What is a co-op?

“A co-op is a member owned, member controlled business that operates for the mutual benefit of all members and according to common principles established for cooperatives.”

Co-ops are owned and controlled by those who use their services (members).

Co-ops are democratically governed.

Co-ops are business, not clubs or associations.

Co-ops adhere to internationally recognized principles.

Food co-ops are usually organized as consumer co-ops, which provide goods or services used primarily by members for personal consumption.

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Looking at the Co-op as a Business:Steps

Starting a co-op involves thorough business planning and time. Most co-ops take a minimum of two years to start up.

The following steps are common to new co-ops:

Gather background information, Assess community interest, Incorporate, Organize within the community, Recruit warehouse, Research feasibility, Plan for financing, Secure financing, Select a site, Prepare for opening, Begin operations

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The Food Co-op Initiative Development Model

Four cornerstones:

Vision Talent

Capital Systems Three stages of food co-op

development:

Organize

Feasibility & Plan

Implement

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Four Cornerstones

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I. Vision: “The articulation of hopes and dreams of a founding group”

Broad, Long-term, Inspiring and Specific and Local Refined as the emerging co-op moves through the development stages Includes the co-op as a solution to a common problem or need Core values and purpose A vision of the process of developing a food coop

Four Cornerstones

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II. Talent: “Those invested in the co-op’s success”

Champion(s) Steering Committee or Task force Board of Directors Developer Management (Development Project Manager, Facility

Project Manager, General Manager)

Four Cornerstones

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III. Capital: “Financial resources necessary for all stages of development”

Organizing Feasibility Business Planning Implementation Sustaining (recover and reinvest) Internal resources are used to leverage external resources

Four Cornerstones

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IV. Systems: “Organized, integrated, coordinated, and interdependent methods”

Legal Governing Planning & assessment Communication and Marketing Finance & Accounting Operations Commitment to continuous improvement Systems become more complex through the stages

Development Stages

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Stage I: OrganizingEmerging Co-op:Brings about the organization

One or more people start with an idea Recognition of a common problem or need that a food co-op could meet Includes -Convening a core group -Assessing common interest and needs -Designating leadership -Building a shared vision -Committing time and money Brings about the organization

Development Stages

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Stage II: Feasibility & PlanningEmerging Co-op:Brings about the operation

An organized group with commitment, interest and capacity Assesses market potential and internal readiness Includes -Feasibility – deeper assessments of financial, market and organizational capacity -Planning – a business plan for financing and operations Builds commitment and capacity (both leadership and management) Brings about a secured site for the operation

Development Stages

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Stage III: ImplementationEmerging Co-op:Brings satisfaction of Member needs

Demonstrated capacity in all the cornerstones Includes -Preconstruction -Construction & Renovation -Preparation for Opening -Sustaining - First Year and Beyond Brings about the satisfaction of member needs

Developments to Date

The St. Augustine Community Co-op Initiative is in the organizing stage:

Vision: to initiate a community effort to link our own local producers with local consumers by way of a unified location more prominent than a weekly market, and thus help build our community with a focus on that which is homegrown, sustainable, and holistic.

Outreach: social media and print advertising

Model co-op: Gainesville Citizens Co-op

Proposed location: Reserved area within the St. Augustine Flea Market

Next Steps

Talent: Conduct community meetings to specify community needs, identify potential members, and choose leaders, set up task forces, recruit volunteers, set up administrative support

Capital: Determine organizing budget, find resources for organizational costs

Systems: Create a development plan, Incorporate

Potential Funders

Food Cooperative Initiative

(www.foodcoopinitiative.coop) National Cooperative Bank

(www.ncb.coop) Northcountry Cooperative Development Fund

(www.ncdf.coop) Cooperative Development Foundation

(www.cdf.coop)

Additional Resources

Food Coop Initiative

www.foodcoopiniative.coop Cooperative Grocer Network

www.cgin.coop CDS Consulting Coop

www.cdsconsulting.coop Cooperative Development Foundation

www.cdif.coop

Works Cited

1. Cumbie, Patricia, and Margaret J. Goldstein. "How to Start a Food Co-op." Cooperative Grocer Network. Cooperative Grocer Network, n.d. Web. 18 Nov 2012. <http://www.cgin.coop/how_to_start>.

2. "Development Model." Food Co-op Initiative. Food Co-op Initiative, n.d. Web. 18 Nov 2012. <http://www.foodcoopinitiative.coop/about/model>.