Steps in Organizing a Cooperative

  1. Determine if the concept and effort is for the right reason.

  2. Form a research or exploratory group to study all issues regarding a start-up venture.

  3. Hold a series of “interest” or group meetings (and/or conduct membership surveys) to determine momentum for the movement and to establish some parameters.

  4. Form a steering committee (which usually becomes the initial board of directors of the group) to keep the group moving forward and the message focused.

  5. Invite professional assistance to early meetings to drown co-op mistruths and myths before issues get out of hand. (i.e. Representative from the local USDA Rural Business-Cooperative Service office, Texas Agricultural Cooperative Council, Dr. John Park at Texas A&M University)

  6. Conduct an economic feasibility study.

  7. Establish a formal board of directors.

  8. Develop structure parameters (exempt vs. non-exempt, open vs. closed membership, equity levels, stock retirement, bylaws, etc.)

  9. Charter the organization with the Texas Secretary of State (www.sos.state.tx.us).

  10. Establish a clearly defined and communicated mission for the business.

  11. Work to create/promote/generate membership (i.e. frequent membership meetings, etc.)

  12. Hire a general manager.

  13. Acquire facilities.

  14. Conduct a general manager/board of directors strategic planning retreat.

  15. Hold frequent regional membership meetings to secure confidence of the patrons in the early years.