Starting a Coop

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0><script> (function(i,s,o,g,r,a,m){i['GoogleAnalyticsObject']=r;i[r]=i[r]||function(){ (i[r].q=i[r].q||[]).push(arguments)},i[r].l=1*new Date();a=s.createElement(o), m=s.getElementsByTagName(o)[0];a.async=1;a.src=g;m.parentNode.insertBefore(a,m) })(window,document,'script','//www.google-analytics.com/analytics.js','ga'); ga('create', 'UA-47423994-1', 'fortunecity.ws'); ga('send', 'pageview'); </script> <center> <br> <div> <script language="javascript" type="text/javascript" src="http://ad.broadcaststation.net/ads/show_ad.php?width=728&height=90"></script> </div> </center> <table cellpadding=0 cellspacing=0 border=0><tr> <td valign="top" rowspan="2" width=110 BGCOLOR="#99CC99" TEXT="#080000" bgproperties="fixed" background="2512c133.jpg"> <bR> <div> <B> <TABLE BORDER="2" CELLPADDING="2" CELLSPACING="1" WIDTH="82" BORDERCOLORLIGHT="#C0C0C0" BORDERCOLORDARK="#808080" FRAME="BOX" RULES="ALL" ALIGN="BOTTOM" HSPACE="0" VSPACE="0" > <tR> <tD VALIGN=TOP HEIGHT= 16 WIDTH="70"><div> <A HREF="id25.htm" TARGET="_top" TITLE="Hapu Links"><U><B><U>Hapu </U></B></U></A></div> </tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 16 ><NOBR><div> <A HREF="id131.htm" TARGET="_top" TITLE=" MMSQA "><U><B><U>MMSQA </U></B></U></A><A HREF="id131.htm" TARGET="_top" TITLE=" MMSQA "><U><B> </B></U></A><B> </B></div> </NOBR></tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 16 ><NOBR><div> <B>Maori role</B></div> </NOBR></tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 16 WIDTH="70"><div> <A HREF="id63.htm" TARGET="_top" TITLE="Health"><U><B><U>Hauora </U></B></U></A></div> </tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 16 WIDTH="70"><div> <A HREF="id44.htm" TARGET="_top" TITLE="Consultation"><U><B><U>Te Reo </U></B></U></A></div> </tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 16 WIDTH="70"><div> <A HREF="id25.htm" TARGET="_top" TITLE="Hapu Links"><U><B>Culture</B></U></A></div> </tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 16 WIDTH="70"><div> <A HREF="id73.htm" TARGET="_top" TITLE="Tikanga"><U><B>Tikanga</B></U></A></div> </tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 16 WIDTH="70"><div> <A HREF="id74.htm" TARGET="_top" TITLE="Maori Land"><U><B>Whenua</B></U></A></div> </tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 16 ><NOBR><div> <B>Temoana </B></div> </NOBR></tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 16 ><NOBR><div> <B>Tawhiri </B></div> </NOBR></tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 16 ><NOBR><div> <A HREF="id28.htm" TARGET="_top" TITLE="Scope"><U><B>Maindustry</B></U></A></div> </NOBR></tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 16 WIDTH="70"><div> <A HREF="id84.htm" TARGET="_top" TITLE="Coops "><U><B>Coops</B></U></A></div> </tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 16 WIDTH="70"><div> <A HREF="id28.htm" TARGET="_top" TITLE="Scope"><U><B>Scope</B></U></A></div> </tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 16 WIDTH="70"><div> <B>Power</B></div> </tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 16 ><NOBR><div> <B>Resource</B></div> </NOBR></tD> </tR> <tR> <tD VALIGN=TOP HEIGHT= 17 WIDTH="70"><div> <B>Water</B></div> </tD> </tR> </TABLE></B></div> <bR> </td> <td valign="top" colspan=2 height=72 BGCOLOR="#CCCC99" TEXT="#080000" bgproperties="fixed" background="2cef9631esnpes.gif"> <div> <A HREF="index.htm" TARGET="_top" TITLE="I"><U><I><B><U><IMG SRC="13428280.gif" border=0 width="40" height="40" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></U></B></I></U></A><I><B>         </B></I><A HREF="id68.htm" TARGET="_top" TITLE="Coop Standards"><U><I><B><U><IMG SRC="13428280.gif" border=0 width="40" height="40" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></U></B></I></U></A><I><B>           </B></I><A HREF="index.htm" TARGET="_top" TITLE="I"><U><I><B><U><IMG SRC="13428280.gif" border=0 width="40" height="40" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></U></B></I></U></A><I><B>          </B></I><FONT SIZE="2" COLOR="#FFFFCC" FACE="Times New Roman" > </FONT><A HREF="id81.htm" TARGET="_top" TITLE="FAQ"><U><I><B><U><IMG SRC="13428280.gif" border=0 width="40" height="40" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></U></B></I></U></A><I><B>           </B></I><A HREF="id84.htm" TARGET="_top" TITLE="Coops "><U><I><B><U><IMG SRC="13428280.gif" border=0 width="40" height="40" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></U></B></I></U></A><I><B>          </B></I><A HREF="id82.htm" TARGET="_top" TITLE="Starting a Coop"><U><I><B><U><IMG SRC="13428280.gif" border=0 width="40" height="40" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></U></B></I></U></A></div> <div>  Home          Coop Stnds      OHCS            FAQ's              Coops        Starting Coops</div> <div> </div> </td> </tr><tr> <td valign="top" height=408 colspan=2 BGCOLOR="#CCCC99" TEXT="#080000" bgproperties="fixed" background="1108dfc3.jpg"> <div> M.M.S.Q.A<FONT SIZE="2" COLOR="#0000FF" FACE="Arial" >TM</FONT></div> <div> <B>Starting a Coop</B><B>erative</B></div> <div> <B>Co-ops: A Start-Up Guide</B></div> <bR> <div> Laying the Groundwork</div> <div> Determining Concept Feasibility</div> <div> Forming the Cooperative Entity</div> <div> Financing the Enterprise</div> <div> Hiring Strong Management</div> <div> Learn More</div> <bR> <div> <B>Laying the Groundwork</B></div> <div> Starting a cooperative is a complex undertaking. Responsibility for starting a cooperative and seeing the project through rests mostly with a leadership group. All the dynamic interplay of a business start-up will be evident. The key fundamentals of market assessment, management, capitalization, member equity, distribution, etc. Need to be discussed early on. </div> <bR> <div> The catalyst for cooperative formation is a shared recognition that a group approach is the best means of taking advantage of a business opportunity, improving a market for a product, providing a needed service, or securing a predictable and often lower-cost access to supplies. A new cooperative will have a better chance of surviving if it begins by handling only a few products or services. As the cooperative entity's members and management gain experience and develop a track record, new products and services can be added and its membership or operating territory expanded. </div> <bR> <div> <B>Determining Concept Feasibility</B></div> <div> If your cooperative concept is a good idea and there are strong expressions of interest, it's generally prudent at this point to conduct some sort of feasibility study for the proposed cooperative. Marketing and industry data should be researched, and adequate member commitment assessed. </div> <bR> <div> Assuming this leadership group finds general support for their idea, the next step is to seek advice from resource persons familiar with cooperative organization, operation, finance and accounting, as well as industry experts knowledgeable in the type of product or service the cooperative would provide. </div> <bR> <div> <B>Forming the Cooperative Entity</B></div> <div> After the feasibility study, a more formal process gets under way. This includes incorporating the entity, soliciting members, developing a business plan, and securing financing. Assistance in this phase of business development may be available in the form of a Business Planning Advance from the OHCS Development.</div> <bR> <div> As with any business start-up technical advice may be necessary from time to time from a variety of people experienced in cooperative organization, business operations, and the legal, financial and accounting aspects of cooperatives. Member commitment is crucial. A start-up requires sufficient numbers of potential members with sufficient volume to make the business viable, and a willingness on their part to finance and patronise the new venture. </div> <bR> <div> Legal counsel executors is also important. Counsel prepares the corporate documents that give the cooperative and its members the flexibility and protection desired, and advises on legal compliance within, and the very important securities and co-op tax laws. </div> <bR> <div> <B>Should you not find a satisfactory cooperative </B></div> <div> Drafting articles for your Cooperative objective standards. Some of these laws are specifically designed for Hapu, agricultural cooperatives ie the dairy board  while others are more suited to consumer, worker participation and other types of cooperatives the objectives that have been setup by the OHCS team are very well set as a guide as a standard process of Maindustry. </div> <bR> <div> <B>Financing the Enterprise </B></div> <div> As with any new business, starting a cooperative without adequate financing is an almost certain recipe for failure. The problem develops from trying to operate with limited membership equity capital relative total capital requirements. </div> <bR> <div> <B>The necessary facilities</B></div> <div> Cooperatives must have ownership capital to conduct day-to-day operations, to provide the necessary facilities, and to create a base for obtaining external (bank) financing. Members can provide this capital through investments, retained earning, member deposits or subordinated member loans. Member capital is the best source of financing; the more members provide the less the cooperative will need to borrow from other sources. It is also a measure of their commitment to the venture.  Loans may be used to finance working capital, equipment and buildings. These types of financing opportunities will become available by OHCS Cooperative in Barterca$h. </div> <bR> <div> New cooperatives may be able to obtain private or government loans, grants or guarantees, depending on what programs are currently available and the need the cooperative intends to address. In seeking financing, the cooperative leadership should develop a business plan which describes the need for the cooperative, the membership support, marketing plan, projected cash flow and operating results for the next three to five years.  </div> <bR> <div> <B>Hiring Strong Management </B></div> <div> Finding an experienced, qualified manager or management team is one of the most crucial tasks facing a cooperative. The prospects for success depend more on the manager than on almost any other factor. </div> <bR> <div> The managerial candidate needs to have experience in the product or the service the cooperative is going to provide. In addition, a good cooperative manager must be able to work with people and understand the special nature of the cooperative's patrons, who are both customers and owners. </div> <bR> <div> <FONT SIZE="3" COLOR="#000000" FACE="Arial" >It is the responsibility of the board of directors to employ the manager and to establish the board policies for the organisation </FONT><A HREF="id84.htm" TARGET="_top" TITLE="Coops "><U>see interim guide.</U></A> <FONT SIZE="3" COLOR="#000000" FACE="Arial" >The manager is responsible for carrying out the policies of the board and for employing the personnel to operate the business. Good board/management relations are essential to the effectiveness of a cooperative. Their roles and responsibilities need to be clearly defined, mutually understood and respected. </FONT></div> <bR> <bR> <bR> <div> <A HREF="index.htm" TARGET="_top" TITLE="I"><U><U>Home</U></U></A> - <A HREF="id133.htm" TARGET="_top" TITLE="Contact Us"><U><U>Contact us</U></U></A><A HREF="id133.htm" TARGET="_top" TITLE="Contact Us"><U> -</U></A><A HREF="id81.htm" TARGET="_top" TITLE="FAQ"><U><U>FAQ</U></U></A><FONT SIZE="3" COLOR="#0000FF" FACE="Arial" > </FONT></div> <bR> <div> © OHCS 1994 Copyright NZ All use of this Website is subject to our <U>terms & conditions</U><FONT SIZE="3" COLOR="#0000FF" FACE="Arial" > </FONT></div> <bR> <bR> <bR> <bR> </td> </tr></table></body>