There are different kinds of businesses and business structures that could address your need or opportunity. At this point, you will have to research whether a co-operative structure is right for you.
You must remember that a co-operative or credit union is still a business, but it is a unique type of business. It requires the dedication of its members to an on-going process that is democratic and serves the needs of its membership. Starting a co-op takes time and dedication.
CO-OP SUITABILITY Not only should a co-op be right for you, you have to be sure you're right for a co-op. Working in a co-operative doesn't mean you do everything together. However, you must be able to work together when making decisions, you must be willing to communicate, to share, to discuss and to find solutions that you and other members can accept. Together, you must be willing to share the risk and responsibilities.
Determine...
Do you want to direct and share in the control of your business? What degree of control do you want? How much control do you want to share? Who do you want to share it with? What do you not want to direct and control? (For example: the wages, what to produce or what to sell) Who will be a part of the steering committee? (A small group that has enough time and energy to do most of the research and to make proposals to the full group.) Is there enough interest among your members (and potential members) to continue developing this business idea?
MAKE YOUR PLANS...AND DO YOUR HOMEWORK Like any good business, a co-op requires an excellent business plan, sufficient start-up capital, and the tenacity of its founders. There will be long hours, many meetings, and low pay in the start-up phase. And, there will also be break-throughs, exciting developments and the internal reward of accomplishing something important to you and your community.
The main difference between a co-op business and a regular company is democracy. This is both the strength and potential weakness of the co-op structure. It's a strength because it offers people (members) more control over their lives and the potential for making better decisions collectively than individually. It's a weakness because democratic decision-making requires more time, more discussion, and the ability to listen and even change one's mind. This doesn't mean that every little decision has to be made by the group. Usually, only long-term policies are determined this way, while day-to-day business operations are clearly assigned to various employees, just like any business.
Over 1 billion people are members of co‐ops worldwide (2). They've joined together because they are able to achieve something as a group that they simply couldn't do as individuals.
2. Group Development
MOVING BEYOND THE IDEA STAGE Your first task is to find other people in your community. To start a co‐operative you need at least five members (three, if it is a worker co‐operative). Obviously, the more people you have interested in your co‐op idea the better. Spread the word. Read the papers. Check out economic development offices near you. Talk to other people with similar needs. 'Community' can be defined in a variety of ways ‐ geography, workplace, common need, religious or other grouping of people. Think about your community. Where is it? Who is it? Local ethnic, trade, union, religious, cultural, or educational groups and organizations may be a source of support, inspiration and members. It could be that your community has a need which could be served by forming a co‐operative. Sometimes it may be hard to find other people who have similar interests or ideas. It may also be difficult to find the support you need. It is important for you and for the co‐operative to have a support network within your community and within the co‐op sector. If you are having trouble, contact a co‐op federation related to your type of co‐operative. They will help you to link up with a local or provincial co‐op group or federation. They might know of people, resources, other co‐ops and organizations in your own community that can help you. Many co‐op federations offer consulting and business development services. They will be able to answer your questions and help to point you in the right direction. Don't forget that On Coop works with developing and emerging co‐operatives, too! The Financial Services Commission of Ontario has prepared a booklet on the steps required to set up a co‐op in Ontario. Click here to view (27 pages, PDF format. (Note ‐ contact information contained in the appendices may be out‐of‐date.)
3. Needs and Opportunities Co‐operatives often form when there is a need or an opportunity. For example, the owners of a company, business or factory may be selling or closing the business and the workers will lose their jobs. The workers may decide to buy the business and run it themselves. Before you go any further you must be sure that your idea addresses a need or an opportunity. For instance, if a group of people need work you could create a worker co‐op, which provides jobs for its members. Remember that your worker co‐op, in order to be successful, must provide a service or product for which there is also a need or market.
You must remember that a co-operative or credit union is still a business, but it is a unique type of business. It requires the dedication of its members to an on-going process that is democratic and serves the needs of its membership. Starting a co-op takes time and dedication.
CO-OP SUITABILITY Not only should a co-op be right for you, you have to be sure you're right for a co-op. Working in a co-operative doesn't mean you do everything together. However, you must be able to work together when making decisions, you must be willing to communicate, to share, to discuss and to find solutions that you and other members can accept. Together, you must be willing to share the risk and responsibilities.
Determine...
Do you want to direct and share in the control of your business? What degree of control do you want? How much control do you want to share? Who do you want to share it with? What do you not want to direct and control? (For example: the wages, what to produce or what to sell) Who will be a part of the steering committee? (A small group that has enough time and energy to do most of the research and to make proposals to the full group.) Is there enough interest among your members (and potential members) to continue developing this business idea?
MAKE YOUR PLANS...AND DO YOUR HOMEWORK Like any good business, a co-op requires an excellent business plan, sufficient start-up capital, and the tenacity of its founders. There will be long hours, many meetings, and low pay in the start-up phase. And, there will also be break-throughs, exciting developments and the internal reward of accomplishing something important to you and your community.
The main difference between a co-op business and a regular company is democracy. This is both the strength and potential weakness of the co-op structure. It's a strength because it offers people (members) more control over their lives and the potential for making better decisions collectively than individually. It's a weakness because democratic decision-making requires more time, more discussion, and the ability to listen and even change one's mind. This doesn't mean that every little decision has to be made by the group. Usually, only long-term policies are determined this way, while day-to-day business operations are clearly assigned to various employees, just like any business.
Over 1 billion people are members of co‐ops worldwide (2). They've joined together because they are able to achieve something as a group that they simply couldn't do as individuals.
2. Group Development
MOVING BEYOND THE IDEA STAGE Your first task is to find other people in your community. To start a co‐operative you need at least five members (three, if it is a worker co‐operative). Obviously, the more people you have interested in your co‐op idea the better. Spread the word. Read the papers. Check out economic development offices near you. Talk to other people with similar needs. 'Community' can be defined in a variety of ways ‐ geography, workplace, common need, religious or other grouping of people. Think about your community. Where is it? Who is it? Local ethnic, trade, union, religious, cultural, or educational groups and organizations may be a source of support, inspiration and members. It could be that your community has a need which could be served by forming a co‐operative. Sometimes it may be hard to find other people who have similar interests or ideas. It may also be difficult to find the support you need. It is important for you and for the co‐operative to have a support network within your community and within the co‐op sector. If you are having trouble, contact a co‐op federation related to your type of co‐operative. They will help you to link up with a local or provincial co‐op group or federation. They might know of people, resources, other co‐ops and organizations in your own community that can help you. Many co‐op federations offer consulting and business development services. They will be able to answer your questions and help to point you in the right direction. Don't forget that On Coop works with developing and emerging co‐operatives, too! The Financial Services Commission of Ontario has prepared a booklet on the steps required to set up a co‐op in Ontario. Click here to view (27 pages, PDF format. (Note ‐ contact information contained in the appendices may be out‐of‐date.)
3. Needs and Opportunities Co‐operatives often form when there is a need or an opportunity. For example, the owners of a company, business or factory may be selling or closing the business and the workers will lose their jobs. The workers may decide to buy the business and run it themselves. Before you go any further you must be sure that your idea addresses a need or an opportunity. For instance, if a group of people need work you could create a worker co‐op, which provides jobs for its members. Remember that your worker co‐op, in order to be successful, must provide a service or product for which there is also a need or market.