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2013 03 13 pfc - co-ops 101
Eric Bowman from the Northwest Cooperative Development Center gave a presentation on co-ops 101. He discussed the history and models of co-ops, including consumer, producer, and multi-stakeholder co-ops. He outlined the typical development process, from identifying need, to feasibility studies, membership drives, and beginning operations. The process can take 1.5 to 3 years. Eric's organization provides resources and consulting to support new co-op development.
2013 03 13 pfc - co-ops 101
- 1. NW Co-op DevelopmentCenter Co-ops 101 Peoples Food Co-op Mar. 13th , 2013 Eric Bowman, Cooperative Development Specialist eric@nwcdc.coop 1063 S Capitol Way # 211 Olympia, WA 98501 360.943.4241
- 2. Presentation: Co-ops 101 1.Intro 2. Overview and History 3. Co-op Economy and Models 4. Development Process 5. Resources 6. Q&A
- 3. NWCDC The Center a 501(c)3nonprofit 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
- 4. Co-ops 101 Investor owned: Soleproprietor: Co-ops are member: ◦ Owned ◦ Controlled ◦ Benefited
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- 6. Co-op Role U.S. Facts: –250 purchasing co-ops procure for 50,000 businesses – 3,000 farmer co-ops market 30% of farmers’ products – 8,000 housing co-ops provide 1 m homes – 7,500 credit unions provide services to 90 m members – 1,000 rural electrics operate ½ the nation’s distribution – 29,000 co-ops serve 43% of the population Top 100 co-ops’ 2010 revenues = $194 Billion!
- 7. Internationally Recognized Principles 1.Voluntary and Open Membership 2. Democratic Member Control 3. Member Economic Participation 4. Autonomy and Independence 5. Education, Training and Information 6. Co-operation among Co-operatives 7. Concern for Community
- 8. Ownership Member-Owners can be –Consumers – Producers/Farmers – Workers – Other Businesses
- 9. Distributionism Consumer ◦ Credit Unions ◦Housing ◦ Retail (e.g. food co-ops) ◦ Farm Supply Two Schools Producer ◦ Worker ◦ Farmer ◦ Artisan
- 10. Distributionism cont. Another School… Solidarityor Multi-Stakeholder ◦ Weaver Street Market owners: ◦ Workers ◦ Consumers ◦ Idaho’s Bounty Co-op owners: ◦ Producers ◦ Consumers
- 11. Why Cooperate? …to accessresources not individually achievable
- 12. Why form anentity? Creating: • Something bigger and beyond oneself • Economy of scale • Solid foundation for growth • Legitimacy • Commitment • Limited liability • Formal structure to work together
- 13. When not toform… • Too small to cover admin • Dependant on volunteer and/or grant • Less than 3 members • Don’t need structure • No compelling economic need
- 15. Estimated Timeline • 6to 12 months (or more for each): 1. Organizing 2. Planning 3. Implementation • Total of 1 ½ to 3 years
- 16. Co-op Development Stages •Identify a need a co-op could meet • Form Steering Committee • Research Feasibility • Review Findings (Go/No Go) • Membership Drive • Planning and Financing • Begin Operations (Go/No Go) Project LifecycleProject Lifecycle
- 17. Co-op Development Stages •Identify a need a co-op could meet • Form Steering Committee • Research Feasibility • Review Findings (Go/No Go) • Membership Drive • Planning and Financing • Begin Operations (Go/No Go) How We Assist • Facilitate identifying mission and goals • Train founding Board members • Market and feasibility research • Assist with organizing • Professional, 3rd party perspective • General business consulting Project LifecycleProject Lifecycle
- 18. Organizing • Held “goor no go” votes at every meeting
- 19. Organizing • Form committee –A “proto board” – May or may not be potential members – Role is: • Advisory • Exploratory • Planning • Networking • Visionary • Fundraising
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- 21. How? “…hold about 500meetings.” - Watershine, OPMA
- 22. Planning & Feasibility •Studying: – Technical • Location, management, etc. – Economic/financial • Projections on profit and loss, cash flow, start up – Market • Competition, sales, etc.
- 23. Feasibility • More risk= more complex research • Industry specific – e.g. food co-ops: market analysis • Who wants it? – Potential members may – Lenders – Member lenders/investors
- 24.
- 25. What you are: …isspending your neighbor’s money!
- 26. Membership Drive Phases 1.Highly motivated early adopters 2. Friends, family and fools are super easy 3. Tap out networks 4. Community organizing and it’s uphill – It’s P.R., outreach, communications, etc. – Need a plan – “Political campaign without an election”
- 29. Resources 1. How toStart a Food Co-op; CGIN 2. How to Start a Cooperative; USDA 3. The Worker Cooperative Toolbox; NCDF • Resources/toolboxes – Food Co-op Initiative – US Federation of Worker Co-ops • Magazines – Cooperative Grocer – The Cooperator; Co-op and Condo monthly
- 30. Thank You! Eric Bowman eric@nwcdc.coop NorthwestCooperative Development Center 1063 Capitol Way S # 211 Olympia, WA 98501 360.943.4241 | www.nwcdc.coop Fostering community economic development through the cooperative business model
Editor's Notes
- #2 <Remember: slooooooowwww and be natural> I appreciate the opportunity to be here… Very timely event!
- #3 <Go slow>
- #4 <…slowly…> Intro self and sectors
- #5 What does this mean: the equity owners of a co-op are the same people who: - democratically govern the business thru 1-member = 1-vote - are the beneficiaries of the services provided
- #6 Building blocks of economic cooperation Authority: - basic authority and responsibility imposed by law, in other words the incorporating statute - Bylaws and policy provide guidance and clarify authority Ultimate authority from 2 places: Comes from members and this overall system The co-op is theirs and without their desire to create and perpetuate co-op, the board wouldn’t exist Members place their needs, trust and Board of their choosing.
- #7 <ehm, breath> Co-ops are dynamic and relevant in today’s economy
- #9 <are you going slowly enough> Co-ops are defined by ownership In this collection of cooperative business’s logo’s, I see groups of people who had a need: - they could not meet individually and - which was unfulfilled by the traditional investor-owned private sector
- #12 <S.L.O.W.> Because co-op businesses are: - comprised of the community - they are representative of the community - and they are a part of the community Co-ops: - Keep profits, ownership and control local - Are less vulnerable to take-over and closure by outside decision-makers ; often stay long after others leave - Are trusted business partners; people like to deal with the producer Co-ops have an innate edge on investor-owned corporations and they have an opportunity to sell it!