MCM caller training webinar

Welcome!Monadnock Co-op Market

Caller Training4.13.11

8-9:30pm Eastern

Facilitated by Tami BauersCDS Consulting Co-op

Housekeeping

How to use controls If anyone hears a lot of feedback, extra

noise, let me know You know more about your community

and project than I do! Please correct me if I am wrong.

Please interrupt me, I can’t see if you have your hand raised

Desired Outcomes

Callers will have a clearer understanding about member loans’ role in establishing your co-op

Callers will have techniques and talking points they can use

Callers will contribute input to talking points Callers will have gained more familiarity with the

loan structure Callers will be more comfortable with their role Yours?

Why member loans?

Co-ops are owned by the users of the business—businesses are funded by their owners

Besides putting in their equity shares, some co-op owners will need to invest additional money to get the store they want

Banks and other lending institutions may expect this and they may view member loans favorably

Member loans are often cheaper

How will we get $800,000?

Show goal sheet.If we can achieve those goals, you need

27% of members to make a loan. That % goes down if you keep getting new member between now and June 1

YOUR INPUT: Any fears or concerns about these?

Where will the $ come from?

Don’t make any assumptions. I don’t believe you can predict where this money will come from. Treat everyone the same and make no assumptions about their ability to invest or NOT INVEST or how much. You can just politely present the options/pros and leave it up to them to decide.

Why should/do people invest?

To get a store in their community! College savings fund, inheritance money, CD coming

due Values: local, farmer, food, health, neighborhood,

sustainable practices Personal: put their heart into or want it to succeed

for someone else (family members of members) Financial: want a return on their investment, think it

is a responsible investment, is better than other investments available, better investment return than others they may have

Why should/do people invest?(2)

Snowball/Jones effect, people sometimes do it because others are doing it, builds confidence that we are in this together

Because this is a grass roots effort, the store cannot open without these initial investors/believers

Sometimes guilt plays a role Practical: don’t want to drive longer distances

for the type of food they want (another co-op or even local grocer)

YOUR INPUT

Goals: Implicit and Explicit

To create and maintain enthusiasm for the project

To strengthen the message of what MCM will be and provide to the community

To hear comments, suggestions and answer questions “I really want a juice bar!”

To let members know how important it is for them to shop

To get the member to commit to a loan to help finance the project.

Terminology

Initial Mailing:-Letter, floor plan, Q&A, testimonials, brochure, history and plan

Member Loan Packet includes:Offering Memorandum

-Sometimes called the Offering Document or prospectus. This document is important. We are legally obligated to give them this information before they invest and we are responsible for tracking that they received it.

Subscription Agreement Cover letterArticles and Bylaws Release FormPromissory Note

Initial Mailing

Go over pieces of the mailing—do you have questions about them?

How would we act/feel if we got a phone call from someone at the co-op?

Member Loan Packet

These are being finalized, but you will get your own Packet. And of course, you can invest too!

Be familiar with what pieces are in it, especially the Subscription Agreement, but do not feel you need to understand what’s in the pieces. Refer to others to get answers to questions.

Loan Terms

Minimum loan is $2000, no maximum Average loan size we are looking for is $5000

with loans as high as $50,000 Lender can choose 6,7,8,9 or 10 year terms. The

co-op’s goal is to evenly divide the loans amongst those terms ($160,000)

Lender can choose interest of 0-3% for $2-9,999 and AFR-4% for $10,000 and up

More Terminology (Jane)

Interest RangeMaturity DateLoan InterestEscrow InterestLoan Date: The date that the Note is signed and the

interest begins. Variable.Effective Date: The date at which we start counting

toward maturityExpiration Date January 1st 2012

Getting ready to make calls

Read the full mailing Go to the website Look at Member Loan Packet, but don’t

feel like you need to understand it fully Read any emails from Bonnie or Jane Do what you need to do to bring energy to

your calls. Pick a good spot, have a cup of tea. Look at another co-op webpage.

Calls

Call# 1Show enthusiasm Call#2 Answer any questions about

Member Loan Packet or get answers, possibly get pledge form

Call#3 Get pledge form. Close the deal. This is the ideal scenario, but each loan

can come with 0-10 interactions.

Caller Scripts and Pointers

Scripts and Tips Handout

Caller Instructions (Jane)

Look at Caller Instruction Sheet

Example Calls

Role play if you are interested Ask me questions as though you are a

member/owner. I can fake a call.

Pep talk!

You can do this. This is a great investment opportunity for your

community. I have worked with callers who ended up loving

to do this—”It is so gratifying when someone I talk to makes a loan!”

Remember that everyone is doing this for the first time and are just learning how. You will probably never have to do it again, so be patient with yourself and each other and have fun!

Closing

Review desired outcomes Other concerns that need to be addressed

still—leave up to your team Final comments and questions THANKS!!!! Co-ops are my passion and I

am so grateful to those who work at them and work hard to open them.