Cooperatives PathfinderCurriculum on How to Start a Cooperative

Prepared by

Cooperative Development Services August 2010

IDEA

1ST ASSESSMENT

Cooperative model Regular Business

2ND ASSESSMENT

Members Meeting

Feasibility studies

Type of cooperative

Business Plan

Finance Manage

Incorporation

IDEA

1ST ASSESSMENT

Cooperative model Regular Business

2ND ASSESSMENT

Members Meeting

Feasibility studies

Type of cooperative

Business Plan

Finance Manage

Incorporation

Step-by-Step on How to Start a Cooperative

Click on each box on this diagram to view steps starting with IDEAFor more information on co-operative development visit us at our Co-op Development website or contact the Cooperative Development Services team

IDEA

You start with an idea: • A new product or service• A variation of an existing one• Share a common challenge or need • Perceive an opportunity of common interest

1st ASSESSMENT• Am I the only one interested in the

cooperative project?• If yes how can I proceed to accomplish the

cooperative project? • If not, how many are interested in the

cooperative project?

• What kind of business are we going to explore?

COOPERATIVE MODEL• What is a Cooperative Model? • 1 member = 1 vote• Share profit and loss• Concern to the community• Be the boss of your business • Get the service that you would like to• Give the product that they would like to• Maximize the use report : member/cooperative

(workers, producers, services)

BUSINESS MODEL• What is a Business Model? • The money is the owner: 1$=1vote • Limited concern to the community• Be the boss • Individual / business interest• Maximize individual profit• Export profit elsewhere

2nd ASSESSMENT2.1 GROUP ASSESSMENT• Assess skills available

and matched to the business needs

• Determine leadership capacities

• Ask yourself “How far can the group mange the business”

• Assess financial capacity • Act positively for a

common goal. • Determine experience

and knowledge

2.2 BUSINESS ASSESSMENT:• Review the originality of the

idea• Clarify the nature of needs to

be covered• Determine the skills needed • Determine potential profit for

members and community • Estimate the cost involved• Determine capital required • Review regulations and

policies

MEMBERS MEETING

This is a guide to what should occur at your member’s meeting: • Provide overview of the idea of the project• Discuss pre-feasibility result • Get more supporters involved• Show the benefit and the project’s cost (individual and

community)• Form a steering committee (leader for the next steps

to realize the project)• Get feedback

FEASIBILITY STUDIES• Hire a consultant familiar with the cooperative model

and the business areas• Get other professionals involved: (lawyers,

accountant, ..) • Potential of success and answers “Can we do this

business?”• Have an overview of the ins and outs of the business

(cost, material, human resources, capital,…..)• Financial resources:

– Feasibility Studies Program (MB) – Rural Economic Development Initiative (REDI) Feasibility St

udies Component (MB)– Cooperative Development Services team

TYPE OF COOPERATIVES

With shares Without shares

Membership

Investment

Special investment

INCORPORATIONLinks that will assist you with the incorporation phase of starting your cooperative:• Incorporation phase• Instructions on how to incorporate • Instructions on the Articles of Incorporation • Other forms on Incorporation• Offering statement• Securities Commission

FINANCE A CO-OPERATIVECooperatives may benefit form different financial programs and specific ones which include the following programs:

• Canada/Manitoba Business Service Centre (CMBSC)• Business Start Program (BSP) • Canada Small Business Financing Program • Financial program (Industry Canada) • Steps to Growth Capital • The Canada Council for the Arts - Grant Programs Summary • Cooperative Development initiatives• The Cooperative Promotion Board • The Cooperative Loan and Loan Guarantee Board• Neighborhood alive• Jubilee Fund

GOVERNANCE MATTERS

These are links that will assist you with governance of your cooperative:• The co-operatives Act • Regulations • By-laws• Responsibilities and duties of the board • Institute of governance

BY-LAWS

Samples of by-laws for different types of cooperatives: • Housing for profit• Housing not for profit• Without shares• With membership shares• Employment • Community services