss forecasts, and forecasts of financial performance, income and expenditure forecasts show the co-operative’s projected income less expenditure, resulting in a profit (or loss) over a specific period of time. For the first year of trading, provide monthly or quarterly forecasts, and annually for the following two years.

Just a few quick tips for the financially challenged – income is usually from sales, and expenditure is usually the costs to run the co-operative and interest payments. Loans (liabilities), purchased equipment and inventory (assets), capital injections from members (equity) are all items for the balance sheet.

When you receive an invoice it is an expense, even if you haven’t paid it yet; so it is shown in the month the expense was incurred. Show all items as GST exclusive (i.e. without GST).

coop business plan

Balance sheet forecasts

The balance sheet, also known as the statement of financial position, shows the co-operative’s net worth at a particular point in time – usually the last day of the financial year. Assets are usually objects and cash the business owns, liabilities are usually debts owed, and equity is the capital contribution and accrued profits. Assets minus liabilities equals equity.

Provide balance sheet forecasts for three years.

coop business plan

Financial plan

Describe your plans for the co-operative’s financial viability. What is the total investment required for start-up? What are your short and medium-term investment plans? Where will funds come from? Have they been confirmed? How much comes from each source, and what conditions do funds come under (e.g. interest rates, repayment terms)? What security is offered?

When is the co-operative expected to make a profit? What level of sales is required to make a profit? When will members see a return? How much are profits expected to grow each year? How will costs be kept down? If non-distributing, will you retain surpluses, and where do you plan to donate excess surpluses?

Do you have an exit strategy?

A note on financial management

This note on financial management is not meant for inclusion in the business plan, but nevertheless is very important. (A summary of the financial management systems used could be included in the financial plan.)

Members (and investors) need to know how the co-operative is performing and need to receive regular accurate reports. Systems must correctly identify, measure and communicate financial information.

You need to understand and abide by accounting principles.

Complete, accurate, and up-to-date financial records must be kept. These may be handwritten, or on computer spreadsheets, but we recommend that unless the co-operative is very small, you should use financial software. Such software doesn’t replace an accountant, but usually knows what to debit and credit, and has a useful help function.

Develop strong systems for handling cash. Provide numbered and dated receipts for money received. Provide numbered and dated invoices (tax invoices if the co-operative is GST registered) for purchases and to others who owe you money.

Every month, reconcile your expenses paid and income received with the bank statement. Produce a balance sheet and profit and loss statement to help you keep an eye on finances and to allow you to plan and control the co-operative. Watch your creditor and debtor levels; ensure you collect money owing and pay expenses when due.

The strategic plan

A strategic plan is usually a long-term plan for the next three to five years. It explains the goals and objectives to be reached, and the path to achieve them. It’s a bit like a GPS for a very long journey, if you zoom out and ignore the minor roads.

Focus on a small number of key priorities. Too many priorities will mean you lose focus on the major objectives.

Make the priorities easy to translate into action plans, and have clear timelines to achieve outcomes.

Information that might distract from the business plan’s flow should be included as appendices. Provide a summary of the information within the business plan, and more detail in the appendices. It’s also a good place to include information that is not part of the business plan. Start a new page for each appendix.

Appendices might include the following:

  • Disclosure statement.
  • Co-operative rules.
  • Past three years’ financial statements.
  • Directors’ and key staff members’ résumés.
  • Pictures of products, premises or location.
  • Forecasts of purchases and payments to creditors.
  • Forecasts of sales and debtor collections.
  • Letters of support.
  • Promotional materials.

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Home > Business > Business Startup

How to Get a Business Cooperative Started

Brooke Kunz

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A business cooperative is an enticing alternative to the standard capitalism model, offering a democratic management style, lower risk of debt, and other social and economic benefits. Cooperatives also give small-business owners more control over their organization and come with certain tax advantages.

In this article, we’ll define a cooperative business, offer examples of worker cooperatives, and discuss how to get a business cooperative started.

  • What is a business cooperative?

Business cooperative examples

  • Steps to starting a business cooperative

The takeaway

Business cooperative faq.

coop business plan

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What is a cooperative business?

A business cooperative (co-op), is an organization or enterprise owned by its members. While a traditional business serves the interests of investors, founders, or board members, a co-op services the interest of its customers or workers. Most co-ops are established to fulfill an economic need, such as providing products, services, or bargaining power that is otherwise unavailable to a certain group of people.

Business cooperatives come in many forms, such as housing co-ops, food co-ops, credit unions, and agricultural co-ops. However, many large corporations are also cooperatives, including Ace Hardware, REI, and Land O’Lakes dairy.

Here are some other well-known cooperatives in the US.

  • Navy Federal Credit Union: The largest credit union in the US, serving military servicemen and government employees
  • Alliant Credit Union: A credit union based in Chicago, Illinois, originally founded by employees of United Airlines
  • Dairy Farmers of America: A marketing cooperative owned and operated by dairy farmers across the US
  • Associated Wholesale Grocers: The nation’s largest food co-op, which supplies independent grocery stores across the country
  • People’s Food Co-op: A Portland, Oregon-based food co-op with a focus on sustainability
  • Berkeley Student Cooperative: A housing co-op for students of UC Berkeley

How to start a business cooperative

Since co-op founders usually organize cooperatives based on a specific need or problem, the first step in starting one is to identify that need. Once this is done, the group should take the following actions to officially establish the co-op:

1. Establish a steering committee.

A steering committee is a group of people that represents the members of the organization. This committee should create a timeline for coordinating the logistics of the co-op. They should also establish the co-op’s values and mission, as well as gauge the overall level of interest in the co-op.

2. Conduct a feasibility study.

Once the steering committee is established, the group should conduct a study to consider all possible challenges and obstacles the co-op might face. This study should look closely at opportunities for financing, operating costs, and other factors that influence the market.

3. Create articles of incorporation.

Every cooperative must have articles of incorporation and bylaws that govern the organization. These bylaws should be made by a legal counsel and can be changed and enhanced over time.

4. Draft a business plan.

Like a traditional business, a co-op should have a detailed business plan that guides the company as it grows. The plan should include a market analysis, a marketing plan, product research, and a description of the co-ops goals and objectives.

5. Get financing.

Most co-ops need cash flow for day-to-day operations. This cash often comes from member investments, but some co-ops use a business loan to finance their organization in the early stages.

6. Begin operations

At this point, the co-op can hire a manager and employees, secure a facility, and open its doors. It’s important for members to remain committed to and aligned with the goals of the organization to ensure long-term success.

A worker cooperative offers a number of benefits to small-business owners, including a democratic management style, less debt risk, and member dividends. To set up a business cooperative, a setting committee must conduct a feasibility study, establish articles of incorporation, create a business plan, and secure financing.

Would you like to learn more about starting a business cooperative? Check out Business.org for How to Start a Small Business: Must-Have Checklist to Spark Success .

Related reading

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  • Best Crowdfunding for Startups 2023: How to Fund Your Small Business
  • Best Startup Business Line of Credit 2023

Some cooperatives are not designed to make a profit and instead operate at cost. If a cooperative does make a profit, the members who purchase goods or services generate that money. Those profits are typically returned to the members as a refund or put back into the organization.

Safety stock is a term used to describe the excess inventory business owners choose to keep in hand in the event of an increase in demand or supplier delay.

Here are the steps to starting a worker cooperative:

  • Establish a steering committee.
  • Conduct a feasibility study.
  • Create articles of incorporation.
  • Draft a business plan.
  • Get financing.
  • Begin operations.

A cooperative (co-op) is a type of business organization that exists to benefit its members rather than outside investors. The co-op is owned and run by the members, and any profits are divided among those members. Most cooperatives are organized to reduce costs, fulfill an unmet need, improve the quality of a product or service, or improve bargaining power.

What are some cooperative business examples?

There are many types of cooperative business organizations, including mutual insurance groups, credit unions, electrical power co-ops, housing co-ops, and retail co-ops, such as Ace Hardware or REI.

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

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Co-op 101: how to start a co-op.

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Are you wondering how to start a cooperative or if a co-op is right for your business? There are a lot of steps to starting a cooperative and factors to consider throughout the process. We’re here to help you get started. In this guide to starting a cooperative, we’ll provide an overview of how to organize a co-op and what you can expect. If you determine the co-op model is the right fit, you’ll be ready to commit to a rewarding and empowering business venture.

What Is a Cooperative?

A co-op, or cooperative , is a user-controlled, user-owned enterprise. It is a type of corporation . People voluntarily form a cooperative together to meet common needs and benefit from the products or services of the cooperative they create. For example, a grocery co-op is owned by the people who shop there.

Cooperatives are open to anyone who is willing to accept the terms of membership. They are fully controlled by their members, and members equally contribute to the capital. The profits of the co-op are distributed among the members or re-invested in the company.

Members have an equal say in the business of the cooperative. Unlike other types of corporations, where shareholders have more say if they own a higher percentage of the company, all co-op members follow the principle of “one member, one vote” which carries equal weight. Equality is one of the core values and founding principles of a co-op. A co-op will usually have a board of directors to run the co-op, set up policies and make sure the co-op stays on track. The members of the board are members of the cooperative and are usually elected by vote. The board of directors makes decisions based on the votes of regular members.

A cooperative can be created in any industry and can be any size. Cooperatives are commonly found in agriculture, grocery, healthcare, housing, financial services and utilities. One in three Americans is a member of a cooperative.

Should Your Business Be a Co-Op?

If you’re interested in starting a new business or changing the structure of your current business, there’s a lot to consider if you’re thinking about setting up a co-op. As with any business, you want to make sure the cooperative model suits your vision best before investing your time and money. Here are some reasons a cooperative might be right for you:

  • Stability: According to the W.E. Upjohn Institute for Employment Research, employee-owned businesses are less likely to reduce employment during a recession . This helps companies like cooperatives make it through economic challenges. Employee-owners help increase profits as well. A Rutgers University study found that businesses that switch to employee ownership see profits increase as much as 14 percent .
  • Democratic control: If you want your business to be run by its members rather than controlled by investors, a co-op might be right for you. With a co-op, no one has a greater say than the other person.
  • Lower startup costs: A cooperative may be an appealing option for those who require lower startup costs. With a cooperative business, every member contributes to the capital and provides support.
  • Benefits to the community: Co-ops are an excellent option for businesses that want to serve their community. For example, co-ops may obtain products or services that would usually be unavailable in the community or would otherwise be unaffordable. Co-ops also contribute to the economy of the local community. Overall, the focus of a cooperative is to benefit its members, instead of delivering profit to investors.
  • Worker engagement: Employees are more likely to be engaged with a company they own and benefit from. They are also more likely to be committed to the quality of service and products they provide because they will want to see their company succeed.
  • Tax advantages: Like other businesses, cooperatives face tax rules, but they can also reduce their tax burden in ways other corporations can’t. For example, a co-op can issue patronage dividends which can be deducted from the cooperative’s taxable income.

coop business plan

Despite the advantages, the cooperative model may not be the right fit for all businesses. Here are reasons why you may wish to reconsider starting a cooperative:

  • Financing: Generally, cooperatives don’t attract large investors who want greater control of the company with more shares. It can also be tough for cooperatives to get loans from banks. However, that doesn’t mean financial assistance is unavailable for cooperatives. There are various funding opportunities to help co-ops get started, such as the Rural Cooperative Development Grant (RCDG) program  which supplies funding for development through cooperative development organizations around the country. A cooperative may also attract funding if a funder wants to promote the development of the community.
  • Longer decision-making process: Cooperatives require time to make decisions because all members are part of the decision-making process. If you anticipate the need to make decisions fast, a cooperative may not be the best option for your business.
  • Reliance on members’ involvement: Co-ops depend on their members’ interest levels and involvement. If members lose interest in the co-op and stop investing energy in the business, it can be hard to continue to provide benefits for members.
  • Profits are disbursed among members: A cooperative spreads its wealth among its members. Therefore, the founding members of a cooperative business do not benefit more than others only because they started the cooperative. This may make a co-op an unattractive option for some business owners.

Steps to Forming a Cooperative

Like any business, starting a cooperative requires dedication and business know-how. If you are new to the business world, there are professionals out there to assist you throughout the process. Also, a cooperative is about its members, so you won’t be alone if you find people who want to join your mission and be part of your success.

Follow this step-by-step co-op startup guide to get an idea of what it takes to organize a co-op, and where to start.

coop business plan

1. Develop the Idea

A cooperative is a business that needs to make a profit to continue operating. You first need to know what you are going to sell or what services you plan to provide. Consider who will buy your product and if they will be willing to purchase your product or services at the prices you offer.

One way to develop a co-op idea is to identify something your community needs and how your business can fill that need. Are there certain products or services unavailable? Are some products of poor quality or overpriced? Research your community to determine if your idea will work. Plan to spend 3 to 6 months exploring your business idea.

2. Gather Members

You need to gather individuals who are genuinely interested in your business idea and who may want to become members of your cooperative. Hold a meeting with potential members and develop your mission and core values. Clearly define your business idea and describe how it’ll benefit the lives of the co-op members. Also during the meeting, choose the name of the co-op and its head office location.

3. Conduct a Feasibility Study

A feasibility study will help you determine if your idea is doable and will work well in your community. After you consider the results of the study, you can decide whether or not to continue with your co-op idea. If you decide to move forward, you can use the information from the study as the basis of your business plan. Here are components to include in your feasibility study:

  • Preliminary analysis: First, consider if your product will serve the needs of your community. Also, ask if you can successfully compete with other businesses offering the same products or services. Lastly, identify any obstacles that may stand in your way of success. For example, can you acquire the capital needed for your business, or is it unaffordable? The preliminary analysis will illuminate the potential of your idea.
  • Market survey: Conduct a market survey or hire an outside company to conduct the survey. Conducting a market survey is a crucial part of your feasibility study. You’ll review factors such as demographics and purchasing power in your community, and you’ll use the information to analyze competitors and potential customers.

You and other members might consider hiring a consultant to assist you with the feasibility analysis. It may be well worth the money to ensure you complete a thorough and accurate study because it can save you a lot of money and effort in the long run.

4. Incorporate and Create Bylaws

If you conclude that your idea is financially feasible, you can take the next steps with confidence. You’ll next want to elect a board of directors, incorporate your business and adopt bylaws.

You must incorporate your business if you want to be recognized as a corporation legally. A cooperative is a type of corporation. A corporation is simply the term used to describe a legal entity owned by a group of shareholders . There are many advantages to incorporating, such as:

  • Protecting your assets against liabilities
  • Allowing you to transfer ownership easily
  • Receiving tax advantages

Not all cooperatives are incorporated. However, if you decide to incorporate, you’ll need to take the following steps:

  • File articles of incorporation with your state: Articles of incorporation are documents your file with your state to legally record the formation of your cooperative. Articles of incorporation include information such as your co-op’s name and address, as well as the names and addresses of the board of directors. The exact document requirements vary by state.
  • Write bylaws: Bylaws are the rules of your co-op. The board of directors establishes bylaws during the process of setting up a new company. Creating bylaws will be the step you take after your co-op is legally formed. You do not generally need to file bylaws with your state unless you are applying for non-profit status. Your bylaws should include information such as the name and address of the business, board member duties, and meeting and record-keeping procedures. Be sure to consult your state’s statutes to help you create bylaws. You might ask a lawyer to ensure your bylaws comply with the laws in your state.

coop business plan

5. Create a Business Plan

After you incorporate and create bylaws, it’s time to develop a detailed business plan. You can think of your business plan as a map that will show members and the board of directors which direction to take to reach common goals. Use the information you gathered from your feasibility study to help you write your business plan.

Overall, your business plan should include everything you and members need to know to run and grow the co-op. There is no right or wrong way to create a business plan as long as it meets your needs. Traditional business plans include the following:

  • An executive summary which includes your mission statement and basic company information
  • A description of the problems your co-op solves and the people it serves
  • A market analysis describing trends in your industry, the outlook, what competitors are doing and how you’ll do it better
  • Information about organization and management, such as who runs the co-op and how it’s structured
  • A description of the products you sell or services you provide and how it benefits members
  • How much funding you need and what you will use it for

6. Obtain Capital

The board of directors will be responsible for acquiring the capital needed to launch the co-op. You might raise money from members, local residents and lenders. You may also be eligible for government startup grants. Make sure you include how much financing you need and how you plan to obtain it in your business plan.

Once you have an adequate amount of capital, you’ll be ready to launch. Hire staff and teach them their duties and responsibilities as cooperative members. Open business doors and provide products and services to meet the needs of your members, and don’t forget to market your co-op. Lastly, remember to celebrate your journey and accomplishments.

Keys to Successful Cooperative Development

Various key elements will determine the success of your cooperative and its development. According to a cooperative development guide put together by the Cooperative Development Institute , the following elements are signs your co-op is off to a good start:

  • Founding members are committed and motivated: Your co-op’s members will determine the success of the business. Without your members, the co-op can’t exist. The development of your co-op is more likely to be successful if the members are committed, motivated by your vision, involved in the process from the beginning and will benefit the most from the co-op.
  • The project has strong leaders: Every project needs strong leadership to guide members and keep motivation high. If your project has leaders who are strongly interested in the success of the cooperative and are willing to contribute their skills, vision, and experience, you’ll be heading in the right direction.
  • The vision is clear: You have to have a clear vision, so members know what’s expected of them, how to resolve issues, and most importantly, how to achieve goals.
  • The business is well-planned: Planning is essential to the success of any business. Make sure you properly planned all the details of your cooperative and how it will operate. This should include market research.
  • It’s financially feasible: You will need adequate capital to succeed. Founding members should be financially committed to the co-op. If you have the financial resources you need from the start, you’ll be able to grow.

Other tips for co-op success include:

  • Stay focused
  • Keep members up to date and involved
  • Set realistic goals
  • Use market research, rather than opinions, to guide decisions
  • Identify and reduce risks
  • Maintain open communication
  • Invest in staff training and education
  • Raise adequate funding

coop business plan

Join NCBA CLUSA Today

We hope we helped you learn the basics of starting a co-op. Starting any business is a complicated process that demands careful planning and consideration. It also requires the help of other individuals who are as dedicated to your mission as you are. At NCBA CLUSA, we are passionate about promoting the cooperative business model and Building an Inclusive Economy.

If you have more questions, we’re here to help. Browse our site to learn more about cooperatives and how we advocate for co-ops around the world or reach out to us so we can assist you. If you’re ready to join our mission to advance, promote and defend cooperative businesses, become a member today .

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MSU Extension Product Center

Starting a cooperative and developing a business plan: phase 2.

Questions about this information? Contact us . June 04, 2015

Updated from an original article written by Mark Thomas, Michigan State University Extension.

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Having enough interest in starting a cooperative is just the first step, developing a viable business plan, when implemented, that meets the identified needs is the second.

In my first article on starting a cooperative I noted that the purpose of starting a cooperative was recognition of the need to solve problems or meet needs of the marketplace with goods or services. A steering committee should be formed to determine if there is data to support the feasibility of the cooperative. This committee should present its findings to potential members and let them make the decision to move forward with the development of a cooperative. The development of a business plan is then critical, as it will map out the necessary steps for a successful enterprise.

The feasibility study will lay the foundation for the business plan. It contains market information about the potential members’ usage and how a cooperative would differentiate itself from existing competition (if any). Additionally, financial viability and management expertise will be spelled out, as well as facilities needed and potential locations. Having this study prepared in an expert manner will insure the business plan is on solid footing s moving forward.

The business plan is a road map to launching a cooperative and will allow the Board of Directors to know where they want to be and how to get there. Having a professional who is familiar with cooperatives to assist with the preparation of the business plan is a good idea and can avoid and voids problems in the future. It should include the preparation of three years’ projections (pro-forma) of cash flow, operating statements and beginning and year-end balance sheets. These will be used to paint the picture of the capital needs and potential sources of funds to meet the asset needed. Additionally financial planning should include funding the operating until profitable.

The steering committee should study the legal aspects of cooperatives and have an understanding of the duties necessary. At this point employment of legal counsel to develop the articles of incorporation, specific to the State should be undertaken. They can also assist with bylaw development and they should be in sync with the purpose and scope of how the cooperative will operate.

The steering committee should now be ready to hold a fourth member exploratory meeting. It is essential to have a large turnout of the identified potential members. Direct contact, newspaper articles, web postings and any other method of “spreading the word” about the meeting should not be overlooked. The meeting is conducted to present the business plan to potential members. The business plan will tell the story of the potential cooperative. Why the steering committee supports the development and how it will benefit the community of interest at large should be spelled out. Financial details regarding membership investment requirements should leave no doubt in the minds of the potential members that their assets will be at risk.

With full disclosure of the information regarding the risks and possible returns of the cooperative, the potential members conduct a vote to continue or not. If the vote is in the affirmative, the cooperative can hold its first meeting at which two items of business need to be conducted:

  • Approve the bylaws
  • Elect a Board of Directors

Michigan State University Extension educators working with the MSU Product Center’s Michigan Cooperative Development Center can provide assistance with helping guide groups of potential cooperatives through this process. 

This article was published by Michigan State University Extension . For more information, visit https://extension.msu.edu . To have a digest of information delivered straight to your email inbox, visit https://extension.msu.edu/newsletters . To contact an expert in your area, visit https://extension.msu.edu/experts , or call 888-MSUE4MI (888-678-3464).

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How to Set Up a Cooperative Business

Last Updated: January 18, 2023 References

This article was written by Jennifer Mueller, JD . Jennifer Mueller is an in-house legal expert at wikiHow. Jennifer reviews, fact-checks, and evaluates wikiHow's legal content to ensure thoroughness and accuracy. She received her JD from Indiana University Maurer School of Law in 2006. There are 8 references cited in this article, which can be found at the bottom of the page. This article has been viewed 26,669 times.

Cooperative businesses are voluntary organizations composed of people united towards a common goal. These members participate and share in the traditional business functions such as training and providing services. In exchange for their participation, they all receive a share of the business's profits. Cooperative businesses have become increasingly popular in the United States. Setting up a cooperative business is essentially similar to setting up any other kind of business, although a cooperative typically requires more planning at the outset for it to be successful. [1] X Trustworthy Source U.S. Small Business Administration U.S. government agency focused on supporting small businesses Go to source [2] X Research source

Holding Exploratory Meetings

Step 1 Talk to potential leaders and members.

  • The people you choose to join this "inner circle" should be as passionate about the goals of the project as you are, and each bring unique skills that can help move the cooperative forward.
  • Look for friends, neighbors, or colleagues who have experience in the field in which you want the cooperative to operate. You also want people who have other skills or expertise you may lack.
  • For example, you may want to bring in an attorney and an accountant so they can help with the legal and financial issues that will arise.
  • At this time, you also should encourage these people to recommend others who they think might be interested in joining in on the project in its planning stages.

Step 2 Identify an economic need.

  • At its core, cooperatives respond to some need in your community, or exploit an opportunity that is available in your area. For example, you might want to start a co-op garden to provide fresh produce to people living in an inner-city community.
  • If you're having trouble finding the need that your cooperative could address, consider connecting with a cooperative development program in your area.
  • Many nonprofit organizations and universities have programs or departments that are dedicated to cooperative development.

Step 3 Schedule an initial meeting.

  • If you've decided to start a co-op garden, for example, you might point out the lack of fresh produce in grocery and convenience stores in the immediate area.
  • The garden also would have important educational and environmental benefits for the people in the community, particularly children.
  • It may be a good idea to bring in an advisor or cooperative expert to talk during your initial meeting and answer questions anyone might have.
  • You'll also want to discuss the basics of how the cooperative will be organized, what financial contribution (if any) will be expected, and create a general timeline to get the cooperative off the ground.
  • Keep in mind that it can take up to a year to get a cooperative up and running. One of the most important aspects of cooperative development is strong, well-researched plans. You also want to create a dynamic organization full of passionate, committed people.

Step 4 Select steering committee members.

  • If at all possible, try to have at least one person on your steering committee who has previous experience developing or operating a cooperative. Their knowledge will be invaluable.
  • If you've already connected with a cooperative development program near you, they may be able to recommend someone who is willing to serve in this capacity.
  • You also want someone with general knowledge and experience in business start-ups and development, as well as an attorney or someone who has a broad understanding of business and corporate law.
  • Keep in mind that the members of your steering committee probably will end up being the cooperative's first board of directors. Make sure those chosen are passionate and committed to your cause.

Step 5 Hold follow-up meetings as necessary.

  • You can plan on sending periodic emails or other correspondence, but these are no substitute for everyone meeting in person on a regular basis.
  • During the planning stages, it's important to ensure nobody feels they are left out of the loop. If anyone in your initial group loses interest or becomes alienated from the process, the co-op may fail.
  • Getting everybody together also enhances the democratic nature of co-ops and allows you to field ideas from diverse sources that may not otherwise be considered.

Building a Business Plan

Step 1 Conduct a feasibility analysis.

  • The steering committee typically is in charge of conducting this feasibility analysis. Depending on the background and expertise of the committee members, they may want to bring a professional business analyst on board.
  • Cooperative development programs run through a university or nonprofit organization also can provide assistance and resources necessary to conduct a feasibility analysis.
  • The point of these reports is to determine the needs of potential members, the anticipated business volume, and where the cooperative's goods or services would fit into the local market.
  • The feasibility analysis also should evaluate possible locations for the cooperative, and methods for delivering the co-op's products or services to its members.

Step 2 Outline the activities and purpose of the co-op.

  • Primarily, you should use this section to describe the community need you have identified, and how the cooperative would address that need.
  • Describe the activities of the cooperative specifically, as well as its business objectives and how the two tie together.
  • For example, if you're creating an agricultural cooperative, you would go into detail about the types of crops you planned to grow, the people who would help at various stages of production, and how the crops eventually would be divided among the members.
  • You also might go into detail about whether the crops would be available to the public, and the prices you'd charge to the general public versus members of the cooperative.

Step 3 Identify managers and other key members.

  • In this section, you also should identify anyone who will play a significant role in the day-to-day operations of the co-op, including managers, directors, or foremen who will oversee production or the delivery of services.
  • If you have anyone selected – either as a member of the steering committee or otherwise – who will provide legal or accounting services to the co-op, they should be listed separately.
  • Provide background information about each of the people listed that is relevant to their position in the co-op leadership.

Step 4 Discuss pricing and market strategy.

  • Much of your content here will be based on the results of the feasibility analysis the steering committee conducted.
  • However, you also should plan on attaching the results of any feasibility or marketing studies you've completed to the business plan as well, making them a part of the overall package.
  • Provide information on how you plan to position your products or services in the marketplace, as well as any member recruiting strategies or marketing plans that have been devised.

Step 5 Describe the co-op's operations.

  • In this portion of the business plan, you will detail any manufacturing or service delivery plans you already have in place.
  • If these plans are still in development, explain what stage those plans are at and when you anticipate moving to the next stage.
  • If any equipment or land must be purchased to move your development forward, explain that as well and then include those costs in your section on funding.
  • Your operations section also should include any information about staff or training you plan to provide. If you're using resources from a cooperative development project nearby, list the name of the cooperative development project and the resources they're providing.

Step 6 List funding requirements.

  • If any of the initial members, or members of the steering committee, will be investing any start-up capital, this should be listed in your funding section.
  • If you have any fundraising plans, include an outline of those as well. For example, you may have decided to use an online crowdfunding site to raise money for the co-op.
  • You also may have evaluated loans from banks and other lending institutions, or grants from nonprofit organizations or government agencies, to meet your funding needs.
  • If you've decided to meet your funding needs by selling stock in your cooperative, explain your plan and how you anticipate setting up the offer. You'll also need to describe any legal issues involved, such as securities regulations that might apply to your offer.

Step 7 Include projections.

  • These projections typically will come from the feasibility analysis the steering committee conducted.
  • It's important to keep your projections conservative, especially in your first years of operation. Keep in mind that most cooperatives do not make a substantial profit in their first years.
  • Your projections also will depend on the type of co-op you're trying to set up. For example, if you want to set up a co-op garden in an inner-city neighborhood, substantial profit may be secondary to other community benefits such as education and investment in the community and its people.

Incorporating Your Cooperative

Step 1 Select a unique name.

  • The secretary of state typically will have a business name database. You also may be able to search this database from the secretary of state's website.
  • Check your state's regulations regarding what words must be included in your name. If you're incorporating, the name must be followed by "Inc."
  • Your state also may require you to include the word "cooperative" in your business's name. Even if it isn't required, it makes good business sense to include it.
  • Keep in mind that your name must not only be unique, but also not similar to the name of any other business in your state.

Step 2 Hire an attorney.

  • Keep in mind that corporate law can be fairly complex, and the procedures differ from state to state.
  • If you already have an attorney on your steering committee, they can complete the paperwork the co-op will need.
  • However, if you need to hire someone, try to interview two or three attorneys. Make sure the attorney you choose has the approval of the entire steering committee.

Step 3 Draft the articles of incorporation.

  • If you've decided not to hire an attorney and don't have one working with the co-op, you may be able to find a form or template online that you can use to draft the articles of incorporation.
  • Since state laws differ, make sure any form or template you use is approved for use in your state.
  • Generally, the articles will establish the name, location, and purpose of your cooperative and its date of incorporation.
  • It also will list and identify the roles of the incorporators – typically the members of your steering committee.

Step 4 Create bylaws.

  • Keep in mind that while bylaws are not required by law, if you do have them they must comply with the guidelines established in your state's corporate law.
  • This document essentially describes the rules by which your cooperative will run. This includes membership duties and requirements, responsibilities of various board members or other management roles, and operating procedures.
  • You also may include rules related specifically to board operations, including when various reports are due, how a board member can be removed, and how issues can be put to a vote.
  • The steering committee will need to meet to approve the bylaws and vote on the corporation's first board of directors. Typically these individuals are drawn from the steering committee itself.

Step 5 Register with the state.

  • The specific process for doing this varies among states. Typically you must file the articles of incorporation with the secretary of state and fill out state registration forms containing basic information about your business.
  • You also must choose an agent for service of process, who will be listed on these registration forms. Most corporations list their attorney as their agent for service of process.
  • When you file the articles of incorporation and other forms, you'll have to pay registration fees. These fees vary greatly among states, and may be anywhere from several hundred to a few thousand dollars.

Getting Your Cooperative Up and Running

Step 1 Get an employer identification number (EIN).

  • You may technically need to get an EIN before you register with the state as a corporation, if the state expects you to include this number on your incorporation documents.
  • You can get an EIN instantly after answering a few questions on the IRS's website. The IRS never charges a fee for this service.
  • The online service is only available Monday through Friday from 7 a.m. to 10 p.m. Eastern time.
  • Once you complete the online form, the online service will instantly generate your cooperative's EIN. You'll also receive confirmation through the mail.

Step 2 Open bank accounts.

  • The bank accounts should be in the name of the cooperative, using the cooperative's EIN.
  • If you plan to have employees, you probably will need a separate payroll account in addition to an operating account. Otherwise, you typically only need a single operating account.
  • Decide who will have access to which accounts, because they will have to complete signature cards to have on file at the bank.

Step 3 Apply for licenses and permits.

  • For example, if you're starting an agricultural co-op, you'll need a federal agricultural permit, in addition to any state or local licenses or permits – which will vary depending on the type of operation you have and the level of production involved.
  • You also may need to get health and safety inspections, particularly if you plan on serving food for consumption on site.
  • Various manufacturing, production, and retail environments also may require federal inspections for worker health and safety.
  • If you're not sure what state permits or licenses you might need, you can find out by visiting the website of the federal Small Business Administration (SBA).
  • There you will find a page with links to each state. Clicking the name of your state will bring up a list of all the licenses and permits required.

Step 4 Create a membership application.

  • You'll want to work with your steering committee to determine the criteria for membership. For example, many cooperatives require members to live in the same county as the one in which the cooperative is located.
  • Other cooperatives require members to live within a certain mile radius of the cooperative's location.
  • You also may require cooperative members to work at the co-op a certain number of hours a week or month, or to pay a certain amount of dues each month in lieu of working.
  • On the application, you'll need to include space for whatever information the cooperative needs about each member, including name, place of residence, and contact information.

Step 5 Establish a social media presence.

  • You can create social media accounts for the cooperative free of charge – although typically you'll have to pay for advertisements or to promote specific posts.
  • Encourage everyone involved in building the cooperative to "friend" or "follow" the cooperative's social media accounts, and to ask their friends to do so as well.
  • Use these accounts not only to share information about the cooperative, but also to provide informative content based on the product or service your cooperative is providing.
  • If you're not well-versed in social media, consider talking to a marketing or business professor at a nearby university. You may be able to get a student to work as an intern for the cooperative and create social media posts.

Step 6 Hire employees.

  • If you've found a cooperative development program near you, this is an opportunity to put their resources to use.
  • Most of these programs have extensive staff training programs available that you can adapt for your own employees.
  • They also typically have staff who will come to your co-op and give your new employees an introduction to the world of working at a co-op.

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  • ↑ https://www.sba.gov/starting-business/choose-your-business-structure/cooperative
  • ↑ https://www.rd.usda.gov/files/CIR45-14.pdf
  • ↑ http://www.icos.ie/wp-content/uploads/2012/03/ICOS_New-Co-op-Business-Plan-Template.pdf
  • ↑ https://www.co-oplaw.org/knowledge-base/financing/
  • ↑ https://www.sba.gov/starting-business/choose-register-your-business/register-your-business-name
  • ↑ http://msue.anr.msu.edu/news/starting_a_cooperative_phase_2_developing_a_business_plan
  • ↑ https://www.sba.gov/starting-business/choose-register-your-business/register-state-agencies
  • ↑ https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

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8+ SAMPLE Co-operative Business Plan in PDF

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Creating a strategic plan, creating a strategic plan for your co-op.

This tool is intended to guide co-op boards or members through the process of creating a strategic plan. Co-operatives that want a more thorough, professionally prepared strategy plan could consult experts in the field or give Co-operatives First a call to determine how we could support your plan. Our suggested model for a strategic plan may not be a good fit for your co-operative and you should consider alternative structures and sections that best reflect your organization’s plan and intentions.

Elements of a strategic plan:

  • Mission, Vision, Values

Current State

Swot analysis, action plan, mission, vision, and values.

The Mission, Vision, and Values statements of a co-operative outline what the organization will do and how it intends to do this, generally.

The mission statement simply explains what your co-operative does. This statement should be concise and serve as a one- or two-sentence overview of why the organization exists. It should convey a clear purpose and direction for the organization, offering something to work towards. Everything the organization does should be in service of this mission.

When creating a strategic plan, it may be useful to think of your mission statement as a recipe:

  • Who will use the organization?
  • What will it do?
  • Why is it important?
  • How will this take place?

The vision statement is less direct than the mission statement and is usually more aspirational and inspirational. For many organizations, a vision statement captures an ideal outcome or a societal goal that we need to work towards together. A food security organization in Vancouver might simple envision: “end hunger in Vancouver.”

A values statement may contain multiple values that demonstrate the priorities for the co-operative and identify how it will conduct business. The vision statement speaks to the nature of the co-operative and should be reflected in the work that it does. This could be a statement or in point-form to reflect the various important values underlying the business.

Taking an assessment of the organization’s current state or situational analysis is an integral part of a strategic plan that ensures these various components are at the front of peoples’ minds. In the early days of the organization, this will help chart the assets that will support development. For organizations that complete annual or bi-annual strategic plans, updating this information will be important to determine the ongoing performance of the organization. Consider using these factors:

  • Stakeholders : An outline of the stakeholders and important actors involved in the co-operative. Describe the board, membership, staff, and (if applicable) market.
  • Financial : A brief, general overview of the organization’s financial position and if there are any concerns that could impact the plan.
  • Governance : Outline the governance of the organization: board, committees, election cycles, and any relevant policies that might impact the plan.
  • Key Accomplishments : Review the accomplishments that were made since the last strategic plan or to date. This will give a sense of what has been done, what still needs to be done, and what can be built upon.

The SWOT analysis is a commonly-used tool that helps illustrate the context for an organization’s strategic plan. It is useful to think of the four categories in two sections: strengths and weaknesses are internal to the organization and may be controlled; opportunities and threats are external and could be acted upon.

With the organization’s current state at the forefront of the group’s mind and an overview of what works, what doesn’t, and what could identified, it’s time to create some action items. These can be high-level, focusing on strategy, or task-specific. It’s useful to base the action plan on the findings of the SWOT analysis. Framing questions might be helpful:

  • Overcome our weaknesses;
  • Capitalize on opportunities; and
  • Minimize threats

Some examples of action items (based on the sample SWOT analysis above) may include:

  • Task-focused: Engage a professional design consultant to create a logo and brand for the organization that can be used to shape external communications.
  • High Level: Engage the membership in the governance of the organization to enhance governance capacity.

If the SWOT analysis identified broader themes that require multiple actions, consider identifying focus areas with specific tasks. This might be useful when allocating resources and people’s time to addressing each area.

  • Create a Membership chair on the board that will head a membership committee with the responsibilities of creating opportunities to engage and educate the membership.
  • Identify and work with a service provider that can provide board governance training.
  • Create a ‘terms of reference’ for the board.
  • Engage a professional design consultant to create a logo and brand for the organization that can be used to shape external communications.
  • Create a social media policy.
  • Work with the Manager to draft a ‘communications plan’ that outlines key targets.

Enjoy this tool on creating a strategic plan? Then you’ll enjoy our tool on creating a Human Resources policy or our blog on making a business model canvas .

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How to Start a Farm: Plan Your Operation

Think about your operation from the ground up and start planning for your business.  A good farm business plan is your roadmap to start-up, profitability, and growth, and provides the foundation for your conversation with USDA about how our programs can complement your operation. 

Keep reading about planning your business below, get an overview of the beginning farmer's journey , or jump to a different section of the farmer's journey.

On This Page

Why you need a farm business plan.

A comprehensive business plan is an important first step for any size business, no matter how simple or complex. You should create a strong business plan because it:

  • Will help you get organized . It will help you to remember all of the details and make sure you are taking all of the necessary steps.
  • Will act as your guide . It will help you to think carefully about why you want to farm or ranch and what you want to achieve in the future. Over time, you can look back at your business plan and determine whether you are achieving your goals.
  • Is required to get a loan . In order to get an FSA loan, a guarantee on a loan made by a commercial lender, or a land contract, you need to create a detailed business plan . Lenders look closely at business plans to determine if you can afford to repay the loan.

How USDA Can Help

Whether you need a good get-started guide, have a plan that you would like to verify, or have a plan you’re looking to update for your next growth phase, USDA can help connect you to resources to help your decisions.

Your state's beginning farmer and rancher coordinator  can connect you to local resources in your community to help you establish a successful business plan. Reach out to your state's coordinator for one-on-one technical assistance and guidance. They can also connect you with organizations that specifically serve beginning farmers and ranchers.

It is important to know that no single solution fits everyone, and you should research, seek guidance, and make the best decision for your operation according to your own individual priorities.

Build a Farm Business Plan

There are many different styles of business plans. Some are written documents; others may be a set of worksheets that you complete. No matter what format you choose, several key aspects of your operation are important to consider.

Use the guidelines below to draft your business plan. Answering these kinds of questions in detail will help you create and develop your final business plan. Once you have a business plan for your operation, prepare for your visit to a USDA service center. During your visit, we can help you with the necessary steps to register your business and get access to key USDA programs.

Business History

Are you starting a new farm or ranch, or are you already in business? If you are already in business:

  • What products do you produce?
  • What is the size of your operation?
  • What agricultural production and financial management training or experience do you, your family members, or your business partners have?
  • How long have you been in business?

Mission, Vision, and Goals

This is your business. Defining your mission, vision and goals is crucial to the success of your business. These questions will help provide a basis for developing other aspects of your business plan.

  • What values are important to you and the operation as a whole?
  • What short- and long-term goals do you have for your operation?
  • How do you plan to start, expand, or change your operation?
  • What plans do you have to make your operation efficient or more profitable ?
  • What type of farm or ranch model (conventional, sustainable, organic, or alternative agricultural practices) do you plan to use?

Organization and Management

Starting your own business is no small feat. You will need to determine how your business will be structured and organized, and who will manage (or help manage) your business. You will need to be able to convey this to others who are involved as well.

  • What is the legal structure of your business? Will it be a sole proprietorship, partnership, corporation, trust, limited liability company, or other type of entity?
  • What help will you need in operating and managing your farm or ranch?
  • What other resources, such as a mentor or community-based organization , do you plan to use?

Marketing is a valuable tool for businesses. It can help your businesses increase brand awareness, engagement and sales. It is important to narrow down your target audience and think about what you are providing that others cannot.

  • What are you going to produce ?
  • Who is your target consumer ?
  • Is there demand for what you are planning to produce?
  • What is the cost of production?
  • How much will you sell it for and when do you expect to see profit ?
  • How will you get your product to consumers ? What are the transportation costs and requirements?
  • How will you market your products?
  • Do you know the relevant federal, state, and local food safety regulations? What licensing do you need for your operation?

Today there are many types of land, tools, and resources to choose from. You will need to think about what you currently have and what you will need to obtain to achieve your goals.

  • What resources do you have or will you need for your business?
  • Do you already have access to farmland ? If not, do you plan to lease, rent, or purchase land?
  • What equipment do you need?
  • Is the equipment and real estate that you own or rent adequate to conduct your operation? If not, how do you plan to address those needs?
  • Will you be implementing any conservation practices to sustain your operation?
  • What types of workers will you need to operate the farm?
  • What additional resources do you need?

Now that you have an idea of what you are going to provide and what you will need to run your operation you will need to consider the finances of your operation.

  • How will you finance the business?
  • What are your current assets (property or investments you own) and liabilities (debts, loans, or payments you owe)?
  • Will the income you generate be sufficient to pay your operating expenses, living expenses, and loan payments?
  • What other sources of income are available to supplement your business income?
  • What business expenses will you incur?
  • What family living expenses do you pay?
  • What are some potential risks or challenges you foresee for your operation? How will you manage those risks?
  • How will you measure the success of your business?

Farm Business Plan Worksheets

The Farm Business Plan Balance Sheet can help gather information for the financial and operational aspects of your plan.

Form FSA-2037 is a template that gathers information on your assets and liabilities like farm equipment, vehicles and existing loans.

  • FSA-2037 - Farm Business Plan - Balance Sheet
  • FSA-2037 Instructions

Planning for Conservation and Risk Management

Another key tool is a conservation plan, which determines how you want to improve the health of your land. A conservation plan can help you lay out your plan to address resource needs, costs and schedules.

USDA’s Natural Resources Conservation Service (NRCS) staff are available at your local USDA Service Center to help you develop a conservation plan for your land based on your goals. NRCS staff can also help you explore conservation programs and initiatives, such as the Environmental Quality Incentives Program (EQIP) .

Conservation in Agriculture

Crop insurance, whole farm revenue protection and other resources can help you prepare for unforeseen challenges like natural disasters.

Disaster Recovery

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Special Considerations for Businesses

There are different types of farm businesses each with their own unique considerations. Determine what applies to your operation.

  • Organic Farming  has unique considerations. Learn about organic agriculture , organic certification , and the  Organic Certification Cost Share Program  to see if an organic business is an option for you. NRCS also has resources for organic producers and offers assistance to develop a conservation plan.
  • Urban Farming  has special opportunities and restrictions. Learn how USDA can help farmers in urban spaces .
  • Value-Added Products . The Agricultural Marketing Resource Center (AgMRC) is a national virtual resource center for value-added agricultural groups.
  • Cooperative.  If you are interested in starting a cooperative, USDA’s Rural Development Agency (RD) has helpful resources to help you begin . State-based  Cooperative Development Centers , partially funded by RD, provide technical assistance and education on starting a cooperative.

Special Considerations for Individuals

Historically Underserved Farmers and Ranchers: We offer help for the unique concerns of producers who meet the USDA definition of "historically underserved,"  which includes farmers who are:

  • socially disadvantaged
  • limited resource
  • military veterans

Women: Learn about specific incentives, priorities, and set asides for  women in agriculture within USDA programs.

Heirs' Property Landowners: If you inherited land without a clear title or documented legal ownership, learn how USDA can help Heirs’ Property Landowners gain access to a variety of programs and services

Business Planning

Creating a good business plan takes time and effort. The following are some key resources for planning your business.

  • Farm Answers from the University of Minnesota features a library of how-to resources and guidance, a directory of beginning farmer training programs, and other sources of information in agriculture. The library includes business planning guides such as a Guide to Developing a Business Plan for Farms and Rural Businesses and an Example Business Plan .
  • The Small Business Administration (SBA) offers information about starting, managing, and transitioning a business.

SCORE is a nonprofit organization with a network of volunteers who have experience in running and managing businesses. The Score Mentorship Program partners with USDA to provide:

  • Free, local support and resources, including business planning help, financial guidance, growth strategies.
  • Mentorship through one-on-one business coaching -- in-person, online, and by phone.
  • Training from subject matter experts with agribusiness experience.
  • Online resources and step-by-step outlines for business strategies.
  • Learn more about the program through the Score FAQ .

Training Opportunities

Attend field days, workshops, courses, or formal education programs to build necessary skills to ensure you can successfully produce your selected farm products and/or services. Many local and regional agricultural organizations, including USDA and Cooperative Extension, offer training to beginning farmers.

  • Cooperative Extension  offices address common issues faced by agricultural producers, and conduct workshops and educational events for the agricultural community.
  • extension.org  is an online community for the Cooperative Extension program where you can find publications and ask experts for advice.

Now that you have a basic plan for your farm operation, prepare for your visit to a USDA service center.

2. Visit Your USDA Service Center

How to Start a Farm with USDA

Get an  overview of the beginning farmer's journey  or jump to a specific page below.

Find Your Local Service Center

USDA Service Centers are locations where you can connect with Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees for your business needs. Enter your state and county below to find your local service center and agency offices. If this locator does not work in your browser, please visit offices.usda.gov.

Learn more about our Urban Service Centers . Visit the Risk Management Agency website to find a regional or compliance office  or to find an insurance agent near you.

Home

Cooperative Business Planning

This resource includes several templates for cooperative business plans from actual housing cooperatives in North America. Other references provided are a blueprint for the development process, of which the business plan is a part, and a cooperative business plan presentation given at the 2009 NASCO Institute.

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4.2 Create your business plan

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Are you ready to write your co-op's business plan? We provide advice on the best approach, links to a template plan, and a brief overview of each section you might need to include.

It's worth understanding that all business plans are different – like all  businesses  are different. 

You can use a template as a guide, but don't feel wedded to it. Make it work for your needs. 

Writing your business plan

Feasibility studies determine whether to go ahead with the business or with another idea. Business plans are designed after the decision to go ahead has already been made and provide a roadmap for this work.  

Make sure you have  completed a feasibility study before you start on your business plan. 

How do I start?

  • Getting past a blank piece of paper is the most difficult and important part of the whole process.  It does not matter how poor your first draft is, just start writing! You can refine it later
  • Get advice and keep asking questions. You do not have to take on every piece of advice. But if someone you know asks a question, it's worth thinking about how to answer it. They may think of something you haven't considered
  • Every time you find something worth putting in the business plan, add it in

How much detail?

  • Business plans should be meaningful documents and only include relevant information. Seventy page business plans may look impressive but nobody will actually read it, so it becomes no use at all
  • For each part of the business plan, create a resource folder which contains all the information that backs up your plan. This might be market research, quotes, work flow diagrams, etc. You can refer to these when you need them, but they don't need to be in the main document

Financial projections

Financial projections are a key part of your business plan. They help your reader understand how you have calculated the investment your business needs, how you're sourcing this finance and your projected income and expenditure

What do I need to include?

Projections for three years are usually sufficient for a start up business plan. You will need:

  • Financial projections – you can use these templates
  • Assumptions – what evidence do you have that your projections are accurate?
  • Scenarios and contingency plans – what will you do if things are worse (or better) then you expected?

What investment do you need?

As part of the business planning process you should have carried out a feasibility study . The investment requirement analysis that you did as part of your feasibility study will inform what investment is needed. 

If you haven't done this yet, you will need go back and do this before you can complete your financial projections.  Go back to feasibility study .

Ready to write your business plan?

Download a template and jump straight in – try this one from gov.uk .

Financial projection templates

Download and complete this financial projections template, which acts as the second 'half' of your business plan.

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A Food Co-op Business Plan

A formal business plan helps to bring structure to your plans and provides the necessary information for banks and owners to review before committing capital.

Get Started with Food Co-op Initiative

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co operative business plans

Cooperatives need a working business plan in order to maintain their operation and to bring in more profitable client progress . A cooperative business plan is a systematic approach to a favorable profit and loss turnout that sets the goals and objectives of the institution as well as the practical steps to realize them. Below are free Co-operative Business Plan Samples that you can download to get you started with your own cooperative business plan. Keep reading.

Co Operative Business

10+ co-operative business plan samples, 1. co-operative business plan sample, 2. co-operative food business plan, 3. ecological and co-operative business plan, 4. co-operative business plan format, 5. community co-operative business plan, 6. rural electric co-operative business plan, 7. editable co-operative business plan, 8. co-operative arts business plan, 9. standard co-operative business plan, 10. professional co-operative business plan, 11. new co-operative business plan, parts of a co-operative business plan, 1. executive summary, 2. methods of operation, 3. external environment analysis ,  4. marketing plan, 5. production, what is a patron of a cooperative, what does a dividend mean, what is a preferred stock.

co operative business plan sample

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ecological and co operative business plan

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community co operative business plan

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editable co operative business plan

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co operative arts business plan

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standard co operative business plan

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professional co operative business plan

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new co operative business plan

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Without a reliable and concrete plan, the cooperative will not progress and will not meet its goals as a simple small business investment that serves average-income workers of a particular community. The business plan should serve as a guide to the undertakings of the cooperative and will redirect the business administration according to what’s stated in the plan. Hence, the cooperative should be written in a clear and informative manner. Below are the salient parts of a cooperative business plan.

The executive summary includes everything that a reader or a prospective client should know about the business. It comprises an overview of the coop’s humble beginnings and goals. This part also contains, most importantly, the mission, vision, purpose, and values that the cooperative wants to uphold. 

The operational plan that keeps the manpower of the coop moving follows certain standards and methods of evaluation to be followed properly. This section provides the identification of materials and human resources to carry out the tasks of specific designations. 

This section of the plan analyzes the existence of the coop’s natural environment external to its organization. External factors such as the weather of the locality at which it operates and the kind of residences living nearby are key factors of its failure and success because it is from this environment that potential customers and clients are made. Other external factors that affect the operation of the coop are the legal, political, and social environment. 

This part discusses how to reach out to prospective customers and how to promote the product and services of the cooperative. Whether the coop’s nature of business is anchored more on retail business or wholesale , promotional works can be implemented to increase profit. 

The production plan and structure of the cooperative depends on what kind of profit-making institution it is. If it is anchored on manufacturing and fabrication, several factors should be considered such as the location and limitation of land area to conduct operations. A considerable amount of budget for capital will be allocated to the equipment required to mobilize operations of this kind of cooperative. 

An individual or organization who buys the products and avails the services of the cooperative for a sum of money. They are either members or nonmembers of the cooperative and members usually have privileges to discounts.

These are monetary returns of the cooperative’s investors and the amount of return depends on the invested items or products or preferred stocks. In the US, dividends from many state-owned cooperatives are limited to an annual rate of 8%.

Capital stocks that have a specific dividend rate. It is preferred over other stock dividends and refunds to members of the cooperative. It is a type of equity capital that is different from other dividends paid by the board members and other stakeholders. These stocks are also the kind that other members can buy from stockholders at a defined amount of money by the regulations and by-laws of the cooperative.

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Gamehenge Tapers Co-op

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Gamehenge Tapers Co-op is a not-for-profit organization that was created to serve the Portland tapers community.  The tapers community is a hobby based community that trades live recordings for personal use, never for commercial gain.  The Co-op will provide this community with the equipment needed to further the taping of shows which in effect supports the trading community as well (people who trade these live shows for personal consumption only).  The Co-op sells the recording equipment at wholesale prices + a low overhead percentage.  By offering the members heavily discounted rates, it encourages them to become more active tapers.  Because the organization is a not-for-profit co-op, members are willing to volunteer their time to help the organization allowing it to become successful.  The organization exists to support the trading community.

Membership dues and a small charge for overhead will allow the organization to cover costs associated with doing business and allow it to slowly grow. Gamehenge Tapers Co-op will be increasing their membership roster by at least 20% per year.

Nonprofit recording co-op business plan, executive summary chart image

1.1 Objectives

The objectives for the first three years of operation include:

  • To create a co-op whose #1 goal is to serve its members.
  • To increase the membership base by 20% each year.
  • To provide the Portland traders community with cost + overhead deals on CD-R media, microphones, CD-RWs and DAT recorders.
  • To develop a sustainable co-op.

1.2 Mission

Gamehenge Tapers Co-op’ s mission is to serve the Portland tapers community.  We exist to attract and maintain customers.  When we adhere to this maxim, everything else will fall in to place.  Our services will exceed the expectations of our customers.

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Organization summary organization overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">.

Gamehenge Tapers Co-op is a co-operative organization designed to serve the Portland tapers community.  The tapers community is a hobby based group that records and trades live concerts.  All of the bands that allow live recordings are “live” or “jam” bands who incorporate improvisation into their live performances so each performance is unique.  The group members trade these live performances for personal consumption, enjoying the unique attributes of each individual show.  Commercial use of these shows is strictly prohibited. 

The organization sells a wide range of equipment for tapers.  The equipment is purchased through normal wholesale distribution channels and sold directly to organizational members.  Membership is required for entry to the co-op.  A $40 entry fee and proof of traders status (a list of your show list is usually sufficient) is all that is needed to become a member.  Products must be purchased through the web site and then picked up from the office at certain times throughout the week.  Questions regarding products can be answered via email or phone (typically voicemail with a return phone call).

2.1 Legal Entity

Gamehenge Tapers Co-op is a 501C not-for-profit co-operative organization.

2.2 Start-up Summary

Gamehenge Tapers Co-op’s start up costs include:

  • Desk, chair and file cabinet.
  • Computer with printer, CD-RW, and internet connection.
  • Legal fees for formation of not-for-profit status including filing fees.
  • Website development.

Nonprofit recording co-op business plan, organization summary chart image

Gamehenge Tapers Co-op offers the tapers community the following products:

  • CD-RW (Compact Disc ReWriteable) drives for computers, external units with USB, SCSI or Firewire connections.
  • High quality stereo microphones for audience taping.
  • DAT(digital audio tape) portable recorders.
  • CD-R (Compact Disc Recordable) media.

Market Analysis Summary how to do a market analysis for your business plan.">

Gamehenge Tapers Co-op is a not for profit organization designed to serve the individual members of the co-op.  These members come from the Portland tapers community, a group of people who attend specific live performances and tape them for their personal consumption as well as for personal trading purposes. This is a very active community and intimate community.

Gamehenge Tapers Co-op will grow its membership through word of mouth promotions at the events.  Because it is an intimate community where most people know each other, it will be relatively easy to build up membership.  In addition to word of mouth advertising, Gamehenge Tapers Co-op will also have a web site that provides prospective members about the organization and its goals.

4.1 Market Segmentation

Gamehenge Tapers Co-op will be addressing the tapers community in the Portland area.  The taping community is made up of individuals that legally tape live concerts.  There are a handful of bands that allow taping of their live performances.  Generally, record labels discourage or ban taping of live performances because they believe that it infringes on profits from record sales.  On the contrary however, it tends to promote the band as there is an entire community that trades these shows, attends the concerts, and buys the records after they hear live performances of the band.

From a legal standpoint, the live performances are copyrighted, but the band nonetheless allows the taping.  The vast majority of bands to do not allow taping, it is only a few select bands that allow tapings. These bands are representative by the fact that they are very good live performers, they have a loyal following of people that tour with them and consequently these bands tend to play entirely different set lists each night recognizing the fact that there are people seeing several to many different shows in a row.

The bands that allow recording of live concerts are the remnants of the Grateful Dead (Phil Lesh & Friends, The Other Ones) remnants of Phish (Trey Anastatio and the Giant Country Horns), String Cheese Incident, moe., Blues Traveler, Dave Matthews Band, Medeski Martin & Wood, Tony Furtado, Bela Fleck and the Flecktones, Widespread Panic, Galactic, Government Mule, Greyboy Allstars, Karl Denson and the Tiny Universe, etc.

These bands have a loyal following, a very close knit community. This element lends itself to word of mouth promotion.

Nonprofit recording co-op business plan, market analysis summary chart image

4.2 Target Market Segment Strategy

The strategy behind the market segmentation is solely based on word of mouth and web site visibility.  Because the taping community is so close knit, if you end up going to a couple of shows to tape, you will run into a large portion of tapers.  Everyone knows each other, and everyone trades show from their collection. Growing the membership list through word of mouth will be no problem.

Additionally, Gamehenge Tapers Co-op will operate a web site to  which will be used to attract new members.  The site however, will have far more content including ordering which is password protected for members only.

4.3 Service Providers Analysis

The industry of tapers is a relatively unregulated, free formed industry. As long as the bands allow taping (there is a select varied group of bands that encourage taping of their live performances) then the taping community is allowed to do what they want.  In essence it is a self formed group that police themselves.

4.3.1 Alternatives and Usage Patterns

The competition is regular retail outlets.  These take the form of mail order places, retail outlets, and e-commerce sites.  These competitors might offer a better selection, however, they will rarely compete on price because they are for profit organizations and Gamehenge Tapers Co-op is a not-for-profit.

The buying patterns of tapers are typically price sensitive.  Because the tapers are constantly using their equipment and tons of media, they are generally looking for the best price.

Strategy and Implementation Summary

Gamehenge Tapers Co-op will be aggressively using word of mouth advertising to generate new members.  The cost of this is minimal as the members are already at the concerts taping for their own collection already.

Gamehenge Tapers Co-op will have a web site that will be used to attract new members, however, the members gained from the site will pale in comparison to word of mouth promotion.

5.1 Competitive Edge

Gamehenge Tapers Co-op competitive edge is its co-operative business structure.  The organization is not-for-profit so all revenue gets funneled back into the organization.  The organization is set up to solely benefit the members.  The members benefit by being able to purchase equipment at drastically reduced prices compared to retail.

5.2 Fundraising Strategy

The sales strategy will be simply to increase membership.  Increasing membership increases buying power, reducing wholesale and overhead costs, benefiting members.

5.2.1 Funding Forecast

The first month will be used to set up the office and web site.  The office will be in a small space with low rental costs.  The web site will be designed to provide general information to the public and detailed product information regarding the products offered.  Members will only be able to purchase products via the web site and picked up from the office at certain times.

Month two will see an increase in sales and membership. The following months will see both membership as well as sales activity.

Nonprofit recording co-op business plan, strategy and implementation summary chart image

5.3 Milestones

Gamehenge Tapers Co-op will have several milestones early on:

  • Business plan completion.  This will be done as a roadmap for the organization.  While we do not need a business plan to raise capital, it will be an indispensable tool for the ongoing performance and improvement of the company.
  • Office set up.
  • The 100th member signed up.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Gamehenge Tapers Co-op was founded and led by Al Truistic.  Al graduated from the University of Vermont with a degree in business.  After college, Al spent the next five months on the road following the band Phish.  This was his first introduction to the taping scene.  After coming back home to Portland, Al got his MBA from the University of Portland.  

Al then entered the business world with a job at VersionTracker, an internet start up that provided software updates for Mac OS.  His love for taping never disappeared and continued to tape at all of the live bands that passed through Portland.  After numerous discussions with a lot of the Portland taping community, Al concluded that there was demand for a tapers co-op so he began investing his free time to pursue this goal.  

6.1 Personnel Plan

Al will be working part time for Gamehenge Tapers Co-op.  He will perform purchasing, order fulfillment and general management of the organization.  His wife Sarah will help out with membership and the financials.  These two positions are unpaid, volunteer positions. 

Web maintenance will be done by one of the members at a below market rates.

It is Al’s and Sarah’s plan that once they get things up off the ground and the co-op becomes much more active they will recruit more members to volunteer their time to take care of the necessary details.

Financial Plan investor-ready personnel plan .">

The following sections will outline the important financial assumptions, key financial indicators, Break-even Analysis, profit and loss, cash flow, and balance sheet.

7.1 Important Assumptions

The following table highlights some of the important financial assumptions for Gamehenge Tapers Co-op.

7.2 Break-even Analysis

The Break-even Analysis shows what we need in monthly revenue to break even.

Nonprofit recording co-op business plan, financial plan chart image

7.3 Projected Surplus or Deficit

THe following table will indicate projected surplus or deficit.

7.4 Projected Cash Flow

The following chart and table will indicate projected cash flow.

Nonprofit recording co-op business plan, financial plan chart image

7.5 Projected Balance Sheet

The following table will indicate the projected balance sheet.

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Food Co-Op Business Plan and SWOT Analysis

Food Co-Op Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Food Co-Op Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Food Co-Op business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be available for download after your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready!
  • Complete Industry Research
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Given that many people are now far more concerned with how their food is sourced, food co-ops have become very popular businesses especially in local and regional markets that feature a large amount of farmland. One of the nice things that these businesses is that they are always able to remain profitable given that people frequently buy into farm shares as well as working with meat producing firms in order to source all the food that they want from organic farms and produce providers. The startup costs associated with the new food co-op can be relatively low with most of these firms starting with anywhere from $50,000 all the way to about $150,000 of capital. These funds are primarily used as source acquisition vehicles that will go to farms, slaughterhouses, and produce producers in order to source inventories on behalf of customers. These businesses are also able to generate highly predictable streams of revenue has many of the business models employed by these companies are similar to that of a farm share where individuals will purchase a specific amount of food on a monthly basis. As such, this allows for a very easy planning of what the top line income will be coupled with an understanding of what the underlying costs are for the acquisition of crude inventories. These businesses are continuing to gain popularity even among suburban markets within the United States. It should be noted that most of these companies tend to thrive in areas that are considered to be wealthier. This is due to the fact that there are higher upfront costs associated with joining a coat food co-op especially if a share is going to be purchased. The gross margins generated from owning and operating a food co-op typically are 20% to 25% of the total revenues. However, while these gross margins are considered to be moderately low this is made up for via transactional volume.

Banks and financial institutions are willing to put up a significant amount of Total support for a food co-op provided that a significant amount of these funds organ be used for the acquisition of furniture, fixtures, and equipment as well as for inventory purchases. Once a food co-op receives a significant amount of orders from the general public in the form of shares, these contracts can then be taken to the bank so that a working capital line of credit secured by ongoing inventory purchases can be acquired. Of course, a food co-op business plan is going to be needed. His business plan should feature a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page that features industry-standard information. A full analysis of the food co-op industry should be included as well.

Beyond the requisite financial information, a full demographic analysis of the individuals and families that will be enrolling in the food co-ops services should be included as well. This analysis should contain a discussion regarding population size, population density, median household income, median family income, percentage of population that keeps an organic diet, percentage of population that keeps a vegan diet, and other pertinent information that will be used in conjunction with the company’s inventory acquisitions as well as for the marketing campaign.

Beyond the demographic and financial information, an overview of the competition should be included as well. This includes only taking a look at other food co-ops but also taking a look at farms at all for CSA is. While these will not be direct competitors to the company, they do provide an alternative service that is very similar to how the food co-op will operate. A competitive analysis should be about a page in length and should document the most prominent players within any specific target market radius.

A food co-op marketing plan is going to be needed as well. Specific for this type of business, it is very important that the owner operator initially develop ongoing relationships with organic farms, slaughterhouses, farms, vegetable farms, and specialty food producers within the target market. This will ensure that the business is able to immediately acquire inventories of food that will be provided to enrollees of the food co-op. Additionally, these ongoing relationships with farms and food producers will allow for reciprocal referral relationships throughout the life of the business. This is one of the fastest ways that a new food co-op can boost its visibility from the onset of operations.

A presence on the Internet is now required by all food co-ops given that most people now search online for websites such as Google, Bing, and Yahoo to find specialized providers. A full scale an interactive website that features information regarding pricing, farms sourced, pick up information, location information, and contact information should be included as well. Most food co-op websites will also feature a listing of all the current inventory held by the business. A presence on social media should be coupled with the development of a proprietary website. Many people use social media to find recommendations for local and regional businesses, and as such – profiles on platforms such as FaceBook and Google+ will ensure that the business can be found more easily. Additionally, most social media platforms now allow for reviews he placed on a company’s website and as such this will allow the food co-op to develop a strong reputation over the first three years to five years it’s an operation. While it does take some time to develop a strong following on the social media platforms, the return on investment as it relates to both the time and money needed to develop a strong presence is well worth it. In fact, many food co-ops have become extremely successful simply due to the fact that they engage in a significant amount of online marketing through social media channels.

Beyond an online marketing campaign, many food co-ops will engage in a pretty broad-based print advertising campaign as well where billboards, full-page advertisements, and small television advertisements are placed within the target market radius. While the development of these marketing materials and advertising operations is expensive – the return can be significant especially wealthier areas where people are looking for food co-op services.

The next document to develop is the food co-op SWOT analysis. This documentation focuses on the strengths, weaknesses, opportunities, and threats that are faced by these companies on an ongoing basis. Most importantly, as it relates to strengths – food co-ops are almost always able to remain profitable given the fact that they operate in a wealthier area there are always going to be a number of people who want to enroll in these types of services. The barriers to entry are considered moderate once established and the gross margins are considered moderately low but are ameliorated by the fact that there is always a very high transactional volume associate with this business. Additionally, during times of economic recession these businesses can easily scale down their inventory acquisition operations to accommodate for lower revenues. For weaknesses, like any food handling business there are always going to be concerns as it relates to inventory spoilage as well as spikes in inventory costs. There are a number of ways like these can be ameliorated especially for the use of specialized options that protect the anticipated inventories are to be acquired by the business on a weekly basis. For opportunities, many food co-ops will seek to increase the number of farms that they work with concurrently expanding enrollment through a more aggressive advertising campaign. One of the other ways that these businesses expand is to developing ongoing relationships with restaurants and hospitality businesses that will ultimately become part of the food co-op. As it relates to threats, there’s nothing is going to impact the way that these companies conduct operations outside of the fact that an economic recession may put downward pressure on the food co-ops revenues.

The strong demand among wealthier consumers to have a healthy diet is rapidly increasing within the United States. As such, the development of a food co-op business is a very strong opportunity to get into a industry that is somewhat nascent but is growing very quickly. The low start up costs coupled with the fact that there is a tremendous demand will ensure that food co-ops, for the most part, are able to remain profitable and cash were positive at all times.

Business Tips from SCORE: A business plan gives owners a guide to their operations

One of the sure ways of launching a business that will fail is not to plan its launch and growth.

Most budding entrepreneurs’ eyes roll back in their head when they hear “business plan.” It doesn’t have to be complicated or voluminous. It might be as simple as a one-page Business Model Canvas – BMC − plan or if needed a deeper dive with a full business plan . But there’s no better way to think through important issues and gain focus in your business than by creating a guide.

Not only will building a business plan help you get a better handle on where you are and how you’ll grow, but it’s an absolute necessity if you seek outside investment.

A business model is a way of describing how the enterprise will make money.  Strategyzer’s Business Model Canvas is a 9-block process that explores, initially, value proposition (your offer, but not what you are selling), customer segments (to whom are you making the offer(s)), communication channels (how will you reach your customer segments). Then validate your assumptions. Then follow-up with customer relationships , activities, resource and strategic partners , expenses and revenue streams . The right side of the BMC canvas focuses on the customer and market or external factors that are not totally under your control. The left side focuses on the internal that is mostly in your control. The middle is the value proposition that represents the exchange of value between your customers and your business.

Here’s an easy guide on how to build a business plan step-by-step.

Step 1: Describe the “Big Idea” in an executive summary

Think of the executive summary as an explanation of your unique selling proposition. You want someone to be able to immediately grasp what your company does and the value you bring to the market.

This section should include a mission statement, brief explanations of the products or services you plan to offer, a basic introduction of key team members and where your company is located. If you’re seeking financing, you’ll also need to include basic information about your finances and plans for use of borrowed funds.

Step 2: Conduct a market analysis

This is where you’ll get into more detail by describing your industry and where your business fits into its landscape. Some questions to answer:

  • What exactly does your business do? 
  • What do you sell and why do you sell it? 
  • Why is your product or service needed? 
  • Who’s going to benefit from the products or services you provide?

Step 3: Introduce your team with a company description

In this section, include information like the legally registered name of your company, your business address, the company’s legal structure (LLC, sole proprietorship, etc.) and key team members. 

If your company is large, consider using an organizational chart to show who’s in charge of what. Also, include any special skills or unique experience your team has that will help advance your mission.

Step 4: Describe the value of your products and services

Piggyback on what you wrote in your market analysis to give details about your products and/or services. Give a thorough explanation of what your product or service does, how it works, your pricing structure, your ideal customer and your distribution strategy.

If you have intellectual property like patents, copyrights or trademarks, mention those as well, along with any research you plan to conduct or have completed.

Step 5: Describe your “go to market” strategy with a marketing and sales plan

How are you going to acquire customers? How are you going to create loyalty? There’s no right or wrong strategy here, only the strategy that makes sense given your current circumstances, the market and your customers’ attitudes. Over time, this may evolve, which is fine!

You can describe your sales process, how you’ll initially attract prospects, how you’ll deepen that attraction into a purchase, what a typical sales cycle might look like, what happens after the sale and so on. 

Step 6: Dive into the numbers with a financial analysis

Depending on how long you’ve been in business, you may not have a lot of concrete numbers for this section. Or, you may have a lot.

If you’re a startup, you’ll have to supply financial projections — forecasted income statements and balance sheets, for example. Be detailed for the first year, breaking down your projections quarterly or, even better, monthly.

If you’re established and are writing the plan to guide your growth strategy, you should include profit and loss statements, balance sheets, cash flow statements, a section for metrics like profit margin and a statement of your total assets and debts. This is also a great place to include any charts and graphs that help tell the financial story of your business. 

Step 7: If you need funding, explain why and for what 

If you’re seeking outside investment, use this section to provide details about your capital needs. How much do you anticipate needing over the next three to five years, what will it be used for, what are the terms you’re seeking, what opportunities will it allow you to exploit, and how will it help you meet your growth targets? And, don’t forget to include your “skin in the game” investment.  A critical step for lender evaluations.

Step 8: Anything else to include?

If you want to include additional information — resumes, leases, permits, bank statements, contracts, photos, charts, diagrams, etc. — include them at the end of your plan in an appendix.

Regardless of which format you select remember that a business plan is a guide, compass and companion for you to reach your business objectives.

Contributed by Marc L. Goldberg, Certified Mentor, SCORE Cape Cod & the Islands, www.score.org/capecod , 508-775-4884.  A SCORE Mentor Can Help You Build a Detailed Business Plan.  Sources: ASK Score 2023, An Easy Guide to the Business Model Canvas, Creately Blog, May 18, 2022.

  Thanks to our subscribers, who help make this coverage possible. If you are not a subscriber, please consider supporting quality local journalism with a Cape Cod Times subscription.  Here are our subscription plans.    

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Moscow Food Co-op

121 E 5th St, Moscow , Idaho 83843 USA

  • Independent
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  • Wheelchair Accessible
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Learn more about this business on Yelp .

“Your food. Your community.”

Mission: Moscow Food Co-op, building a strong, dynamic, consumer-owned natural foods cooperative through the use of ethical and sustainable business practices. Vision: The Moscow Food Co-op uses our financial resources to support people, the environment and our business by: -providing a clean, inviting, attractive, and family-friendly gathering place -fostering a program of reduce, reuse, recycle -selecting products to sell based on holistic guidelines, giving preference to reasonably priced, locally produced and/or organic products

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Reviewed by Bob H.

Great variety of food, goods and far flung options-Yea Toby's from Eugene. Great local community food store!!! Read more

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Reviewed by Iva D.

Always delightful....always new experience....love it! The baked goods are awesome and fresh...nice associates too.... Read more

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Reviewed by Joanne K.

When you want to find good organic food in Palouse area. You have to become a member paying year membership to purchase there. There is a 10% off student discount on Fridays! Nice Vegetables... Read more

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Kentucky residents plan to save northern NSW town's future by buying store before May closure

Two men stand in front of th Kentucky General Store with a sign reading "17 Weeks TO GO".

Kentucky has been a one-shop town for 90 years, with the General Store & Cafe providing groceries, fuel and postal services to the farming community's 150 residents.

The village also boasts a school and distillery, but the shop has been a meeting point for a population which has grown from a soldier settlement to a hidden gem of New South Wales' New England region.

But with the shop's owners, Rodney and Deborah McGrath, planning to retire, the race is on to save the store before it closes on May 31.

After being on the market for five years and failing to attract a buyer, the community is trying to raise $500,000 to save the historic store.

As well as running fundraisers, residents are planning to create a community co-op that will allow investors to buy shares in the shop with the intention of buying the business.

Kentucky Progress Association president Kel Hughes said the closure of the shop would have a major impact on the tiny town.

A man with glasses stands inside a small store.

"It would just be a real blow for Kentucky. It would just kill off the village," he said.

"If you took a 20-mile radius around Kentucky, there are a lot of families living on farms that rely on the shop."

The shop has been running on minimal stock in anticipation of the closure.

Mr Hughes said some of the money raised would be used to resupply the shelves and revitalise the store's cafe and bottle shop.

"We want it to be a community hub, with things like a beer garden and various other things," he said.

"We might do a sunset lounge out the back, try and get in some local music, and just really ramp it up. [The money] is fairly substantial. We'll work on it, but I think it is possible. 

"The shop has been running for 90 years. It would great if we could get it to 100."

Growing with the community

Having bought the shop 16 years ago, co-owner Rodney McGrath said he moved to Kentucky to give his sons a break from city life.

He said interacting with the community had been an enjoyable experience.

"The number of kids we've seen go into the kindergarten and are now off married and working, it does shock you when they walk back into the shop," Mr McGrath said.

Two men talk over a counter with a coffee

"We're running on empty and a bit tired, whereas the new crew can bring that energy, enthusiasm, and new ideas to reinvigorate the store to get it back to what it was because it is certainly a facility that the locals cherish and need."

Mr Hughes said when he moved to Kentucky 20 years ago, he would sit at the cafe on a Sunday morning with a coffee and newspaper.

"There would be various people turning up. It is definitely a social hub," he said.

"Without the shop, there's going to be nothing there for people to gather around."

Necessity not practicality

A blonde woman wearing glasses, smiling.

There is hope for the Kentucky store, after a group of women formed a successful community co-op in Cumnock .

Business NSW regional director Diane Gray said investors would need to communicate and collaborate for the benefit of the wider community.

"When a community comes together like this, it's more out of necessity than practicality," she said.

"They do go through periods of 'do we still continue, do we shut down?'

"It might be that they rely on some volunteers to help keep it open, and, as we know, volunteers are really hard to come by."

Ms Gray also said the Kentucky store's closure could mark the end of the village.

A post box and fuel bowser under a porch in a empty street.

"These types of rural communities really rely on that ability to be able to buy your bread, your milk, and your fuel," she said.

"Fuel is one of the greatest commodities that is required.

"When a staple in the community like the corner store is lost, the village becomes lost.

"It is important that these types of stores stay open to hold the community together."

Mr Hughes said they were hoping to appeal to investors who had a connection to Kentucky over the years by advertising in other places such as Sydney and Canberra.

"A lot of people have had connections with Kentucky over the years with the fruit picking," he said.

"If people invest it's not to make money, they are investing in Kentucky, keeping it vibrant as a community."

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Community spirit on tap as tiny town saves local pub with $1m purchase

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Harrow Online

A new Co-op store has opened in Edgware.

Located at Deansbrook Road, the 2,300 square feet store will be open daily from 7am to 10pm, providing job opportunities for 13 locals.

Operating as a Co-op franchise, the new Edgware store offers essential services such as a cash machine, an in-store bakery, and soon, a Costa coffee express dispenser. Its product range includes fresh and healthy options, meal solutions, everyday essentials, Fairtrade products, chilled beverages, wines, ready meals, pizzas, and various free-from, vegan, and plant-based items.

Brand new Co-op welcomes first customers in Edgware Harrow Online

Additionally, the store features a soft plastic recycling unit to facilitate the recycling of items like crisp packets, bread bags, and pet food pouches, ensuring responsible waste management within the community.

Kiran Akhtar, Store Manager, said: “The whole team is delighted to launch Co-op’s newest store, to serve and support the community. We are really looking forward to welcoming Member-owners and customers into their new Co-op.

“Our aim is to operate at the heart of local life; we’ve worked to develop the range, choice, and added services to create a compelling offer, conveniently. This includes a focus on delivering member-value so that the people who own our business, Co-op’s member-owners, benefit every time they shop.”

The Co-op is one of the world’s largest consumer-owned co-operatives. Its Members own the business and play an intrinsic part in the governance of the organsation, enjoying a wide number of benefits including member-only pricing across everyday essentials and personalised offers via the Co-op Membership app.

Brand new Co-op welcomes first customers in Edgware Harrow Online

Other local Co-Ops include a branch in Wembley and Northolt.

More information about the benefits of Co-op Membership is available by visiting www.coop.co.uk/membership

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IMAGES

  1. Co Op Business Plan Template PDF

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  2. The co-operative model business plan

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  3. FREE 10+ Co-operative Business Plan Samples [ Ecological, Food, Arts ]

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  4. FREE 10+ Co-operative Business Plan Samples [ Ecological, Food, Arts ]

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  5. How The Co-op Works Infographic

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  6. Business plan

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  1. Coop 20 Update and Overview

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  4. Webinar: Estrategias de marketing estacional

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COMMENTS

  1. The co-operative model business plan

    The co-operative model business plan You are here: Home 1 / Co-operatives in Australia: A Manual 2 / Additional Information 3 / The co-operative model business plan APPENDIX B The co-operative model business plan This appendix provides a model business plan outline. Make the plan your own.

  2. PDF Business Planning for Co-oPeratives

    A business plan helps clarify the activities for the co-operative and identifies the logistics, resources and finances needed for it to be successful. All co-operatives should be able to prepare forecast financial statements that identify how the co-operative will fund its first year of operation.

  3. How to Get a Business Cooperative Started

    1. Establish a steering committee. A steering committee is a group of people that represents the members of the organization.

  4. PDF How to Start a Co-op

    Why Start a Cooperative? A compelling need and a few community leaders can spark the idea of forming a cooperative. Usually, these leaders have an economic need or desire a service they believe a cooperative can provide. They also know others who have similar interests. General Rule of Thumb Timeline

  5. Your 101 Guide on Starting a Co-Op

    Should Your Business Be a Co-Op? If you're interested in starting a new business or changing the structure of your current business, there's a lot to consider if you're thinking about setting up a co-op. As with any business, you want to make sure the cooperative model suits your vision best before investing your time and money.

  6. Starting a cooperative and developing a business plan: Phase 2

    The business plan is a road map to launching a cooperative and will allow the Board of Directors to know where they want to be and how to get there. Having a professional who is familiar with cooperatives to assist with the preparation of the business plan is a good idea and can avoid and voids problems in the future.

  7. How to start a co-operative: a step-by-step guide

    Step 1: Decide if a co-op is the right choice for your business What do you want to do? Agree on the purpose of the business. Maybe your community doesn't have enough daycare options. Maybe you're a professional with your own firm who wants to share the cost of office space and administration.

  8. How to Set Up a Cooperative Business

    1 Holding Exploratory Meetings 2 Building a Business Plan 3 Incorporating Your Cooperative + Show 1 more... Other Sections Related Articles References Written by Jennifer Mueller, JD Last Updated: January 18, 2023 References Cooperative businesses are voluntary organizations composed of people united towards a common goal.

  9. How to Form a Farmer's Cooperative Business Plan

    When it comes to preparing the business plan, co-op plans differ from those of other organizations in that the focus is about providing for the needs of the members rather than making a profit as

  10. PDF Co-op Business Plan Template

    A business plan is a vital document for any successful co-op. Ideas are simply that until they can be effectively communicated and implemented in a systematic manner. A comprehensive, written document that expresses ideas and assigns specific responsibility to individuals and\or

  11. 8+ SAMPLE Co-operative Business Plan in PDF

    8+ SAMPLE Co-operative Business Plan in PDF Rating : At the outset of their journey, all entrepreneurs face a critical question: which business structure is the best fit? Historically, this option included sole proprietorships, business partnerships, and corporations.

  12. Creating a Strategic Plan

    This tool is intended to guide co-op boards or members through the process of creating a strategic plan. Co-operatives that want a more thorough, professionally prepared strategy plan could consult experts in the field or give Co-operatives First a call to determine how we could support your plan. Our suggested model for a strategic plan may ...

  13. Plan Your New Farm Operation

    A comprehensive business plan is an important first step for any size business, no matter how simple or complex. You should create a strong business plan because it: Will help you get organized. It will help you to remember all of the details and make sure you are taking all of the necessary steps. Will act as your guide.

  14. Cooperative Business Planning

    Cooperative Business Planning This resource includes several templates for cooperative business plans from actual housing cooperatives in North America. Other references provided are a blueprint for the development process, of which the business plan is a part, and a cooperative business plan presentation given at the 2009 NASCO Institute.

  15. 4.2 Create your business plan

    Are you ready to write your co-op's business plan? We provide advice on the best approach, links to a template plan, and a brief overview of each section you might need to include. It's worth understanding that all business plans are different - like all businesses are different. You can use a template as a guide, but don't feel wedded to it.

  16. A Food Co-op Business Plan

    A Food Co-op Business Plan A formal business plan helps to bring structure to your plans and provides the necessary information for banks and owners to review before committing capital. Back

  17. FREE 10+ Co-operative Business Plan Samples

    A cooperative business plan is a systematic approach to a favorable profit and loss turnout that sets the goals and objectives of the institution as well as the practical steps to realize them. Below are free Co-operative Business Plan Samples that you can download to get you started with your own cooperative business plan. Keep reading.

  18. Nonprofit Recording Co-op Business Plan Example

    Gamehenge Tapers Co-op will have a web site that will be used to attract new members, however, the members gained from the site will pale in comparison to word of mouth promotion. 5.1 Competitive Edge. Gamehenge Tapers Co-op competitive edge is its co-operative business structure.

  19. Food Co-Op Business Plan and SWOT Analysis

    The Food Co-Op Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Food Co-Op business. All business planning packages come with easy-to-use instructions so ...

  20. How to build a successful business plan in eight steps

    A SCORE Mentor Can Help You Build a Detailed Business Plan. Sources: ASK Score 2023, An Easy Guide to the Business Model Canvas, Creately Blog, May 18, 2022.

  21. PDF Business Planning and Modeling

    Types of business plan s Strategic Business Plan for evaluating a strategy: • aid for making internal decisions for the whole company (strategic guidelines at the national level, all markets) Tactical Business Plans for specific projects : • aid for making internal decisions for a particular area, or a market segment: IN, mobiles, IP

  22. Local Means Local

    At the Co-op, "local" really has a definition - the product must be from Idaho, Washington or within 250 miles of our store. We're a community-owned grocery store - local is what we do best! Artists, farmers, flower-growers, ranchers, soap-makers, salsa-purveyors, and so many more local producers have a place at the Moscow Food Co-op! ...

  23. Moscow Food Co-op, Moscow

    Mission: Moscow Food Co-op, building a strong, dynamic, consumer-owned natural foods cooperative through the use of ethical and sustainable business practices. Vision: The Moscow Food Co-op uses our financial resources to support people, the environment and our business by: -providing a clean, inviting, attractive, and family-friendly gathering place -fostering a program of reduce, reuse ...

  24. Kentucky residents plan to save northern NSW town's future by buying

    In short: Kentucky's community is trying to raise $500,000 to buy its local store. Business NSW is optimistic for the group, but says it will need to work well together for the benefit of the ...

  25. Brand new Co-op welcomes first customers in Edgware

    Located at Deansbrook Road, the 2,300 square feet store will be open daily from 7am to 10pm, providing job opportunities for 13 locals. Operating as a Co-op franchise, the new Edgware store offers essential services such as a cash machine, an in-store bakery, and soon, a Costa coffee express dispenser. Its product range includes fresh and healthy options, meal solutions, everyday essentials ...

  26. Violence against Co-op shop workers rises sharply

    Violence against Co-op shop workers rose sharply in 2023 as shoplifting and abuse increased, the supermarket said. Attacks on staff rose more than a third compared with 2022 as criminal groups ...

  27. Fair State Brewing Co-op files Chapter 11

    Fair State entered the Twin Cities craft brewery scene in 2013, as the state's first co-op brewery. In 2023, Fair State was ranked the 13th-largest brewery in the Twin Cities , according to ...

  28. Pret A Manger is converting last few all-veggie outlets

    Co-op staff face violence daily, says manager The chain is calling for the abuse of shop workers to become a specific offence as violence rises. Leeds & West Yorkshire

  29. New Co-op GM one of its own

    The Moscow Food Co-op announced Tuesday it hired a new general manager after nearly two years without a consistent person holding the position.Co-op Wellness Manager Melinda…