Center for Family Life | Cooperative Development Program

Starting a Worker Cooperative: Development Stages

Stage 1

Research and Ideation

3-5 months

Activities

1. Develop idea.
2. Feasibility study & market research.
3. Gauge interest from community members
4. Research network and reach out

Role of Developers

1. Survey interests, strengths and skills of community members.
   1. Brainstorm possible business ideas that fill a niche or are missing in the marketplace.
2. Conduct a study on whether your business idea will be feasible (target clientele, meeting the demand)
3. Share information with potential members about potential to develop coop and assess their motivation and business ideas.
4. connect to other coop networks, industry advocacy organizations, attend trainings.

Outcomes

1. Decide on a specific type of business.
2. Market research that shows there is a large enough market and sufficient products to sell that will make the coop financially viable and a significant economics contribution to its members.
3. Growing interest and commitment from potential cooperation members.
4. Building relationships & organizing context.

Stage 2

Recruitment, Decision Making, and Business Planning

4-5 months

Activities

1. Cooperative training for founding members.
2. Build solidarity with a social group-work strategy.
3. Determine how decisions will be made and by whom.
4. Creat a business and marketing plan.

Role of Developers

1. Hold an open house.
   1. Provide coop training to founding members on coop principles, developing brand values, learning basics skills for the type of services and product that will be sold, begin developing rules, etc.
2. Use ice breakers, team building, group sharing, pro-social, organizing around shared identity, values, and understanding.
3. Teach collective decision making strategies. Discuss voting structure. Emphasize one, member, one vote principles. (Weighted voting)
4. Research the data and put together a document that specifies the aims and objectives of the coop.

Outcomes

1. Founding members receive an initial snapshot of what it’s like to be in a coop and what will be provided.
   1. Sufficient members become invested in order to launch the cooperative.
2. Coop members have unity and cohesion.
3. Coop will develop rules related to how they want to make decisions.
4. A document that outlines all of the specifications and objections of the planned business.

Stage 3

Develop Business Structure and Marketing

4-6 months

Activities

1. Create working groups and leadership committees.
2. Set up back office of business.
3. Create bylaws or operating agreement.
4. Incorporate business.
5. Open bank account & bookkeeping.
6. Develop marketing plan and materials.
7. Political education. Join coop & other networks.

Role of Developers

1. Assist in determining organizational structure, election process, determining responsibilities, and teaching accountability.
2. Set up office and hire and office manager.
3. Introduce coop to attorneys, provide translation and guidance through the process of decision making.
4. Support coop while working with attorneys. Assist in getting appropriate paperwork and information.
5. Assist with finding the right bank and getting signed up with a business account.
6. Assist in getting expert marketing support, developing materials and a website.
7. Build community, situate coop in other movements, ongoing education, market development.

Outcomes

1. Have a leadership committee and other working groups formed.
2. An office is staffed and organized with appropriate protocol, and trainings are provided to office manager and members.
3. Bylaws or Operating Agreement will be completed at the end of this stage and will be used to incorporate the business.
4. Become a legally incorporated LLC or Cooperative entity.
5. Have a business checking and savings account.
6. Develop a brand guide, marketing plan and materials, printed materials, and a website.
7. Coop has a political analysis that builds unity, trust, and resources within and between coops.