NW Biodiesel Network 2 11 09
•Download as PPTX, PDF•
1 like•181 views
Biodiesel Co-op Development
Recommended
More Related Content
Viewers also liked
Viewers also liked (17)
Similar to NW Biodiesel Network 2 11 09
Similar to NW Biodiesel Network 2 11 09 (20)
Recently uploaded
Recently uploaded (20)
NW Biodiesel Network 2 11 09
- 1. NW Co-op Development Center Eastside Chapter – NW Biodiesel Network Feb. 11th, 2009 Eric Bowman; Cooperative Development Specialist eric@nwcdc.coop 1063 S Capitol Way # 211 Olympia, WA 98501 360.943.4241
- 2. Forming & Running a Successful Biodiesel Co-op 1. Intro; the Center 2. Co-ops 101 & Benefits of Cooperation 3. NW Co-ops in biofuels 4. Consumer-owned models 5. Group dynamics 6. Mechanics of Developing a Board 7. Q&A Presentation Overview
- 3. The Center a 501(c)3 nonprofit which provides development services for new and existing co-ops Our mission to foster community economic development through the co-op business model We’re a team of co-op developers with skills specific to start- up and organizational business development NW Co-op Development Center
- 4. A co-op is any corporation, that’s member: ◦ Owned ◦ Benefited ◦ Controlled Top 100 co-ops’ 2007 revenues = $150 Billion! ◦ Ag & Grocery ◦ Energy/Communications ◦ Finance ◦ Hardware/Lumber Co-op 101
- 5. Member-Owners can be ◦ Consumers ◦ Producers/Farmers ◦ Workers ◦ Other Businesses Ownership
- 6. Biodiesel ◦ Production/marketing Pendleton Grain Growers ◦ Joint-ventures Inland Empire Oilseeds, LLC (Odessa Union Warehouse Co-op, Reardon Grain Growers, Reardon Seed Company) ◦ Consumer-owned Bend Biofuels Co-op ◦ On-farm consumption/co-op production Co-ops in NW Biodiesel
- 7. Together consumers Brew Distribute Purchase ◦ Equipment ◦ Feedstock ◦ Wholesale Biodiesel Consumer Co-ops Models
- 8. 200 member buying group Distributor-owned card lock Negotiates w/ wholesalers COCC Biofuels Club ◦ educational ◦ brewing non-ASTM spec Bend Biofuels
- 9. 60 Members SeQuential B99 at cost plus: ◦ OR/Fed Road taxes ◦ delivery fee ◦ $.05 co-op overhead Pringle Creek: ◦ waived rent/utilities ◦ Building garage Flower Power – Salem, OR
- 10. 65 homeowners and small businesses Co-op bulk purchase HHO, “bioheat” Average savings ~$300 locked-in price ◦ capped quot;downside protectionquot; ◦ always pay the lowest price Residents in Eliot, ME
- 11. Many I-5 collectives and co-ops Tacoma Biodiesel Co-op OlyBiofuels GoBiodiesel – Portland ◦ Biodiesel Weasel RIP
- 12. to access resources not individually achievable Marketable Co-op Benefits; “Goodwill” Keep profits, ownership and control local Accountable Trusted Why Cooperate?
- 13. Owned/controlled by members, not outside investors Exist solely to serve members Return surplus to members based on use, not investment Pay taxes on income kept for investment/reserves; surplus revenue returned to members who pay taxes Economy of scale = valued added Unique Characteristics of Co-ops
- 14. Distributed Resources = Distributed Opportunity • Many small sources • Diseconomy of scale • Rethinking infrastructure Distributed Energy Production
- 15. How We Can Help Co-op Development Stages Identify a need a co-op could Facilitate identifying mission meet and goals Form Steering Committee Train founding Board members Research Feasibility Market and feasibility research Review Findings (Go/No Go) Membership Drive Assist with organizing Planning and Financing Professional, 3rd party Begin Operations (Go/No Go) perspective General business consulting Project Lifecycle
- 16. Why all the process? ◦ Going into business is hard and complicated ◦ Risking your money and your neighbors Need an agreed upon roadmap If you don’t know where you are going, any road will get you there – Wizard of Oz Organization
- 17. Creating Something bigger and beyond oneself Formal structure to work together (governance/conflict resolution) Solid foundation for growth Legitimacy Commitment Limited liability Economy of scale Why form entity at all?
- 18. LLC = tax flexibility of a partnership + limited liability of a corporation Pros (primarily flexibility) ◦ More attractive to capital (if you need a lot) ◦ Make quick decisions to respond to market pressures ◦ Members can include persons, other LLCs, S-Corporations Cons ◦ Legal costs ◦ Power can concentrate with management or Board ◦ Model is new; sometimes liability isn’t so limited ◦ Governance (Board/operating agreements not always required) Why not LLC?
- 19. Co-op to Co-op Supply Chain
- 20. Membership Services Elects Board Business Operates Hires Management Relationships and Authority
- 21. Shifting functions 1. Steering Committee or Exploratory Board 2. Founding Board 3. Working and/or Managing Board 4. Governing Board ◦ Post-hire role more strategic Start-Up Board Development
- 22. Represent members 1. Establish policy 2. Supervise top management 3. Oversee asset development 4. Preserve co-op character 5. Assess performance 6. Inform members 7. Board’s Circle of Responsibilities From USDA’s Management Tip Series by James Baarda (CIR6)
- 23. Ongoing Candidates don’t just appear The Entire Universe Be strategic The U.S. ◦ i.e. Plan Regional Fuel Consumers Plan for attrition The future! Biofuel old nt ers Consumers Pr o e Inp ders Sta ernm vi ut Members keh v Go Co-op Board Recruitment NGO Stakeholders
- 24. Forming Forming individually focused Storming opening up Norming Storming building trust Performing Performing interdependent ----------------------------------- Norming What next? Adjourning, Mourning, re-Norming or Transforming Group Dynamics
- 25. Strategic Planning World is ever changing Requires sense of where you’re going Visioning Process: ◦ Agree on participants/roles ◦ Design process ◦ Conduct process ◦ Format statements ◦ Keep it alive! Creating a Shared Vision
- 26. Dysfunctional group dynamics Disengaged members Uncertain of roles Focus on trivia Lack follow thru “Opportunities for improvement”
- 27. This is a relationship, treat it as such ◦ Cultivate ◦ Maintain ◦ Socialize Your job = hold each other accountable ◦ Avoid or move beyond unhealthy dynamics ◦ Follow through ◦ Focus on what works, not what doesn’t! Solutions
- 28. Conflict ◦ Necessary & productive ◦ = relationship building ◦ Deal with creatively Seek out training Focus on vision Behave with maturity More Solutions
- 29. Compelling economic interest Guidance exists ◦ Everything we just discussed Be a part of a team Experience challenges Opportunity to serve & build something together: ◦ Collective equity, rather than private ◦ Accountable business Personal prestige, pride & satisfaction Why do it?
- 30. Eric Bowman Northwest Cooperative Development Center 1063 Capitol Way S # 211 | Olympia, WA 98501 360.943.4241 eric@nwcdc.coop | www.nwcdc.coop Fostering community economic development through the cooperative business model Thank You!