Eight Steps

Last Updated on Saturday, 08 January 2011 04:42 Written by David Griffiths Saturday, 08 January 2011 04:22

PHASE I - DEVELOP THE CO-OPERATIVE BUSINESS IDEA

Step 1: Assemble a group of interested people

Identify the needs to be met:
- unavailability or instability of work,
- unavailability of products and services,
- poor quality of products and services,
- products and services that are overpriced,
- market development.

* Identify any relevant professional assistance needed to launch the business:
- legal consultant,
- co-operative developer,
- feasibility study, business plan and financial consultant,
- accounting consultant,
- other

It is critical, however, to assess the co-operative experience and knowledge of any consultant.

Step 2: Conduct a pre-feasibility study

* Conduct a preliminary market and membership review
* Identify available and relevant technical and financial assistance
* Assess receptiveness to the co-operative business in the local community? and to potential members.
* Evaluate if the co-operative is the best legal framework to use or if the kind of co-operative selected is the most suitable What kind of co-operative will it be - consumer, marketing, worker, producer, housing, craft, service?
* Define the benefits of the co-operative for members, (eg. quality, price) and characteristics:
- products and services offered (consumers' co-operative)
- or products and services marketed (producers' co-operative)
- or salaries and working conditions (workers' co-operative)
* Determine the potential to attract the minimum number of members required and who will be members..

If this study is not conclusive, the group should re-evaluate its business idea. If this study shows that the planned co-operative is feasible, you can proceed to the second phase.

PHASE II - CO-ORDINATE THE PRE CO-OPERATIVE'S ACTIVITIES

Step 3: Co-operative Education

Establish a study group of potential members to consider the co-operative option - including the co-operative values and principles, the meaning and practice of member ownership and control, the co-operative difference and the history of co-operatives. in Victoria, Australia and overseas.

Step 4: Convene a meeting

The meeting will discuss the reason for establishing a co-operative, the purpose and structure of a co-operative and subsequently decide on:
* The co-operative's mission (objectives, purpose)
* A name for the co-operative.
* The proposed rules for the co-operative.
* A temporary steering committee

Step 5: Submit the rules to the Registrar of Co-operatives

The rules of the co-operative have to be submitted to the Registrar of Co-operatives before the co-operative can be formed.


PHASE III - ORGANIZE AND START UP THE CO-OPERATIVE

Once the Registrar of Co-operatives has approved the Rules, you can proceed to a formation meeting:

Step 6: Hold the formation meeting

* Adopt the rules approved bty the Registrar of Co-operatives
* Adopt the business plan
* Approve the co-operative's initial membership
* Appoint an external auditor
* Elect the members of the board of directors

Step 7: Lodge the registration papers with the Registrar of Co-operatives

To be registered you have to submit the following documents to the Registrar of Co-operatives:

• The rules adopted by the meeting and signed by the chair and secretary. certifying that they were approved.
• An application to register form signed by two directors and three other members.
• A typed list of directors with full names, home addresses, occupations and dates and places of birth.
• If required, a disclosure statement signed by the chair and secretary of the formation meeting certifying that it was presented.
• The application fee.

Step 8: Organize the co-operative

Once your registration has been approved and you receive a registration certificate you can proceed with the next steps.

Operations
Start-up financing
Staff
Compliance
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