Thinking of becoming a co-operative? Read this first...
As our case studies demonstrate, there are huge potential advantages for businesses that are willing to adopt the co-operative model.
But although the end goal is well worth the journey, businesses that are considering becoming a co-op need to understand that it is a big step, whatever the size or nature of your enterprise.
Anne Sowerby is a Director of Co-operative and Mutual Solutions Ltd a consultancy providing business advice for co-operatives and social enterprises throughout the UK. Anne is part of the consortium that delivers advice and training in the north west of England, and is currently piloting the operation in Yorkshire and Humber.
She has many years' experience in helping businesses make the step from traditional to co-operative model, and as such knows all about the questions a business must ask themselves before doing so.
Below she gives three key tips for businesses thinking of becoming a co-operative:
- Be in it for the right reasons
Don't think of the co-operative model as your easy route to self-employment or improved funding opportunities. Neither is actually the case, but in any event your chances of success in the co-operative movement really depend on you genuinely believing in its seven principles:
Voluntary and open membership – membership is open to everyone
Democratic member control – all members have an equal voice in making policies and electing representatives
Member economic participation – all profits are controlled democratically by members and for their benefit
Autonomy and independence – co-operatives are always independent, even when they enter into agreements with the Government and other organisations
Education, training and information – co-operatives educate and develop their members as well as their staff
Co-operation amongst co-operatives – co-operatives work together with other co-operatives to strengthen the co-operative movement as a whole
Concern for community – co-operatives also work to improve and develop the community, both locally and internationally.
You can read more about the co-operative movement's values and principles here.
There are lots of people for whom the co-operative business model is not right. If you're only interested in the bottom line and what you can get out of your business, then a co-op's probably not for you.
- Don't think there's only one type of co-op
There's a different kind of co-operative to suit different business brains - it's definitely not a case of like it or lump it. There are different types of governance, such as the worker co-operative that is democratically controlled by its "worker-owners", or a consumers' co-operative that is owned autonomously by its customers, such as The Co-operative itself.
There are also different types of actual co-operative, such as a housing co-operative, where residents either own shares or have membership and occupancy rights, or credit unions, which are co-operative financial institutions that are owned and controlled by their members.
You'd probably be surprised at the range of businesses out there that are co-ops - after all, don't forget that even Real Madrid football club is a co-op!
- Don't be put off by the lack of understanding out there
There's still a lot of ignorance out there about the co-operative movement and the whole notion of "a co-operative". On a fairly regular basis, I'm met with blank faces when I tell people what I do. Many people just don't understand, and to be honest I think that many people just don't want to understand.
But this should not let this stop you from pursuing your goal of starting a co-operative. There are lots of successful case studies up and down the country, all proving the empowering effect that a co-operative can have on its employees.
If you're still interested after reading this post, I'd highly recommend that you take the opportunity for advice and training offered by the Enterprise hub. It could be the best thing you ever do for your business.