The Co-op Option-What is a Co-op?
A cooperative is a Business.
Co-ops range in size from small store-fronts to large Fortune 500 companies.
Check Types for more on the variety of co-op structures and the range of work done by co-ops around the globe.
In every case, the work and the format are designed by the members to meet the needs of the members in a values-based manner.
Cooperatives:· Are owned and democratically controlled by their members-the people who use the co-op's services or buy its goods-not by outside investors; Co-op members elect their board of director from within the membership.· Return surplus revenues (income over expenses and investment) to members proportionate to their use of the cooperative, not proportionate to their "investment" or ownership share.
· Are motivated not by profit, but by service-to meet their members' needs for affordable and high quality goods or service
· Exist solely to serve their members;
· Pay taxes on income kept in the co-op for investment and reserves. Surplus revenues are returned to individual members who pay taxes on that income
Cooperatives follow seven internationally recognized co-operative principles. Check ICPs for more on this key topic.
Serving Many Needs:...Cooperatives provide a huge range of goods and service such as:
· Credit and personal financial services including Insurance, Legal and professional services
· Housing, Employment, Health care, Childcare, Funeral and memorial service planning· Equipment, hardware and farm supplies· Electricity, telephone, Internet and satellite and cable T.V. services· Food and food services, Marketing of agricultural and other products
A huge sector: Worldwide, some 750,000 cooperatives serve 730 million members.
The Co-op Option-Why and how would you form a co-op?
Why Co-ops Form:
People form co-ops to improve their quality of life and enhance their economic
opportunities through self-help. Co-ops provide members with financial services,
utilities, consumer goods, affordable housing, and other services in a values-driven
manner.
Forming your Co-op:
1. Develop a group of people with whom you like working and who have the foresight and patience to work through challenges together. Get help in learning how to make decisions by consensus. Talk about how you will incorporate the seven international co-operative principles 7 ICPs into the daily work of your co-op.2. Find a good business idea. Research to see if you can provide the needed goods or services in a cost effective manner. Investigate to be sure that you will have enough customers who are willing and able to pay for your products. Decide how you will ensure that these clients will choose to purchase from you. See Our Services - Getting Started.3. Find a mentor, co-op developer (that's First Ownership Co-op and many other developers around the world) or educational institution to be your co-op's "companion on the journey" as you develop your group and your business plan. Use the links to the Canadian Worker Co-op Federation www.canadianworker.coop/ and the BC Co-op Association www.bcca.coop/ to find Co-op Developers who work in Canada and around the world.4. Follow the steps for incorporation in your area. Ask a co-op developer. Check with your local business development services. Use the internet. Ask local government.5. Pay special attention to understanding that: - all members are owners and all have an equal vote on the major decisions - good governance is the key ingredient for a successful co-op - the responsibility of the Board is: listening to members, setting policy, ensuring a sound long-term business plan, and ensuring the long-term healthy operation of the Board6. Follow the links to find many sources of information about forming a co-operative.7. Check out our Win-Win materials at www.canadac.com/winwin.html , designed for young people, but full of good ideas, information and links.Ask us about developing your co-op
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