Chapter 2: Developing Your Cooperative
IN THIS LESSON
Cooperatives can be sparked from a new idea or existing need.
You probably already have an idea of what kind of cooperative you want to start, but it is helpful to sit down with your team and think about how your cooperative might function.
How are cooperatives created?
Conversions
Many cooperatives were created from existing businesses. For example, the owner wanted to retire and chose to sell their business to their staff or to share the decision-making and benefits of the organization. Businesses that undergo conversions will need to determine how to buy the business from its previous owner and how management will change to enable democratic decision-making.
New Businesses
A group of people with an idea for a business or organization launches it as a cooperative from the beginning. Each person will contribute equity in the form of funding or labor. Decision-making structures and policies facilitate shared power and control.
Networked from existing cooperatives
Successful cooperatives create new ones modeled on their own. Each of these cooperatives are autonomous and controlled by their own members, but they share a network of mutual support. The original cooperative will share its decision-making structure and bylaws and may lend capital to start the new cooperatives.
“I brought the idea of converting our business to a co-op to the previous sole-owner. He was already running the company very collectively, and many of us had roles that deeply impacted and shaped the company. Luckily, he was excited about the idea! When the workers bought the company from him in 2022 he also became one of the first of three worker-owners under our new structure.”
Which is your big cooperative idea?
Download the worksheet and brainstorm with your community.