Oklahoma Food Cooperative, Logo by Member Sarah Naylor

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BEST MANAGEMENT PRACTICES CHECKLIST

Below is a handout Mark Parman brought to our June 3, 2003 organizing committee meeting dividing the cooperative organization process into three steps: Basic, Analysis, & Implementation.
  1. BASIC

    1. Select a promising business opportunity idea.
      • Discuss idea among a small group of potential members.
      • Formalize specific project ideas.
      • Find agricultural producers to champion the idea.
      • Focus on building a business, not on creating jobs.

    2. Select steering commitee.
      • Steering committee must be involved, committed, and feel ownership of project.
      • Establish action plans and timelines.
      • Hold regularly scheduled meetings with prepared agendas.
      • Keep meeting minutes to receord decisions and progress.
      • Expect a time consuming path to success.
      • Focus first on why it will work, then why it won't work.

    3. Select consultants and advisors.
      • Understand the industry.
      • Some information has to be discovered instead of absorbed.
      • Get legal advice before you need it (prevention vs. treatment)

    4. Conduct a preliminary market evaluation.
      • Build business in response to market needs.
      • SWOT analysis (strengths, weaknesses, opportunities, threats)
      • Consider partnering with other value added groups and/or industry players.

    5. Assess producer and investor interest.
      • Conduct a potential members producer survey.

    6. Select interim board of directors.
      • Committee members should be honest, steady, and trusted by potential members.
      • Need someone to challenge idea instead of everyone thinking the same.
      • Select representatives outside of agricultural producers.
      • Concentrate on the finished project.
      • Answer, "Why will this project be successful?"

    7. Organize with simple Articles of Incorporation and Bylaws.
      • Elect official board of directors.
      • Obtain directors and officers insurance.

    8. Acquire funding for analysis stage.
      • Look for available grants.
      • Members show commitment by contributing financial obligations.

  2. ANALYSIS

    1. Conduct a feasibility study (should we do it?).
      • Feasibility study should include: Market evaluation, economic evaluation, operating evaluation, financial evaluation, management evaluation.

    2. Prepare a business plan. (How do we do it?)
      • Business plan should include organizational plan, marketing plan, operational plan, financial plan.

    3. Organize the financial plan.
      • Don't underestimate capital needs (working capital, startup costs, contingency)
      • Don't short projected equity requirements.

  3. IMPLEMENTATION

    1. Recruit members.
      • Prepare prospectus.

    2. Hire management team.
    3. Acquire facilities, hire employees.
    4. Implement business plan and begin operations.