meet. These two facts lead many to attempt to set up their own businesses; however, frequently, these businesses do not survive, or fail to bring in enough money to meet the family's needs.One of the reasons many home based and single person enterprises do not get off the ground or thrive is that the owner-operator does not have all the skills needed to make a business successful. If people can accept the fact that the whole is greater than the sum of the parts, they have taken an important step in being able to work together to create a viable enterprise.
The cooperative business model is ideal for those who want to pool their skills, knowledge base, and abilities to from a solid foundation for a business. The cooperative model does not guarantee success; a sound business plan with a marketing study is important so that the company knows what business it is in, with whom the competition is, and perhaps, most importantly, if there is an existing demand for their product or service.
A cooperative is not a business but a business model. Cooperatives are democratic as all members of a co-op are equal decision-makers in the enterprise and employ the one-member, one vote, process of making decisions. Each worker owns a share in the cooperative and the enterprise is owned and controlled by the workers.
How to Get Started:
The first step is to talk with family and friends; however, be focused and careful. Someone may be your best buddy but may turn out to be a lousy business partner. The same goes for family; your brothers or sisters are not necessarily ideal business partners; so proceed with caution.
Seek out people who are in a similar situation as yourself, need an income but are not desperate. You will not get rich overnight and the pre-planning phase is important to the venture's long-term success; so if you need money now, your own business is rarely the answer, cooperative or not.
Once you have your cooperators, how many you need may vary from state to state and province to province. Here in New Brunswick, you need three (3) people to form a cooperative; it is time to detail the business, what you sell, make or offer, to whom and at what price. This information forms the core of your business plan
There may be organizations that can lend you a hand, provide insight and information, once you have reached this stage. Do your homework and find out what assistance is available locally and within your region. Remember we are all in this together and together we can build a strong regional economy.