How to Stzht a
: ,,,,“‘- .\, ‘I_ Cooperati$d;.
Cooperatitiie~lnformation Report 45, S,-Gio, 74
When Should a Cooperative be
Organized? Cooperatives are
formed in response to an
economic need such as provid-
ing marketing, processing,
bargaining, manufactw-ing, and
purchasing sewicas not currently
available, or available only at
If interested in forming a cooperative,
learn all you can about the legal, eco-
nomic, and financial aspects of a coop-
erative business. Careful planning
increases the chances of success.
IS THERE AN
Cl YES - PROCEED TO STAGE 2
0 NO - STOP COOPERATIVE
Why Groups Organize
+ To improve bargaining power.
+ To reduce costs.
+ To obtain products or services.
+ To create new and expand existing
+ To improve the qualities of the prod-
ucts or services.
9 To increase income.
Steps in Organizing
Determine the Economic Need
A cooperative is organized in response
to a specific problem or opportunity.
The idea is often initiated by a small
group that meets to discuss the need.
The meeting should focus on the eco-
nomic need and the potential use of a
cooperative as a solution. Discussion
topics should include:
+ What information about the
perceived need is readily available?
+ Could a cooperative effort address
+ What information about
cooperatives is available?
+ Who can serve as an adviser to the
+ Who should be invited to a meeting
of potential users?
+ How should potential users be con-
If a cooperative seems to offer a
solution, a larger meeting of interested
potential users may be planned.
Hold Initial Exploratory Meeting
A meeting of potential member-users
should be called to decide if interest is
. . . . . . . . . . . . . . . . . . . . . . . . .