| To Start Or Not To Start ... |
| |
| So you've got a
business idea and a group of interested people. Contrary to what
you may think, what you don't know can hurt you. Before you
start your worker co-op, you should make sure the people in your
group are compatible and your idea is feasible. These two
factors can mean the difference between success and failure. |
| |
| The People |
| Members
of your group must ensure their personal goals and the goals of
the co-op are compatible. Conflict can easily arise without
everyone's understanding and commitment to the co-op's short and
long term goals, as well as the hard work and co-operation
required to achieve them. Since a worker co-op is controlled by
its members, they must all be familiar with many aspects of the
business in order to make informed decisions. |
| |
| The Idea |
| Your
worker co-op must be a viable business. Like other businesses,
it must obtain financing, market its product or service, and pay
taxes. Don't spend a lot of money until you have looked at the
strengths and weaknesses of your idea and the demand for your
product or service in the community. A feasibility study will
determine whether you should proceed with your business in the
first place. The following questions cover the most important
elements of a feasibility study. Think about them carefully. |
| |
| Business Concept |
| What product or service do you want to market? |
| |
| Market |
| Who, why, where
and how many people are going to buy your product or service?
How will you promote it? How will products be delivered to
market? Who is your competition? |
| |
| Price |
| What does it cost
you to provide your service or product? What is the market
willing to pay? |
| |
| Production Strategy |
| How are you going
to produce your product? How long will it take? What equipment
or facilities are needed? How will work be organized? |
| |
| Finacing |
| How much will it
cost to get into business? How much money will be required to
keep the business running? Where will the money come from -
banks, credit unions, members, government assistance? How much
will the co-op earn and how soon? |
| |
| Abilities and Experience |
| Assess the
combined business and technical skills, knowledge, training and
experience of your members? Do they need to be developed
further? |
| |
| To start or not
to start .... Look at the whole picture - risks, benefits,
strengths and weaknesses. Are you excited? If you are, you're
ready to develop you business plan. |
