Cooperatives Pathfinder
Curriculum on How to Start
a Cooperative
Prepared by
Cooperative Development Services
August 2010
IDEA
1ST ASSESSMENT
Cooperative model
Step-by-Step on
How to Start a
Cooperative
Regular Business
Incorporation
2ND ASSESSMENT
Members Meeting
Feasibility studies
Click on each box on this diagram to view
steps starting with IDEA
Type of cooperative
For more information on co-operative
development visit us at our Co-op
Development website or contact the
Cooperative Development Services team
Business Plan
Finance
Manage
IDEA
You start with an idea:
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A new product or service
A variation of an existing one
Share a common challenge or need
Perceive an opportunity of common interest
1st ASSESSMENT
• Am I the only one interested in the
cooperative project?
• If yes how can I proceed to accomplish the
cooperative project?
• If not, how many are interested in the
cooperative project?
• What kind of business are we going to
explore?
COOPERATIVE MODEL
• What is a Cooperative Model?
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1 member = 1 vote
Share profit and loss
Concern to the community
Be the boss of your business
Get the service that you would like to
Give the product that they would like to
Maximize the use report : member/cooperative
(workers, producers, services)
BUSINESS MODEL
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What is a Business Model?
The money is the owner: 1$=1vote
Limited concern to the community
Be the boss
Individual / business interest
Maximize individual profit
Export profit elsewhere
2nd ASSESSMENT
2.1 GROUP ASSESSMENT
• Assess skills available
and matched to the
business needs
• Determine leadership
capacities
• Ask yourself “How far can
the group mange the
business”
• Assess financial capacity
• Act positively for a
common goal.
• Determine experience
and knowledge
2.2 BUSINESS ASSESSMENT:
• Review the originality of the
idea
• Clarify the nature of needs to
be covered
• Determine the skills needed
• Determine potential profit for
members and community
• Estimate the cost involved
• Determine capital required
• Review regulations and
policies
MEMBERS MEETING
This is a guide to what should occur at your
member’s meeting:
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Provide overview of the idea of the project
Discuss pre-feasibility result
Get more supporters involved
Show the benefit and the project’s cost (individual and
community)
• Form a steering committee (leader for the next steps
to realize the project)
• Get feedback
FEASIBILITY STUDIES
• Hire a consultant familiar with the cooperative model
and the business areas
• Get other professionals involved: (lawyers,
accountant, ..)
• Potential of success and answers “Can we do this
business?”
• Have an overview of the ins and outs of the business
(cost, material, human resources, capital,…..)
• Financial resources:
– Feasibility Studies Program (MB)
– Rural Economic Development Initiative (REDI) Feasibility
Studies Component (MB)
– Cooperative Development Services team
TYPE OF
COOPERATIVES
With shares
Without shares
Membership
Investment
Special investment
INCORPORATION
Links that will assist you with the
incorporation phase of starting your
cooperative:
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Incorporation phase
Instructions on how to incorporate
Instructions on the Articles of Incorporation
Other forms on Incorporation
Offering statement
Securities Commission
FINANCE A CO-OPERATIVE
Cooperatives may benefit form different financial
programs and specific ones which include the following
programs:
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Canada/Manitoba Business Service Centre (CMBSC)
Business Start Program (BSP)
Canada Small Business Financing Program
Financial program (Industry Canada)
Steps to Growth Capital
The Canada Council for the Arts - Grant Programs Summary
Cooperative Development initiatives
The Cooperative Promotion Board
The Cooperative Loan and Loan Guarantee Board
Neighborhood alive
Jubilee Fund
GOVERNANCE MATTERS
These are links that will assist you with
governance of your cooperative:
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The co-operatives Act
Regulations
By-laws
Responsibilities and duties of the board
Institute of governance
BY-LAWS
Samples of by-laws for different types of
cooperatives:
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Housing for profit
Housing not for profit
Without shares
With membership shares
Employment
Community services