FAQs

A cooperative is a business that is owned and controlled by its members. In consumer food cooperatives, the members consist of people who use the goods and services provided by the co-op. Membership is open and voluntary to those who wish to join. There are many types of cooperatives all over the world including consumer co-ops, worker co-ops, housing co-ops, producer co-ops and credit unions. No matter what their function, all cooperatives exist to serve their member-owners.

Each member makes an investment in their co-op and has a voice in controlling their co-op’s activities. Anyone may become a member by making an investment to get the benefits all members receive, including one vote in member decisions. This is different from privately owned businesses, in which there is unequal ownership and control based on the size of one’s investment.

Co-ops operate according to a set of specific business principles designed to benefit their memberships. Although cooperatives serve a wide variety of purposes and use differing organizational structures, they generally direct their activities toward the common good and foster active democratic participation and education. Worldwide, cooperatives adhere to the International Cooperative Alliance Statement of Cooperative Identity and Cooperative Principles.

Not at all! Columinate consultants work with food co-ops, electric co-ops, credit unions, independent retailers, school boards, employee-owned businesses and not-for-profits (to name a few). Our focus is on helping mission-driven organizations who are dedicated to helping people and harnessing community to create positive change.

Columinate includes a network of experienced independent consulting professionals who specialize in developing cooperatives. Our consultants specialize in helping cooperatives achieve growth, increase profitability, improve board leadership, strengthen management, and better serve their members and community. We tailor our services to deliver results for co-ops.

Columinate can provide you with a variety of cost-effective services throughout the planning and implementation of your expansion/relocation project. Our consultants have assisted more than 250 cooperatives with expansion projects ranging from $100,000 to $5 million.

Policy Governance® is a comprehensive model whereby governing boards establish their values and expectations in policy, delegate implementation to the board’s sole employee (typically the general manager), and monitor the outcome of operational activities against the stated policies. Policy Governance® gives boards the capacity and role clarity to truly be trustees for the member-owners.

Cooperative governance is the act of steering cooperatively-owned enterprises toward economic, social and cultural success. It consists of answering key questions, defining roles and responsibilities, and establishing processes for setting expectations and ensuring accountability.

Columinate has created a model of cooperative governance recognizing the unique needs of the co-op world. Based on the results of our research and deep experience with food co-op boards, the Four Pillars of Cooperative Governance model (4PCG) offers directors and managers a framework for approaching their work grounded in cooperative values.

Our consulting services include market and site analysis studies, trade area determination and market penetration analysis, market expansion strategy, cannibalization and sales impact studies, problem store analysis, and sales forecasting. These consulting services are useful when considering new or additional stores, remodels, expansions, or relocations. They can also result in a better understanding of existing store trade areas, in terms of their size, configuration and market penetration.

Columinate offers a two-day Margin Management workshop that analyzes your current margin strategy and provides suggestions on how to improve that strategy.

Member loans are the most effective way to determine member support of an expansion project and to leverage necessary bank financing. Many co-ops dramatically underestimate the potential for member loans that can be raised from their membership.

Every co-op starts with an idea. One or two people see a need and envision a way to meet that need. Whether that need is for members to receive better prices, to gain access to new products, or to obtain specific services, the need must be clear.

Starting a co-op is just as complex and time consuming as starting any business. To be done properly, it can’t be rushed. Most experts estimate that starting a co-op typically takes at least two years. As with any new business, starting a co-op will involve thorough and careful business planning.

Columinate created Four Cornerstones in three stages, a development model which comprises a process for developing a cooperative retail food business. The model identifies the attributes necessary for a successful food co-op. If you’re a start up food co-op, contact the Food Co-op Initiative to help you get started.

As with other forms of business, owners provide much of the capital needed to get a business started. Member-owned capital can be leveraged to obtain other sources of capital if the feasibility and business planning look promising.

Local fundraising is usually the beginning point for most groups. If the community shows support, this is a positive signal to other funding organizations. Some efforts have been funded in part by charitable organizations and/or local, state, regional and federal programs. The resources available are often linked to the remediation of specific needs such as increasing economic development and job opportunities. The internet and networking, beginning with local leaders and business people, are often the best ways to start searching for a funding source that fits the situation.