Thinking about starting a co-op, but not sure where to start? That’s okay! There’s no single pathway to starting a co-op. While the obstacles you might navigate will be unique to your region and the industry, there are common steps that all emerging co-ops take on their start-up journey.  

 At Co-operatives First we work with co-op entrepreneurs like you every day. The first few steps groups take towards starting their co-op are similar, despite the differences in their businesses or organizations.   

Once you’ve identified what your co-op will do, here’s the next steps to take:   

Step 1: Find Some People  

Identifying the need your co-op will meet is important, and you need to make sure it’s an issue others share. Once you have that, you don’t need to find every member right away, but you also can’t have a co-op of one. Make sure you have at least two or three people who share the same need or goal, who are motivated to do something about it. And as you move forward, keep talking to people; this will help you build support for a membership drive later.   

In our work with the Weed Pool Cannabis Co-operative, several small, independent retailers recognized the need for a procurement co-op to ensure they could compete with large corporate cannabis stores. Today, the Weed Pool consists of 20+ member retailers and handles a significant portion of Saskatchewan’s cannabis market. It all started when founding members Clay and Jim started discussing their concerns with other independent store owners.   

Step 2: Do Your Research  

Once you have a general idea of what you want to work on, do a little research. Try and answer some questions about your needs and the kind of organization you might create. Google will be your friend here, and our website has tonnes of resources and examples of co-ops across all industries. So, whether you need more seniors housing, affordable farm inputs, reliable internet, or local capital, try answering these questions:  

• Are there organizations that provide this service in your region? Or online? 

• How have other people addressed this need in other areas?  

• How are other people in your region navigating this challenge? 

• Can you meet your needs without creating a new business?  

• Are there examples of a co-op doing this work elsewhere? 

This is also where lots of people reach out for some early guidance. The most common question we get at Co-operatives First is “can a co-op do ____?” And the answer is almost always, yes!   

Step 3: Some Back-of-the-Napkin Math  

At some point you may want to complete a feasibility study, but during these early stages, you can keep things simple. Use this preliminary budgeting tool as a guide for mapping out some of the costs you’ll incur during this project. Estimating things like your capital expenses, legal fees, and planning costs will give you a sense of the funds you’ll need to raise to get up and running. Is that number realistic? How might you raise these funds? Could you borrow these funds? Would community members invest in this project? These are questions you’ll need to answer at some point. For these early stages, use your judgment to determine if these figures are manageable and whether you should move forward.   

Step 4: Identify Local Resources  

A key to any project’s success is using the resources readily available to your team. This could include business support organizations like your town’s economic development officer or Community Futures office. It might also include things you’ll need to build a business, like available land, funding organizations, lenders, and suppliers/service providers. You might not need these supports right away, but it’s good to take stock of what’s already available that can support you along the way.   

If your project will benefit the entire community, it might be helpful to reach out to your local government sooner rather than later. Getting their support and ensuring you’re not duplicating efforts is time well spent. In particular, if you’re working on a project that addresses housing, childcare, seniors’ services, recreation, or starting an investment co-op, contact your town’s EDO. They’ll be able to offer a lot of guidance on moving these projects forward and can connect you with many of the resources you’ll need.   

Step 5: Find Expert Support  

You’ve got your team, you’ve done some research, and you have a good sense of what you want to do. If you’re in Western Canada, this is a good time to check in with Co-operatives First. Our team of experts can answer any questions you might have about forming a co-op or whether a co-op will be a good fit for your business. Reach out to book a call with us to discuss your business idea and we’ll provide some guidance to help move things forward. Of course, you can do this earlier in your process, and we can help with the steps we’ve already mentioned. And you can access our online tools, resources, and training any time to get the information you need.