coop business plan

Home > Business > Business Startup

How to Get a Business Cooperative Started

We are committed to sharing unbiased reviews. Some of the links on our site are from our partners who compensate us. Read our editorial guidelines and advertising disclosure .

A business cooperative is an enticing alternative to the standard capitalism model, offering a democratic management style, lower risk of debt, and other social and economic benefits. Cooperatives also give small-business owners more control over their organization and come with certain tax advantages.

In this article, we’ll define a cooperative business, offer examples of worker cooperatives, and discuss how to get a business cooperative started.

• What is a business cooperative?

Business cooperative examples

• Steps to starting a business cooperative

The takeaway

Business cooperative faq.

By signing up I agree to the Terms of Use and Privacy Policy .

What is a cooperative business?

A business cooperative (co-op), is an organization or enterprise owned by its members. While a traditional business serves the interests of investors, founders, or board members, a co-op services the interest of its customers or workers. Most co-ops are established to fulfill an economic need, such as providing products, services, or bargaining power that is otherwise unavailable to a certain group of people.

Business cooperatives come in many forms, such as housing co-ops, food co-ops, credit unions, and agricultural co-ops. However, many large corporations are also cooperatives, including Ace Hardware, REI, and Land O’Lakes dairy.

Here are some other well-known cooperatives in the US.

• Navy Federal Credit Union: The largest credit union in the US, serving military servicemen and government employees
• Alliant Credit Union: A credit union based in Chicago, Illinois, originally founded by employees of United Airlines
• Dairy Farmers of America: A marketing cooperative owned and operated by dairy farmers across the US
• Associated Wholesale Grocers: The nation’s largest food co-op, which supplies independent grocery stores across the country
• People’s Food Co-op: A Portland, Oregon-based food co-op with a focus on sustainability
• Berkeley Student Cooperative: A housing co-op for students of UC Berkeley

How to start a business cooperative

Since co-op founders usually organize cooperatives based on a specific need or problem, the first step in starting one is to identify that need. Once this is done, the group should take the following actions to officially establish the co-op:

1. Establish a steering committee.

A steering committee is a group of people that represents the members of the organization. This committee should create a timeline for coordinating the logistics of the co-op. They should also establish the co-op’s values and mission, as well as gauge the overall level of interest in the co-op.

2. Conduct a feasibility study.

Once the steering committee is established, the group should conduct a study to consider all possible challenges and obstacles the co-op might face. This study should look closely at opportunities for financing, operating costs, and other factors that influence the market.

3. Create articles of incorporation.

Every cooperative must have articles of incorporation and bylaws that govern the organization. These bylaws should be made by a legal counsel and can be changed and enhanced over time.

4. Draft a business plan.

Like a traditional business, a co-op should have a detailed business plan that guides the company as it grows. The plan should include a market analysis, a marketing plan, product research, and a description of the co-ops goals and objectives.

5. Get financing.

Most co-ops need cash flow for day-to-day operations. This cash often comes from member investments, but some co-ops use a business loan to finance their organization in the early stages.

6. Begin operations

At this point, the co-op can hire a manager and employees, secure a facility, and open its doors. It’s important for members to remain committed to and aligned with the goals of the organization to ensure long-term success.

A worker cooperative offers a number of benefits to small-business owners, including a democratic management style, less debt risk, and member dividends. To set up a business cooperative, a setting committee must conduct a feasibility study, establish articles of incorporation, create a business plan, and secure financing.

Would you like to learn more about starting a business cooperative? Check out Business.org for How to Start a Small Business: Must-Have Checklist to Spark Success .

Related reading

• 11 Best Collaboration Software for Small Business 2023
• Best Crowdfunding for Startups 2023: How to Fund Your Small Business
• Best Startup Business Line of Credit 2023

Some cooperatives are not designed to make a profit and instead operate at cost. If a cooperative does make a profit, the members who purchase goods or services generate that money. Those profits are typically returned to the members as a refund or put back into the organization.

Safety stock is a term used to describe the excess inventory business owners choose to keep in hand in the event of an increase in demand or supplier delay.

Here are the steps to starting a worker cooperative:

• Establish a steering committee.
• Conduct a feasibility study.
• Create articles of incorporation.
• Draft a business plan.
• Get financing.
• Begin operations.

A cooperative (co-op) is a type of business organization that exists to benefit its members rather than outside investors. The co-op is owned and run by the members, and any profits are divided among those members. Most cooperatives are organized to reduce costs, fulfill an unmet need, improve the quality of a product or service, or improve bargaining power.

What are some cooperative business examples?

There are many types of cooperative business organizations, including mutual insurance groups, credit unions, electrical power co-ops, housing co-ops, and retail co-ops, such as Ace Hardware or REI.

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

5202 W Douglas Corrigan Way Salt Lake City, UT 84116

Accounting & Payroll

Point of Sale

Payment Processing

Inventory Management

Human Resources

Other Services

Best Small Business Loans

Best Inventory Management Software

Best Small Business Accounting Software

Best Payroll Software

Best Mobile Credit Card Readers

Best POS Systems

Best Tax Software

Stay updated on the latest products and services anytime anywhere.

By signing up, you agree to our Terms of Use  and  Privacy Policy .

Disclaimer: The information featured in this article is based on our best estimates of pricing, package details, contract stipulations, and service available at the time of writing. All information is subject to change. Pricing will vary based on various factors, including, but not limited to, the customer’s location, package chosen, added features and equipment, the purchaser’s credit score, etc. For the most accurate information, please ask your customer service representative. Clarify all fees and contract details before signing a contract or finalizing your purchase.

Our mission is to help consumers make informed purchase decisions. While we strive to keep our reviews as unbiased as possible, we do receive affiliate compensation through some of our links. This can affect which services appear on our site and where we rank them. Our affiliate compensation allows us to maintain an ad-free website and provide a free service to our readers. For more information, please see our  Privacy Policy Page . |

© Business.org 2023 All Rights Reserved.

The co-operative model business plan

This appendix provides a model business plan outline. Make the plan your own. Your cooperative is unique in many ways so you don’t want the business plan to look just like everyone else’s; you want it to be an expression of your co-operative’s unique structure, products, plans, principles, values, environment and people.

The business plan itself does not need to have all the sections listed in the Table of Contents below, but you should put some effort into every section listed in it to have the co-operative well prepared before it is open for business.

Following the title page, the business plan should, at a minimum, have an executive summary, co-operative overview, market analysis, and plans for marketing, operations, production and finances.

Executive summary 

Write the executive summary after you have finished the rest of the business plan. It’s an overview of the business plan, highlighting the main points and putting them into context. Consider organising the executive summary in the same order as the business plan.

The executive summary is placed at the start of the business plan to entice the reader to read the entire business plan, making it one of the most important sections.

It is not new information; it is a summary of information which is discussed in more depth throughout the business plan.

The executive summary should be able to stand on its own, and succinctly explain in one or two pages the distinctive characteristics of the co-operative and its products and why it will be successful.

It may include:

• the reason(s) the business plan has been written
• an overview of the co-operative and its market opportunities
• a description of the products or services
• a summary of its expected financial performance.

Complete it with conclusions and recommendations and a summary of how you’ve arrived at your conclusions.

Another way of looking at what the executive summary says is: What is the problem? What is the solution? What will be the outcomes?

Introduction 

This section provides background information about the co-operative and could very briefly describe the co-operative type, when it was formed, who formed it and why, its location, mission, vision, values and principles, objectives and strategy to achieve them, industry, products and services, target market, development stage and achievements to date, summary of members and management, and capital raised to date.

The mission statement should say what you do, how you do it, and why you do it.

The vision statement should be somewhat loftier – describing what you want the co-operative to be in the long-term; it should be a “planned wish”.

The objectives state what the co-operative wants to achieve, usually within a certain timeframe, and are guided by the mission and vision. Objectives are business, social and financial objectives. They should be measurable, and there should be both short-term and long-term goals.

Values are statements about why the co-operative is in business, and who it serves. Values consider the social and environmental factors which the co-operative will be mindful of in achieving its objectives.

The introduction may also explain why the business plan is being written, and for whom. If it is written to support an application for finance include the name of the bank or other financier, the amount of funding sought, the term of the loan, the use of the loan, how it will be repaid, and the security the co-operative will provide.

Make it brief; one to two pages should do.

The co-operative 

Co-operative structure

Outline the co-operative’s structure. Remember that many people do not understand the democratic and social principles of co-operatives, so briefly explain how it works, its rules, and how it will support your business and social objectives.

Describe the location, size and capacity of premises and any warehouse facilities. If the premises are leased state the cost of rent and length of the lease; if they have been purchased, state the value of the property. Explain how long the co-operative has been at the premises, if there is a strategic advantage in its location and, if any renovations or extensions are required, what they will cost.

Registrations and licences

List the registrations and licences that the co-operative has. If others are needed, explain what they are and when they will obtained.

Describe the insurance that the co-operative has and will be getting. It could include cover for premises, contents, workers’ compensation, liability, professional indemnity, business interruption, and motor vehicles.

Plant and equipment

Itemise the plant and equipment that the co-operative has and needs. If the business plan supports an application for funds, explain the importance of acquiring the equipment and provide details of quotes for their supply and installation. Consider listing the equipment in two tables: the first table showing the equipment already acquired and its cost and written down value; the second table listing equipment to be acquired, its value and when it is planned to be purchased or leased.

Products and services

In simple terms, describe the features of the products and services the co-operative currently provides, and those to be developed in the future. You may like to include photographs. Explain how they are different to others available in the marketplace, and why customers will buy products or services from your co-operative instead of from a competitor.

Describe the key components or raw materials used in making products, where they come from, and whether there are any restrictions on supply or agreements with suppliers. If there are likely to be price fluctuations, you might explain how they will be dealt with. You may wish to explain if there is a backup supplier available.

If it’s a new product under development, explain the progress made in research, product design and development, what tests are required and have been done, and any regulations applicable or licences or approvals that are needed. List any intellectual property protection sought to avoid duplication by competitors. Provide a timetable.

If there has been product testing in the marketplace, explain the results. Describe plans to upgrade the product or service or increase the range on offer. Describe quality assurance controls to be instigated.

If the co-operative provides a service, explain what it is, why it is needed, and how it is or will be delivered, monitored and improved.

If you have a product inventory, list the items in a table, or include an inventory list in the appendices.

You may wish to include here how you are going to minimise shrinkage of inventory due to theft, damage, loss or accounting errors.

Current performance

If the co-operative has already been trading, include a short summary of the co-operative’s turnover, gross profit and net profit for the current year and last year. More detailed information will be put into the financial section of the business plan. If the co-operative hasn’t begun trading yet, use the projected financial figures.

Members and directors

If the business plan is being written to assist you to ask for finance, use this section to show that the people who own and run the co-operative are competent and qualified. Give an overview of the number of members, active membership provisions, who the directors are, and the offices they hold.

Include a summary of their skills, qualifications, experience and industry knowledge. Consider including résumés in the appendices.

Key personnel

If you plan to engage employees or already have staff, list the positions, names (if already employed) and skills of employees, and whether their employment is full-time, part-time or casual. Résumés for managerial positions could be included in the appendices. If your cooperative is fairly large, draw an organisational chart which shows who reports to whom, and the positions they hold, and include it in the appendices.

Co-operative advisors

Include the business names and addresses of professional advisers who have helped to establish and grow the co-operative. These might be bankers, solicitors, financial advisors or planners, insurance agents, accountants, chambers of commerce, another co-operative or a co-operative peak body. This section shows that your co-operative is supported by a professional  team.

Risk management

List the risks, in order of likelihood that they could occur, that the co-operative faces. State the impact the risk could have, how likely it is to occur, and what action you will take to prevent or minimise the risk to the co-operative. Key risks may include property damage, theft, electrical outages, pollution, legal liability, injury, loss of data, shifts in the economy, loss of customers, loss of suppliers, security, theft of copyright or inability to raise capital.

Operational plan

A new co-operative should explain how the co-operative will be run: the daily routines, people and functions that will make the co-operative run smoothly and successfully. Keep in mind the democratic nature of your co-operative and its social purpose; make it the focus of your actions. Directors and managers should use the operational plan to lead and inspire members and staff.

Break your operational plan down into actionable steps so it will easier to implement. Identify what each task is, who will do it, when it will be done by, and how you’ll know it has been done. Attention to detail will make the co-operative’s operations run more efficiently.

The operational plan might include ways in which you intend to devise and implement operating, accounting and management systems required for the first year of activities. Plan for staff selection and recruitment, duties and salary policies, performance monitoring, training, health and safety policies, technologies, record-keeping, banking, taxation, accounts payable and receivable, meeting legal obligations, finding suitable premises and office equipment, use of professionals, service to customers, orders and delivery management, promoting innovation, further research and development, meeting schedules, developing a co-operative culture, appropriate management style, working with members and directors, conflict resolution, compliance with regulations and inspections, and alliances with other co-operatives.

Existing co-operatives will need to consider many of the same issues, but have the advantage of having procedures already in place. They should develop an operational plan to improve the day-to-day operations of the co-operative, reduce overheads, plan for growth, alleviate risk and increase efficiency.

Production plan 

The production plan will describe how the co-operative will manufacture, procure products or provide services, and provide the final product or service to customers.

It will describe:

• the complexity of the manufacturing
• the equipment and tools required
• the cost of raw materials and labour per unit
• the cost to produce a product or deliver a service
• the number of hours of production daily or weekly
• the number of units to be produced or the number of services to be delivered
• average selling price
• managing inventory levels
• forecast number of days stock is to be held
• cost control
• manufacturing staff requirements
• source and delivery partners and contract terms
• the time taken to produce the required stock levels
• environmental plans
• disposal of waste.

Quality assurance is crucial, whether the co-operative is providing a product or service. The co-operative relies on the loyalty of members and/or customers for repeat orders, so it needs to provide value for money and consistently high quality products or services. A strong quality assurance system will consider employee motivation and skills, standards and testing, feedback from customers, and minimising waste and product returns.

The market 

This is an important section of the business plan, as it demonstrates that you have done your homework and it is likely that your product or service will be accepted by customers. There’s not much point in having a great product if you don’t have a market.

Much research is involved: you’ll need to understand who your customers will be, what will make them spend their money on your products or services, who your competitors are, what environmental factors could affect you, and how you are going to sell and promote your product or service. There are many places to go for information – try the Australian Bureau of Statistics, government departments, councils, Regional Development Australia, trade and professional associations, chambers of commerce and consumer organisations.

Find which ANZSIC code is used for your business. ANZSIC is used by the government to produce and analyse industry statistics. ANZSIC codes for all industries are found at www.abs.gov.au .

An industry sector contains a range of other businesses which supply similar services or products. Provide an overview of the industry sector the co-operative is in, such as the size, growth, key clients and markets, the largest providers, and demand and supply trends that affect the industry now, or may in the future. Describe any other relevant factors that drive the industry, such as innovation, regulations, seasons, financial and technical issues, distribution and supply and whether the industry is new or mature.

Provide a summary of where the co-operative is positioned within that industry, and its vulnerability to competition and trends.

The environment

Describe important trends and issues that could affect your co-operative’s operations and identify how you plan to deal with them.

Issues may include changes of government, international relations and trade, employment, environment and competition regulations, taxation legislation, new policies and laws, consumer protection, and industrial relations.

Issues may include interest rates, government spending, consumer confidence, unemployment, exchange rates, inflation, national and state economic growth, global economic outlook, materials availability, import substitution and skills shortages.

Issues may include demographics, education, standards of living, multiculturalism, housing availability, fashion, health awareness and income distribution.

Environmental

Issues may include environmental awareness, waste, pollution, energy, climate change and water.

Technological

Issues may include efficiencies, obsolescence, NBN, costs, savings, research, innovation and social networks.

Market research

It’s crucial to understand the marketplace and your customers, whether they are likely to buy the co-operative’s products or services, and possible ways to motivate them. There are two types of research you can do that will help with this: primary research, done by observing competitors, meeting with potential customers, or by survey; and secondary research, which is gathered from existing data.

What you will research will depend on what your products and services are, who your customers are, where your market is, and the level of competition in the marketplace.

Your market research might include:

• customer profiles and characteristics – age groups, gender, occupation, income, location, buying habits
• customer preferences, needs and expectations
• target markets
• the customer fit, and demand for products and services
• your fit, barriers to entry and influence on the market
• product specifications, acceptance and new opportunities
• product pricing and sales forecasts
• market size (units and value)
• market growth and trends
• market segmentation and definition
• competitor analysis
• advertising and promotional opportunities
• seasonal variations
• methods of distribution.

Describe the research you have done, and what it has revealed.

Competitors

Do not underestimate your competition. You need to understand and describe who your competitors are and the effects they will have on the co-operative’s business. Provide details of their market share, resources, products and target market, strategies, strengths and weaknesses.

Explain where the co-operative fits within the industry, what level of market share you expect, any barriers to entry and how you will address them.

Also describe how the competitors are likely to react at your co-operative’s entry into the market and the co-operative’s response strategy.

Competitive advantage

Describe what is different about your products or services compared to those of competitors. Explain why customers are likely to buy enough of your products or services to make the co-operative sustainable.

• Do you have a different target market?
• Is there an unmet need in the target market you can fulfil?
• Do you offer something different or new?
• Does your product or service have superior quality or features?
• Will the co-operative advantage work for you?
• If your product or service is unique, describe difficulties competitors will have in copying it, giving a lead time from product launch to when a competitor can duplicate your product.

List the co-operative’s internal strengths and weaknesses.

Then list the external factors that could affect the co-operative’s activities – the opportunities (e.g. market trends) and threats (e.g. competitors, economic uncertainty).

Describe how you can capitalise on the strengths and opportunities, and reduce the effect of weaknesses and threats.

Target markets

Describe the target markets for your product or service. Who are your customers? If you already know who they are, list the major clients if they agree to this information being made available to external parties. If you don’t have major clients, or there are potentially many of them, you should define the markets you will be selling to.

How have you identified your target markets? What are the characteristics of the target markets? Are your customers a certain age or gender, do they live in a particular location, have a certain type of job, ethnicity or income level? Are they members of the co-operative? What are their needs and preferences? How big is your target market? How often will they buy from you? Why and how will they buy your product or service? Are they end-users?

Consider if there are different segments to your target market. For example, would both students and professionals buy your products? Each segment may have different needs, and may be willing to pay different prices. If you understand the needs of each segment, you can adapt your marketing mix to provide what each segment wants.

Product pricing and terms

In determining the prices of your products or services, consider the costs to produce, or to deliver services, your customers’ sensitivity to the price and to price changes, and what the price reveals about the product’s value or quality. Will you offer quantity discounts, or discounts for repeat sales? Will co-operative members receive a discount or rebate?

Describe the expected payment terms for customers, e.g. direct customers pay cash while distributors and members pay within 30 days from invoice date.

Product sales, margins and distribution

If your co-operative is new, estimate the number of products or services to be sold in the first year, and consider using a table to show your estimates. If the co-operative is already established, use both past and projected performance levels. You may wish to break the table down into weeks or months. The table can form the basis of sales volume records and pricing over time, and identify changes to help you to plan future sales targets and purchases of raw materials.

Describe how your products will be distributed – whether through direct sales, online marketing, direct mail, agents, wholesalers, representatives, retailers or consignments. Describe commissions or other fees involved.

Estimate the cost of other expenses such as shipping, warranties, contracts and liabilities.

Strategic alliances

List strategic partnerships the co-operative has, or plans to form, with other co-operatives or businesses.

These may be to work together in major ventures, or on market access, supplies or other resources. Provide information about the arrangements.

List key suppliers, and describe their history and reliability, location, what and how much they can supply, credit policy and delivery details, and the cost and availability of materials.

Marketing plan 

Explain your marketing objectives – what you aim to achieve and what you will do to achieve them. Ensure they can be measured and evaluated. An example might be “to obtain 20% of market share by the end of the first year”, or “to ensure 50% of our target market recognise our brand, and 10% buy our products”. Then determine what marketing activities will help you achieve your aim.

Determine your marketing strategies and activities for each month of the first year to create awareness and sales. This is your marketing mix, and relates to product, place, price, promotion, people and process.

Product strategy : consider the products’ qualities, consistency, features, adaptability, packaging and design, how the customers will perceive the products’ features, and how you will market them.

Place strategy : consider distribution channels, location of retail outlets, the geographic area your products will be available in.

Price strategy : consider the selling price to various customers and markets, including discounts for quantity and early payment.

Promotion strategy : consider what advertising, selling, sales promotion, trade shows, website, media and public relations activities you will undertake to differentiate your product and make consumers aware of your product or service.

People strategy : consider who will sell the product and delivery it. People may include staff, strategic partners and agents.

Process strategy : this is the strategy where you plan, target, cost, develop, implement, document and review the systems to attain the other aspects of the marketing plan. You’ll plan to have the right product, in the right place, at the right price, in the right quantity, at the right time for the right customers.

The finances 

Often the last part in the business plan, the finance section is important as it demonstrates the likely financial viability of the co-operative, and is vital information for anyone considering investing in the co-operative.

It shows what financial resources are needed to set up and operate the co-operative, forecasts of the co-operative’s performance based on expected sales levels, and it details the timing and the amount of investment needed from external sources.

Commencement capital – new co-operatives

List the amount of capital that has been raised and will be raised from members, and funding confirmed from other sources.

List the costs to start the co-operative (below) in a table, and show the month when the costs are expected to be paid.

• Set up the co-operative: these costs might include accounting and legal fees, registration of the co-operative and domain name, website, insurances and licences.
• Set up the premises: these costs might include a bond and advance rent, fit-out, electricity connection, telecommunications connections and stationery.
• Purchase plant and equipment: these costs might include machinery, tools, office furniture, vehicles, telecommunications, computers and software.
• Start of operations: these costs might include advertising, raw materials and supplies, wages, interest – and working capital to tide the co-operative over until it trades sustainably.

Subtract the set-up costs from the confirmed capital raised; the balance is the amount of borrowings you will require.

Financial objectives

List the co-operative’s financial objectives and how long you expect to take to achieve them. These may be profit targets, investment levels, returns to members and debt repayment.

Assumptions

Explain the key assumptions made in developing your financial forecasts:

• sales and purchases forecasts
• the time it will take to collect from debtors
• the time it will take to pay creditors
• interest rates
• time between manufacture and sale
• timing of member contributions
• timing of external capital injections
• increasing membership.

If the co-operative has already been trading, describe its financial history, including equity, debt and profit levels.

Include at least four key financial ratios:

• Debt equity ratio = total liabilities/members’ equity
• Return on investment = % of interest over total loans received, and % dividend over members’ capital injected
• Break-even point = the sales volume level where revenues and expenses are equal and provide no profit or loss. This will change each year with changes in costs, income, and interest levels.
• Working capital = current assets – current liabilities

Monthly cash flow forecasts

The cash flow forecast demonstrates how and when cash comes into and goes out of the co-operative. Hopefully it also shows that income from sales will pay for bank loan repayments and other expenses. It will show you when you need an injection of cash to cover monthly bills, and when you need to conserve cash to pay for upcoming bills.

For the first year of trading, present monthly cash flow forecasts. After the first year, show yearly forecasts for at least two years.

Monthly income and expenditure forecasts

Also called profit and loss forecasts, and forecasts of financial performance, income and expenditure forecasts show the co-operative’s projected income less expenditure, resulting in a profit (or loss) over a specific period of time. For the first year of trading, provide monthly or quarterly forecasts, and annually for the following two years.

Just a few quick tips for the financially challenged – income is usually from sales, and expenditure is usually the costs to run the co-operative and interest payments. Loans (liabilities), purchased equipment and inventory (assets), capital injections from members (equity) are all items for the balance sheet.

When you receive an invoice it is an expense, even if you haven’t paid it yet; so it is shown in the month the expense was incurred. Show all items as GST exclusive (i.e. without GST).

Balance sheet forecasts

The balance sheet, also known as the statement of financial position, shows the co-operative’s net worth at a particular point in time – usually the last day of the financial year. Assets are usually objects and cash the business owns, liabilities are usually debts owed, and equity is the capital contribution and accrued profits. Assets minus liabilities equals equity.

Provide balance sheet forecasts for three years.

Financial plan

Describe your plans for the co-operative’s financial viability. What is the total investment required for start-up? What are your short and medium-term investment plans? Where will funds come from? Have they been confirmed? How much comes from each source, and what conditions do funds come under (e.g. interest rates, repayment terms)? What security is offered?

When is the co-operative expected to make a profit? What level of sales is required to make a profit? When will members see a return? How much are profits expected to grow each year? How will costs be kept down? If non-distributing, will you retain surpluses, and where do you plan to donate excess surpluses?

Do you have an exit strategy?

A note on financial management

This note on financial management is not meant for inclusion in the business plan, but nevertheless is very important. (A summary of the financial management systems used could be included in the financial plan.)

Members (and investors) need to know how the co-operative is performing and need to receive regular accurate reports. Systems must correctly identify, measure and communicate financial information.

You need to understand and abide by accounting principles.

Complete, accurate, and up-to-date financial records must be kept. These may be handwritten, or on computer spreadsheets, but we recommend that unless the co-operative is very small, you should use financial software. Such software doesn’t replace an accountant, but usually knows what to debit and credit, and has a useful help function.

Develop strong systems for handling cash. Provide numbered and dated receipts for money received. Provide numbered and dated invoices (tax invoices if the co-operative is GST registered) for purchases and to others who owe you money.

Every month, reconcile your expenses paid and income received with the bank statement. Produce a balance sheet and profit and loss statement to help you keep an eye on finances and to allow you to plan and control the co-operative. Watch your creditor and debtor levels; ensure you collect money owing and pay expenses when due.

The strategic plan

A strategic plan is usually a long-term plan for the next three to five years. It explains the goals and objectives to be reached, and the path to achieve them. It’s a bit like a GPS for a very long journey, if you zoom out and ignore the minor roads.

Focus on a small number of key priorities. Too many priorities will mean you lose focus on the major objectives.

Make the priorities easy to translate into action plans, and have clear timelines to achieve outcomes.

Information that might distract from the business plan’s flow should be included as appendices. Provide a summary of the information within the business plan, and more detail in the appendices. It’s also a good place to include information that is not part of the business plan. Start a new page for each appendix.

Appendices might include the following:

• Disclosure statement.
• Co-operative rules.
• Past three years’ financial statements.
• Directors’ and key staff members’ résumés.
• Pictures of products, premises or location.
• Forecasts of purchases and payments to creditors.
• Forecasts of sales and debtor collections.
• Letters of support.
• Promotional materials.

STAY IN TOUCH

Subscribe to our email newsletter

SEARCH OUR SITE

You are using an outdated browser. Please upgrade your browser or activate Google Chrome Frame to improve your experience.

Subscribe Now!

Co-op 101: how to start a co-op.

Share this content with your representative

Are you wondering how to start a cooperative or if a co-op is right for your business? There are a lot of steps to starting a cooperative and factors to consider throughout the process. We’re here to help you get started. In this guide to starting a cooperative, we’ll provide an overview of how to organize a co-op and what you can expect. If you determine the co-op model is the right fit, you’ll be ready to commit to a rewarding and empowering business venture.

What Is a Cooperative?

A co-op, or cooperative , is a user-controlled, user-owned enterprise. It is a type of corporation . People voluntarily form a cooperative together to meet common needs and benefit from the products or services of the cooperative they create. For example, a grocery co-op is owned by the people who shop there.

Cooperatives are open to anyone who is willing to accept the terms of membership. They are fully controlled by their members, and members equally contribute to the capital. The profits of the co-op are distributed among the members or re-invested in the company.

Members have an equal say in the business of the cooperative. Unlike other types of corporations, where shareholders have more say if they own a higher percentage of the company, all co-op members follow the principle of “one member, one vote” which carries equal weight. Equality is one of the core values and founding principles of a co-op. A co-op will usually have a board of directors to run the co-op, set up policies and make sure the co-op stays on track. The members of the board are members of the cooperative and are usually elected by vote. The board of directors makes decisions based on the votes of regular members.

A cooperative can be created in any industry and can be any size. Cooperatives are commonly found in agriculture, grocery, healthcare, housing, financial services and utilities. One in three Americans is a member of a cooperative.

Should Your Business Be a Co-Op?

If you’re interested in starting a new business or changing the structure of your current business, there’s a lot to consider if you’re thinking about setting up a co-op. As with any business, you want to make sure the cooperative model suits your vision best before investing your time and money. Here are some reasons a cooperative might be right for you:

• Stability: According to the W.E. Upjohn Institute for Employment Research, employee-owned businesses are less likely to reduce employment during a recession . This helps companies like cooperatives make it through economic challenges. Employee-owners help increase profits as well. A Rutgers University study found that businesses that switch to employee ownership see profits increase as much as 14 percent .
• Democratic control: If you want your business to be run by its members rather than controlled by investors, a co-op might be right for you. With a co-op, no one has a greater say than the other person.
• Lower startup costs: A cooperative may be an appealing option for those who require lower startup costs. With a cooperative business, every member contributes to the capital and provides support.
• Benefits to the community: Co-ops are an excellent option for businesses that want to serve their community. For example, co-ops may obtain products or services that would usually be unavailable in the community or would otherwise be unaffordable. Co-ops also contribute to the economy of the local community. Overall, the focus of a cooperative is to benefit its members, instead of delivering profit to investors.
• Worker engagement: Employees are more likely to be engaged with a company they own and benefit from. They are also more likely to be committed to the quality of service and products they provide because they will want to see their company succeed.
• Tax advantages: Like other businesses, cooperatives face tax rules, but they can also reduce their tax burden in ways other corporations can’t. For example, a co-op can issue patronage dividends which can be deducted from the cooperative’s taxable income.

Despite the advantages, the cooperative model may not be the right fit for all businesses. Here are reasons why you may wish to reconsider starting a cooperative:

• Financing: Generally, cooperatives don’t attract large investors who want greater control of the company with more shares. It can also be tough for cooperatives to get loans from banks. However, that doesn’t mean financial assistance is unavailable for cooperatives. There are various funding opportunities to help co-ops get started, such as the Rural Cooperative Development Grant (RCDG) program  which supplies funding for development through cooperative development organizations around the country. A cooperative may also attract funding if a funder wants to promote the development of the community.
• Longer decision-making process: Cooperatives require time to make decisions because all members are part of the decision-making process. If you anticipate the need to make decisions fast, a cooperative may not be the best option for your business.
• Reliance on members’ involvement: Co-ops depend on their members’ interest levels and involvement. If members lose interest in the co-op and stop investing energy in the business, it can be hard to continue to provide benefits for members.
• Profits are disbursed among members: A cooperative spreads its wealth among its members. Therefore, the founding members of a cooperative business do not benefit more than others only because they started the cooperative. This may make a co-op an unattractive option for some business owners.

Steps to Forming a Cooperative

Like any business, starting a cooperative requires dedication and business know-how. If you are new to the business world, there are professionals out there to assist you throughout the process. Also, a cooperative is about its members, so you won’t be alone if you find people who want to join your mission and be part of your success.

Follow this step-by-step co-op startup guide to get an idea of what it takes to organize a co-op, and where to start.

1. Develop the Idea

A cooperative is a business that needs to make a profit to continue operating. You first need to know what you are going to sell or what services you plan to provide. Consider who will buy your product and if they will be willing to purchase your product or services at the prices you offer.

One way to develop a co-op idea is to identify something your community needs and how your business can fill that need. Are there certain products or services unavailable? Are some products of poor quality or overpriced? Research your community to determine if your idea will work. Plan to spend 3 to 6 months exploring your business idea.

2. Gather Members

You need to gather individuals who are genuinely interested in your business idea and who may want to become members of your cooperative. Hold a meeting with potential members and develop your mission and core values. Clearly define your business idea and describe how it’ll benefit the lives of the co-op members. Also during the meeting, choose the name of the co-op and its head office location.

3. Conduct a Feasibility Study

A feasibility study will help you determine if your idea is doable and will work well in your community. After you consider the results of the study, you can decide whether or not to continue with your co-op idea. If you decide to move forward, you can use the information from the study as the basis of your business plan. Here are components to include in your feasibility study:

• Preliminary analysis: First, consider if your product will serve the needs of your community. Also, ask if you can successfully compete with other businesses offering the same products or services. Lastly, identify any obstacles that may stand in your way of success. For example, can you acquire the capital needed for your business, or is it unaffordable? The preliminary analysis will illuminate the potential of your idea.
• Market survey: Conduct a market survey or hire an outside company to conduct the survey. Conducting a market survey is a crucial part of your feasibility study. You’ll review factors such as demographics and purchasing power in your community, and you’ll use the information to analyze competitors and potential customers.

You and other members might consider hiring a consultant to assist you with the feasibility analysis. It may be well worth the money to ensure you complete a thorough and accurate study because it can save you a lot of money and effort in the long run.

4. Incorporate and Create Bylaws

If you conclude that your idea is financially feasible, you can take the next steps with confidence. You’ll next want to elect a board of directors, incorporate your business and adopt bylaws.

You must incorporate your business if you want to be recognized as a corporation legally. A cooperative is a type of corporation. A corporation is simply the term used to describe a legal entity owned by a group of shareholders . There are many advantages to incorporating, such as:

• Protecting your assets against liabilities
• Allowing you to transfer ownership easily
• Receiving tax advantages

Not all cooperatives are incorporated. However, if you decide to incorporate, you’ll need to take the following steps:

• File articles of incorporation with your state: Articles of incorporation are documents your file with your state to legally record the formation of your cooperative. Articles of incorporation include information such as your co-op’s name and address, as well as the names and addresses of the board of directors. The exact document requirements vary by state.
• Write bylaws: Bylaws are the rules of your co-op. The board of directors establishes bylaws during the process of setting up a new company. Creating bylaws will be the step you take after your co-op is legally formed. You do not generally need to file bylaws with your state unless you are applying for non-profit status. Your bylaws should include information such as the name and address of the business, board member duties, and meeting and record-keeping procedures. Be sure to consult your state’s statutes to help you create bylaws. You might ask a lawyer to ensure your bylaws comply with the laws in your state.

5. Create a Business Plan

After you incorporate and create bylaws, it’s time to develop a detailed business plan. You can think of your business plan as a map that will show members and the board of directors which direction to take to reach common goals. Use the information you gathered from your feasibility study to help you write your business plan.

Overall, your business plan should include everything you and members need to know to run and grow the co-op. There is no right or wrong way to create a business plan as long as it meets your needs. Traditional business plans include the following:

• An executive summary which includes your mission statement and basic company information
• A description of the problems your co-op solves and the people it serves
• A market analysis describing trends in your industry, the outlook, what competitors are doing and how you’ll do it better
• Information about organization and management, such as who runs the co-op and how it’s structured
• A description of the products you sell or services you provide and how it benefits members
• How much funding you need and what you will use it for

6. Obtain Capital

The board of directors will be responsible for acquiring the capital needed to launch the co-op. You might raise money from members, local residents and lenders. You may also be eligible for government startup grants. Make sure you include how much financing you need and how you plan to obtain it in your business plan.

Once you have an adequate amount of capital, you’ll be ready to launch. Hire staff and teach them their duties and responsibilities as cooperative members. Open business doors and provide products and services to meet the needs of your members, and don’t forget to market your co-op. Lastly, remember to celebrate your journey and accomplishments.

Keys to Successful Cooperative Development

Various key elements will determine the success of your cooperative and its development. According to a cooperative development guide put together by the Cooperative Development Institute , the following elements are signs your co-op is off to a good start:

• Founding members are committed and motivated: Your co-op’s members will determine the success of the business. Without your members, the co-op can’t exist. The development of your co-op is more likely to be successful if the members are committed, motivated by your vision, involved in the process from the beginning and will benefit the most from the co-op.
• The project has strong leaders: Every project needs strong leadership to guide members and keep motivation high. If your project has leaders who are strongly interested in the success of the cooperative and are willing to contribute their skills, vision, and experience, you’ll be heading in the right direction.
• The vision is clear: You have to have a clear vision, so members know what’s expected of them, how to resolve issues, and most importantly, how to achieve goals.
• The business is well-planned: Planning is essential to the success of any business. Make sure you properly planned all the details of your cooperative and how it will operate. This should include market research.
• It’s financially feasible: You will need adequate capital to succeed. Founding members should be financially committed to the co-op. If you have the financial resources you need from the start, you’ll be able to grow.

Other tips for co-op success include:

• Stay focused
• Keep members up to date and involved
• Set realistic goals
• Use market research, rather than opinions, to guide decisions
• Identify and reduce risks
• Maintain open communication
• Invest in staff training and education
• Raise adequate funding

Join NCBA CLUSA Today

We hope we helped you learn the basics of starting a co-op. Starting any business is a complicated process that demands careful planning and consideration. It also requires the help of other individuals who are as dedicated to your mission as you are. At NCBA CLUSA, we are passionate about promoting the cooperative business model and Building an Inclusive Economy.

If you have more questions, we’re here to help. Browse our site to learn more about cooperatives and how we advocate for co-ops around the world or reach out to us so we can assist you. If you’re ready to join our mission to advance, promote and defend cooperative businesses, become a member today .

The Role of Energy Cooperatives in Advancing Clean Energy

Advantages of the Cooperative Business Model

Share this post.

We hope you enjoyed this article. If you did, we would love it if you would share it to your social networks!

Related Posts

Business Cooperatives

A business cooperative, also known as a "co-op," is an organization owned and operated by a group of individuals who come together to achieve common economic goals.  

These goals may include purchasing supplies or services, marketing their products, or providing employment opportunities. Here is a breakdown of co-ops to decide if this is a good option for you and your business. 

Benefits of Starting a Co-op 

• Shared Ownership and Decision-Making: Co-ops are owned and governed by their members, which means that each member has an equal say in the decision-making process. This democratic structure ensures that all members have a voice in shaping the direction and policies of the co-op. 
• Economic Benefits: Co-ops aim to provide economic benefits to their members, such as lower costs for inputs or access to markets that might be difficult to reach individually. By pooling resources and leveraging collective bargaining power, co-op members can often achieve economies of scale and negotiate better deals. 
• Risk Sharing: In a co-op, the risks and rewards are shared among the members. This can help reduce individual financial risk and create a supportive network where members help each other overcome challenges. 
• Long-Term Sustainability: Co-ops tend to have a long-term focus, prioritizing the needs and goals of the members and the community over short-term profits. This can lead to more sustainable business practices and a greater sense of social responsibility. 

Steps to Start a Co-op 

• Identify the Need: Determine if there is a demand for a co-op in your industry or community. Research and gather a group of interested individuals who share the same goals. 
• Feasibility Study: Conduct a feasibility study to assess the viability of the co-op. This study should analyze the market, financial projections, legal requirements, and potential challenges. 
• Develop a Business Plan: Create a detailed business plan outlining the co-op's goals, structure, operations, marketing strategies, and financial projections. This plan will serve as a roadmap for the co-op's development. 
• Legal Structure: Choose a legal structure that suits your needs, such as a cooperative corporation, a limited liability company (LLC), or a cooperative association. Consult with an attorney specializing in cooperative law to ensure compliance with local regulations. 
• Membership and Governance: Determine the membership criteria and admission process for the co-op. Establish governance procedures, including how decisions will be made, voting rights, and board member elections. 
• Draft Cooperative Documents: Prepare the necessary legal documents, such as articles of incorporation, bylaws, membership agreements, and operating agreements. These documents outline the rights, responsibilities, and obligations of the co-op and its members. 
• Funding and Financing: Identify potential financing sources for your co-op. This could include member investments, loans from financial institutions, grants, or crowdfunding. Prepare a financial plan that outlines the capital requirements and how the co-op intends to secure funding. 
• Register and Comply with Regulations: Register your co-op with the appropriate government agencies and comply with legal and regulatory requirements. This may involve obtaining business licenses, tax identification numbers, and adhering to labor laws. 
• Operationalize the Co-op: Once all legal and administrative requirements are fulfilled, begin operating the co-op according to the business plan and cooperative documents. Develop marketing strategies, recruit members, and start providing products or services. 

Fiscal Responsibilities 

Co-op members typically contribute financially through initial investments, purchasing shares, or paying membership fees. Members may also be required to contribute capital based on their usage or patronage of the co-op's services. Additionally, members may share in any profits or surpluses generated by the co-op, which can be allocated based on the cooperative's bylaws or predetermined formula. 

Financing Sources for Co-ops

• Member Investments: Co-op members can provide initial capital through equity investments or by purchasing shares in the cooperative. 
• Loans and Credit: Co-ops can obtain financing from traditional lenders, such as banks or credit unions, by presenting a solid business plan and demonstrating their creditworthiness. 
• Grants and Funding Programs: Explore grants, subsidies, or funding programs specifically designed for co-ops. These may be available through government agencies, foundations, or other organizations supporting cooperative development. 
• Crowdfunding: Raise capital through crowdfunding platforms that allow individuals to contribute money in exchange for rewards or equity in the co-op. 

It's important to note that the specific steps, documents, and requirements may vary depending on your state and the type of co-op you intend to start. Consulting with legal, financial, and cooperative development professionals is highly recommended to ensure compliance with local laws and best practices for a co-op to be successful. 

The information provided on  www.onepercentforamerica.org  is intended for general informational purposes only. It should not be considered as professional advice or a substitute for seeking professional guidance.

Apply for 1% Loan — Learn More

Checklist for Starting a Business

Types of Business Structures in the U.S.

Workers' Rights in the U.S. 

Invest in all of us.

Your financial support will help make citizenship more affordable for millions of future Americans.

Invest Today

Steps to Startup

Starting a cooperative presents a unique opportunity for a group of people to meet a shared economic or social need. As democratically governed businesses, cooperatives can be a great way to structure a business that is guided by member values.

As with any new venture, starting a cooperative requires good ideas, expertise, time, energy, and money. It can take six months to two years, sometimes longer, for a new cooperative to go from an initial concept to launch.

The following are basic guidelines for getting started, but each new cooperative is unique. The manner in which the momentum, people, and money come together will vary. However, each of the steps described below is a logical point at which organizers can evaluate a cooperative’s progress and decide whether or not the effort should move forward.

Here are a few questions to ask yourself before getting started.

• What is the need that is not being met? What problem are you solving?
• Who are the members? What would motivate people to join the cooperative?
• Who are the competitors? Who else is already doing this?
• Who are your first customers?
• Who are strategic partners you can align yourselves with?

Made it through the basics? Good for you! Now it’s time to figure out if a new cooperative business is the right choice for you. You’ll find more details on how to get started in the steps below.

For even more info, please visit our Startup Resources Page .

Stage 1: Explore

This is an accordion element with a series of buttons that open and close related content panels.

Identify the problem and gauge interest

A core group of individuals explores an opportunity or common need for a particular product or service. They identify the benefits that a cooperative approach might offer and reach out to a broader group or community to gauge interest in the idea. This group organizes informational meetings for potential members to further define a common need. It also recruits others who have the skills and expertise required to lead the cooperative development process.

Form a steering committee

If there is enough initial interest in the cooperative idea, it is time to establish a steering committee. The steering committee should be made up of trustworthy individuals who have good business sense, will champion the project, and are capable of putting the interests of the group before their own. Many potential cooperative members will base their support of the cooperative on the credibility of the steering committee members. The steering committee:

• Gathers more information on the cooperative option and potential member support;
• Refines the business idea and its initial mission, purpose, and goals;
• Manages financial matters in a responsible and trustworthy manner;
• Leads decision-making during the cooperative development process.

Stage 2: Assess

Conduct a feasibility study.

The steering committee coordinates a feasibility study to assess the viability of the proposed cooperative venture. This study examines whether there is a market for the new cooperative’s products or services, and whether the co-op can generate enough revenue to cover the risks and costs of operating the business. It should be completed by someone who is knowledgeable about the particular business sector and does not have a vested interest in the study’s outcome. This study is a key step in the development of the cooperative. The group may need to pay for the study by conducting the first phase of a membership drive, or by applying for funding from federal, state, or non-profit agencies.

A feasibility study includes:

• Market analysis;
• Management, equipment, and facility needs;
• Revenue projections;
• Sources of financing;
• Potential membership.

Cooperative Development Grant . Wisconsin Economic Development Corp.

Cooperative Feasibility Study Guide . USDA Service Report 58, 2016.

Feasibility Study Outline . Iowa State University Extension, 2010.

Evaluate feasibility study results

The results of the feasibility study help the steering committee decide whether to continue the cooperative development process. This is a critical decision point during the development process.

Stage 3: Incorporate

File articles and adopt bylaws.

If the feasibility study indicates the concept is viable and the steering committee decides to move forward, the group may decide to legally incorporate as a cooperative. In Wisconsin, the group can choose to incorporate under Chapter 185 or Chapter 193 of the state statutes by filing Articles of Incorporation with the Wisconsin Department of Financial Institutions. The Articles provide the basic organizational information required by state statutes.

The steering committee often acts as the interim board of directors. It may draft the Articles and the initial set of bylaws, which describe how the cooperative is governed. Articles and bylaws should be reviewed by a lawyer familiar with cooperatives. Bylaws must be adopted or amended by the cooperative’s members at the first membership meeting.

Sample Articles of Incorporation . USDA Cooperative Information Report 7, How to Start a Cooperative, 2015.

Guidelines for Cooperative Bylaws.  University of Wisconsin Center for Cooperatives, 2019.

For more, see our Legal & Taxation Resources page.

Open a bank account

Once the cooperative is established, the interim board of directors should open a bank account for cooperative financial transactions. In many cases, a group will incorporate earlier in the process so that the cooperative can receive funds and pay initial expenses.

Stage 4: Plan

Prepare a business plan.

A business plan is an in-depth analysis of and plan for the cooperative business. It is also an important communication tool for answering questions that potential members will have about the proposed cooperative. Banks and other funding sources will want to assess the business plan as part of their financing decisions. The business plan includes:

• Description of the goods or services offered; • Market analysis; • Marketing plan; • Operational plan; • Description of the management and ownership structures; • Sources and uses of start-up funds; • Projected financial data for the first five years of operations.

Elect a board of directors

A membership meeting is held within six months of incorporation to elect the first board of directors and to present and approve the bylaws. The board of directors begins coordinating the business plan implementation and works to secure start-up capital.

The Circle of Responsibilities for Co-op Boards . USDA Cooperative Information Report 61, 2014.

Benefiting from the Board: A Case Study . UW Center for Cooperatives, 2008.

For more resources see our Governance Resources page.

Stage 5: Capitalize

Begin membership drive.

The membership drive will indicate whether there is sufficient member support for the new cooperative. Materials for prospective members should clearly explain the cooperative’s mission, the financial requirements for membership, and the risks and benefits of membership. Some groups launch the membership drive earlier in the development process.

Cooperative Equity and Ownership: An Introduction . UW Center for Cooperatives, 2013.

Secure start-up capital

A cooperative may use both debt and equity to meet its initial capital needs. Cooperatives may also use member loans or preferred stock to raise start-up capital. Lending institutions will evaluate the risks associated with making a loan to the start-up cooperative business by analyzing the financial projections in the business plan and ensuring the co-op has capable staff lined up. Lenders will also look at the amount of member equity invested in the cooperative, since this indicates the level of risk and commitment that members are willing to assume. Members will typically be expected to supply 30-50% of the start-up equity capital. The cooperative will need to borrow the balance from a financial institution. Banks, credit unions, and loan funds that are specifically oriented to cooperatives and understand their unique structure can be important resources.

Stage 6: Launch

The board hires a general manager, who plays a key role in securing the operations site, developing vendor networks, and hiring additional staff. Some groups hire staff earlier to assist with the development process.

Address licensing, regulatory, and insurance requirements

There are often specific licensing or regulatory requirements that must be met before the business can begin operations. Legal, insurance, and risk management issues must also be addressed before launching.

Commit to ongoing training and education

Ongoing member education and board training are vital to establishing a sustainable foundation for successful cooperative operations. Education topics might include the cooperative model, cooperative finance and governance, industry trends, and working together effectively.

Other Startup Resources

You don’t have to do it alone! There are lots of great resources available, as well as co-op development centers all over the country that can help you get started.

Steps for Starting a Cooperative . USDA Powerpoint, 2016.

Cooperative Development Centers by State

How to Form a Farmer's Cooperative Business Plan

• Small Business
• Business Planning & Strategy
• Business Plans
• ')" data-event="social share" data-info="Pinterest" aria-label="Share on Pinterest">
• ')" data-event="social share" data-info="Reddit" aria-label="Share on Reddit">
• ')" data-event="social share" data-info="Flipboard" aria-label="Share on Flipboard">

How to Set up a Co-op Store

How to write a farm business plan, how to become a cigar distributor.

• The Structure of a Cooperative Organization
• Grants for Beginning Female Farmers

Increased bargaining power and the opportunity to reach more markets makes a cooperative a lucrative idea for small farms. When it comes to preparing the business plan, co-op plans differ from those of other organizations in that the focus is about providing for the needs of the members rather than making a profit as a whole. The plan should include several key components that show your group has studied the market and is in agreement on the types of services the cooperative will provide.

Executive Summary

The executive summary appears at the beginning of your plan where it briefly explains the background and experience of each farmer involved in the co-op. Describe the legal nature of your cooperative and explain how decisions are made, such as requiring a vote by all of the members for major decisions. List the goals of the group in forming the organization, including reaching out to retail markets or accessing corporations that buy large quantities of farm goods.

Explain the services your cooperative plans to offer, such as providing training to help farmers better understand potential markets. Some co-ops provide immediate payment for delivery of products so the members can put the money right back into their farms. Or you may provide transportation to get products to market or high-quality storage spaces that members would not have access to otherwise. Since your co-op likely consists of farms that grow or raise similar types of products, explain how you need the selling power of the group as a whole to find better-paying markets that want larger quantities than individual farmers could produce.

Describe the branding your cooperative plans to use to develop a name and reputation in the marketplace. Explain the types of companies you plan to approach. For instance, a co-op made up of hay farmers may want to approach overseas markets that need large volumes of hay for their livestock. Explain how the co-op plans to differ from individual farms, such as by accessing wholesalers and restaurants that would be difficult to reach by single farmers. Provide details on the marketing, promotions and advertising activities needed to make your buyers aware of the products you provide as a cooperative.

Typically, the founding members lead a cooperative with legal, technical and financial consultants brought in when necessary. Explain who will monitor the business and marketing plan the cooperative creates to make sure all of the farmers are on target and participating in the manner originally planned.

The financial section explains how much cash each member will contribute to fund the cooperative. Outline the types of stock or certificates to be given to each farmer who becomes a member. Explain how the money invested will pay for facilities and marketing efforts as part of the co-op’s mission to provide services to the members that help them increase their profits.

• Oregon State University Small Farms: Siskiyou Sustainable Cooperative, A Model for Cooperative Farming and Marketing
• University of Kentucky: Grower Cooperatives

Nancy Wagner is a marketing strategist and speaker who started writing in 1998. She writes business plans for startups and established companies and teaches marketing and promotional tactics at local workshops. Wagner's business and marketing articles have appeared in "Home Business Journal," "Nation’s Business," "Emerging Business" and "The Mortgage Press," among others. She holds a B.S. from Eastern Illinois University.

Related Articles

Organizational structure of a co-op, wine marketing research grants, how to write a business plan for an animal shelter, grants for women-run businesses in agriculture, how to sell your product to concessions in arenas, cattle farm start-up grants, what is the difference between articles of organization & articles of association, how to obtain grant money to start a farm, what is the difference between wholesale & distribution, most popular.

• 1 Organizational Structure of a Co-Op
• 2 Wine Marketing Research Grants
• 3 How to Write a Business Plan for an Animal Shelter
• 4 Grants for Women-Run Businesses in Agriculture

Already know what you’re looking for?

How to start a co-operative: a step-by-step guide.

Starting a co-op? This article provides a step by step guide on how to start a co-operative. There’s a lot to do, and a lot to learn — but we have tons of supports, resources, and tools are available. This article provides a map to many of them.

A short note before we get started

Starting a business is exciting and rewarding, but it can also be frustrating.

At Co-operatives First, our job is to de-mystify the process of starting a co-operative business . That’s why we built this site. The Co-op Creator provides a variety of guides, tips, templates, and links. We’ve also developed an online course full of helpful videos to help you learn about this process — you can take that for free here . 

For the DIYers out there, this is ideal. But sometimes folks need more hands-on support. If that’s you, our knowledgeable staff is a phone call or email away .

Okay, let’s get started.

Step 1: Decide if a co-op is the right choice for your business

What do you want to do.

Agree on the purpose of the business. Maybe your community doesn’t have enough daycare options. Maybe you’re a professional with your own firm who wants to share the cost of office space and administration. Perhaps you’re a producer who needs help packaging, marketing, and distributing your vegetables. Whatever the case, everyone needs to agree to and buy into the purpose of the co-op. A good place to start is by asking the question: what problem are you trying to solve and how does working as a group help solve that problem? This resource can help you focus ideas and engage potential members and markets in the process .

Who will do it?

A co-op is a business run by a group of people who share its benefits. You might already have a group that wants to work together. That’s great! You might also have an idea and need to get more people on board. To get the word out, you could organize a meeting to discuss how a co-op could work and see who wants to get involved. 

Is a co-op the best fit?

If you’re thinking about starting a co-op, consider these two questions: What is the purpose of the business and who should benefit from it? If the answer is ‘provide a service for those who benefit from it,’ then a co-op is probably a good choice. The model works best when member interests are aligned and working as a group brings value beyond what can be achieved alone.

To learn more, here’s how co-ops compare to other business models . Or try our questionnaire .

Step 2: Get organized

Decided a co-op is the way to go? Time to organize your co-op’s structure, plan of action, and finances. 

Create a steering committee

Co-ops need people to start and support them. So, if you haven’t already, find like-minded people to join you. But make sure these people have a personal interest in starting the co-op.

Also, keep in mind BC, Alberta, and Manitoba require three people to incorporate a co-op — in Saskatchewan you need six.

Develop an action plan

Sit down with your committee. Come up with a plan for starting your co-op. Decide what needs to get done, and who is going to do each task. Write it down and hold people accountable.

Do a PESTLE analysis

To assess the external factors that could impact your new business, try completing a PESTLE analysis . Also consider doing a business model canvas to better understand how the business will work.

Create a preliminary budget

How much money do you need to start the co-op? Where will it come from? Get a clear financial picture of your start-up before getting too far into it.

Create a governance structure

Who will make the decisions in your co-op? Figure out who’s in charge, and how the decision-making process will work in your business. 

Step 3: Incorporate your co-op

Now you’re ready to incorporate your co-op, which means you’ll file documents with the government that legally create your business. You probably do this with your provincial government — but if your co-op will operate in more than one province, you can incorporate with the federal government.

We’ve created work plans that you can follow to incorporate your co-op in:

• Saskatchewan
• Canada (federal incorporation)

Incorporating your business will include the following tasks: 

Select and reserve a name 

The next step in starting your co-op is to pick a name — here are some tips on choosing a name for your co-op . You can find more specific information about registering a name in your province’s work plan (above). Or try our guide to naming your co-op .

Complete and submit the Articles of Incorporation

Your Articles of Incorporation (also known as “Memorandum of Association” if you’re in BC) are the documents you submit to the government to start your co-op. Once you’ve filed these and they’ve been accepted, your co-op will be a legal entity . This means it has rights, and can do things like open a bank account, take out loans, etc.

You’ll find more detailed info about incorporation both in the above work plans, and here:

We know you’re busy. We can incorporate your co-op for you. Curious why you should incorporate? Check out this video .

Write your bylaws

Bylaws (known as “Rules of Association” if you’re in BC) are the rules you write for your co-op. The government requires that you include certain things in bylaws, while other rules are up to you.  Requirements change depending on whether you’re in BC , Alberta , Saskatchewan , Manitoba , or are incorporating federally .

Step 4: Build your membership

Attract and admit new members.

Once you’ve started a co-op, it needs members! You’ll need to identify who your members should be , get the word out to them about joining your co-op, and create a process for them to join . 

Keep track of your members

To better manage members’ data, co-operatives keep membership registries . These registries are just places where you store information. For co-ops with more complex interactions with members, you might want an accounting software to track member accounts, issue dividends, and generate reports. For smaller and/or newer co-ops, you could just use an Excel spreadsheet.

Hold an Annual General Meeting

Every year, your co-op will have to hold an AGM . At this first one, you’ll elect your first board of directors . Often, the steering committee that’s been working to start the co-op becomes the first board, but you may also need to recruit members . 

Step 5: Formalize and expand your plans

Write a business plan.

A business plan is a great tool not only to guide you as you build the business, but to attract investors, show lenders that your business idea is sound enough to deserve a loan, or get new members to join. You should do this as a group.

We’ve created this handy Business Plan Creator to lead you through the process. You can also apply to Co-operatives First to have a professional consultant create a plan for you. 

Finance your business

Figure out how you’re going to get the money to start the co-op: from loans? Members? Selling shares? Fundraising? Usually it’s a combination of these. Write a financial plan , a budget , and think about how to finance the business going forward .  

Step 6: Govern your co-op

Train your board.

It’s important for all board members to understand their role and what’s expected of them. Co-operatives First can provide training to get your board started on the right foot. 

Develop policy

New boards have a lot to do to guide the co-op. Here are some just a few things a new board will do in the first year:

• Create a strategic plan
• Write a Human Resources policy
• Write a Conflict of Interest policy  
• Recruit members
• Evaluate itself

 If starting a co-op is your goal, Co-operatives First can be there every step of the way. Contact us to get started.

13 people found this useful.

Related Resources

Building consensus.

Building consensus in a co-operative business can be important for its sustainability, especially in the early…

Focusing Ideas for Your Co-operative

When forming a co-operative, there are often more people to work with and more ideas to…

Transitioning a Business to a Co-operative

Why think about transitioning a business to a co-operative? Many business owners are thinking about retirement…

Business Plan Creator is being renovated.

Monthly newsletter.

Responsive menu mobile icon

BETA This part of our website is new – your feedback will help us to improve it.

4.2 Create your business plan

• Share with Facebook
• Share with Twitter
• Share with LinkedIn

Are you ready to write your co-op's business plan? We provide advice on the best approach, links to a template plan, and a brief overview of each section you might need to include.

It's worth understanding that all business plans are different – like all  businesses  are different. 

You can use a template as a guide, but don't feel wedded to it. Make it work for your needs. 

Writing your business plan

Feasibility studies determine whether to go ahead with the business or with another idea. Business plans are designed after the decision to go ahead has already been made and provide a roadmap for this work.  

Make sure you have  completed a feasibility study before you start on your business plan. 

How do I start?

• Getting past a blank piece of paper is the most difficult and important part of the whole process.  It does not matter how poor your first draft is, just start writing! You can refine it later
• Get advice and keep asking questions. You do not have to take on every piece of advice. But if someone you know asks a question, it's worth thinking about how to answer it. They may think of something you haven't considered
• Every time you find something worth putting in the business plan, add it in

How much detail?

• Business plans should be meaningful documents and only include relevant information. Seventy page business plans may look impressive but nobody will actually read it, so it becomes no use at all
• For each part of the business plan, create a resource folder which contains all the information that backs up your plan. This might be market research, quotes, work flow diagrams, etc. You can refer to these when you need them, but they don't need to be in the main document

Financial projections

Financial projections are a key part of your business plan. They help your reader understand how you have calculated the investment your business needs, how you're sourcing this finance and your projected income and expenditure

What do I need to include?

Projections for three years are usually sufficient for a start up business plan. You will need:

• Financial projections – you can use these templates
• Assumptions – what evidence do you have that your projections are accurate?
• Scenarios and contingency plans – what will you do if things are worse (or better) then you expected?

What investment do you need?

As part of the business planning process you should have carried out a feasibility study . The investment requirement analysis that you did as part of your feasibility study will inform what investment is needed. 

If you haven't done this yet, you will need go back and do this before you can complete your financial projections.  Go back to feasibility study .

Ready to write your business plan?

Download a template and jump straight in – try this one from gov.uk .

Financial projection templates

Download and complete this financial projections template, which acts as the second 'half' of your business plan.

• Co-op values and principles
• Types of co-ops
• What does membership mean
• Quick facts about co-ops
• Useful links and resources
• More co-operative resources
• Co-ops across the world
• Business Support – start your co-op
• Sign up for email updates
• Ownership Hub
• About the Ownership Hub
• South Yorkshire Ownership Hub
• UnFound Accelerator
• Why platform co-ops?
• The pioneers
• How to start a platform co‑op
• Support for platform co-ops
• UnFound resources
• UnFound blogs
• About UnFound
• UnFound newsletter
• Business Support – convert to a co-op
• Different types of community ownership
• What is an employee buyout?
• Conversions and HR
• Free business banking with The Co‑operative Bank
• Discover co-ops
• Fair use policy
• Co-op secretary: Training package
• Directors toolkit
• Election canvassing
• Role of the board
• Operations and processes
• Performance and roles
• Members and participation
• Governance help and advice
• Co-operative corporate governance code
• Contact package
• Tailored advice
• HR training
• Diversity equity and inclusion
• Recruitment and resourcing
• Performance management
• Family friendly rights
• Dealing with sickness absence
• Grievances and ending employment
• Why do we need members?
• Member recruitment
• Member participation
• Keeping good membership records
• Community Shares Membership Register
• Meet the membership team
• Marketing strategy
• Inclusive communications
• Social media
• Meet the marketing team
• Narrative reporting
• Finance toolkit
• Co-op Friendly Accountants
• Dissolution or Cancellation for solvent co-operative society
• Business support – help for your co‑op
• Business for Good West Yorkshire
• Other funding and support
• Practitioners directory
• Meet the development team
• About community shares
• Booster Fund application guidance
• Booster Fund – pre-grant support
• Booster Fund – expression of Interest (eligibility)
• Apply to the £150m Community Ownership Fund
• Standard Mark for Investors
• Standard Mark for Societies
• Standard Mark share offers
• Community shares newsletters
• Get involved in Co‑op Fortnight
• Sign up to get involved
• What is Co‑op Fortnight
• Altogether different
• Book your place at the Co-op Hackathon
• Stories from the Co‑op Hackathon 2023
• The Co‑op Economy
• Give a Little Something
• Podcast episodes
• A Call for Co-operative Growth
• The Law Commission Review
• Help influence Scottish Government
• Mutuals and Co-operatives Prospectus
• System reboot: Let co-operatives in
• Pledge your support
• Search policy activity
• About Empowering Places
• Covid-19 fighting for co‑ops
• Meet the policy team
• Apply for membership
• Membership packages
• Exclusive member discounts
• Request a CEO surgery session
• Who is on our board?
• Board elections
• Our reports
• Co-operative Development Forum
• Co-operative Governance Expert Reference Panel
• Co-operative and Community Capital Committee
• Co‑operative Performance Committee
• International Co-operative Working Group
• Meet the team
• Meeting room hire
• Whistleblowing, safeguarding and complaints
• Case studies
• Events calendar
• Watch again – Co-op Congress 2022
• About the Co-op of the Year Awards
• Vote in the Co-op of the Year Awards
• Nominate your Co-op of the Year
• Training events
• Networking events
• Co-op Retail Conference
• Practitioners Forum Programme
• National Youth Summit 2022
• Find a co-op

• Search Search Please fill out this field.
• Building Your Business
• Becoming an Owner

How a Cooperative Business Works in the 21st Century

Learn about types of co-ops, advantages, problems, and taxation

• What is a Cooperative Business?

Types of Cooperative Businesses

Pros and cons of co-ops, how to start a cooperative business, cooperative businesses and taxes, for more information in your state.

 Mike Harrington/Getty Images

When you think of the word “co-operative,” you might think of a local food co-op, but there are many more types of cooperative businesses operating in the U.S. today. As some business owners and consumers look beyond traditional, capitalist ways of doing business, co-ops may provide one alternative. 

What is a Cooperative Business? 

A cooperative (co-op) is a business or organization owned by and operated for the benefit of its members. Profits or earnings are distributed among its members.The co-op can be a for-profit business or a non-profit organization.The co-op runs similarly to a corporation, because members purchase shares and elect a board of directors and officers. It differs from a corporation because typically each member gets one vote.   Members of a co-op can be individuals, families, businesses, farmers/ranchers, or manufacturers.   

The International Co-operative Alliance and National Cooperative Business Association  define a cooperative as a group of people with a specific need who work together to create a company to meet that need.

The cooperative movement dates back to the mid-19th century, but the concept goes back even further, to craft guilds, farmer organizations, and mutual insurance companies. The 21st-century cooperative movement has taken off with the growing emphasis on equality and concern about people and planet, in addition to profits (these three are sometimes called “the triple bottom line”).  

These are some of the many types of co-ops, formal and informal, in operation today: 

• Mutual insurance companies (most with the word “mutual” in their names) are owned by policyholders, rather than stockholders. 
• Credit unions are not-for-profit organizations that serve their members. 
• Rural electric power co-ops are private, not-for-profit organizations incorporated in 48 states to provide at-cost electric service to customers. 
• Consumer-goods co-ops , like REI Co-op (yes, that’s part of its name). The company, an outdoor outfitter, says that “more than 70 percent of our annual profits are invested back into the outdoor community.” 
• Producer co-ops , like Sunkist, owned by and operated for their member-growers. 
• Cooperative buying clubs, in which a group of households gets together to buy foodstuffs in bulk and divide the orders among the members. 
• Retail co-ops like Ace Hardware, which was formed in 1924. The company is still owned “solely and exclusively by the local Ace retail entrepreneurs.” 
• Community-owned businesses , such as the Nebraska Cooperative Development Center, which has helped communities in small rural towns start cooperative grocery stores. 
• Housing cooperatives are formed when people join to own or control housing and/or related community facilities. These co-ops are different from condo associations, in which each unit is privately owned and there is a common area owned jointly. 
• Youth co-ops are businesses incorporated and run by young people to give them experience with one type of real-life work model. They can be set up in a school or community center or another organization that supports youth. 
• Worker cooperatives are formed and owned by employee groups that generate profits for the company and its workers.

As demonstrated by the descriptions of several types of cooperative businesses above, organizing a group with a common business purpose in this way can pay off. Positives and negatives can include:

Lower costs by buying in bulk

Common protection from loss (mutual insurance companies)

More price power for sellers when joining together (like Sunkist)

Equal say in the business for members

Shared values. Many co-ops (like REI) value more than just making a profit

Tax advantages for co-ops organized as non-profit businesses

Less opportunity for outside investors because they can’t gain control

Lack of interest by members over time

A co-op can be as simple or complex as you want. You can decide to start a co-op like a food buying club just by getting together with other families to order and distribute food. As you grow beyond this small group, you should form a cooperative business in your state.   

Business Type. You’ll need to decide on a business type (corporation, partnership, or LLC) and register your business with a state .  

Some states have regulations specifically for cooperatives ( New Mexico,  for example.) In some states, you must be formed under co-op status to use the word “cooperative” in your name. 

You’ll need to do all the other tasks involved in forming a corporation , partnership,  or LLC, including electing a board of directors to oversee the operations. 

If you want to be non-profit (exempt from income tax), you first form the business, then apply for tax-exempt status. See IRS Publication 557,  “Tax-Exempt Status for Your Organization,” for details. 

The overall philosophy of cooperatives is that they are intended to operate at cost, so there’s no “profit,” and the patrons (those doing business with the co-op) receive net earnings on an equitable basis.   

The IRS allows several different federal income tax options for cooperative businesses. One variation is exempt from tax and another is subject to tax. 

The federal tax agency considers cooperatives exempt from federal income taxes if they meet certain qualifications. To qualify for and maintain exemption (Internal Revenue Code 501(c)(12)), the cooperative must:  

• Be organized and operated as a cooperative
• Conduct business as set by the tax code and IRS regulations

It must receive 85% or more of its income each year from its members and use the income solely to meet the cooperatives’ losses and expenses. 

Taxes for cooperative businesses are complicated and getting non-profit status from the IRS is not for amateurs. Get help from a tax attorney if you want to form a cooperative business. 

A Subchapter T cooperative is subject to tax. This co-op type may conduct any kind of business. Members or patrons (those doing business with the co-op) can be individuals or organizations. The co-op returns margins (net earnings) each year to users as patronage refunds, based on the amount of business each user does with the co-op. The tax is paid by the cooperative on a temporary basis; it receives a deduction when the money is passed on to the patrons.  

The National Agricultural Law Center has a state-by-state list of Business Organization Forms and Filing Instructions that could be helpful. Also, the National Cooperative Business Association has a spreadsheet (Excel download) showing the cooperative business regulations in each state.  

Small Business Administration. " Choose a Business Structure ." Accessed March 24, 2020.

Cornell Legal Information Institute. " Cooperative ." Accessed March 24, 2020.

Cooperative Directory Service. " Coop Directory Service ." Accessed March 24, 2020.

U.S. Department of Agriculture. " Income Tax Treatment of Cooperatives ." Page 2. Accessed March 24, 2020.

IRS. " General Survey of IRS 501(c)(12 Cooperatives and Examination of Current Issues ." Page 177. Accessed March 24, 2020.

Cooperative Business Planning

This resource includes several templates for cooperative business plans from actual housing cooperatives in North America. Other references provided are a blueprint for the development process, of which the business plan is a part, and a cooperative business plan presentation given at the 2009 NASCO Institute.

• Basics of Business Sustainability
• For Business Leaders
• For Researchers & Educators
• For Students
• For Public Sector
• For Sustainability Centres
• View full resource library
• Climate Change
• Circular Economy
• Sustainable Finance
• Sustainable Innovation
• Social Justice
• Sustainable Business Education
• Mission and activities
• Share an Idea
• SCC Workshop – June 2023

Show more results

How to Adopt a Cooperative Business Model

• | September 9, 2020

Cooperative businesses can contribute to a more just, resilient economy. Here’s how companies are adopting cooperative business models.

Capitalism built around investor-owned companies is struggling to meet society’s needs. Nathan Schneider (University of Colorado Boulder) argues that cooperatives could do better.

Starting or running a business? A cooperative model might help you do it better.

While our economy keeps getting more efficient and generating more value, most people are getting a smaller and smaller portion of it. The investor-owned companies that dominate our economy are geared to maximizing shareholder value, more than pleasing customers, creating jobs, or benefitting society.

Cooperatives are a different way of doing business. They have been around since the 19th century, but many people aren’t familiar with them. They’re likely all around you, blending in with for-profit enterprises but serving a very different purpose.

In this article, I’ll describe what makes a cooperative and how you can build the principles into your enterprise. I’ll describe advantages and disadvantages and how cooperatives are being retooled for the modern era. These ideas are adapted from my 2018 book, Everything for Everyone: The Radical Tradition that Is Shaping the Next Economy .

What makes an enterprise cooperative

Cooperatives are based on the idea that those who use an enterprise — the members — should also own and govern it. Cooperative members decide to produce, how to do it, and what to do with the profits. The goal is to make businesses truly accountable to those they claim to serve.

A co-op’s members might be individuals, or businesses, or other co-ops. Cooperatives of any substantial size hire staff to manage the day-to-day, but for big decisions or board elections, the rule is one member, one vote.

As co-owners, members receive dividends from the enterprise’s profits, proportional to how much they have spent. Members can also choose to reinvest dividends to develop the cooperative.

The International Cooperative Alliance, an international non-profit, identifies seven principles of cooperatives. In addition to member control, these principles also stress voluntary and open membership – no discrimination – and concern for community. Cooperatives must aid not only their members but the broader society.

7 Principles of a Cooperative Enterprise, from the International Cooperative Alliance (design by Abby Litchfield)

Cooperatives aren’t all or nothing.

Businesses can also take partial inspiration from the co-op model. For example, Employee Stock Ownership Plans (ESOPs) give employees an ownership stake in the company. Trusts are another strategy; they can hold some or all of a company’s stock on behalf of certain beneficiaries, such as its workers, or in service of a social purpose. 

Many emerging business models draw on the co-op idea; while they aren’t formal co-ops per se, they can still gain some of the benefits. In my recent work on the idea of an “ Exit to Community ” for startups, we’ve been exploring a wide range of models for shared ownership.

Cooperatives in practice

Globally, commonwealths are a major market force. The largest cooperatives generate about $2.2 trillion in turnover and employ about 10 percent of the world’s employed population. For example:

In Canada, the vast credit-union federation Desjardins is a cooperative bank.

New Zealand has the world’s largest cooperative economy as a percentage of GDP, thanks mostly to hulking dairy co-ops .

Smart—originally, Société Mutuelle pour Artistes —organizes 80,000 workers in 9 European countries to provide employment support services.

When Argentina’s economy collapsed in 2001, workers took over factories that owners tried to close and started running them for themselves.

The case for a cooperative business model

Cooperatives have advantages over investor-owned or purely for-profit companies. For example:

Cooperatives are innovative, often identifying a missing market . They’re a ground-up approach; traditionally, they have evolved when people have to figure out how to do what no one will do for them.

Cooperatives can have lower costs. Volunteerism and sweat equity reduce start-up costs , and co-ownership can mean lower transaction and contracting costs. When people trust each other as co-owners, they can cut fair deals more easily.

Cooperatives have greater trust and loyalty from customers. Customers see cooperatives as providing higher quality products and more worker and community benefits.

Cooperatives are more resilient. They have a lower chance of failure , especially after the startup phase, and greater resilience in downturns (likely due to shared sacrifice and greater risk aversion). 

Today, as digital firms dominate the economy, the democracy of cooperatives has even more appeal. It can provide safeguards around data privacy and labour conditions , both under threat.

Limitations of cooperatives

Cooperatives have disadvantages as well. Raising capital is a challenge in an economy designed for investor ownership. Lenders and investors expect businesses to be owned by a small group of founders, not a community of members; we need policies that can change that.

Cooperatives can become stuck in their ways. Investor-owned businesses attract investor-owners by promising to exceed expectations; co-ops tend to attract members by meeting known, day-to-day needs. We need to ensure that the co-ops have built-in incentives not just to meet member needs but to help prepare members for uncertain futures.

A new generation revives cooperatives

Over the years, many large, established cooperatives – like credit unions and mutual insurance giants — have lost the kind of member involvement that they had at their founding. They have low member turnout in board elections, for example. They’ve also often become conservative and hesitant to adopt new ideas. Some organizations, like We Own It , are organizing co-op members to re-activate their democracy.

Newer cooperatives often have different goals than their predecessors. They want go beyond serving their members to do good in the broader world. They can adopt complex, multi-stakeholder ownership structures to address complex challenges; many new co-ops, for instance, have separate member classes for workers, users, founders, or outside investors. Co-ops increasingly view themselves as social entrepreneurs and secure B Corp certifications, based on metrics of social impact.

Modern cooperatives

Two cases show the more modern cooperative approach.

Brianna Wettlaufer, an executive at image provider iStock, was frustrated that the imperatives coming from the company’s investor-owners required her to keep payments to independent artists. She left iStock and founded Stocksy United . It’s an artist-owned cooperative, where 50%-75% of all licenses go directly into contributors’ pockets. Stocksy presents its value proposition: “The sense of community and ownership felt by our members drives a greater level of passion into their work, resulting in inspired imagery of the highest quality.”

Namaste Solar is a worker co-op solar utility company based in Colorado. By combining and connecting different co-op models, the founders of Namaste have achieved both a successful local business and national-scale impact on their market. Namaste organizers created Amicus Solar, a purchasing co-op that allows other small solar utilities across North America to buy equipment together, dramatically lowering costs. Namaste has also spun off the Clean Energy Federal Credit Union to assist with financing.

Be part of cooperative change

Cooperatives provide an imaginative, exciting, possible future. In my Media Enterprise Design Lab at the University of Colorado, we explore some of the ways that cooperatives are evolving. Check out our work – and share your ideas for an economy that better addresses society’s needs.

Share this post:

Powered by WP LinkPress

Add a comment.

You must be logged in to post a comment.

This site uses User Verification plugin to reduce spam.  See how your comment data is processed .

Join the Conversation

• Categories: Articles , Sustainable Innovation

View all posts

Related Articles

How Business Leaders Can Lobby for Climate Action

In the US alone, fossil fuel supporters spend $500 million per year to block low-carbon policy. Here’s how to help balance the scales.

Teaching Climate Policy in Business Schools – NBS Climate Teaching Series

Three business school educators share their interactive approaches for embedding a sustainability mindset in students.

Sustainability Resources

Engage with us.

• Opportunities

• Terms of Service
• [email protected]

Partner with NBS to grow our impact

A Food Co-op Business Plan

A formal business plan helps to bring structure to your plans and provides the necessary information for banks and owners to review before committing capital.

Get Started with Food Co-op Initiative

Food Co-op Initiative provides exceptional resources for people in the U.S. working to start a retail food co-op that meets the needs of their community. New startups can use our materials at no charge and are able to reach out to our staff for phone consultations and additional technical help.

Popular Resources

Let’s Start a Food Co-op! What do we do first?

What can FCI Do for me?

Guide to Starting a Food Co-op

Annual Impact Reports

QuickStart from FCI Classroom

Connect with Us

Have questions, want to know where to start? Call today: (844) 324-2667

Contact Us!

Privacy Policy   |   Terms of Use

Food Co-op Initiative is a 501(c)3 nonprofit and donations are tax-deductible to the extent permitted by the law. Food Co-op Initiative is an equal opportunity employer and does not discriminate with regard to race, color, religion, gender, sexual orientation, age, national origin, or disability.

• Business Templates
• Sample Plans

FREE 10+ Co-operative Business Plan Samples [ Ecological, Food, Arts ]

Cooperatives need a working business plan in order to maintain their operation and to bring in more profitable client progress . A cooperative business plan is a systematic approach to a favorable profit and loss turnout that sets the goals and objectives of the institution as well as the practical steps to realize them. Below are free Co-operative Business Plan Samples that you can download to get you started with your own cooperative business plan. Keep reading.

Co Operative Business

10+ co-operative business plan samples, 1. co-operative business plan sample, 2. co-operative food business plan, 3. ecological and co-operative business plan, 4. co-operative business plan format, 5. community co-operative business plan, 6. rural electric co-operative business plan, 7. editable co-operative business plan, 8. co-operative arts business plan, 9. standard co-operative business plan, 10. professional co-operative business plan, 11. new co-operative business plan, parts of a co-operative business plan, 1. executive summary, 2. methods of operation, 3. external environment analysis ,  4. marketing plan, 5. production, what is a patron of a cooperative, what does a dividend mean, what is a preferred stock.

Size: 377 KB

Size: 381 KB

Size: 762 KB

Size: 10 MB

Size: 423 KB

Size: 562 KB

Size: 226 KB

Size: 264 KB

Without a reliable and concrete plan, the cooperative will not progress and will not meet its goals as a simple small business investment that serves average-income workers of a particular community. The business plan should serve as a guide to the undertakings of the cooperative and will redirect the business administration according to what’s stated in the plan. Hence, the cooperative should be written in a clear and informative manner. Below are the salient parts of a cooperative business plan.

The executive summary includes everything that a reader or a prospective client should know about the business. It comprises an overview of the coop’s humble beginnings and goals. This part also contains, most importantly, the mission, vision, purpose, and values that the cooperative wants to uphold. 

The operational plan that keeps the manpower of the coop moving follows certain standards and methods of evaluation to be followed properly. This section provides the identification of materials and human resources to carry out the tasks of specific designations. 

This section of the plan analyzes the existence of the coop’s natural environment external to its organization. External factors such as the weather of the locality at which it operates and the kind of residences living nearby are key factors of its failure and success because it is from this environment that potential customers and clients are made. Other external factors that affect the operation of the coop are the legal, political, and social environment. 

This part discusses how to reach out to prospective customers and how to promote the product and services of the cooperative. Whether the coop’s nature of business is anchored more on retail business or wholesale , promotional works can be implemented to increase profit. 

The production plan and structure of the cooperative depends on what kind of profit-making institution it is. If it is anchored on manufacturing and fabrication, several factors should be considered such as the location and limitation of land area to conduct operations. A considerable amount of budget for capital will be allocated to the equipment required to mobilize operations of this kind of cooperative. 

An individual or organization who buys the products and avails the services of the cooperative for a sum of money. They are either members or nonmembers of the cooperative and members usually have privileges to discounts.

These are monetary returns of the cooperative’s investors and the amount of return depends on the invested items or products or preferred stocks. In the US, dividends from many state-owned cooperatives are limited to an annual rate of 8%.

Capital stocks that have a specific dividend rate. It is preferred over other stock dividends and refunds to members of the cooperative. It is a type of equity capital that is different from other dividends paid by the board members and other stakeholders. These stocks are also the kind that other members can buy from stockholders at a defined amount of money by the regulations and by-laws of the cooperative.

Related Posts

Free 4+ yearly lesson plan samples in pdf, free 50+ strategic planning samples in google docs | pages | pdf | ms word, free 10+ construction project plan samples in ms word | google docs | apple pages | pdf, free 10+ construction marketing business plan samples in ms word | google docs | pdf, free 17+ construction business continuity plan samples in ms word | google docs | pdf, free 11+ construction business development plan samples in ms word | google docs | pdf, free 20+ budget planning samples in pdf, free 20+ workout plan samples in ms word | google docs | pages | pdf, free 20+ lesson planning samples in pdf, free 14+ employee work plan templates in pdf | ms word, free 8+ sample weekly meal plan templates in pdf, free 17+ sample classroom management plan templates in pdf | ms word, free 13+ homework planner samples and templates in pdf | ms word, free 14+ leadership development plan samples in ms word | pages | google docs | pdf, free 15+ sample math lesson plan templates in pdf | ms word, free 13+ memorandum of agreement templates, free 12+ sample classroom management plans, free 10+ school discipline plan samples & templates, free 9+ it operational plans.

Don't bother with copy and paste.

Get this complete sample business plan as a free text document.

Nonprofit Recording Co-op Business Plan

Start your own nonprofit recording co-op business plan

Gamehenge Tapers Co-op

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Gamehenge Tapers Co-op is a not-for-profit organization that was created to serve the Portland tapers community.  The tapers community is a hobby based community that trades live recordings for personal use, never for commercial gain.  The Co-op will provide this community with the equipment needed to further the taping of shows which in effect supports the trading community as well (people who trade these live shows for personal consumption only).  The Co-op sells the recording equipment at wholesale prices + a low overhead percentage.  By offering the members heavily discounted rates, it encourages them to become more active tapers.  Because the organization is a not-for-profit co-op, members are willing to volunteer their time to help the organization allowing it to become successful.  The organization exists to support the trading community.

Membership dues and a small charge for overhead will allow the organization to cover costs associated with doing business and allow it to slowly grow. Gamehenge Tapers Co-op will be increasing their membership roster by at least 20% per year.

1.1 Objectives

The objectives for the first three years of operation include:

• To create a co-op whose #1 goal is to serve its members.
• To increase the membership base by 20% each year.
• To provide the Portland traders community with cost + overhead deals on CD-R media, microphones, CD-RWs and DAT recorders.
• To develop a sustainable co-op.

1.2 Mission

Gamehenge Tapers Co-op’ s mission is to serve the Portland tapers community.  We exist to attract and maintain customers.  When we adhere to this maxim, everything else will fall in to place.  Our services will exceed the expectations of our customers.

Organization Summary organization overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

Gamehenge Tapers Co-op is a co-operative organization designed to serve the Portland tapers community.  The tapers community is a hobby based group that records and trades live concerts.  All of the bands that allow live recordings are “live” or “jam” bands who incorporate improvisation into their live performances so each performance is unique.  The group members trade these live performances for personal consumption, enjoying the unique attributes of each individual show.  Commercial use of these shows is strictly prohibited. 

The organization sells a wide range of equipment for tapers.  The equipment is purchased through normal wholesale distribution channels and sold directly to organizational members.  Membership is required for entry to the co-op.  A $40 entry fee and proof of traders status (a list of your show list is usually sufficient) is all that is needed to become a member.  Products must be purchased through the web site and then picked up from the office at certain times throughout the week.  Questions regarding products can be answered via email or phone (typically voicemail with a return phone call).

2.1 Legal Entity

Gamehenge Tapers Co-op is a 501C not-for-profit co-operative organization.

2.2 Start-up Summary

Gamehenge Tapers Co-op’s start up costs include:

• Desk, chair and file cabinet.
• Computer with printer, CD-RW, and internet connection.
• Legal fees for formation of not-for-profit status including filing fees.
• Website development.

Gamehenge Tapers Co-op offers the tapers community the following products:

• CD-RW (Compact Disc ReWriteable) drives for computers, external units with USB, SCSI or Firewire connections.
• High quality stereo microphones for audience taping.
• DAT(digital audio tape) portable recorders.
• CD-R (Compact Disc Recordable) media.

Market Analysis Summary how to do a market analysis for your business plan.">

Gamehenge Tapers Co-op is a not for profit organization designed to serve the individual members of the co-op.  These members come from the Portland tapers community, a group of people who attend specific live performances and tape them for their personal consumption as well as for personal trading purposes. This is a very active community and intimate community.

Gamehenge Tapers Co-op will grow its membership through word of mouth promotions at the events.  Because it is an intimate community where most people know each other, it will be relatively easy to build up membership.  In addition to word of mouth advertising, Gamehenge Tapers Co-op will also have a web site that provides prospective members about the organization and its goals.

4.1 Market Segmentation

Gamehenge Tapers Co-op will be addressing the tapers community in the Portland area.  The taping community is made up of individuals that legally tape live concerts.  There are a handful of bands that allow taping of their live performances.  Generally, record labels discourage or ban taping of live performances because they believe that it infringes on profits from record sales.  On the contrary however, it tends to promote the band as there is an entire community that trades these shows, attends the concerts, and buys the records after they hear live performances of the band.

From a legal standpoint, the live performances are copyrighted, but the band nonetheless allows the taping.  The vast majority of bands to do not allow taping, it is only a few select bands that allow tapings. These bands are representative by the fact that they are very good live performers, they have a loyal following of people that tour with them and consequently these bands tend to play entirely different set lists each night recognizing the fact that there are people seeing several to many different shows in a row.

The bands that allow recording of live concerts are the remnants of the Grateful Dead (Phil Lesh & Friends, The Other Ones) remnants of Phish (Trey Anastatio and the Giant Country Horns), String Cheese Incident, moe., Blues Traveler, Dave Matthews Band, Medeski Martin & Wood, Tony Furtado, Bela Fleck and the Flecktones, Widespread Panic, Galactic, Government Mule, Greyboy Allstars, Karl Denson and the Tiny Universe, etc.

These bands have a loyal following, a very close knit community. This element lends itself to word of mouth promotion.

4.2 Target Market Segment Strategy

The strategy behind the market segmentation is solely based on word of mouth and web site visibility.  Because the taping community is so close knit, if you end up going to a couple of shows to tape, you will run into a large portion of tapers.  Everyone knows each other, and everyone trades show from their collection. Growing the membership list through word of mouth will be no problem.

Additionally, Gamehenge Tapers Co-op will operate a web site to  which will be used to attract new members.  The site however, will have far more content including ordering which is password protected for members only.

4.3 Service Providers Analysis

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

4.3.1 Alternatives and Usage Patterns

The competition is regular retail outlets.  These take the form of mail order places, retail outlets, and e-commerce sites.  These competitors might offer a better selection, however, they will rarely compete on price because they are for profit organizations and Gamehenge Tapers Co-op is a not-for-profit.

The buying patterns of tapers are typically price sensitive.  Because the tapers are constantly using their equipment and tons of media, they are generally looking for the best price.

Strategy and Implementation Summary

Gamehenge Tapers Co-op will be aggressively using word of mouth advertising to generate new members.  The cost of this is minimal as the members are already at the concerts taping for their own collection already.

Gamehenge Tapers Co-op will have a web site that will be used to attract new members, however, the members gained from the site will pale in comparison to word of mouth promotion.

5.1 Competitive Edge

Gamehenge Tapers Co-op competitive edge is its co-operative business structure.  The organization is not-for-profit so all revenue gets funneled back into the organization.  The organization is set up to solely benefit the members.  The members benefit by being able to purchase equipment at drastically reduced prices compared to retail.

5.2 Fundraising Strategy

The sales strategy will be simply to increase membership.  Increasing membership increases buying power, reducing wholesale and overhead costs, benefiting members.

5.2.1 Funding Forecast

The first month will be used to set up the office and web site.  The office will be in a small space with low rental costs.  The web site will be designed to provide general information to the public and detailed product information regarding the products offered.  Members will only be able to purchase products via the web site and picked up from the office at certain times.

Month two will see an increase in sales and membership. The following months will see both membership as well as sales activity.

5.3 Milestones

Gamehenge Tapers Co-op will have several milestones early on:

• Business plan completion.  This will be done as a roadmap for the organization.  While we do not need a business plan to raise capital, it will be an indispensable tool for the ongoing performance and improvement of the company.
• Office set up.
• The 100th member signed up.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Gamehenge Tapers Co-op was founded and led by Al Truistic.  Al graduated from the University of Vermont with a degree in business.  After college, Al spent the next five months on the road following the band Phish.  This was his first introduction to the taping scene.  After coming back home to Portland, Al got his MBA from the University of Portland.  

Al then entered the business world with a job at VersionTracker, an internet start up that provided software updates for Mac OS.  His love for taping never disappeared and continued to tape at all of the live bands that passed through Portland.  After numerous discussions with a lot of the Portland taping community, Al concluded that there was demand for a tapers co-op so he began investing his free time to pursue this goal.  

6.1 Personnel Plan

Al will be working part time for Gamehenge Tapers Co-op.  He will perform purchasing, order fulfillment and general management of the organization.  His wife Sarah will help out with membership and the financials.  These two positions are unpaid, volunteer positions. 

Web maintenance will be done by one of the members at a below market rates.

It is Al’s and Sarah’s plan that once they get things up off the ground and the co-op becomes much more active they will recruit more members to volunteer their time to take care of the necessary details.

Financial Plan investor-ready personnel plan .">

The following sections will outline the important financial assumptions, key financial indicators, Break-even Analysis, profit and loss, cash flow, and balance sheet.

7.1 Important Assumptions

The following table highlights some of the important financial assumptions for Gamehenge Tapers Co-op.

7.2 Break-even Analysis

The Break-even Analysis shows what we need in monthly revenue to break even.

7.3 Projected Surplus or Deficit

THe following table will indicate projected surplus or deficit.

7.4 Projected Cash Flow

The following chart and table will indicate projected cash flow.

7.5 Projected Balance Sheet

The following table will indicate the projected balance sheet.

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

Sign in to your account to continue.

Don't have an account ? Create account

use your one-time login key here

• Skyscrapers
• Apartments for Sale
• Apartments for Rent
• Houses for Sale
• Houses for Rent
• Luxury Real Estate
• Mansions in Russia
• Palaces in Russia
• Watch Video
• Residence permit in Russia

Moscow-City – The Moscow International Business Center

• 3 years ago

Moscow-City is an iconic location for life and work in Russia’s capital. Enormous skyscrapers, business centers, the best restaurants and retail spaces – all this is concentrated in one place. The ultramodern Moscow-City towers are truly striking in their outward appearance, and the layout of the apartments inside and the fantastic views that can be seen from the higher floors are nothing short of impressive.

This skyscraper compound, often referred to as Moskva-City, is the Russian take on Manhattan, where businessmen strike multi-million dollar deals daily while ordinary life goes on next door. Its state of the art spaces offer the ultimate convenience. The infrastructure of this business district is so well-developed that anyone can find something interesting for themselves here: from residential apartments to boutiques, clubs, exhibitions and more.

When the foundations for the Moscow-City skyscrapers were laid, a special kind of concrete was used, the properties of which are amplified by many times compared to standard concrete. Even in the event of a plane crashing into one of the buildings, the structural integrity of the towers will be preserved.

The architects of the Moscow-City Business Center have created a unique locality that has integrated into itself the hub of the capital’s business life and a whole ensemble of historical monuments. Anyone can admire the beauty of these skyscrapers from within or without the compound. There are also a number of apartments for sale or rent available in the MIBC itself. But first, let’s have a look at some more interesting facts about the financial core of Russia’s capital.

• 1 How It All Began
• 2.1 Moscow-City Central Core
• 2.2 Tower 2000
• 2.3 Evolution Tower
• 2.4 Imperia Tower
• 2.5 Moscow Tower and St. Petersburg Tower
• 2.6 Steel Peak Tower
• 2.7 Federation Tower
• 2.8 Mercury City Tower
• 2.9 OKO Tower Complex
• 3.1 Afimall City Shopping Center
• 3.2 Bagration Bridge
• 3.3 Expocentre Fairgrounds
• 4 Renting and Buying Real Estate in Moscow-City

How It All Began

The history of Moscow-City goes all the way back to 1992. The government of Moscow at the time wanted to bring into existence its own skyscrapers like the ones in London or New York. And the idea caught on. In 1992 the project for the construction of the huge “Moscow-City” MIBC compound was enthusiastically approved, kick-starting the painstaking preparatory works. The original intention was that the skyscrapers would only house office space. However, as time went on, the towers began to welcome in ordinary residents who wanted to live on the territory of this business and finance hub.

Moscow-City is undoubtedly a city within a city. Its grandeur is mind-boggling. It is perfect in every way: from location to infrastructure. And today, anyone can get a feel of the atmosphere of the “capital city” of Russia’s business world – many of the apartments in Moscow-City are available for rent. Any citizen of Russia and even nationals of other countries can make use of these offers.

What It’s Like in 2021

Today Moscow-City is not just a magnificent and fascinating sight, but also a real hub for the work, life and leisure of thousands. Its infrastructure is organized in such a way that there is no need to leave the territory of the “city within a city” at all. This business district contains everything one may need for work and recreation. And if one does decide to venture out into the larger metropolis, the MIBC’s three subway stations make this remarkably simple to do.

Moscow-City stands on the Presnenskaya Embankment . Each of the buildings in the district has a name, which simplifies its identification. Some of the buildings form complexes that are united under one name, such as the Neva Towers and the Naberezhnaya Tower complex of two skyscrapers and one high rise. There are a total of 16 towers in the MIBC, of which the most popular are:

• Moscow-City Central Core;
• Tower 2000;
• Evolution Tower;
• Imperia Tower;
• City of Capitals (Moscow Tower and St. Petersburg Tower);
• Steel Peak Tower;
• Federation Tower;
• Mercury City Tower;
• OKO Tower Complex.

Moscow-City Central Core

This is the most complex building within the MIBC compound. Its total floor area is a whopping 1 476 378 sqft (450 000 m²). It consists of two massive parts, each of which boasts a truly impressive infrastructure. The underground part includes 3 Moscow Metro stations, a parking lot for automobiles and a shopping mall. The aboveground part houses a concert hall and a hotel.

Tower 2000 is a skyscraper having 34 stories. Its total floor area is 200 318 sqft (61 057 m²), most of which is office space. The key feature of this skyscraper is its direct connection to the Bagration Bridge, which has its own shopping arcade. The tower has everything one may need while working here, including a large parking lot and several restaurants.

Evolution Tower

This elegant structure is 836 feet (255 m) high – that’s a whole 54 stories! The total floor area here is 554 462 sqft (169 000 m²). The Evolution Tower’s key feature is that it has its own Wedding Hall. This skyscraper houses large office spaces, a parking lot and several restaurants.

Imperia Tower

MIBC’s Imperia Tower is the undeniable focal point of the MIBC’s business life. Its height is 784 feet (239 m), which means one can hold conferences and resolve key business matters on the 59 th floor! And that really is amazing! The tower has everything: offices, hotels, restaurants and parking lots. But if you want a truly unforgettable experience, visit the viewing platform! It is situated on the 58 th floor and a simply astounding view of Moscow can be seen from it.

Moscow Tower and St. Petersburg Tower

The Moscow and St. Petersburg Towers are the chief representatives of the MIBC. The Moscow Tower has 76 stories and is 990 feet (302 m) high, while the St. Petersburg Tower has 65 stories and stands 843 feet (257 m) tall. Both towers offer fantastic views of the capital city.

Most of the floors of these two skyscrapers are taken up by luxurious sky apartments. There are also several recreational and entertainment centers, office spaces, restaurants, etc.

Steel Peak Tower

Also known as the Eurasia Tower of Moscow-City, this supertall skyscraper has a total of 680 912 sqft (207 542 m²) of floor space. Most of this is taken up by offices, and the rest – by residential quarters (around 65 616 sqft or 20 000 m²). The tower also houses a number of the greatest restaurants, studios and shopping centers.

Federation Tower

The Federation Tower is a complex of two skyscrapers, known as Tower East and Tower West. Tower East is the second highest building in Europe (the first is a skyscraper recently erected in the city of St. Petersburg). Its height is a colossal 1 223 feet (373 m) and that makes 95 stories! Tower West, on the other hand, is noticeably shorter at 794 feet (242 m).

The Federation Tower is a multifunctional complex.

Mercury City Tower

The Mercury City Tower skyscraper is widely known as one of the tallest buildings in Europe. Its height is 1 112 feet (339 m) and it has 75 stories. It is multifunctional by concept, holding within its walls shopping centers, offices and all kinds of other spaces. It is also possible to rent apartments here.

OKO Tower Complex

The OKO Tower Complex consists of two towers – the North Tower (49 stories and 803 ft or 245 m in height) and the South Tower (85 stories and 1 155 ft or 352 m in height).

Each of the MIBC’s tower complexes has its own recreational and entertainment areas, restaurants and parking lots. The top floors of most of these buildings contain luxurious fully-furnished apartments. At night, the towers shine with bright lights, while inside them the panoramic windows reveal astounding views of Moscow. This breathtaking view of the capital of Russia is why visiting Moscow-City is a must!

What Not to Miss

There are many interesting landmarks within the Moscow-City compound, but three of them are truly deserving of special attention:

• The Afimall City Shopping Center;
• The Bagration Bridge with two galleries and a shopping arcade;
• The Expocentre Fairgrounds.

Afimall City Shopping Center

The Afimall City Shopping and Entertainment Center is located in Moscow-City’s Central Core. It is divided into 4 zones, each with its own theme – one for every season of the year. The shopping center houses the biggest indoor fountain found worldwide. The height of this watery wonder is 118 feet or 36 meters.

The shopping and entertainment center contains everything one might expect from one of the largest centers of its kind:

• Retail brand stores;
• Exhibitions;
• Game rooms;
• and Restaurants.

The main recreational space is roofed with a giant transparent dome, which is an impressive sight to behold.

Bagration Bridge

Bagration Bridge with its upper and lower galleries has a shopping center all of its own and was the first structure to be built as part of the Moscow-City business district. Its lower gallery is a shopping arcade and its upper gallery is an open-air viewing platform with a spectacular view of the MIBC and the Moskva River. The hall of the bridge houses the 23 foot tall sculpture called “Tree of Life”. Having gone through the bridge via either one of its two galleries, a pedestrian would find themselves standing right on the Kutuzovsky Prospekt.

Expocentre Fairgrounds

The Expocentre Fairgrounds exhibition venue is located at the very heart of the capital. The first exhibition held at the Expocentre happened all the way back in 1959, much earlier than the MIBC was erected. Today it is the venue of many interesting events.

Exhibitions with very diverse themes are regularly held at this complex. An up-to-date schedule can be found on the official webpage of the Expocentre. The events can be free or fixed-price entry, depending on their type.

Renting and Buying Real Estate in Moscow-City

Moscow-City is not only a work and business hub, but also a residential neighborhood. Any citizen of Russia can rent or buy apartments or elite sky lounges here. The variety of residential real estate available inside the skyscrapers is impressive, including options for any pocket. The following buildings in the MIBC contain residential blocks:

This skyscraper has a mirror glass façade which reflects the passing clouds. Just imagine how beautiful that looks! Anyone can buy an apartment in the Federation Tower. Such properties are not only a good investment, but also a mark of prestige. The average price of residential real estate here is 45 million rubles for an apartment with a total floor area of 334 sqft (102 m²). The average price of a square meter (3.28 square feet) is in the range of 650 to 700 thousand rubles. There are two- and three-room apartments available in the Federation Tower, each with its own loggia. As for rent, the minimum price of one month’s stay in a three-room apartment in this skyscraper is 300 000 rubles per month.

The Mercury City Tower skyscraper welcomes citizens from all parts of Russia. This building is no less tall than the world-famous Dubai skyscrapers. Living in its apartments is a delight. The minimum cost of an apartment in the Mercury City Tower is 75 million rubles. The average price of a square meter (3.28 square feet) is 800 thousand rubles. And for those looking for a lower price point, some of the properties are also available for rent – in this case you will pay a minimum of 250 thousand rubles per month.

The Imperia Tower is a key cluster of interesting offers. The best options for buying and renting apartments within the MIBC can all be found in this skyscraper. The lowest price of a residential apartment here is 40 million rubles. A square meter (3.28 square feet) in a luxurious apartment in the Imperia Tower currently costs 600 thousand rubles, while the price range of the listings available for rent in this skyscraper is from 350 thousand all the way up to 1 million rubles per month.

This complex, standing on a faceted or “crystal” base, is an architectural engineering project boasting spectacular design. Behind its impressive façades is an abundance of penthouses and apartments having floor areas in the range of 262 sqft (80 m²) to 984 sqft (300 m²). The minimum price of an apartment in the OKO Tower Complex is 40 million rubles (the price of a square meter (3.28 square feet) is 500 thousand rubles). You can rent an apartment here starting from 400 thousand rubles per month.

City of Capitals

The City of Capitals is an exemplary architectural complex. Its sum appearance gives the impression of a huge city. Inside its walls are spacious apartments available for purchase and rent. This complex is considered to be especially prestigious. The prices of apartments here start from 50 million rubles, while the minimum cost of renting is 400 thousand rubles per month.

Please note! The price of real estate available for purchase or rent depends on: the tower, the floor, the total floor area, the furnishings and/or interior design, and other factors.

The key advantages of buying/purchasing real estate in Moscow-City are:

• Favorable location;
• Convenient transportation links;
• Well-developed infrastructure;
• High safety level;
• Efficient architecture;
• Panoramic windows.

Buying real estate in Moscow-City is very much a rational decision, most appealing to those who value the ultimate level of comfort. The residential apartments here boast impressive interior design solutions executed in the contemporary style.

Related posts

Property tax in russia, the best international schools in moscow.

Our Rating of the Best Districts of Moscow for Living In

Join the discussion cancel reply.

Save my name, email, and website in this browser for the next time I comment.

Compare listings

Reset Password

Please enter your username or email address. You will receive a link to create a new password via email.

Send a Request

Travel Itinerary For One Week in Moscow: The Best of Moscow!

I just got back from one week in Moscow. And, as you might have already guessed, it was a mind-boggling experience. It was not my first trip to the Russian capital. But I hardly ever got enough time to explore this sprawling city. Visiting places for business rarely leaves enough time for sightseeing. I think that if you’ve got one week in Russia, you can also consider splitting your time between its largest cities (i.e. Saint Petersburg ) to get the most out of your trip. Seven days will let you see the majority of the main sights and go beyond just scratching the surface. In this post, I’m going to share with you my idea of the perfect travel itinerary for one week in Moscow.

Moscow is perhaps both the business and cultural hub of Russia. There is a lot more to see here than just the Kremlin and Saint Basil’s Cathedral. Centuries-old churches with onion-shaped domes dotted around the city are in stark contrast with newly completed impressive skyscrapers of Moscow City dominating the skyline. I spent a lot of time thinking about my Moscow itinerary before I left. And this city lived up to all of my expectations.

Travel Itinerary For One Week in Moscow

Day 1 – red square and the kremlin.

Metro Station: Okhotny Ryad on Red Line.

No trip to Moscow would be complete without seeing its main attraction. The Red Square is just a stone’s throw away from several metro stations. It is home to some of the most impressive architectural masterpieces in the city. The first thing you’ll probably notice after entering it and passing vendors selling weird fur hats is the fairytale-like looking Saint Basil’s Cathedral. It was built to commemorate one of the major victories of Ivan the Terrible. I once spent 20 minutes gazing at it, trying to find the perfect angle to snap it. It was easier said than done because of the hordes of locals and tourists.

As you continue strolling around Red Square, there’s no way you can miss Gum. It was widely known as the main department store during the Soviet Era. Now this large (yet historic) shopping mall is filled with expensive boutiques, pricey eateries, etc. During my trip to Moscow, I was on a tight budget. So I only took a retro-style stroll in Gum to get a rare glimpse of a place where Soviet leaders used to grocery shop and buy their stuff. In case you want some modern shopping experience, head to the Okhotny Ryad Shopping Center with stores like New Yorker, Zara, and Adidas.

Read Next: Things To Do on Socotra

To continue this Moscow itinerary, next you may want to go inside the Kremlin walls. This is the center of Russian political power and the president’s official residence. If you’re planning to pay Kremlin a visit do your best to visit Ivan the Great Bell Tower as well. Go there as early as possible to avoid crowds and get an incredible bird’s-eye view. There are a couple of museums that are available during designated visiting hours. Make sure to book your ticket online and avoid lines.

Day 2 – Cathedral of Christ the Saviour, the Tretyakov Gallery, and the Arbat Street

Metro Station: Kropotkinskaya on Red Line

As soon as you start creating a Moscow itinerary for your second day, you’ll discover that there are plenty of metro stations that are much closer to certain sites. Depending on your route, take a closer look at the metro map to pick the closest.

The white marble walls of Christ the Saviour Cathedral are awe-inspiring. As you approach this tallest Orthodox Christian church, you may notice the bronze sculptures, magnificent arches, and cupolas that were created to commemorate Russia’s victory against Napoleon.

How to Get a Decent Haircut in a Foreign Country

Unfortunately, the current Cathedral is a replica, since original was blown to bits in 1931 by the Soviet government. The new cathedral basically follows the original design, but they have added some new elements such as marble high reliefs.

Home to some precious collection of artworks, in Tretyakov Gallery you can find more than 150,000 of works spanning centuries of artistic endeavor. Originally a privately owned gallery, it now has become one of the largest museums in Russia. The Gallery is often considered essential to visit. But I have encountered a lot of locals who have never been there.

Famous for its souvenirs, musicians, and theaters, Arbat street is among the few in Moscow that were turned into pedestrian zones. Arbat street is usually very busy with tourists and locals alike. My local friend once called it the oldest street in Moscow dating back to 1493. It is a kilometer long walking street filled with fancy gift shops, small cozy restaurants, lots of cute cafes, and street artists. It is closed to any vehicular traffic, so you can easily stroll it with kids.

Day 3 – Moscow River Boat Ride, Poklonnaya Hill Victory Park, the Moscow City

Metro Station: Kievskaya and Park Pobedy on Dark Blue Line / Vystavochnaya on Light Blue Line

Voyaging along the Moscow River is definitely one of the best ways to catch a glimpse of the city and see the attractions from a bit different perspective. Depending on your Moscow itinerary, travel budget and the time of the year, there are various types of boats available. In the summer there is no shortage of boats, and you’ll be spoiled for choice.

Travel Itinerary for One Week in Beijing

If you find yourself in Moscow during the winter months, I’d recommend going with Radisson boat cruise. These are often more expensive (yet comfy). They offer refreshments like tea, coffee, hot chocolate, and, of course, alcoholic drinks. Prices may vary but mostly depend on your food and drink selection. Find their main pier near the opulent Ukraine hotel . The hotel is one of the “Seven Sisters”, so if you’re into the charm of Stalinist architecture don’t miss a chance to stay there.

The area near Poklonnaya Hill has the closest relation to the country’s recent past. The memorial complex was completed in the mid-1990s to commemorate the Victory and WW2 casualties. Also known as the Great Patriotic War Museum, activities here include indoor attractions while the grounds around host an open-air museum with old tanks and other vehicles used on the battlefield.

How I Planned My Trip to Vietnam

The hallmark of the memorial complex and the first thing you see as you exit metro is the statue of Nike mounted to its column. This is a very impressive Obelisk with a statue of Saint George slaying the dragon at its base.

Maybe not as impressive as Shanghai’s Oriental Pearl Tower , the skyscrapers of the Moscow City (otherwise known as Moscow International Business Center) are so drastically different from dull Soviet architecture. With 239 meters and 60 floors, the Empire Tower is the seventh highest building in the business district.

The observation deck occupies 56 floor from where you have some panoramic views of the city. I loved the view in the direction of Moscow State University and Luzhniki stadium as well to the other side with residential quarters. The entrance fee is pricey, but if you’re want to get a bird’s eye view, the skyscraper is one of the best places for doing just that.

Day 4 – VDNKh, Worker and Collective Farm Woman Monument, The Ostankino TV Tower

Metro Station: VDNKh on Orange Line

VDNKh is one of my favorite attractions in Moscow. The weird abbreviation actually stands for Russian vystavka dostizheniy narodnogo khozyaystva (Exhibition of Achievements of the National Economy). With more than 200 buildings and 30 pavilions on the grounds, VDNKh serves as an open-air museum. You can easily spend a full day here since the park occupies a very large area.

Places to Visit in Barcelona That Aren’t Beaches

First, there are pavilions that used to showcase different cultures the USSR was made of. Additionally, there is a number of shopping pavilions, as well as Moskvarium (an Oceanarium) that features a variety of marine species. VDNKh is a popular venue for events and fairs. There is always something going on, so I’d recommend checking their website if you want to see some particular exhibition.

A stone’s throw away from VDNKh there is a very distinctive 25-meters high monument. Originally built in 1937 for the world fair in Paris, the hulking figures of men and women holding a hammer and a sickle represent the Soviet idea of united workers and farmers. It doesn’t take much time to see the monument, but visiting it gives some idea of the Soviet Union’s grandiose aspirations.

I have a thing for tall buildings. So to continue my travel itinerary for one week in Moscow I decided to climb the fourth highest TV tower in the world. This iconic 540m tower is a fixture of the skyline. You can see it virtually from everywhere in Moscow, and this is where you can get the best panoramic views (yep, even better than Empire skyscraper).

Parts of the floor are made of tempered glass, so it can be quite scary to exit the elevator. But trust me, as you start observing buildings and cars below, you won’t want to leave. There is only a limited number of tickets per day, so you may want to book online. Insider tip: the first tour is cheaper, you can save up to $10 if go there early.

Day 5 – A Tour To Moscow Manor Houses

Metro Station: Kolomenskoye, Tsaritsyno on Dark Green Line / Kuskovo on Purple Line

I love visiting the manor houses and palaces in Moscow. These opulent buildings were generally built to house Russian aristocratic families and monarchs. Houses tend to be rather grand affairs with impressive architecture. And, depending on the whims of the owners, some form of a landscaped garden.

During the early part of the 20th century though, many of Russia’s aristocratic families (including the family of the last emperor) ended up being killed or moving abroad . Their manor houses were nationalized. Some time later (after the fall of the USSR) these were open to the public. It means that today a great many of Moscow’s finest manor houses and palaces are open for touring.

20 Travel Tips I’ve Learned From Travelling The World

There are 20 manor houses scattered throughout the city and more than 25 in the area around. But not all of them easily accessible and exploring them often takes a lot of time. I’d recommend focusing on three most popular estates in Moscow that are some 30-minute metro ride away from Kremlin.

Sandwiched between the Moscow River and the Andropov Avenue, Kolomenskoye is a UNESCO site that became a public park in the 1920’s. Once a former royal estate, now it is one of the most tranquil parks in the city with gorgeous views. The Ascension Church, The White Column, and the grounds are a truly grand place to visit.

You could easily spend a full day here, exploring a traditional Russian village (that is, in fact, a market), picnicking by the river, enjoying the Eastern Orthodox church architecture, hiking the grounds as well as and wandering the park and gardens with wildflower meadows, apple orchards, and birch and maple groves. The estate museum showcases Russian nature at its finest year-round.

12 Stunning National Parks and Regional Parks In France

If my travel itinerary for one week in Moscow was a family tree, Tsaritsyno Park would probably be the crazy uncle that no-one talks about. It’s a large park in the south of the city of mind-boggling proportions, unbelievable in so many ways, and yet most travelers have never heard of it.

The palace was supposed to be a summer home for Empress Catherine the Great. But since the construction didn’t meet with her approval the palace was abandoned. Since the early 1990’s the palace, the pond, and the grounds have been undergoing renovations. The entire complex is now looking brighter and more elaborately decorated than at possibly any other time during its history. Like most parks in Moscow, you can visit Tsaritsyno free of charge, but there is a small fee if you want to visit the palace.

How To Stop Procrastinating When Trip Planning

Last, but by no means least on my Moscow itinerary is Kuskovo Park . This is definitely an off-the-beaten-path place. While it is not easily accessible, you will be rewarded with a lack of crowds. This 18th-century summer country house of the Sheremetev family was one of the first summer country estates of the Russian nobility. And when you visit you’ll quickly realize why locals love this park.

Like many other estates, Kuskovo has just been renovated. So there are lovely French formal garden, a grotto, and the Dutch house to explore. Make sure to plan your itinerary well because the estate is some way from a metro station.

Day 6 – Explore the Golden Ring

Creating the Moscow itinerary may keep you busy for days with the seemingly endless amount of things to do. Visiting the so-called Golden Ring is like stepping back in time. Golden Ring is a “theme route” devised by promotion-minded journalist and writer Yuri Bychkov.

Having started in Moscow the route will take you through a number of historical cities. It now includes Suzdal, Vladimir, Kostroma, Yaroslavl and Sergiev Posad. All these awe-inspiring towns have their own smaller kremlins and feature dramatic churches with onion-shaped domes, tranquil residential areas, and other architectural landmarks.

Two Weeks In Thailand: The Perfect 14-Day Itinerary

I only visited two out of eight cities included on the route. It is a no-brainer that Sergiev Posad is the nearest and the easiest city to see on a day trip from Moscow. That being said, you can explore its main attractions in just one day. Located some 70 km north-east of the Russian capital, this tiny and overlooked town is home to Trinity Lavra of St. Sergius, UNESCO Site.

You Will Also Like: 3-Day London Itinerary

Sergiev Posad is often described as being at the heart of Russian spiritual life. So it is uncommon to see the crowds of Russian pilgrims showing a deep reverence for their religion. If you’re traveling independently and using public transport, you can reach Sergiev Posad by bus (departs from VDNKh) or by suburban commuter train from Yaroslavskaya Railway Station (Bahnhof). It takes about one and a half hours to reach the town.

Trinity Lavra of St. Sergius is a great place to get a glimpse of filling and warming Russian lunch, specifically at the “ Gostevaya Izba ” restaurant. Try the duck breast, hearty potato and vegetables, and the awesome Napoleon cake.

Day 7 – Gorky Park, Izmailovo Kremlin, Patriarch’s Ponds

Metro Station: Park Kultury or Oktyabrskaya on Circle Line / Partizanskaya on Dark Blue Line / Pushkinskaya on Dark Green Line

Gorky Park is in the heart of Moscow. It offers many different types of outdoor activities, such as dancing, cycling, skateboarding, walking, jogging, and anything else you can do in a park. Named after Maxim Gorky, this sprawling and lovely park is where locals go on a picnic, relax and enjoy free yoga classes. It’s a popular place to bike around, and there is a Muzeon Art Park not far from here. A dynamic location with a younger vibe. There is also a pier, so you can take a cruise along the river too.

How to Save Money While Traveling in Europe

The Kremlin in Izmailovo is by no means like the one you can find near the Red Square. Originally built for decorative purposes, it now features the Vernissage flea market and a number of frequent fairs, exhibitions, and conferences. Every weekend, there’s a giant flea market in Izmailovo, where dozens of stalls sell Soviet propaganda crap, Russian nesting dolls, vinyl records, jewelry and just about any object you can imagine. Go early in the morning if you want to beat the crowds.

All the Bulgakov’s fans should pay a visit to Patriarch’s Ponds (yup, that is plural). With a lovely small city park and the only one (!) pond in the middle, the location is where the opening scene of Bulgakov’s novel Master and Margarita was set. The novel is centered around a visit by Devil to the atheistic Soviet Union is considered by many critics to be one of the best novels of the 20th century. I spent great two hours strolling the nearby streets and having lunch in the hipster cafe.

Conclusion and Recommendations

To conclude, Moscow is a safe city to visit. I have never had a problem with getting around and most locals are really friendly once they know you’re a foreigner. Moscow has undergone some serious reconstruction over the last few years. So you can expect some places to be completely different. I hope my one week Moscow itinerary was helpful! If you have less time, say 4 days or 5 days, I would cut out day 6 and day 7. You could save the Golden Ring for a separate trip entirely as there’s lots to see!

What are your thoughts on this one week Moscow itinerary? Are you excited about your first time in the city? Let me know in the comments below!

JOIN MY FREE WEEKLY NEWSLETTER!

Email Address *

YOU WILL ALSO LIKE

10 Dishes You Must Try When Going To Moscow

15 Fantastic and Easy Day Trips Close to Moscow

When Is the Best Time To Visit Russia

24 comments.

Ann Snook-Moreau

Moscow looks so beautiful and historic! Thanks for including public transit information for those of us who don’t like to rent cars.

MindTheTravel

Yup, that is me 🙂 Rarely rent + stick to the metro = Full wallet!

Mariella Blago

Looks like you had loads of fun! Well done. Also great value post for travel lovers.

Thanks, Mariella!

I have always wanted to go to Russia, especially Moscow. These sights look absolutely beautiful to see and there is so much history there!

Agree! Moscow is a thousand-year-old city and there is definitely something for everyone.

Tara Pittman

Those are amazing buildings. Looks like a place that would be amazing to visit.

Adriana Lopez

Never been to Moscow or Russia but my family has. Many great spots and a lot of culture. Your itinerary sounds fantastic and covers a lot despite it is only a short period of time.

What was their favourite thing about Russia?

Gladys Parker

I know very little about Moscow or Russia for the\at matter. I do know I would have to see the Red Square and all of its exquisite architectural masterpieces. Also the CATHEDRAL OF CHRIST THE SAVIOUR. Thanks for shedding some light on visiting Moscow.

Thanks for swinging by! The Red Square is a great starting point, but there way too many places and things to discover aside from it!

Ruthy @ Percolate Kitchen

You are making me so jealous!! I’ve always wanted to see Russia.

Moscow is in my bucket list, I don’t know when I can visit there, your post is really useful. As a culture rich place we need to spend at least week.

DANA GUTKOWSKI

Looks like you had a great trip! Thanks for all the great info! I’ve never been in to Russia, but this post makes me wanna go now!

Wow this is amazing! Moscow is on my bucket list – such an amazing place to visit I can imagine! I can’t wait to go there one day!

The building on the second picture looks familiar. I keep seeing that on TV.

Reesa Lewandowski

What beautiful moments! I always wish I had the personality to travel more like this!

Perfect itinerary for spending a week in Moscow! So many places to visit and it looks like you had a wonderful time. I would love to climb that tower. The views I am sure must have been amazing!

I was lucky enough to see the skyline of Moscow from this TV Tower and it is definitely mind-blowing.

Chelsea Pearl

Moscow is definitely up there on my travel bucket list. So much history and iconic architecture!

Thumbs up! 🙂

Blair Villanueva

OMG I dream to visit Moscow someday! Hope the visa processing would be okay (and become more affordable) so I could pursue my dream trip!

Yup, visa processing is the major downside! Agree! Time and the money consuming process…

Save my name, email, and website in this browser for the next time I comment.

• Privacy Overview
• Strictly Necessary Cookies

My website uses cookies so that I can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to my website and helping me to understand which sections of Mind The Travel you find most interesting and useful.

You can adjust all of your cookie settings by navigating the tabs on the left hand side.

Strictly Necessary Cookie should be enabled at all times so that I can save your preferences for cookie settings.

If you disable this cookie, I will not be able to save your preferences. This means that every time you visit my website you will need to enable or disable cookies again.