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 • 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