Co-operatives are businesses that are owned and run by their members, whether they are the employees, customers or local residents.
So, following on from part one of how to set up a co-operative, once the business idea is in place and the co-operative is up and running, it's essential that the members establish a good working relationship. This means setting up effective and appropriate ways to communicate with one another and getting a governance plan in place to ensure everyone knows what membership means.
Communicating
Often co-operatives start with a small group of people who are at the steering wheel, driving the idea forward.
However, even with a small group of people it is important for them to communicate and meet, formally or informally, to check on the progress the fledgling co-operative is making.
Developing and practising good communication and democracy skills throughout the start-up process makes for a more effective and sustainable co-operative with better governance.
A formal meeting may not always be necessary or practical, so be imaginative about how you communicate to make sure you remain on track. Everybody meeting in a social setting may be useful to celebrate milestones, but if there is a larger group involved in the co-operative, think about how tasks can be divided up – between marketing, finance, product development, for example – and then agree a process for them to report back to the whole group on progress.
Ask yourselves, too, what use can you make of social networking sites to keep everyone in the loop?
Co-operatives UK has highlighted a series of key milestones for start-up co-operatives. Is everybody in the loop and pulling in the same direction? Do you need to get others involved to make it happen? Is your business plan up-to-date, what's changed?
Make a tick list to share amongst the group so everyone can see what progress has been made and, more importantly, plan what still needs to be done. You can then check your progress against the milestones.
Planning ahead
On your journey, be prepared for key people to leave and recognise that new people may be needed to complete particular tasks.
It is a good idea to have a governance plan in place that sits alongside a co-operative's business plan which covers these issues and how the members relate to one another.
Often people who are involved in establishing the initial idea fall away. But it is important to see this as an opportunity to harness their knowledge before they leave and see what skills the business needs or would benefit from before seeking new members.
'Founder syndrome' is a well-known problem in all types of businesses, as often it is the founders who have the initial vision that drives the business forward. Before those people leave it's important to plan ahead and make sure the co-operative can keep going. Co-operatives are well-placed to do this, but planning is important.
At points when more people need to become involved, this plan provides clarity on what the co-operative is set up to do, who it is intended to benefit and what is required of members.
What you should have at the end of this stage
1. A governance plan
2. Established ways for those involved to communicate
3. Established ways for those involved to make decisions
4. A clear membership offer – what you get for membership, and what's expected in return
5. A series of key milestones which those involved can use to tick off
In the next article, we will look at what comes after this – financing your business and establishing it as a legal entity.
Linda Banks is legal officer at Co-operatives UK, the trade association for co-operatives.
Over the next three months Co-operatives UK will launch its new online support service for anyone wanting to start, grow or advise a co-operative business.
The Previous piece in this 4 part series can be red here .
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