MCM caller training webinar


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Member Loan Caller Training PowerPoint, Tami Bauers

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MCM caller training webinar

  1. 1. Welcome! Monadnock Co-op Market Caller Training 4.13.11 8-9:30pm Eastern Facilitated by Tami Bauers CDS Consulting Co-op
  2. 2. Housekeeping <ul><li>How to use controls </li></ul><ul><li>If anyone hears a lot of feedback, extra noise, let me know </li></ul><ul><li>You know more about your community and project than I do! Please correct me if I am wrong. </li></ul><ul><li>Please interrupt me, I can’t see if you have your hand raised  </li></ul>
  3. 3. Desired Outcomes <ul><li>Callers will have a clearer understanding about member loans’ role in establishing your co-op </li></ul><ul><li>Callers will have techniques and talking points they can use </li></ul><ul><li>Callers will contribute input to talking points </li></ul><ul><li>Callers will have gained more familiarity with the loan structure </li></ul><ul><li>Callers will be more comfortable with their role </li></ul><ul><li>Yours ? </li></ul>
  4. 4. Why member loans? <ul><li>Co-ops are owned by the users of the business—businesses are funded by their owners </li></ul><ul><li>Besides putting in their equity shares, some co-op owners will need to invest additional money to get the store they want </li></ul><ul><li>Banks and other lending institutions may expect this and they may view member loans favorably </li></ul><ul><li>Member loans are often cheaper </li></ul>
  5. 5. How will we get $800,000? <ul><li>Show goal sheet. </li></ul><ul><li>If we can achieve those goals, you need 27% of members to make a loan. That % goes down if you keep getting new member between now and June 1 </li></ul><ul><li>YOUR INPUT : Any fears or concerns about these? </li></ul>
  6. 6. Where will the $ come from? <ul><li>Don’t make any assumptions. I don’t believe you can predict where this money will come from. Treat everyone the same and make no assumptions about their ability to invest or NOT INVEST or how much. You can just politely present the options/pros and leave it up to them to decide. </li></ul>
  7. 7. Why should/do people invest? <ul><li>To get a store in their community! </li></ul><ul><li>College savings fund, inheritance money, CD coming due </li></ul><ul><li>Values: local, farmer, food, health, neighborhood, sustainable practices </li></ul><ul><li>Personal: put their heart into or want it to succeed for someone else (family members of members) </li></ul><ul><li>Financial: want a return on their investment, think it is a responsible investment, is better than other investments available, better investment return than others they may have </li></ul>
  8. 8. Why should/do people invest?(2) <ul><li>Snowball/Jones effect, people sometimes do it because others are doing it, builds confidence that we are in this together </li></ul><ul><li>Because this is a grass roots effort, the store cannot open without these initial investors/believers </li></ul><ul><li>Sometimes guilt plays a role </li></ul><ul><li>Practical: don’t want to drive longer distances for the type of food they want (another co-op or even local grocer) </li></ul><ul><li>YOUR INPUT </li></ul>
  9. 9. Goals: Implicit and Explicit <ul><li>To create and maintain enthusiasm for the project </li></ul><ul><li>To strengthen the message of what MCM will be and provide to the community </li></ul><ul><li>To hear comments, suggestions and answer questions “I really want a juice bar!” </li></ul><ul><li>To let members know how important it is for them to shop </li></ul><ul><li>To get the member to commit to a loan to help finance the project. </li></ul>
  10. 10. Terminology <ul><li>Initial Mailing: </li></ul><ul><li>-Letter, floor plan, Q&A, testimonials, brochure, history and plan </li></ul><ul><li>Member Loan Packet includes: </li></ul><ul><li>Offering Memorandum </li></ul><ul><li>-Sometimes called the Offering Document or prospectus. This document is important. We are legally obligated to give them this information before they invest and we are responsible for tracking that they received it. </li></ul><ul><li>Subscription Agreement Cover letter </li></ul><ul><li>Articles and Bylaws Release Form </li></ul><ul><li>Promissory Note </li></ul>
  11. 11. Initial Mailing <ul><li>Go over pieces of the mailing—do you have questions about them? </li></ul><ul><li>How would we act/feel if we got a phone call from someone at the co-op? </li></ul>
  12. 12. Member Loan Packet <ul><li>These are being finalized, but you will get your own Packet. And of course, you can invest too! </li></ul><ul><li>Be familiar with what pieces are in it, especially the Subscription Agreement, but do not feel you need to understand what’s in the pieces. Refer to others to get answers to questions. </li></ul>
  13. 13. Loan Terms <ul><li>Minimum loan is $2000, no maximum </li></ul><ul><li>Average loan size we are looking for is $5000 with loans as high as $50,000 </li></ul><ul><li>Lender can choose 6,7,8,9 or 10 year terms. The co-op’s goal is to evenly divide the loans amongst those terms ($160,000) </li></ul><ul><li>Lender can choose interest of </li></ul><ul><li>0-3% for $2-9,999 and AFR-4% for $10,000 and up </li></ul>
  14. 14. More Terminology (Jane) <ul><li>Interest Range </li></ul><ul><li>Maturity Date </li></ul><ul><li>Loan Interest </li></ul><ul><li>Escrow Interest </li></ul><ul><li>Loan Date: The date that the Note is signed and the interest begins. Variable. </li></ul><ul><li>Effective Date: The date at which we start counting toward maturity </li></ul><ul><li>Expiration Date January 1 st 2012 </li></ul>
  15. 15. Getting ready to make calls <ul><li>Read the full mailing </li></ul><ul><li>Go to the website </li></ul><ul><li>Look at Member Loan Packet, but don’t feel like you need to understand it fully </li></ul><ul><li>Read any emails from Bonnie or Jane </li></ul><ul><li>Do what you need to do to bring energy to your calls. Pick a good spot, have a cup of tea. Look at another co-op webpage. </li></ul>
  16. 16. Calls <ul><li>Call# 1Show enthusiasm </li></ul><ul><li>Call#2 Answer any questions about Member Loan Packet or get answers, possibly get pledge form </li></ul><ul><li>Call#3 Get pledge form. Close the deal. </li></ul><ul><li>This is the ideal scenario, but each loan can come with 0-10 interactions. </li></ul>
  17. 17. Caller Scripts and Pointers <ul><li>Scripts and Tips Handout </li></ul>
  18. 18. Caller Instructions (Jane) <ul><li>Look at Caller Instruction Sheet </li></ul>
  19. 19. Example Calls <ul><li>Role play if you are interested </li></ul><ul><li>Ask me questions as though you are a member/owner. </li></ul><ul><li>I can fake a call. </li></ul>
  20. 20. Pep talk! <ul><li>You can do this. </li></ul><ul><li>This is a great investment opportunity for your community. </li></ul><ul><li>I have worked with callers who ended up loving to do this—”It is so gratifying when someone I talk to makes a loan!” </li></ul><ul><li>Remember that everyone is doing this for the first time and are just learning how. You will probably never have to do it again, so be patient with yourself and each other and have fun! </li></ul>
  21. 21. Closing <ul><li>Review desired outcomes </li></ul><ul><li>Other concerns that need to be addressed still—leave up to your team </li></ul><ul><li>Final comments and questions </li></ul><ul><li>THANKS!!!! Co-ops are my passion and I am so grateful to those who work at them and work hard to open them. </li></ul>