How to Start a Cooperative Business

If you want to start a cooperative business, you will need to meet with the local community to identify a need. When all members agree to form a cooperative, you should conduct feasibility analysis and create a comprehensive business plan.

When all members agree, you can proceed with incorporation and settle all legal requirements.

A cooperative business is not that hard to organize. The formation can be pursued by community leaders due to a desire to provide service or to fulfill economic needs. If such leaders can find other people with the same interests, it will be easier. The leaders of a cooperative can be citizens, artisans, growers, and manufacturers. Before you decide to start this type of business, you should know what you’re entering into. The power is vested on the people that are using the services of the cooperative. They also provide for the finances to enjoy mutual benefit. The operations of the business are also controlled by such individuals.

Starting Your Own Cooperative Business

The primary purpose of the cooperative business is to benefit the members by enhancing the way of life and increasing income. In a local community where there are several cooperatives, the overall market situation will also be improved. Supplies or resources that were previously unavailable can now be accessed with ease by the members. You should be prepared for the organization phase because this can tough. At times, a new cooperative business can undergo rigorous opposition although some owners are welcomed with fervor.

You have to invite potential members in a meeting where you can discuss certain issues. It is important that you identify the community’s economic need. A steering committee should be selected and conduct a survey to identify the use of such cooperative business. On the second meeting, members should now decide whether to proceed or not. Cost analysis should be conducted and this should be clearly discussed on the third meeting. You will also need to have a feasibility analysis and a business plan. On another meeting, you have to present these documents and when all members agree, you can proceed with incorporation and prepare the legal papers.

You have to elect the cooperative board of directors and each one should have responsibilities. Hire the manager and acquire the needed facilities. You can begin with the operations when all aspects of the organization have been addressed. Perhaps you’re wondering about the capitalization to start the cooperative. You will need to choose between a stock and non-stock capital structure. Other options include capital investment from members, and borrowed money. Starting a cooperative business is quite easy but you should follow the procedures carefully. This is very important since you will be looking forward to the best interests of all members. Take your time in starting this business so that all areas can be addressed with ease.

14 Comments

  • vima said on August 22, 2011
    i would like to start cooperative in philippines luzon location abra province,i need more information how to do this business plan. more power
  • S santos said on February 10, 2012
    How to start cooperative, how many person needed , what all the position needed, marillao bulacan, thanks
  • S. Barker said on October 13, 2013
    I am looking for information on starting a brewery with a co-op management structure.
  • pamela versoza said on June 22, 2014
    i would like to start a cooperative at sta rosa laguna. i would like to know the basic requirement in putting up a coop
  • mitch said on October 23, 2014
    I am thinking about going into cooperative that is why i need some advice...
  • Christine Mingoa-Bibaro said on January 5, 2015
    i need some advice. my friend has now manpower agency and he wanted to convert it to coop..it is possible? and how? i need your opinion thanks.
  • irene Pascual said on February 1, 2015
    I'm frm Cagayan Valley . I'm planning to build a cooperative in my barangay but I dnt have idea how to start .pls help me .thanks
  • Feird Carino said on March 2, 2015
    Please send us sample brochure re: cooperative ty
  • Jainal bajao said on March 7, 2015
    Hi please help me put up my own coop. I am an ofw and wanting to have business regarding coop. Thank you very much.,
  • claire said on May 13, 2015
    Cabuyao laguna, hi i would like to put up a small business under coop. I have all the ideas and drafts and plans but i still need more members to make this possible. thanks
  • edith said on August 24, 2015
    I want to start a family cooperative and under it will register future business of members
  • Onikka said on August 30, 2015
    Hi the company that I work for what's us to start a cooperative, we don't need to contribute anything as members and all the paper work will be done by them. Is this a wise move or they a trying to use us?
  • Nestorio Briones said on July 5, 2016
    What is stock & non-stock capital structure? If capital investment from members, how much it is per member? Is there minimum capital required to start cooperative? Thanks & best regards,
  • Joseph figuerra said on March 13, 2018
    What is the requirements of starting a cooperative?

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