Co-op Self Assessment

A self assessment procedure for co-ops.

 Excerpt:

This is a self-assessment in the truest sense.  You won’t be asked to score a number of questions, total your score and then be told where you fit on an arbitrary scale that purports to measure temperament, attitudes or motivations.  Rather, it’s an opportunity to reflect, talk to friends and family and potential members of your co-op.

Starting any business requires taking risk.  Eighty percent of small businesses fail.  There are many reasons for failure including, poor planning, being overly optimistic, lack of adequate investment and cash, poor cost control, personal illness and plain bad luck.

Co-operatives generally fare better and have twice the survival rate – 40%.  This is significantly better than other business models (sole proprietorship, partnership, and corporation), but it still means over half of start-up co-ops fail.  Some of the reasons for the better survival rate for co-ops include more cautious and thoughtful decision-making, the emotional support members provide each other, pooling resources and talents, and support from other co-ops and federations.

Like any good business, a co-op requires an excellent business plan, sufficient start-up capital, and the tenacity of its founders.  There will be long hours, many meetings, and low pay in the start-up phase.  And, there will also be break throughs, exciting developments and the internal reward of accomplishing something important to you and your community.

While many co-ops are profitable businesses, this is not their main goal.  If you want to start a business “to get rich quick” (or slowly for that matter), a co-op business is not the right choice.  If you want to work together with others to fulfill a collective need – say for meaningful work, housing, childcare, good food, joint marketing or purchasing, or filling any other gap in your community – then a co-op may be the right choice.

... Continued in Attachment