Unit#5 Developing A Co-operative

1. Unit#5Developing A Co-operative

2. Incorporation • Understanding of the Co-operatives Act • Minimum of 3 members • Must submit: • Articles of Incorporation, • Draft By-Laws • Business Plan • Reviewed by the Registrar of Co-operatives • Certificate of Incorporation issued

3. The Development Process Elements of a Successful Co-op Start-up • Identifying a common need for a service that requires a common action • Agreement amongst potential members that the a new coop can best address this need • An adequate level of trust among potential members must be developed • Member’s personal and financial commitment must be secured • Other key stakeholders support must be on side • Capacity to implement business and operational plans must be in place

4. Phases of the Development Process Phase 1: Opportunity Identification • Marketing & Promotion of the Co-op Model • Informed Response to Public Inquiries • Introductory Presentations/Workshops Phase 2: Development of the Business Idea • Initial Concept & Market Assessment • Initial Agreement re Co-op Model & Objectives • Development of Concept Paper • Initial Assessment - Project Financing and Feasibility • Development of Initial Budget Estimates

5. Phases of the Development Process Phase 3: Building the Co-op Group • Confirmation of Co-op Structure & Membership • Establishment of Steering Committee • Agreement on Tasks & Time Lines Phase 4: Confirming Business Feasibility • Group Consensus - Potential Feasibility • Development of Business Plan* • Recruitment of Members Initiated • Agreement on Member Equity Contributions • Potential Financing Sources Confirmed

6. Phases of the Development Process Phase 5: Co-op Incorporation • Draft By-laws and Business Plan Completed • Provisional Board of Directors Confirmed • Articles of Incorporation Completed • Documents and Fee Submitted • Registrar Confirms Incorporation Phase 6: Business Start Up • Banking/Accounting Procedures in Place • Member Equity and Business Financing in Place • Staff Hired (if required) • Operational Policies/Procedures Developed • Opening Ceremonies - First AGM Held

7. Phases of the Development Process Phase 7: Ongoing Co-op Operations • Policies and Procedures Manual • Monitoring of Operations • Regular Board Meetings • Ongoing Policy Development • Development of Business/Community Networks • Membership in Provincial/Regional Centrals

8. Support Services • Co-opZone Newfoundland & Labrador • Regional Co-op Developer’s Network • Co-op Equity Investment Fund • Community Capacity Building Program • www.nlfc.coop • Agriculture & Agrifoods Canada • Co-op Secretariat • Co-op Development Initiative • National Co-op Sector Programs/Services • Co-op Atlantic • Co-operators Development Fund • Canadian Co-op Association • www.coopzone.coop

9. GOOD LUCK!