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how to project sales volume in a business plan Cooperative Development (1 viewing) (1) Guests
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TOPIC: how to project sales volume in a business plan Cooperative Development
#12764
Mac Rory Bowman (Visitor)
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how to project sales volume in a business plan Cooperative Development  
General resources on cooperative development and business strategy.
 
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#12765
Mac Rory Bowman (Visitor)
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how to project sales volume in a business plan Cooperative Development  
http://www.cgin.coop/how_to_start http://www.cgin.coop/files/manual.pdf The Cooperative Grocers Information Network (CGIN) is a terrific trade group that provides a variety of resources for existing and startup cooperatives. In addition to publishing Cooperative Grocer and making most of it available for free online, CGIN has also published a terrific book by Karen Zimbelman in March of 2002. _title_d How to Start a Food Co-op: A guide from the Cooperative Grocers' Information Network, the book is available as a free PDF download at http://www.cgin.coop/files/manual.pdf or viewable online at http://www.cgin.coop/how_to_start In less than eighty slender pages with many real-world examples, it clearly identifies nine key stages that almost all successful start-up cooperatives pass through, providing a nice way to see how close one really is to opening a store that shall stay open. 1. GATHER BACKGROUND Get information, identify needs, convene a core group of interested individuals 2. ORGANIZE: Hold a meeting of potential members to discuss needs and options. Select a steering committee to coordinate the group 3. RESEARCH FEASIBILITY: Survey potential members and conduct market research. Prepare a feasibility study 4. REVIEW FINDINGS AND INCORPORATE: Prepare and approve articles of incorporation and bylaws. Report on the results  of the feasibility study. Elect a board of directors. 5. RECRUIT OWNERS: Hold meetings and prepare materials describing the co-op. Establish member investment options and conduct a member equity drive. 6. PLANNING AND FINANCING: Prepare a detailed business plan and  begin researching financing options. Identify possible locations  and negotiate lease arrangements. 7. SECURE FINANCING: Finalize outside financing sources and terms. 8. BEGIN OPERATIONS: Hire a manager, locate fixtures and equipment, finalize layout, establish accounts with suppliers, set up the store. 9. OPEN THE DOORS
 
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#12766
Mac Rory Bowman (Visitor)
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how to project sales volume in a business plan Cooperative Development  
In February and March of 2008, supporters of Vancouver Food Cooperative were offered a chance to attend a series of free web seminars or webinars on a variety of subjects related to cooperative development. Co-sponsored by the National Cooperative Bank, Cooperative Development Services and the Food Co-op 500, the six seminars covered a variety of topics. Notes from these were posted to VFC-Discussion but when this group was removed in May of 2008, these files were lost. I have reassembled and posted them as a zipped archive as FC500webinars2008.zip at http://groups.google.com/group/vfc-general/files They are very much worth reading in order to understand best practices in cooperative development, including timelines and details of how to govern and to create a substantive business plan. Session 1, January 9, 2008, at 12 Noon Central Standard Time Orientation to Development: Four Cornerstones in Three Stages – The Food Co-op 500 Model Presented by Bill Gessner, CDS consultant. This webinar presentation will help you to understand the steps in forming a new retail food cooperative, how to organize your efforts, determine feasibility, create a timeline and avoid pitfalls. The Food Co-op 500 Development Model provides the structure and roadmap for your organization. Session 2, January 16, 2008, at 12 noon Central Standard Time Best Practices of Membership Programs Presented by Marilyn Scholl, CDS consultant. Learn what cooperative ownership is all about. We will discuss how to set up ownership programs, member/owner benefits, and other best practices that have proven their strength in established co-ops. Session 3, January 23, at 12 noon Central Standard Time Governance and Accountability Presented by Mark Goehring, CDS consultant. This session will help you understand the role of the steering committee or Board of Directors and how it changes as your project evolves. Topics include Board structure and accountability, governance systems and your relationship with your general manager. Session 4, February 6, 2008, at 12 noon Central Standard Time Creating a Development Budget Presented by Bill Gessner, CDS consultant. How much money will you need to open your co-op? Where will you get it? These are the questions that we will address in this presentation. A realistic development budget will ensure that you have the resources you need as you progress through your project. The Sources & Uses budget will be one of your most important planning tools as you determine your capital needs.   Session 5, February 13, 2008, at 12 noon Central Standard Time Market Research: Projecting Sales Potential and Finding the Right Site Presented by Pete Davis, CDS consultant. A professional market study will provide you with the best information on what you can expect in sales volume from your new co-op. Your bankers and members will have more confidence as well. This presentation will explain what you will get from a proper market study and what to look for in an ideal site. Session 6, February 20, 2008, at 12 noon Central Standard Time Evaluating Feasibility and Planning for Success Presented by Mel Braverman, CDS consultant. This presentation will help you to understand what needs to be in place for a new food co-op to succeed and how to plan your organizing and development efforts effectively.
 
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#12767
Mac Rory Bowman (Visitor)
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how to project sales volume in a business plan Cooperative Development  
For the past year or more VFC has been focused on a single development strategy: aiming to raise more than one million dollars to open a modest store of approximately 5,000 square feet in west Vancouver. This is a fine plan, if one can pull it off, but it is important to appreciate that there are other ways to open a food cooperative, and to understand the great variety of options, not all of which look like a small Whole Foods. The cooperative economic model is a diverse one and there are a variety of cooperatives, including worker-owned cooperatives (such as City Bikes in Portland), producer's cooperatives (such as Tillamook Cheese, Ocean Spray and Blue Diamond Almonds), and consumer cooperatives (such as REI or the various Portland food co-ops). Even within the general model of food cooperatives there are a variety of models to fit different communities and stages of development. Buying Clubs All three of the surviving Portland-area food cooperatives began as buying clubs, where working-class people gathered to purchase nutritious foods in bulk, whether for a better price or to guarantee availability. Many buying clubs start out in someone's garage or on a porch, but others then expand to a small retail space. The Daily Market (formerly The Sweet Onion) is a food co-op that began at about the same time as the Vancouver Food Cooperative and which currently operates out of a storefront at 508 East Main Street in Walla Walla, Washington. Find them online at http://www.dailymarket.coop Another example of this is Montana's Missoula Community Market at http://www.missoulacommunitymarket.org Limited Retail One click up from the home or storefront buying club is a limited retail establishment which may serve as a drop-point for CSA farms or a buying club, but also keeps a limited number of retail items in stock. The Grower's Market at 454 Willamette Street in Eugene is such a place, open ten hours each week for customers, and staffed entirely by volunteers. This is economically feasible for Grower's Market because their building functions as leased office space during the rest of the week. Find them online at http://growersmarket.net Owner-Only Owner-only cooperatives require that one be a member or owner to shop there, and one of the most famous is Brooklyn's Park Slope Co-Op, where every member is a working member, without exception. Average shifts are about three hours, every four weeks. The advantage of this is to encourage scheduled visits by all shoppers and to eliminate almost all labor costs. Find them online at http://foodcoop.com and check out member information such as the owner forums and member handbook. Mobile Market The mobile market strategy is not cost-effective, but has been used in underserved areas such as Oakland, California, and in New Orleans after Hurricane Katrina. Basically a large vehicle is converted into a rolling grocery store, and moves from neighborhood to neighborhood, much as a bookmobile might for areas without libraries. By focusing on a few key items such as bulk dry goods and fresh vegetables, mobile markets are sometimes used as an outreach tool. Oklahoma Model The Oklahoma Food Cooperative is similar to the mobile market, with an emphasis on selling only local products through a series of established routes which both pick up and distribute food. Most ordering is done online, with designated routes, pick-up times and locations, in a model similar to a CSA. You can get a glimpse of this model online at http://www.oklahomafood.coop/locations.php Small Retail By small retail I mean physically small stores, those with limited hours or both. Generally less than 1500 square feet, this model is popular in small towns where the population _base_ does not justify the cost of maintaining staff at all hours all week. The Yelm Food Co-Op is one I would consider small retail, open five days a week for nine hours each day. Find them online at http://yelmcoop.com Large Retail By large retail I mean physically large stores or stores which are open normal grocery hours, usually 9am-9pm seven days a week. All of the Portland food cooperatives are what I would consider large retail, grossing $3-$30 million in sales each year. Some cooperatives such as PCC Natural Markets in the Seattle area are very large retail, with nine separate locations viewable at http://www.pccnaturalmarkets.com/locations So What? The main thing in opening a successful store is fitting the strategy to the community and the skill level of those who are building the store and who will use it. While it is lovely to imagine that every neighborhood might have its own miniature Whole Foods, that is not always the way to bet, and not to let the perfect become the enemy of the good.
 
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