Consulting Services for Startup Co-ops: Details

Organizing Stage

Orientation to Starting a Food Co-op
Successfully opening a cooperative food store is a complex project that requires careful planning and implementation. It is important for the co-op’s leaders to have a good understanding of the overall process, major decision points, and potential costs. We will review your progress to date and your internal documents prior to the visit, and provide recommendations for the further development of your organization. Our two to three day site visit includes training, planning and work sessions and will focus on:

  • Project planning
  • Building your shared vision
  • Leadership development
  • Role clarification
  • Membership development
  • Steps to assessing feasibility

Membership-Ownership Development
Membership is the foundation of every successful co-op. We can assess current membership programs and make recommendations for changes. Or we can help you start out right with a new co-op. Our services include:

  • Advise and assist in planning or revising your member/ownership program
  • Assist with determining the appropriate equity requirements and structure
  • Developing member benefits
  • Marketing and communicating your membership program
  • Plan and implement a patronage dividend program
  • “Best Practices for Membership”:

Sources and Uses Budget
The Sources & Uses budget will estimate costs to get the co-op to opening day and project where those funds can be obtained. Our consultants can help you:

  • Develop a draft of a Sources & Uses budget
  • Help identify sources of capital
  • Identify your cash and capital needs for all 3 development stages (Organizing, Feasibility/Planning, and Implementation)
  • Identify working capital needed for store operations

Timeline Development
Projects can have a life of their own. Our consultants can help you take control of your project with the following services
*Develop an initial timeline for your co-op’s project
*Creating a detailed checklist for both the Organizing Stage and the Feasibility/Planning Stages
*Assess your progress and help you adjust to changing conditions

Bylaws
Our consultants have expertise in working with cooperative boards to develop and draft bylaws and other organizational documents. Legal review of bylaws is essential, and our work complements and streamlines the work of the cooperative’s attorney. We can help:

  • Develop effective, understandable bylaws
  • Plan and execute strategies for presenting those bylaws to owners to foster constructive, engaged dialog about important governance issues.

Feasibility and Planning Stage

Internal Readiness
Our consultants can support your co-op as it builds capacity to undertake a start up, expansion or relocation project. The focus of our support will be:
*Internal readiness assessment
*Assistance in strengthening systems of planning, governance, management, and membership

Market Study and Site Analysis
A market study will assess the market feasibility of your new, expanded or relocated co-op food store. A 2-3 day market visit and site analysis will be followed by a report that will generally be accepted by banks and financial institutions as part of a loan application package. The market study will:
*Review the site and location characteristics of any possible sites that you have identified
*Identify and evaluate the competitive environment that your co-op food store will face
*Evaluate access patterns and levels of retail synergy within the market area.
*Provide a sales forecast(s) for the proposed site(s)
*Provide a report summarizing the results/conclusions of the market study

Financial Feasibility
Our financial pro forma is a planning tool to assess the financial feasibility of your expansion, relocation, or start up project and will include:
*A Sources & Uses budget for the project or start-up phase for new co-ops
*Detailed 10 years financial performance projections
*Income statement (profit/loss) projections
*Balance sheet projections
*Cash flow and debt service schedule

Member/Owner Capitalization
Our consultants have assisted food co-ops in obtaining millions of dollars in capital from co-op owners in the form of member loans or preferred shares. Our services include:
*Overview of member capitalization options and strategies
*Planning a member/owner loan and/or preferred share program
*Assistance with implementing your campaign

Store Planning & Design
A good store design will save you money, time and headaches. Our store designer will provide:
*General consultation on store planning and design
*Preliminary store layout (floor plans)
*Store planning and design
*Equipment list
*Review of technology options

Business planning
Planning serves to keep everyone focused on the desired outcomes. Well crafted plans also give potential lenders confidence in your project. Our planning support options include:
*Review your plan drafts and making specific recommendations on where and how to improve your plan
*Prepare a business plan for your co-op, utilizing your organization’s expertise and knowledge
*Facilitate and support your management team as it develops plans

Governance
Serving on the board of a cooperative can be a rewarding and sometimes challenging job. We provide consultation, training, facilitation and coaching to strengthen the leadership team, build organizational alignment and enhance the working relationship between board and management. For start-ups this often begins when the board is governing volunteer work groups and then transitions to governing paid professional management and staff. Our governance team provides:

Hiring a General Manager
Every co-op needs good management. Hiring a General Manager is one of the most important decisions your board will make. Our consultants can assist you with developing and implementing a good, professional process more likely to lead to a good decisions. Our services include:

  • Developing a process for GM hiring
  • Recruitment and screening
  • Support and consultation