utilization of a timeline defining influence establishing members meet and network organization!
TRANSCRIPT
Cooperative OrganizationIn 13 Simple Steps!
How are cooperatives organized? Utilization of a timeline Defining influence Establishing members Meet and network ORGANIZATION!
#1: Invite and Identify
Invite Potential member-users to meet and
discuss Identify
Economic and community need to be filled
#2: Explore
Create an exploratory committee If continuing, select a steering
committee A what?▪ A group of individuals responsible for general
operating policy, procedures, and related matters affecting the cooperative
#3: Survey
Survey prospective members based on: Volume of need or use. Member-user experience and capabilities. Variety of products or services offered or
needed. Period of need or services. Current unit value—sales price or cost per
unit. Member-user—location of use or need. Familiarity with and use of other cooperatives
and willingness to join, finance, and use one.
#4: Discuss
Discuss survey results with potential members
Vote and decide how to proceed
#5: Analyze
Conduct needs and cost analysis Identify suitable markets, sources of supply,
and service providers and their requirements.▪ Use previous research and industry common
knowledge.▪ Survey market, supply or service provider sources.▪ Ask to conduct research and use findings:▪ State and/or Federal offices▪ Universities▪ Cooperative centers▪ Commodity organizations▪ Private consulting firms
#6: Discuss
Group hears results and votes whether to proceed.
Pre-membership agreements may be used if group is proceeding.
Initial investments may be collected
#7: Feasibility Analysis
Components of a study might include: Project description and justification Industry background Marketing situation Outlook and plans, Operational and technical characteristics Financial statements, projections, and sensitivity analysis Summary and recommendations.
Decide who will conduct the study Develop sound and realistic project assumptions Determine components for a comprehensive study Assess the study Accept or reject the study
#8: Present Results
4th Meeting Steering committee arranges for
incorporation and development of bylaws
Feasibility analysis provides development of the business plan. A what?▪ A formal statement of a set of business goals,
the reasons why they are believed attainable, and the plan for reaching those goals
#9: Bylaws and Incorporation
Prepare legal papers Draft bylaws Other paper work
Membership application Membership or stock certificate Marketing/purchasing agreements Revolving fund certificate Meeting notices and waivers of notice
#10: Meet and Elect
Call a meeting of charter members and potential members
Review and adopt the proposed bylaws
Elect a board of directors.
#11: Convene and Assign Convene first meeting of board and officers Assign responsibilities to implement business plan
Membership drive Membership application or stock subscription Acquiring capital and bank selection Initiate hiring of management Authorize officers/employees to handle funds Design and install accounting system Provide for bookkeeping and accounting services Bond officers and employees in accordance with
bylaws Choose a business location
#12: Acquire
Conduct a membership drive Acquire capital
How?▪ Membership stock shares▪ Member equity contributions▪ Loans▪ Outside equity accumulation
#13: Hire, Acquire, Begin!
Hire the manager! Gain facilities and production
equipment Begin operations!