Food Co-op 500's Startup Model: Four Cornerstones in Three Stages

I just listened to another of Food Co-op 500's recorded seminars on starting a food co-op - this one on the Four Cornerstones in Three Stages model, presented by Bill Gessner. Getting a co-op off the ground is very complicated; this model outlines the process simply and concretely. A good thing to anchor ourselves to, perhaps?

Ellensburg, we're just about to embark on Cornerstone 1, Stage 1. Can't wait to see what happens.

The Four Cornerstones:

1. Vision

• “The articulation of hopes and dreams of a founding group”
• Broad, Long-term, Inspiring
• Specific and Local
• Refined as the emerging co-op moves through the development stages
• Includes the co-op as a solution to a common problem or need
• Core values and purpose
• A vision of the process of developing a food coop
• Building a shared vision over time

2. Talent

• “Those invested in the co-op’s success”
• Champion(s)
• Steering Committee or Task Force or Founding Team
• Board of Directors
• Developer(s) (Usually external to the co-op)
• Management (Development Project Manager, Facility Project Manager, General Manager) and Staff

3. Capital

• “Financial resources necessary for all stages of development”
• Organizing
• Feasibility
• Business Planning
• Implementation
• Sustaining (recover and reinvest)
• Internal resources are used to leverage external resources
• Education: members responsibility to capitalize co-op

4. Systems

• “Organized, integrated, coordinated, and interdependent methods”
• Legal
• Governing
• Management & Human Resources
• Planning & Assessment
• Communication and Marketing
• Finance & Accounting
• Operations
• Membership
• Commitment to continuous improvement
• Systems become more complex through the stages

The 3 Stages

Stage 1: Organizing

Emerging Co-op: Brings about the organization
One or more people start with an idea
Recognition of a common problem or need that a food co-op could meet

Includes:

– Convening a core group
– Assessing common interest and needs
– Designating, supporting, and developing leadership
– Building a shared vision
– Committing time and money
– Possible Preliminary (informal) Feasibility Assessment

*Timeframe: typically 6-12 months *Recommended member recruitment milestone**:300 (yes, we need member buy-in this early on in the process!)

**all member recruitment milestones assume a food co-op of 6,000 square feet. This may be larger or smaller than what Ellensburg envisions for itself, so we may want more or fewer members at each milestone.

Stage 2: Feasibility and Planning
Emerging Co-op: Brings about the operation
An organized group with commitment, interest and capacity
Assesses feasibility: market potential, financial feasibility,
internal readiness and design feasibility

Includes
– 2A = Feasibility - deeper assessments of financial, market and organizational capacity

*Timeframe: typically 3-6 months *Recommended member recruitment milestone:450

– 2B = Planning – a business plan for financing and operations, preparing to hire general management, preliminary store design
*Timeframe: typically 3-6 months *Recommended member recruitment milestone:600

Builds commitment and capacity (both leadership and management)
Brings about a secured site for the operation


Stage 3: Implementation
Emerging Co-op: Brings satisfaction of member needs
Demonstrated capacity in all the cornerstones

Includes
– 3A = Preconstruction

*Timeframe: typically 3-6 months
The end of 3A is the POINT OF NO RETURN
Paid management staff typically come online at this time.
Site is finalized, as is all financing related to construction and opening

– 3B = Construction & Renovation
*Timeframe: typically 3-6 months

– 3C = Preparation for Opening
*Timeframe: typically 1 month *Recommended member recruitment milestone:1,000

– 3D = Sustaining - First Year and Beyond (and now the work begins!)