 Utilization of a timeline  Defining influence  Establishing members  Meet and network  ORGANIZATION!

 Invite  Potential member-users to meet and discuss  Identify  Economic and community need to be filled

 Create an exploratory committee  If continuing, select a steering committee  A what? ▪ A group of individuals responsible for general operating policy, procedures, and related matters affecting the cooperative

 Survey prospective members based on:  Volume of need or use.  Member-user experience and capabilities.  Variety of products or services offered or needed.  Period of need or services.  Current unit value—sales price or cost per unit.  Member-user—location of use or need.  Familiarity with and use of other cooperatives and willingness to join, finance, and use one.

 Discuss survey results with potential members  Vote and decide how to proceed

 Conduct needs and cost analysis  Identify suitable markets, sources of supply, and service providers and their requirements. ▪ Use previous research and industry common knowledge. ▪ Survey market, supply or service provider sources. ▪ Ask to conduct research and use findings: ▪ State and/or Federal offices ▪ Universities ▪ Cooperative centers ▪ Commodity organizations ▪ Private consulting firms

 Group hears results and votes whether to proceed.  Pre-membership agreements may be used if group is proceeding.  Initial investments may be collected

 Components of a study might include:  Project description and justification  Industry background  Marketing situation  Outlook and plans,  Operational and technical characteristics  Financial statements, projections, and sensitivity analysis  Summary and recommendations.  Decide who will conduct the study  Develop sound and realistic project assumptions  Determine components for a comprehensive study  Assess the study  Accept or reject the study

 4 th Meeting  Steering committee arranges for incorporation and development of bylaws  Feasibility analysis provides development of the business plan.  A what? ▪ A formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals

 Prepare legal papers  Draft bylaws  Other paper work  Membership application  Membership or stock certificate  Marketing/purchasing agreements  Revolving fund certificate  Meeting notices and waivers of notice

 Call a meeting of charter members and potential members  Review and adopt the proposed bylaws  Elect a board of directors.

 Convene first meeting of board and officers  Assign responsibilities to implement business plan  Membership drive  Membership application or stock subscription  Acquiring capital and bank selection  Initiate hiring of management  Authorize officers/employees to handle funds  Design and install accounting system  Provide for bookkeeping and accounting services  Bond officers and employees in accordance with bylaws  Choose a business location

 Conduct a membership drive  Acquire capital  How? ▪ Membership stock shares ▪ Member equity contributions ▪ Loans ▪ Outside equity accumulation

 Hire the manager!  Gain facilities and production equipment  Begin operations!