Taking the first steps: An introduction to forming a community co-operative enterprise Tasha Bevan Plunkett Foundation 14th March

What are Community Co-operatives? 2 2

Community led - focuses on community need. Inclusiveness - membership which is open and accessible to all members of the community. Democratic – one-member, one-vote. Enterprising – trades with and on behalf of it’s members and their communities. Profit Distribution- The distribution of profit does not enable some members’ greater control than others. Asset Lock – where a premises is involved. Community the enterprise should be one which focuses on meeting community need and which requires the support of that community to succeed   Inclusiveness membership should be open and accessible to all members of the community and efforts made to reach out to everyone in that community Democracy the enterprise should be based on one-member one-vote Enterprise the enterprise's main source of income will come from trading with and on behalf of its members and their community Investment the enterprise will have decided to either not provide a return on investment or to only give a return which is sufficient to attract and retain capital Profit distribution the enterprise will either have decided not to distribute profit to individual members or to do so in a way that it provides rewards to members in proportion to their transactions with the enterprise, not the amount they have invested All communities will need to fulfil (or be working towards fulfilling) these criteria in order to qualify for fully-funded support from us. Enterprises are also strongly encouraged to do the following*: Asset lock in the event of the winding up of the enterprise, any residual assets should be applied to purposes or organisations that will further the aims of the enterprise and not be used for distribution to individuals Solidarity the enterprise will support and promote its approach to other communities

Why choose a Community Co-operative? The services provided can go beyond their core service Particularly benefit those disadvantaged or vulnerable Elderly, limited mobility, those seeking employment Provide community hub for people to meet and socialise Provide additional services such as prescription collection, postal services, dry cleaning, community groups, internet access….. Employment and volunteer opportunities Provides Informal support networks Supports the local economy Host wider community events

Simple Steps for setting up

1. Form a working group. A minimum of 3 people Key Roles - Chair Treasurer Secretary

2. Consider your vision and how best to explain what you are trying to do. What you want to do? Where you want to do it? What you need to achieve your plans?

3. Identify and consult with your community.

4. Visit other enterprises. 5. Review original plans and determine whether to proceed.

6. Formalise your working group. Roles: Chair Secretary Treasurer & up to 9 others Responsible for: Business planning Fundraising Operations Communications

7. Explore and decide on legal structure What kind of organisation are you? Would incorporation be beneficial? If so, find the legal structure that works best for you Do we want to involve large numbers of members? Would we need to be able to raise investment through shares? What are the reporting and regulatory requirements? 11

8. Determine start-up costs and consider business plan. 9. Consider finance options and raise capital.

10. Consider your Operating Structure Community Owned Premises, enterprise managed by the community Community Owned Premises, enterprise managed by commercial operator Privately-owned premises, leased by community co-operative, and managed by community. Other Community premises (church or village hall), enterprise managed by the community.

11. Secure premises and plan for opening.

12. Celebrate your success with an opening event. 13. Constantly review and engage with your members and customers.

Support Plunkett Offers Frontline Service Information, advice and support Staff, Adviser and Mentor network Online tools and resources Networking opportunities One-to-one advice Mentoring and study visits Legal Structures and Shares Funding – Project dependant Signposting Membership Richard / James 16 16

Support available from www.plunkett.co.uk Helpline: 01993 810730