Hello! This is my first draft of Co-op 101 for the Athens, GA-based Athens Free School. This covers the what, why and how of cooperative businesses including typology, funding and founding. I'll continue to offer these in Athens so if you're in the area send me a note!
Learn how the cooperative model can work for succession planning, start-up capital development, and creating a more democratic workplace. Understand the basics of cooperatives, cooperative values, economics, as well as some critical questions and resources for those considering forming a co-op.
This workshop was originally developed for the Northeast Organic Farming Association Winter Conference 2014. It targets farmers and apprentices, but has a wide applicability to start-ups, social enterprises, and small, family, or closely-held businesses.
Learn how the cooperative model can work for succession planning, start-up capital development, and creating a more democratic workplace. Understand the basics of cooperatives, cooperative values, economics, as well as some critical questions and resources for those considering forming a co-op.
This workshop was originally developed for the Northeast Organic Farming Association Winter Conference 2014. It targets farmers and apprentices, but has a wide applicability to start-ups, social enterprises, and small, family, or closely-held businesses.
With the increasing call for businesses to be commercially successful while achieving positive outcomes for society and the environment. HCLI explores what makes for exemplary leadership of sustainable businesses - and HR's role in making this a reality.
For HR Leaders that recognise that a strong purpose creates a better place to work, engages employees and attracts talent
Download the full report at: https://www.hcli.org/research/doing-well-and-doing-good-asia
How to decide non profit vs. for profitBenoit Wirz
A straightforward look at the tradeoffs between non profit and for profit ventures, and a stab at simplifying the question of how a start up entrepreneur can choose between the two.
Catalyzing Financial Services for Enterprising Nonprofits . A report of the CIBC Presents Entrepreneurship 101 Lived-it-Lecture featuring Jed Emerson held December 2, 2009, at MaRS.
Expanding the Circle of Success by Establishing a Network of Community Resour...Charles Betterton
Introduction to Expanding the Circle of Success for Solving Social, Economic and Environmental Challenges by Establishing a Network of Community Economic Development Benefit Corporations, B Corps and CAN DO! CED Resource Centers and Generating Equity Capital through the Crowd Funding Provisions of the JOBS Act
Bay Area Blueprint for Increasing Worker Ownership, March 2015project-equity
Learn how to replicate a regional approach to economic development through the lens of cooperative ownership.
Over the past year, Project Equity, SELC and EBCLC along with other cross-sectoral partners have developed a Blueprint for the Bay Area to increase the number and size of worker-owned businesses in order to address our growing income and wealth gaps. We called this model "A Blueprint for Creating Pathways to Ownership for Low and Moderate Income Workers," or the "BLUEPRINT" for short.
It's not a secret anymore - purpose is a key business driver and fundamental to creating competitive advantage.
Our team at People With Purpose have curated a number of research findings that point to the primacy of purpose in achieving superior business outcomes.
Start with why to harness the power of meaning for all stakeholders of your organisation. Purpose embedded well provides the keys to true sustainability: a business that is viable into the long-term by creating value for all.
To find out more feel free to contact me at:
danielle@peoplewithpurpose.com
www.peoplewithpurpose.com
@purposepeople
@danielleduell
https://www.linkedin.com/company-beta/3761218/
A summary of book by Brad Feld called "Startup Communities". It contains of important points & highlights of the book about how to build an entreprenurial ecosystem in a city.
Theory: What are the unique challenges of managing a social enterprise? How do social entrepreneurs manage for social impact?
Practice: How do you grow or scale up a social enterprise? How do social enterprises assess their social impact, and balance the various facets of “blended value creation”?
http://www.socialentrepreneurship.ca/entr4800/
Millennials are growing up...and have taken over majority status in today's workforce. As a result, if you lead a company, odds are you have a significant block of employees who fall in this category within your organization. You have probably likewise concluded that this group is a breed apart from those you’ve previously dealt with…so when it comes to constructing an effective pay plan, you’re at a loss. Among other things, you may have bought into the conventional wisdom that says millennials are not loyal to a company and therefore traditional forms of pay won’t appeal to them. If these are issues you’re facing, you will not want to miss this presentation!
For your school to reach its goals, meet its mission, and be set up for success, you need to build a well-structured, well-staffed, and well-trained Board of Directors. In this important webinar, our partners and industry experts on Board Governance, BoardOnTrack, will be sharing their expertise on the ins and outs of recruiting, building, and managing your governance team as you grow.
Pay for Today (and Tomorrow): Compensation in the Nonprofit Sector (DC)Church Pension Group
Lately, it seems that any sentence containing the words "nonprofit" and "compensation" is related to the scrutiny of pay provided to the presidents and other top executives of organizations. However, for most nonprofit organizations, far more compensation dollars are paid to the broader, non-executive employee population. My presentation from the October 2010 Nonprofit Human Resources Conference in Washington, DC focuses on prevailing practices and emerging trends regarding compensation in the nonprofit sector, including the impact of internal and external influences.
With the increasing call for businesses to be commercially successful while achieving positive outcomes for society and the environment. HCLI explores what makes for exemplary leadership of sustainable businesses - and HR's role in making this a reality.
For HR Leaders that recognise that a strong purpose creates a better place to work, engages employees and attracts talent
Download the full report at: https://www.hcli.org/research/doing-well-and-doing-good-asia
How to decide non profit vs. for profitBenoit Wirz
A straightforward look at the tradeoffs between non profit and for profit ventures, and a stab at simplifying the question of how a start up entrepreneur can choose between the two.
Catalyzing Financial Services for Enterprising Nonprofits . A report of the CIBC Presents Entrepreneurship 101 Lived-it-Lecture featuring Jed Emerson held December 2, 2009, at MaRS.
Expanding the Circle of Success by Establishing a Network of Community Resour...Charles Betterton
Introduction to Expanding the Circle of Success for Solving Social, Economic and Environmental Challenges by Establishing a Network of Community Economic Development Benefit Corporations, B Corps and CAN DO! CED Resource Centers and Generating Equity Capital through the Crowd Funding Provisions of the JOBS Act
Bay Area Blueprint for Increasing Worker Ownership, March 2015project-equity
Learn how to replicate a regional approach to economic development through the lens of cooperative ownership.
Over the past year, Project Equity, SELC and EBCLC along with other cross-sectoral partners have developed a Blueprint for the Bay Area to increase the number and size of worker-owned businesses in order to address our growing income and wealth gaps. We called this model "A Blueprint for Creating Pathways to Ownership for Low and Moderate Income Workers," or the "BLUEPRINT" for short.
It's not a secret anymore - purpose is a key business driver and fundamental to creating competitive advantage.
Our team at People With Purpose have curated a number of research findings that point to the primacy of purpose in achieving superior business outcomes.
Start with why to harness the power of meaning for all stakeholders of your organisation. Purpose embedded well provides the keys to true sustainability: a business that is viable into the long-term by creating value for all.
To find out more feel free to contact me at:
danielle@peoplewithpurpose.com
www.peoplewithpurpose.com
@purposepeople
@danielleduell
https://www.linkedin.com/company-beta/3761218/
A summary of book by Brad Feld called "Startup Communities". It contains of important points & highlights of the book about how to build an entreprenurial ecosystem in a city.
Theory: What are the unique challenges of managing a social enterprise? How do social entrepreneurs manage for social impact?
Practice: How do you grow or scale up a social enterprise? How do social enterprises assess their social impact, and balance the various facets of “blended value creation”?
http://www.socialentrepreneurship.ca/entr4800/
Millennials are growing up...and have taken over majority status in today's workforce. As a result, if you lead a company, odds are you have a significant block of employees who fall in this category within your organization. You have probably likewise concluded that this group is a breed apart from those you’ve previously dealt with…so when it comes to constructing an effective pay plan, you’re at a loss. Among other things, you may have bought into the conventional wisdom that says millennials are not loyal to a company and therefore traditional forms of pay won’t appeal to them. If these are issues you’re facing, you will not want to miss this presentation!
For your school to reach its goals, meet its mission, and be set up for success, you need to build a well-structured, well-staffed, and well-trained Board of Directors. In this important webinar, our partners and industry experts on Board Governance, BoardOnTrack, will be sharing their expertise on the ins and outs of recruiting, building, and managing your governance team as you grow.
Pay for Today (and Tomorrow): Compensation in the Nonprofit Sector (DC)Church Pension Group
Lately, it seems that any sentence containing the words "nonprofit" and "compensation" is related to the scrutiny of pay provided to the presidents and other top executives of organizations. However, for most nonprofit organizations, far more compensation dollars are paid to the broader, non-executive employee population. My presentation from the October 2010 Nonprofit Human Resources Conference in Washington, DC focuses on prevailing practices and emerging trends regarding compensation in the nonprofit sector, including the impact of internal and external influences.
Are you feeling overwhelmed with the number of grant proposals that you are writing or the hours that you are logging planning yet another special event? Have you ever wondered about a better way? Non-profits outside the US have relied on “social enterprise” or earned income for years. In fact, very little of their funding comes from grants, special events, or traditional philanthropy.
The concept of earning your own income provides non-profits with three advantages – a solid strategic business plan for operations, a sustainable source of revenue, and unrestricted funds. This presentation covers the basics of social enterprise.
While an effective board has always been important, it is especially essential in periods of economic turbulence. Board members who offer independent insights from their own experience, and provide access to external resources are critical to management when making decisions key to organizational viability. Building and sustaining a high performance board requires an investment of time, the right leadership and a thoughtful strategy. It is important to align the board’s role and its members’ expectations with the nonprofit’s stage of organizational development. Without proper stewardship, tension can arise when what an organization needs from its board transcends members’ understanding of their role .
Many entrepreneurs – social, triple bottom line or otherwise – do not avail themselves of all potential capital sources when seeking funding to grow or scale, limiting prospects to cash flow their initiatives. This seminar explores a range of options for funding: external in the marketplace, internal within an organization, new ideas and classics not to overlook.
What is social enterprise nccu cedi presentationJeff Stern
This is a presentation on social enterprise for nonprofits, to be given April 9th at "Marketing Strategies: Tools for Nonprofits and Social Enterprises," a free half-day workshop hosted by The NCCU Community Economic Development Initiative. Registration is free and more info is available at http://nccunonprofit.org/about.html
Ever had a inspiring idea and wanted to give back to the community but wasn’t sure exactly where to begin? The Los Angeles Urban League Young Professionals presents a tutorial on how to get your 501c3. Learn the building blocks of how to start a non-profit. To learn more about our organization, please visit laulyp.com.
Legal Tools for Worker Cooperatives and the Sharing Economy: Day 2Ricardo Nuñez
Legal professionals, accountants, and community development organizations were invited to a two-day workshop on legal structures and strategies for cooperative development and sustainable local economies. This workshop had a special emphasis on worker cooperatives, freelancer-owned cooperatives, land trusts, and alternative capital structures.
On the first day, attendees learned about ownership and governance structures being used in the wake of the Great Recession to create a more inclusive economy, including land trusts and housing cooperatives, as well as new financing vehicles that leverage community capital.
The second day focused on worker cooperatives and freelancer-owned cooperatives, including entity structure, bylaws and operating agreements, ownership transitions to worker cooperatives, nonprofit incubation of worker cooperatives, employment law, tax structures and more.
Lawyers were offered 1 Ethics Credit and 5.5 Professional Practice Credits on Day 1 and 7 Professional Practice credits on Day 2 for the State of New York.
Presenters included:
Janelle Orsi, Executive Director of Sustainable Economies Law Center (SELC) and author of Practicing Law in the Sharing Economy: Helping People Build Cooperatives, Social Enterprise, and Local Sustainable Economies (ABA Books 2012).
Ted De Barbieri, Assistant Professor of Clinical Law at Brooklyn Law School
Camille Kerr, Director of Field Building at the Democracy at Work Institute (DAWI)
Ricardo Nunez, Cooperatives Program Director at SELC
The event was held Feb 4th and 5th, 2015 from 9am-5pm both days at Brooklyn Law School (205 State St.Brooklyn, NY 11201)
The Moery Company has become one of the most-respected and successful consulting firms in the non-profit industry. Well-established within the Washington, DC, association market, we help solve revenue growth problems for our partner associations, whether it’s membership, product, sponsorship, or exhibitor programs.
The following slide presentation is from the Spring 2011 series of “Introduction to Social Enterprise” workshops by Enterprising Non-Profits (enp). Enp offers these workshops throughout British Columbia (Canada) every spring and fall.
The workshop presentation defines social enterprise, provides examples of social enterprises in British Columbia, describes the business development path, and explains enp’s granting program and grant application process.
For more information on enp, go to www.enterprisingnonprofits.ca
How to Start a Food Co-op in Your CommunityNFCACoops
Bonnie Hudspeth, Membership & Outreach Manager for Neighboring Food Co-op Association and Michael Faber, General Manager of Monadnock Food Co-op in Keene, NH share their experience organizing a member-owned food co-operative, Monadnock Food Co-op, in their community. In its first year, the Monadnock Food Co-op in Keene, NH sold products from 177 local farmers & producers. This presentation reviews resources available to guide the start-up process of a food co-op, shares examples of how food co-ops serve local farmers and producers, and presents lessons learned from the organizing and recent opening of Monadnock Food Co-op.
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What You're Going to Learn
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- Get actionable strategies you can use right away to improve your bookings, sales and retention.
Best Crypto Marketing Ideas to Lead Your Project to SuccessIntelisync
In this comprehensive slideshow presentation, we delve into the intricacies of crypto marketing, offering invaluable insights and strategies to propel your project to success in the dynamic cryptocurrency landscape. From understanding market trends to building a robust brand identity, engaging with influencers, and analyzing performance metrics, we cover all aspects essential for effective marketing in the crypto space.
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Co-op 101 for Athens Free School 2016
1. Co-op 101:Co-op 101:
What,Why, and HowWhat,Why, and How
Athens Free SchoolAthens Free School
June 26, 2016June 26, 2016
Matthew Epperson
mreppers@gmail.com
3. What is a co-op?What is a co-op?
The official definition:
An autonomous association of persons
united voluntarily to meet their common
economic, social and cultural needs and
aspirations through a jointly-owned and
democratically-controlled enterprise.
4. What’s in a name?What’s in a name?
An association means mission-led; co-ops
have mission statements and social
purposes just like non-profits
An enterprise means profit (or surplus)-
generating activities keep the co-op in the
black; there must be an engine for
income and a unique selling proposition
(USP)
It’s a best of both worlds!
5. Ujamaa, the 4Ujamaa, the 4thth
principle of Kwanzaaprinciple of Kwanzaa
“a commitment to the practice of
shared social wealth and the work
necessary to achieve it.” (41)
-SOURCE: "The African American Holiday of Kwanzaa: A Celebration of
Family Community & Culture"
by Maulana Karenga, University of Sankore Press, Los Angeles,
California, 1988, ISBN 0-943412-09-9
10. Federation (Network)Federation (Network)
The National Rural Electric Cooperative
Association (As of 2014):
More than 900 electric cooperatives and
public power districts
More than 42 million consumers in 47
states
Approximately 12 percent of total
electricity sales in the United States
12. Why start a co-op?
Many co-ops start because of a need…
13. From economic collapse to worker
owned factories, in Basque Spain
Father Don Jose Maria
Arizmendiarrieta, visionary of the
Mondragon Cooperatives
“Savings or suitcases”
23. Co-ops receive UN recognitionCo-ops receive UN recognition
…… and kickoff the Co-and kickoff the Co-
operative Decadeoperative Decade
2013-20202013-2020
24. The Steps …The Steps …
1. Identify the problem or opportunity and gauge broader
interest
2. Identify the problem to be addressed with a good or
service provided by the co-op
3. Form a steering committee
4. Conduct a feasibility study
5. Establish the co-op
6. Prepare a business plan
7. Begin an equity drive
8. Elect a board, secure start-up capital
9. Secure site, vendors, staff and begin operations!
25. Identify the problem orIdentify the problem or
opportunity and gauge broaderopportunity and gauge broader
interestinterest
Core group
◦ Committed and trustworthy individuals
ID a problem and a co-op solution
Reach out to the community
Form info meetings
◦ Recruit skill and expertise
◦ Existing co-ops are there to help
26. The Antigonish MovementThe Antigonish Movement
Was built by “study groups,” focused on
meeting community needs by educating
themselves.
27. Study group!Study group!
Get together into teams of 3-4 people
and discuss one problem our community
(local, national or international) faces
which might be solved by a cooperative
business.
28. Whether converting or startingWhether converting or starting
from scratch …from scratch …
Answer the question: Does the co-op
business model best fit the mission of the
organization?
1) Do we want to share control with
members through a board of directors?
2) Do we want to share profits with
members in proportion to their use?
3) Do we want to finance our
organization through our members?
29. There are other models…There are other models…
501c3 non-profits
For profit enterprise
Social enterprise (e.g. B corporations)
30. ID’ing a ProblemID’ing a Problem
How do you identify a problem which a
co-op can fix?
◦ Talk to the community – what’s lacking?
Fresh food?
Education?
Transportation?
Jobs?
All of the above?
◦ Should a new co-op be made? Could a
current organization become a co-op?
31. Form a steering committeeForm a steering committee
and further explore the co-opand further explore the co-op
business optionbusiness option
Survey potential members
◦ Interest level
◦ Potential business volume
Draft mission, purpose, goals
Core group is…
Able to put the co-op before personal gain
Good business sense
Will champion the project
Are credible to a community audience
32. Conduct a feasibility study andConduct a feasibility study and
evaluate the results.evaluate the results.
FS includes:
◦ A market analysis
◦ management, equipment and facility needs
◦ revenue projections
◦ sources of financing
Outside expertise may be needed
◦ 3rd
party is best
Seed money may be necessary
◦ Member equity
◦ Federal, state, non-profit agencies
FS results are shared (can increase support)
Do we continue???
33. Establish the cooperative byEstablish the cooperative by
adopting Articles and Bylaws.adopting Articles and Bylaws.
Steering Comm. draws up Articles
(either incorporation or Organization)
◦ Establishes broad basics: stock or non-stock,
price of stock, how many shares can be sold
(hard to change)
◦ Get review from a lawyer
Initial bylaws also drawn up by SC
◦ Thereafter adopted and amended by
members
Open a bank account!
34. There is help out there …There is help out there …
Co-oplaw.org is a clearing house for co-op legal information to help
with things like articles of incorporation, merger or association; bylaws,
policies, taxation as a subchapter T corporation, and more.
University of
Wisconsin
Center for
Cooperatives
35. Establish the cooperative byEstablish the cooperative by
adopting Articles and Bylaws.adopting Articles and Bylaws.
Georgia co-operative incorporation law allows for:
◦ Agriculture co-ops
◦ Health insurance
◦ Electricity (EMCs)
◦ Telephone service
◦ Credit unions
Lacking a general co-operative law which would
allow:
◦ Consumer co-ops
◦ Worker co-ops
36. The alternativeThe alternative
Incorporate (or organize) as C or S
corporations, partnerships (subchapter
K), non-profits, or limited liability
companies BUT operate as a co-
operative.
◦ Gain co-op strengths
◦ Uses existing legal structures available in
Georgia
37. Prepare a business planPrepare a business plan
An operational plan
Rule of thumb: 30-50% of start-up equity from
members
BP includes:
◦ A market analysis
◦ A description of the product or service that the
cooperative will be selling and how it meets a need in the
marketplace.
◦ Marketing and sales strategies.
◦ Operations.
◦ Management and ownership.
◦ Sources and uses of start-up funds.
◦ Projected financial data for the first three, five and/or ten
years of operations.
38. Begin a membership equityBegin a membership equity
drive.drive.
More information meetings with potential
members and customers
◦ Words like “fee” are avoided
◦ A “pitch” is developed, and consistent
Can be 30 seconds of “You should be a member, and
here’s why…”
◦ Cater to the audience
Some are more tuned into WIIFM (What’s In It For
ME?), others more WIIFU (Us); some are excited about
the product or service, others about keeping decisions
and dollars local
◦ Integrate mission and vision into professional
materials
39. Co-op EquityCo-op Equity
Co-ops can issue common stock (aka class A shares; these are
voting shares, can be very inexpensive, e.g $5) …
as well as preferred stock (aka class B, C, etc. shares; non-voting,
more similar to investment capital, e.g. $5,000 - $50,000, usually
pays dividends e.g. 6%, can also offer a premium)
Equity capital is also called “risk capital” because it is the more
risky investment (vs. debt capital that is paid first upon
dissolution). Equity investors can request their investment be
returned but it is subject to board of director approval and the
financial health of the co-op – this is a risk!
40.
41. Elect a board of directors andElect a board of directors and
secure start-up capital.secure start-up capital.
First board is elected by members
◦ If bylaws not already adopted, adopt now
Board coordinates BP, and securing start-up
capital
Lenders look at risk (more member-
sponsored equity shows more commitment,
less risk to lender)
◦ May work best to find co-op-sympathetic lenders
ID management & staff?
◦ Knowledgeable staff pose less risk
42. Twin Trap of PowerlessnessTwin Trap of Powerlessness
So much structure and bureaucratic
procedure that members cannot
actually use the power they formally
have.
VS.
So little structure that there is no
available means to make a
difference.
43. Different Scale LendersDifferent Scale Lenders
Catholic Campaign for Human
Development
◦ ~ $5,000
Northcountry Cooperative Development
Fund
◦ Up to ~$400,000
National Co-op Bank
◦ ~$1M or greater
Matching grants to
grassroots fundraising
available in the
southeast.
44. Secure site, vendors and staffSecure site, vendors and staff
so that operations can begin.so that operations can begin.
Top management roles (with board):
◦ Secure operations site
◦ Developing vendor networks
◦ Hire staff
◦ Licensing and regulatory requirements
◦ Legal, insurance and risk management
Board will become more hands-off over
time
◦
45. What if we are losing money?What if we are losing money?
Losses, like gains, must be allocated. Generally the
reserve fund takes losses, but individual equity accounts
could take a hit as well if there is a steep operating loss
for a year.
The reserve is the cushion that is there to help.
Losses are expected for the first 1-3 years of operation
as in other businesses.
If initial financials show no sign of improvement over
time, the business plan should be amended.