v Build a shared vision • What community needs can a co-op fulfill? • Visit co-ops • Find a mentor co-op • Gather information. Resources: • www.foodcoopinitiative.coop • How to Start a Food Co-op • FAQ's (CDS Consulting Co-op and FCI) • Cooperatives, A Tool for Community Economic Development (UWCC) • Cooperative Grocer archives • View A Co-op in Your Community PowerPoint presentation • Contact your regional cooperative development center • Communicate your ideas Conduct community meetings • Introduce the idea of a food co-op • Recruit others who share the vision and are willing to dedicate time to development of a food co-op • Build awareness and support Identify potential members • Among others, consider: • Natural food shoppers • People who want good food in a community atmosphere. • Supporters of the co-op model • Local producers and their customers • People with special diets (gluten-free, vegan, etc.) Identify community leaders • Look for: • Recognized voices in your community • Visionaries & Change Agents • Politically connected individuals • Organizations with social missions Finalize vision & mission statements •Review vision & mission •Amend as needed Communicate widely •Share vision & mission with all stakeholders Network and organize intensively •Expand community outreach •Build commitment Recruit members •Launch an intensive membership drive to recruit members and raise capital •Develop a plan for a member loan drive Identify and liink with other stakeholders •Establish connections with local business community •Chamber of Commerce •Civic leaders Brand development •Identify the essential message you want to convey •Create systems to ensure consistency Community organizing •Members need to understand the co-op's vision and mission •Other stakeholders understand the co-op philosophy and value to the community •Expand relationships with potential stakeholders and develop strong alignment Development Flowchart for New Co-ops Create an effective organization •Recruit/identify leaders •Act on behalf of the future members until a board of directors is elected •Promote the vision •Recruit and direct other helpers •Create a structure for on- going communication and meetings with members Set up task forces •These are smaller groups of steering committee members and volunteers •Ensure clear expectations and accountability •Areas to cover may include: •Fundraising •Membership •Community outreach •Incorporation Find people to help •Recruit volunteers (in addition to the board & steering committee) for task force activities and special events •Potential members •Civic promotors •Identify talents and resources within your membership & community Set up basic office/ administrative support •Phone line(s) •E-mail address •Website •Social media sites •Person or persons who will keep track of decisions, reports, etc. Find someone to do graphics/ web design •Volunteer or professional who can create effective publications and presentations •Social media administrater and monitor Hire Project Manager and/or General Manager •Qualified Project Manager is in place and/or •General Manager is hired •Accounting and administrative support in place •Establish contact with NCGA and regional co-op networks Engage members •Involve members in community outreach •Use member skills to achieve goals •Encourage members to become recruiters and advocates Strengthen board of directors •Adopt a board leadership development plan •Ensure adequate administrative support •Prepare for transition to an operational focus and oversight of a GM Improve & expand print & web media •Ongoing development of print materials and web site •Saturation coverage in community/market area •Update membership brochures •Draft member loan and/ or investment documents Finalize site & design options •Conduct feasibility assessment for store design •Finalize site search and negotiations to buy or lease (with contingencies) Determine organizing budget •Draft preliminary Sources & Uses Budget •Initial budget for the organizing stage includes: •Copying/mailing costs •Costs for public meetings •Communications Commit Resources •Use founder donations •Define acceptable use for membership investments Set up financial accountablility systems •Open dedicated business account with bank or credit union •Assign check-writing responsibility and oversight •Create auditable tracking systems •Designate spending authority and budgets Find resources for organizational costs •Seek out local community development grants and other grant opportunities Raise money locally to meet required matching funds •Approach strong supporters of the co- op's mission (food justice groups, local producers, etc.) •Collect donations from organizers and at public meetings •Use funds from early memberships Create a development plan: • Budget • Timeline • Create task forces • Concept Policy & Parameters Incorporate • File Articles of Incorporation • Seat founding board Implement communication systems • Set up a web site • Create informational flyers • Develop a steering committee communications system • E-mail groups • Records of decisions, members, leads, etc. Conduct customer/ member survey • Survey community at large • Helps bring recognition to the effort • Identify the range of goods and services desired • Helps to refine store concept and vision Set up banking and accounting system • Open a checking/savings account for co-op funds • Set up an accounting system sufficient for tracking member equity and loan investments, other income, and organizational costs Create a contact list • This should be a database that includes names, phone numbers, e-mail, and notes about the person's interest in the co-op • Include all inquiries, attendees at public meetings, volunteers, members, and anyone else whose interest is known Define committee roles and decision- making processes • Discuss and agree on roles and responsbilities of the steering committee • DOCUMENT them • Set policy on how decision- making will occur • Create systems of reporting and accountability • Assign responsibility for keeping records Research member programs & by-laws • Consider the member benefits, education and outreach options, discounts (if any) that you would like to offer • See: Best Practices for Membership and Marketing in Food Co-ops • Review by-law options and determine member equity and loan requirements Conduct a preliminary feasibility study • Begin to asses feasibilty for a successful store • Identify market segments • Review initial indicators of store size and product mix Organizing Stage General manager tasks •Implement business operations plan •Finalize staffing plans •Draft job descriptions & labor budget •Begin recruiting key department managers •Create a pricing & promotion plan •Set up vendor accounts •Negotiate service contracts Project manager (or GM) •Finalize construction and equipment contracts •Supervise and monitor construction •Acquire equipment •Plan shelf sets Graphic/web designer •Work on in-store graphics •Create exterior signage designs GM and site project manager •Manager(s) should be in place •Finalize business operations plan Members •Continue recruitment (sign- up increases when a site and manager are announced) Board of directors •Continue board training •Work on formal board policies, including systems of delegation and accountability •Prepare for transition from organizing to governance and oversight of the GM Graphic/web designer •Update web site with store info •Help define/create store branding image General manager & deptartment managers •Create opening inventory orders •Set inventory and signage •Hire and train staff Project manager (or GM) •Set equipment •Assist with setting inventory Staff •Assist with setting equipment and inventory •Learn store vision and policy •Learn job functions and procedures Member equity drive •Conduct intensive membership recruitment Member loan drive •Solicit and collect member loan commitments External capital commitments •Finalize loans from outside vendors Remove Site contingencies •Make final, no-turn back commitment Expand marketing plans •Pre-opening advertising and promotion •Store opening events •Post-opening advertising, promotions, and outreach Implement full retail accounting system •Upgrade to professional retail accounting software •Select and program POS system •Ensure data and reporting is adequate Refine operational plans •Finalize internal policies and procedures •Determine hours of operation Finalize staffing plan •Create labor budget to match projected sales •Approve job descriptions and pay scales •Estimate number of employees needed for operations Member equity drive •Evaluate and strengthen your membership recruitment drive Member loan plan (and/or preferred shares) •Create a plan and budget for a member loan drive •Set targets •Establish a timeline •Train volunteers •Produce information packets •Obtain legal review for all loan or preferred share progrms and materials. Business plan for financing •Include: •Business vision and mission •Updated Sources & Uses budget •Pro Forma financials •Market research •GM profile (if hired) •Board of Directors profiles Governance training & development •Board policies developed •Board training begun Refine market analysis •Use market study and site analysis to update market projections Site lease or acquisition (with contingencies) •Identify best site options •Negotiate terms •Obtain contingent contract for storefront space •Obtain legal review of contract requirements Preliminary store design •Hire designer to create store layouts •Work with architect/ designer on structural changes, colors, and decor Marketing & brand development •Formalize a store "branding" image •Identify standard logos, fonts, and themes •Plan for on‐going marketing and advertising Member services •Define services to be offered to members Operational business plan •Operations policies •Personnel: organizational structure, handbook, wage scales, etc. •Plan for staff training Build a shared vision •Develop a concept paper describing what you hope to accomplish and why •Build alignment within the core group, members, and potential members about the vision •Begin to develop a picture of your vision: use collages & photos of other co-ops Share vision through expanded communications •Build up media connections and PR •Distribute a member newsletter •Share information through a web site •Create a membership brochure •Organize community events •Host neighborhood meetings Organize within your community • Educate community about co-ops • Gather names and contact info • Recruit volunteers • Connect with local businesses and organizations • Conduct surveys Obtain legal review • By-laws • Member equity plans • Member loan plans Hire a development project manager • Recruit a qualified volunteer or hire • Assess needs for technical assistance • Fine tune the development plan • budget • timeline • policees and parameters Develop governance/leadership • Seat Board of Directors Assess organizational capacity • Committed, active board • Work committees • Accountability • Identify areas of weakness; recruit help or hire consultants Find administrative support • Bookkeeper • Minutes & records • Mailings • Membership records Recruit or hire a graphic/web designer • Prepare flyers and newsletters • Maintain & update website • Create signs and posters Explore site options • Consider working with a developer • Research local real estate market • Lease or buy? • Identify desireable locations • Consider preliminary design and feasibility Adopt by-laws • Draft by-laws • Get legal review • Formally adopt Plan leadership development • Assess need for technical assistance • Arrange for board development and training Contract for professional market study • Hire a professional market study provider • Conduct preliminary site analysis Finalize membership system • Create a membership structure • Benefits • Requirements • Approve member equity plan Implement accounting system • Select and install accounting software Develop business plan • Create a sources & uses budget that identifies sources of income and how they will be spent (up to store opening) • Create pro forma budget estimates for the first 5-10 years of store operations Analyse supplier options • Research vendor account requirements • Determine support available from your preferred suppliers • Identify local sources of supply and local producers Feasibility & Planning Stage: Feasibility Feasibility & Planning Stage: Planning Implementation Stage Four Cornerstones in Three Stages Vision Vision Vision Vision Talent Capital Talent Talent: Preconstruction Talent Systems Capital Capital Capital Systems Systems Systems Decision Point Are your cornerstones of Vision, Talent, Capital, and Systems solid and strong enough to support a successful organizing effort? Assessment Point Organizational capacity Assessment Point Project Feasibility Assessment Point Market study shows viability Final Assessment Point: Preliminary store design Go/No-Go (Board Decision) Assessment Point Internal readiness Talent: Construction/Renovation Talent: Preparing for Opening Go/No Go External capital commitment Four Cornerstones in Three Stages model created by Initiate fundraising •Options include: •Community development groups •USDA rural development grants (for rural communities) •Local civic organizations •Food Co‐op Initiative Seed Grants Develop a member capitalization plan •Review and revise Sources & Uses Budget •Determine membership investment and payment options •Draft member loan program •Draft preferred share and non‐patron investment options (if applicable) Explore external capital options •Explore lender options •National Cooperative Bank •NCDF (in Midwest) •Cooperative Fund of New England •Local credit unions and banks •LEAF •CDF Conduct a feasibility assessment •Do you have enough market (sales) potential? •Do you have a committed core group that can see the project to completion? •Are members and the community getting behind the effort? •Can you raise the necessary start‐up capital? •Do you have reliable sources of supply?
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v
Vision
Build a shared vision
•What community needs can a co-op fulfill?
•Visit co-ops •Find a mentor co-op •Gather information. Resources: •www.foodcoopinitiative.coop •How to Start a Food Co-op •FAQ's (CDS Consulting Co-op and FCI) •Cooperatives, A Tool for Community
Economic Development (UWCC) •Cooperative Grocer archives •View A Co-op in Your Community
PowerPoint presentation •Contact your regional cooperative
development center •Communicate your ideas
Conduct community meetings
•Introduce the idea of a food co-op •Recruit others who share the vision and
are willing to dedicate time to development of a food co-op
•Build awareness and support
Identify potential members
•Among others, consider: •Natural food shoppers •People who want good food in a
community atmosphere. •Supporters of the co-op model •Local producers and their customers •People with special diets (gluten-free,
vegan, etc.)
Identify community leaders
•Look for: •Recognized voices in your community •Visionaries & Change Agents •Politically connected individuals •Organizations with social missions
Vision
Finalize vision & mission statements
•Review vision & mission •Amend as needed
Communicate widely
•Share vision & mission with all stakeholders
Network and organize intensively
•Expand community outreach •Build commitment
Recruit members
•Launch an intensive membership drive to recruit members and raise capital •Develop a plan for a member
loan drive
Identify and liink with other stakeholders
•Establish connections with local business community •Chamber of Commerce •Civic leaders
Implementation Stage Vision
Brand development
•Identify the essential message you want to convey •Create systems to ensure consistency
Community organizing
•Members need to understand the co-op's vision and mission
•Other stakeholders understand the co-op philosophy and value to the community
•Expand relationships with potential stakeholders and develop strong alignment
Development Flowchart for New Co-ops
Talent
Create an effective organization
•Recruit/identify leaders •Act on behalf of the future
members until a board of directors is elected
•Promote the vision •Recruit and direct other
helpers •Create a structure for on-
going communication and meetings with members
Set up task forces
•These are smaller groups of steering committee members and volunteers
•Ensure clear expectations and accountability
•Areas to cover may include: •Fundraising •Membership •Community outreach •Incorporation
Find people to help
•Recruit volunteers (in addition to the board & steering committee) for task force activities and special events
•Potential members •Civic promotors •Identify talents and
resources within your membership & community
Set up basic office/ administrative support
•Phone line(s) •E-mail address •Website •Social media sites •Person or persons who will
keep track of decisions, reports, etc.
Find someone to do graphics/ web design
•Volunteer or professional who can create effective publications and presentations
•Social media administrater and monitor
Talent
Assessment Point: Internal Readiness
Hire Project Manager and/or General Manager
•Qualified Project Manager is in place and/or
•General Manager is hired •Accounting and administrative
support in place •Establish contact with NCGA and
regional co-op networks
Engage members
•Involve members in community outreach
•Use member skills to achieve goals
•Encourage members to become recruiters and advocates
Strengthen board of directors
•Adopt a board leadership development plan
•Ensure adequate administrative support
•Prepare for transition to an operational focus and oversight of a GM
Improve & expand print & web media
•Ongoing development of print materials and web site
•Saturation coverage in community/market area
•Update membership brochures
•Draft member loan and/ or investment documents
Finalize site & design options
•Conduct feasibility assessment for store design
•Finalize site search and negotiations to buy or lease (with contingencies)
Capital
Determine organizing budget
•Draft preliminary Sources & Uses Budget •Initial budget for the organizing stage includes: •Copying/mailing costs •Costs for public meetings •Communications
Commit Resources
•Use founder donations •Define acceptable use for membership investments
Set up financial accountablility systems
•Open dedicated business account with bank or credit union •Assign check-writing responsibility and oversight •Create auditable tracking systems •Designate spending authority and budgets
Find resources for organizational costs
•Seek out local community development grants and other grant opportunities
Raise money locally to meet required matching funds
•Approach strong supporters of the co-op's mission (food justice groups, local producers, etc.) •Collect donations from organizers and at public meetings •Use funds from early memberships
Systems
Decision Point Are your cornerstones: Vision, Talent, Capital, and Systems solid and strong enough to support a successful organizing effort?
Create a development plan:
• Budget • Timeline • Create task forces • Concept Policy & Parameters
Incorporate
• File Articles of Incorporation • Seat founding board
Implement communication systems
• Set up a web site • Create informational flyers • Develop a steering committee
communications system • E-mail groups • Records of decisions,
members, leads, etc.
Conduct customer/ member survey
• Survey community at large • Helps bring recognition to
the effort • Identify the range of goods
and services desired • Helps to refine store concept
and vision
Set up banking and accounting system
• Open a checking/savings account for co-op funds
• Set up an accounting system sufficient for tracking member equity and loan investments, other income, and organizational costs
Create a contact list
• This should be a database that includes names, phone numbers, e-mail, and notes about the person's interest in the co-op
• Include all inquiries, attendees at public meetings, volunteers, members, and anyone else whose interest is known
Define committee roles and decision-making processes
• Discuss and agree on roles and responsbilities of the steering committee
• DOCUMENT them • Set policy on how decision-
making will occur • Create systems of reporting
and accountability • Assign responsibility for
keeping records
Research member programs & by-laws
• Consider the member benefits, education and outreach options, discounts (if any) that you would like to offer
• See: Best Practices for Membership and Marketing in Food Co-ops
• Review by-law options and determine member equity and loan requirements
Conduct a preliminary feasibility study
• Begin to asses feasibilty for a successful store
• Identify market segments • Review initial indicators of
store size and product mix
Organizing Stage
Talent: Preconstruction
General manager tasks
•Implement business operations plan •Finalize staffing plans •Draft job descriptions & labor budget •Begin recruiting key department
managers •Create a pricing & promotion plan •Set up vendor accounts •Negotiate service contracts
Project manager (or GM)
•Finalize construction and equipment contracts
•Supervise and monitor construction •Acquire equipment •Plan shelf sets
Graphic/web designer
•Work on in-store graphics •Create exterior signage designs
Talent: Construction/Renovation
GM and site project manager
•Manager(s) should be in place
•Finalize business operations plan
Members
•Continue recruitment (sign-up increases when a site and manager are announced)
Board of directors
•Continue board training •Work on formal board policies,
including systems of delegation and accountability
•Prepare for transition from organizing to governance and oversight of the GM
Graphic/web designer
•Update web site with store info
•Help define/create store branding image
Talent: Preparation for Opening
General manager & deptartment managers
•Create opening inventory orders •Set inventory and signage •Hire and train staff
Project manager (or GM)
•Set equipment •Assist with setting inventory
Staff
•Assist with setting equipment and inventory •Learn store vision and policy •Learn job functions and procedures
Capital
Go/No Go: External Capital Commitments
Member equity drive
•Conduct intensive membership recruitment
Member loan drive
•Solicit and collect member loan commitments
External capital commitments
•Finalize loans from outside vendors
Systems
Remove Site contingencies
•Make final, no-turn back commitment
Expand marketing plans
•Pre-opening advertising and promotion
•Store opening events •Post-opening advertising,
promotions, and outreach
Implement full retail accounting system
•Upgrade to professional retail accounting software
•Select and program POS system
•Ensure data and reporting is adequate
Refine operational plans
•Finalize internal policies and procedures
•Determine hours of operation
Finalize staffing plan
•Create labor budget to match projected sales
•Approve job descriptions and pay scales
•Estimate number of employees needed for operations
Capital
Member equity drive
•Evaluate and strengthen your membership recruitment drive
Member loan plan (and/or preferred shares)
•Create a plan and budget for a member loan drive •Set targets •Establish a timeline •Train volunteers •Produce information packets •Obtain legal review for all loan or preferred share progrms and materials.
Business plan for financing
•Include: •Business vision and mission •Updated Sources & Uses budget •Pro Forma financials •Market research •GM profile (if hired) •Board of Directors profiles
Systems
Governance training & development
•Board policies developed
•Board training begun
Refine market analysis
•Use market study and site analysis to update market projections
Site lease or acquisition (with contingencies)
•Identify best site options
•Negotiate terms•Obtain contingent contract for storefront space
•Obtain legal review of contract requirements
Preliminary store design
•Hire designer to create store layouts
•Work with architect/ designer on structural changes, colors, and decor
Marketing & brand development
•Formalize a store "branding" image
•Identify standard logos, fonts, and themes
•Plan for on‐going marketing and advertising
Member services
•Define services to be offered to members
Operational business plan
•Operations policies•Personnel: organizational structure, handbook, wage scales, etc.
•Plan for staff training
Vision
Build a shared vision
•Develop a concept paper describing what you hope to accomplish and why •Build alignment within the core group, members,
and potential members about the vision •Begin to develop a picture of your vision: use
collages & photos of other co-ops
Share vision through expanded communications
•Build up media connections and PR •Distribute a member newsletter •Share information through a web site •Create a membership brochure •Organize community events •Host neighborhood meetings
Organize within your community
• Educate community about co-ops • Gather names and contact info • Recruit volunteers • Connect with local businesses and
organizations • Conduct surveys
Talent
Assessment Point: Organizational Capacity
Obtain legal review
•By-laws •Member equity plans •Member loan plans
Hire a development project manager
•Recruit a qualified volunteer or hire
•Assess needs for technical assistance
• Fine tune the development plan •budget • timeline •policees and parameters
Develop governance/leadership
• Seat Board of Directors
Assess organizational capacity
•Committed, active board
•Work committees •Accountability • Identify areas of
weakness; recruit help or hire consultants
Find administrative support
•Bookkeeper •Minutes & records •Mailings •Membership records
Recruit or hire a graphic/web designer
• Prepare flyers and newsletters
•Maintain & update website •Create signs and posters
Explore site options
•Consider working with a developer
•Research local real estate market
• Lease or buy? • Identify desireable
locations •Consider preliminary
design and feasibility
Systems
Assessment Point: Market Study Shows Viability
Adopt by-laws
•Draft by-laws •Get legal review • Formally adopt
Plan leadership development
•Assess need for technical assistance
•Arrange for board development and training
Contract for professional market study
•Hire a professional market study provider
•Conduct preliminary site analysis
Finalize membership system
•Create a membership structure •Benefits •Requirements
•Approve member equity plan
Implement accounting system
• Select and install accounting software
Develop business plan
•Create a sources & uses budget that identifies sources of income and how they will be spent (up to store opening)
•Create pro forma budget estimates for the first 5-10 years of store operations
Analyse supplier options
•Research vendor account requirements
•Determine support available from your preferred suppliers
• Identify local sources of supply and local producers
Feasibility & Planning Stage: Feasibility Feasibility & Planning Stage: Planning Implementation Stage
Four Cornerstones in Three Stages
Vision Vision VisionVision
Talent
Capital
Talent
Talent: Preconstruction
Talent
Systems
Capital
Capital
Capital
Systems
Systems
Systems
Decision PointAre your cornerstones of Vision, Talent, Capital, and Systems solid and strong enough to support a successful organizing effort?
Assessment PointOrganizational capacity
Assessment PointProject Feasibility
Assessment PointMarket study shows viability
Final Assessment Point: Preliminary store designGo/No-Go (Board Decision)
Assessment PointInternal readiness
Talent: Construction/Renovation
Talent: Preparing for Opening
Go/No GoExternal capital commitment
Four Cornerstones in Three Stages model created by
Capital
Assessment Point: Project Feasibility
Initiate fundraising
•Options include:•Community development groups•USDA rural development grants (for rural communities)
•Local civic organizations•Food Co‐op Initiative Seed Grants
Develop a member capitalization plan
•Review and revise Sources & Uses Budget
•Determine membership investment and payment options
•Draft member loan program•Draft preferred share and non‐patron investment options (if applicable)
Explore external capital options
•Explore lender options•National Cooperative Bank•NCDF (in Midwest)•Cooperative Fund of New England•Local credit unions and banks•LEAF•CDF
Conduct a feasibility assessment
•Do you have enough market (sales) potential?
•Do you have a committed core group that can see the project to completion?
•Are members and the community getting behind the effort?
•Can you raise the necessary start‐up capital?
•Do you have reliable sources of supply?
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