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Cooperatives Pathfinder
Curriculum on How to Start a Cooperative
Prepared by
Cooperative Development Services August 2010
IDEA
1ST ASSESSMENT
Cooperative model Regular Business
2ND ASSESSMENT
Members Meeting
Feasibility studies
Type of cooperative
Business Plan
Finance Manage
Incorporation
IDEA
1ST ASSESSMENT
Cooperative model Regular Business
2ND ASSESSMENT
Members Meeting
Feasibility studies
Type of cooperative
Business Plan
Finance Manage
Incorporation
Step-by-Step on How to Start a Cooperative
Click on each box on this diagram to view steps starting with IDEA
For more information on co-operative development visit us at our Co-op Development website or contact the Cooperative Development Services team
IDEA
You start with an idea: • A new product or service• A variation of an existing one• Share a common challenge or need • Perceive an opportunity of common interest
1st ASSESSMENT
• Am I the only one interested in the cooperative project?• If yes how can I proceed to accomplish the
cooperative project? • If not, how many are interested in the
cooperative project?
• What kind of business are we going to explore?
COOPERATIVE MODEL• What is a Cooperative Model? • 1 member = 1 vote• Share profit and loss• Concern to the community• Be the boss of your business • Get the service that you would like to• Give the product that they would like to• Maximize the use report : member/cooperative
(workers, producers, services)
BUSINESS MODEL
• What is a Business Model? • The money is the owner: 1$=1vote • Limited concern to the community• Be the boss • Individual / business interest• Maximize individual profit• Export profit elsewhere
2nd ASSESSMENT2.1 GROUP ASSESSMENT• Assess skills available
and matched to the business needs
• Determine leadership capacities
• Ask yourself “How far can the group mange the business”
• Assess financial capacity • Act positively for a
common goal. • Determine experience
and knowledge
2.2 BUSINESS ASSESSMENT:• Review the originality of the
idea• Clarify the nature of needs to
be covered• Determine the skills needed • Determine potential profit for
members and community • Estimate the cost involved• Determine capital required • Review regulations and
policies
MEMBERS MEETING
This is a guide to what should occur at your member’s meeting: • Provide overview of the idea of the project• Discuss pre-feasibility result • Get more supporters involved• Show the benefit and the project’s cost (individual and
community)• Form a steering committee (leader for the next steps
to realize the project)• Get feedback
FEASIBILITY STUDIES• Hire a consultant familiar with the cooperative model
and the business areas• Get other professionals involved: (lawyers,
accountant, ..) • Potential of success and answers “Can we do this
business?”• Have an overview of the ins and outs of the business
(cost, material, human resources, capital,…..)• Financial resources:
– Feasibility Studies Program (MB) – Rural Economic Development Initiative (REDI) Feasibility St
udies Component (MB)– Cooperative Development Services team
TYPE OF COOPERATIVES
With shares Without shares
Membership
Investment
Special investment
INCORPORATION
Links that will assist you with the incorporation phase of starting your cooperative:• Incorporation phase• Instructions on how to incorporate • Instructions on the Articles of Incorporation • Other forms on Incorporation• Offering statement• Securities Commission
FINANCE A CO-OPERATIVE
Cooperatives may benefit form different financial programs and specific ones which include the following programs:
• Canada/Manitoba Business Service Centre (CMBSC)• Business Start Program (BSP) • Canada Small Business Financing Program • Financial program (Industry Canada) • Steps to Growth Capital • The Canada Council for the Arts - Grant Programs Summary • Cooperative Development initiatives• The Cooperative Promotion Board • The Cooperative Loan and Loan Guarantee Board• Neighborhood alive• Jubilee Fund
GOVERNANCE MATTERS
These are links that will assist you with governance of your cooperative:• The co-operatives Act • Regulations • By-laws• Responsibilities and duties of the board • Institute of governance
BY-LAWS
Samples of by-laws for different types of cooperatives: • Housing for profit• Housing not for profit• Without shares• With membership shares• Employment • Community services