1. Cooperatives Pathfinder
Curriculum on How to Start
a Cooperative
Prepared by
Cooperative Development Services
August 2010

2. Click on each box on this diagram to view steps starting with IDEA
For more information on co-operative development visit us at our Co-op Development website or contact the Cooperative Development Services team

3. IDEA You start with an idea: A new product or service
A variation of an existing one
Share a common challenge or need
Perceive an opportunity of common interest

4. 1st ASSESSMENT
Am I the only one interested in the cooperative project?
If yes how can I proceed to accomplish the cooperative project?
If not, how many are interested in the cooperative project?
What kind of business are we going to explore?

5. COOPERATIVE MODEL What is a Cooperative Model? 1 member = 1 vote
Share profit and loss
Concern to the community
Be the boss of your business
Get the service that you would like to
Give the product that they would like to
Maximize the use report : member/cooperative (workers, producers, services)

6. BUSINESS MODEL What is a Business Model?
The money is the owner: 1$=1vote
Limited concern to the community
Be the boss
Individual / business interest
Maximize individual profit
Export profit elsewhere

7. 2nd ASSESSMENT 2.1 GROUP ASSESSMENT 2.2 BUSINESS ASSESSMENT:
Assess skills available and matched to the business needs
Determine leadership capacities
Ask yourself “How far can the group mange the business”
Assess financial capacity
Act positively for a common goal.
Determine experience and knowledge
2.2 BUSINESS ASSESSMENT:
Review the originality of the idea
Clarify the nature of needs to be covered
Determine the skills needed
Determine potential profit for members and community
Estimate the cost involved
Determine capital required
Review regulations and policies

8. MEMBERS MEETING
This is a guide to what should occur at your member’s meeting:
Provide overview of the idea of the project
Discuss pre-feasibility result
Get more supporters involved
Show the benefit and the project’s cost (individual and community)
Form a steering committee (leader for the next steps to realize the project)
Get feedback

9. FEASIBILITY STUDIES
Hire a consultant familiar with the cooperative model and the business areas
Get other professionals involved: (lawyers, accountant, ..)
Potential of success and answers “Can we do this business?”
Have an overview of the ins and outs of the business (cost, material, human resources, capital,…..)
Financial resources:
Feasibility Studies Program (MB)
Rural Economic Development Initiative (REDI) Feasibility Studies Component (MB)
Cooperative Development Services team

11. INCORPORATION
Links that will assist you with the incorporation phase of starting your cooperative:
Incorporation phase
Instructions on how to incorporate
Instructions on the Articles of Incorporation
Other forms on Incorporation
Offering statement
Securities Commission

12. FINANCE A CO-OPERATIVE
Cooperatives may benefit form different financial programs and specific ones which include the following programs:
Canada/Manitoba Business Service Centre (CMBSC)
Business Start Program (BSP)
Canada Small Business Financing Program
Financial program (Industry Canada)
Steps to Growth Capital
The Canada Council for the Arts - Grant Programs Summary
Cooperative Development initiatives
The Cooperative Promotion Board
The Cooperative Loan and Loan Guarantee Board
Neighborhood alive
Jubilee Fund

13. GOVERNANCE MATTERS
These are links that will assist you with governance of your cooperative:
The co-operatives Act
Regulations
By-laws
Responsibilities and duties of the board
Institute of governance

14. BY-LAWS Samples of by-laws for different types of cooperatives:
Housing for profit
Housing not for profit
Without shares
With membership shares
Employment
Community services