1. NW Co-op Development Center
Co-ops 101
Peoples Food Co-op
Mar. 13th
, 2013
Eric Bowman, Cooperative Development Specialist
eric@nwcdc.coop
1063 S Capitol Way # 211
Olympia, WA 98501
360.943.4241

2. Presentation: Co-ops 101
1. Intro
2. Overview and History
3. Co-op Economy and Models
4. Development Process
5. Resources
6. Q&A

3. NWCDC
The Center
a 501(c)3 nonprofit which provides development services
for new and existing co-ops
Our mission
to foster community economic development through the
co-op business model
We’re
a team of co-op developers with skills specific to start-up
and organizational business development

4. Co-ops 101
Investor owned:
Sole proprietor:
Co-ops are member:
◦ Owned
◦ Controlled
◦ Benefited

5. Corporate Structure

6. Co-op Role
U.S. Facts:
– 250 purchasing co-ops procure for 50,000 businesses
– 3,000 farmer co-ops market 30% of farmers’ products
– 8,000 housing co-ops provide 1 m homes
– 7,500 credit unions provide services to 90 m members
– 1,000 rural electrics operate ½ the nation’s distribution
– 29,000 co-ops serve 43% of the population
Top 100 co-ops’ 2010 revenues = $194 Billion!

7. Internationally Recognized Principles
1. Voluntary and Open Membership
2. Democratic Member Control
3. Member Economic Participation
4. Autonomy and Independence
5. Education, Training and Information
6. Co-operation among Co-operatives
7. Concern for Community

8. Ownership
Member-Owners can be
– Consumers
– Producers/Farmers
– Workers
– Other Businesses

9. Distributionism
Consumer
◦ Credit Unions
◦ Housing
◦ Retail (e.g. food co-ops)
◦ Farm Supply
Two Schools
Producer
◦ Worker
◦ Farmer
◦ Artisan

10. Distributionism cont.
Another School…
Solidarity or Multi-Stakeholder
◦ Weaver Street Market owners:
◦ Workers
◦ Consumers
◦ Idaho’s Bounty Co-op owners:
◦ Producers
◦ Consumers

11. Why Cooperate?
…to access resources not individually achievable

12. Why form an entity?
Creating:
• Something bigger and beyond oneself
• Economy of scale
• Solid foundation for growth
• Legitimacy
• Commitment
• Limited liability
• Formal structure to work together

13. When not to form…
• Too small to cover admin
• Dependant on volunteer and/or grant
• Less than 3 members
• Don’t need structure
• No compelling economic need

15. Estimated Timeline
• 6 to 12 months (or more for each):
1. Organizing
2. Planning
3. Implementation
• Total of 1 ½ to 3 years

16. Co-op Development Stages
• Identify a need a co-op could
meet
• Form Steering Committee
• Research Feasibility
• Review Findings (Go/No Go)
• Membership Drive
• Planning and Financing
• Begin Operations (Go/No Go)
Project LifecycleProject Lifecycle

17. Co-op Development Stages
• Identify a need a co-op could
meet
• Form Steering Committee
• Research Feasibility
• Review Findings (Go/No Go)
• Membership Drive
• Planning and Financing
• Begin Operations (Go/No Go)
How We Assist
• Facilitate identifying mission and
goals
• Train founding Board members
• Market and feasibility research
• Assist with organizing
• Professional, 3rd
party perspective
• General business consulting
Project LifecycleProject Lifecycle

18. Organizing
• Held “go or no go” votes at every meeting

19. Organizing
• Form committee
– A “proto board”
– May or may not be potential members
– Role is:
• Advisory
• Exploratory
• Planning
• Networking
• Visionary
• Fundraising

20. How?
- Watershine, OPMA

21. How?
“…hold about 500 meetings.”
- Watershine, OPMA

22. Planning & Feasibility
• Studying:
– Technical
• Location, management, etc.
– Economic/financial
• Projections on profit and loss, cash flow, start up
– Market
• Competition, sales, etc.

23. Feasibility
• More risk = more complex research
• Industry specific
– e.g. food co-ops: market analysis
• Who wants it?
– Potential members may
– Lenders
– Member lenders/investors

24. What you’re not:

25. What you are:
…is spending your neighbor’s money!

26. Membership Drive Phases
1. Highly motivated early adopters
2. Friends, family and fools are super easy
3. Tap out networks
4. Community organizing and it’s uphill
– It’s P.R., outreach, communications, etc.
– Need a plan
– “Political campaign without an election”

29. Resources
1. How to Start a Food Co-op; CGIN
2. How to Start a Cooperative; USDA
3. The Worker Cooperative Toolbox; NCDF
• Resources/toolboxes
– Food Co-op Initiative
– US Federation of Worker Co-ops
• Magazines
– Cooperative Grocer
– The Cooperator; Co-op and Condo monthly

30. Thank You!
Eric Bowman
eric@nwcdc.coop
Northwest Cooperative Development Center
1063 Capitol Way S # 211
Olympia, WA 98501
360.943.4241 | www.nwcdc.coop
Fostering community economic development through the
cooperative business model