Organizing a cooperative
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Joe
Nov 29, 2011, 12:42:01 PM11/29/11
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Hi all,
I had a brief talk with Katie and Dave about this a few months ago, and they were open to the idea. Unfortunately I did not have the capacity to get involved - especially as my realm is really in worker coops rather than community owned businesses - but I referred them to the Cooperative Development Institute which has some USDA funds to subsidize such an organizing effort. If you are interested in the general mechanics of how to organize a consumer-owned, retail food cooperative, CDI is a great resource, and the online toolboxes at http://www.foodcoopinitiative.coop are also very helpful.
It seemed when I was last in touch like what was needed was to find a champion interested in rallying an organizing group, and the community to investigate the possibility, raise funds, and put the ownership infrastructure in place - someone who could gather stakeholders together and motivate them. This work can be hard and time-consuming, so it is helpful to have this person or people be particularly invested in having the project succeed. This person or team is as or more important than a willingness to contribute a few hundred dollars. I heard that Bob played this role for Buffalo Street Books very successfully.
There were some early questions that it seemed an organizing group would face:
- Is there enough stakeholder interest (time and money) to make the transition? Is there a champion to put together an organizing group?
- Who would manage and operate the business if Katie and Dave moved on/back to other things? Are the workers ready to step up, or would the community ownership need to place a new management team?
- How would the residence on the property relate to the newly bought business? Would they be separated? Would the cooperative also become landlords?
- How and why would the business be more profitable as a community-owned venture than it is now? (Buffalo Street Books, as far as I know, got owner equity without a business plan, but this is really nonstandard for a buyout.)
At the time another question seemed to be important from the sellers' perspective
- Would it be quicker to find a sole proprietor that could buy the business without all the organizing effort?
The time frame also opens up some questions
- Would a lapse in operations affect zoning (as Simon mentioned?)
- Does the upcoming liquidation sale affect the attractiveness of a buyout?
Lastly, let me say that is an organizing effort takes place, it may be possible to think outside of the box in terms of what the buyers would want the business to become. For instance, it could be bought by a nonprofit with a mission of job creation or education - or many other possibilities.
Here's an online listing - not sure how fresh it is:
http://www.aedelman.com/search.php?search=1&view=134180&mls=134180
Food for thought,
Joe
I had a brief talk with Katie and Dave about this a few months ago, and they were open to the idea. Unfortunately I did not have the capacity to get involved - especially as my realm is really in worker coops rather than community owned businesses - but I referred them to the Cooperative Development Institute which has some USDA funds to subsidize such an organizing effort. If you are interested in the general mechanics of how to organize a consumer-owned, retail food cooperative, CDI is a great resource, and the online toolboxes at http://www.foodcoopinitiative.coop are also very helpful.
It seemed when I was last in touch like what was needed was to find a champion interested in rallying an organizing group, and the community to investigate the possibility, raise funds, and put the ownership infrastructure in place - someone who could gather stakeholders together and motivate them. This work can be hard and time-consuming, so it is helpful to have this person or people be particularly invested in having the project succeed. This person or team is as or more important than a willingness to contribute a few hundred dollars. I heard that Bob played this role for Buffalo Street Books very successfully.
There were some early questions that it seemed an organizing group would face:
- Is there enough stakeholder interest (time and money) to make the transition? Is there a champion to put together an organizing group?
- Who would manage and operate the business if Katie and Dave moved on/back to other things? Are the workers ready to step up, or would the community ownership need to place a new management team?
- How would the residence on the property relate to the newly bought business? Would they be separated? Would the cooperative also become landlords?
- How and why would the business be more profitable as a community-owned venture than it is now? (Buffalo Street Books, as far as I know, got owner equity without a business plan, but this is really nonstandard for a buyout.)
At the time another question seemed to be important from the sellers' perspective
- Would it be quicker to find a sole proprietor that could buy the business without all the organizing effort?
The time frame also opens up some questions
- Would a lapse in operations affect zoning (as Simon mentioned?)
- Does the upcoming liquidation sale affect the attractiveness of a buyout?
Lastly, let me say that is an organizing effort takes place, it may be possible to think outside of the box in terms of what the buyers would want the business to become. For instance, it could be bought by a nonprofit with a mission of job creation or education - or many other possibilities.
Here's an online listing - not sure how fresh it is:
http://www.aedelman.com/search.php?search=1&view=134180&mls=134180
Food for thought,
Joe
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