Phase 2 Consensus ALT TXT decorative

A cooperative may or may not be the business structure to best meet the goals of future member-owners. The organizing group should compare multiple business structures before committing to forming the co-op. The group will meet and decide whether to move forward to form the cooperative or other “group-action” association. Leaders will emerge as the organizing group continues to meet.

Steps Individuals Involved
• Study organizational alternatives
• Hold initial meetings to review scope and nature of cooperative solution
• Discuss and agree upon cooperative approach
• Potential members
• Advisors
• Consultants
• Community leaders

Action Steps

  • Identify emerging leaders
  • Seek and review information
  • Organizing group meets to share and review information
  • Budget created to examine costs to launch organization

Critical Questions

  • Will forming a cooperative create the proper organizational structure to solve the group’s problem?
  • How will a cooperative address the identified problem or seize the potential opportunity?
  • How do the strengths and weaknesses of the cooperative compare with other business structures?
  • Does a cooperative business structure best meet the needs of member-owners in terms of goals and control?
  • What is the cooperative’s durable strategic advantage in the marketplace?
  • Is there member willingness to support the organization?
  • What are the anticipated returns and benefits to members?
  • Does the group have the capability to make decisions?
  • Are other businesses providing similar goods or services? If yes, what is the advantage of the cooperative?

Potential Pitfalls

  • Cooperative approach not appropriate for addressing the problem
  • Other options more viable than forming a cooperative