Cooperative Information Report 7

Cooperative Information Report 7 - Cooperative Information...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Cooperative Information Report 7 How to Start a Cooperative Preface This guide outlines the process of organizing and financing a cooperative business. Rather than being a complete handbook, this publication represents the most important elements to consider when forming a cooperative. It lists what special expertise is necessary, and where to look for help. Earlier versions of this publication emphasized working with groups of agricultural producers to develop markets and sources of supply for farm operators. This version has been broadened to also include nonfarm cooperative applications. the cooperative business structure, already shown to be successful in agriculture, also has been useful in helping others obtain desired benefits or provide needed services in areas like housing, utilities, finance, health care, child care, and small business support. Cooperative Information Report 7 Revised September 1996 Galen Rapp and Gerald Ely Contents Who Sparks a Cooperative? What is a Cooperative Business? Distinctive Features Why Cooperatives Are Organized Marketing Activities Purchasing Supplies/Services Organizing Steps Leadership and Advisers
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Exploratory Meeting Member-User Survey Market, Supply Sources, Cost Analysis Feasibility Analysis Capitalizing the Cooperative Common Stock Preferred Stock Membership Certificates Capital Certificates Stock or Nonstock Structure The Member Investment Sources of Debt Capital Projecting Capital Needs Legal Considerations Legal Papers Articles of Incorporation Bylaws Membership Application Marketing and Purchasing Agreements Revolving Fund Certificates Charter Member Meeting Implementing the Business Plan Membership Drive
Background image of page 2
Acquiring Capital Manager Selection Acquiring Facilities General Rules for Success Use Advisers and Committees Effectively Keep Members Involved and Informed Maintain Good Board-Manager Relations Conduct Businesslike Meetings Follow Sound Business Practices Forge Links With Other Cooperatives Common Pitfalls to Avoid Appendix I Sample Member-User Questionnaire Appendix II Steering Committee Report Outline Appendix III Sample Legal Document Outlines Appendix IV Sample Projected Financial Statements (Gross Margins and Commission Fees) Appendix V Sample schedule of fixed asset costs and depreciation Appendix VI Sample schedule of financing needs and sources Appendix VII Helpful References How to Start a Cooperative Who Sparks a Cooperative? A compelling need and a few community leaders can spark the idea of forming a cooperative. Usually, these leaders have an economic need or desire a service they believe a cooperative can provide. They also know others who have similar interests. These leaders can be business owners, manufacturers, growers, artisans, or citizens who lack, or are losing, a market for their products, satisfactory sources of production supplies, or services related to their occupation. Or they may wish to secure some other needed service or develop sources of additional income.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
What Is a Cooperative Business? A cooperative is a business owned and controlled by the people who use its services. They
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/26/2010 for the course CHEMISTRY ChM560 taught by Professor Bates during the Spring '10 term at Aarhus Universitet.

Page1 / 43

Cooperative Information Report 7 - Cooperative Information...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online