Co-operative business model – few thoughts -2

Last sunday, met Mr.Ganesh to discuss about the co-operative business model. Here are the points we discussed.

This is a plan to do a business with co-operative model. Any one can buy shares to be a part of the business. We can buy the products from the source itself so that we can buy for low cost and in high numbers.

read here for the initial thoughts.

Need to plan on the following.

1. Product to sell
2. Place
3. Workers/Salary
4. Storage place/Electricity
5. Advertisements
6. Product selling cost
7. Membership cost
8. Return of the loans
9. Benifits for the members

To start operating, we need investment.

We can get investments, via
1. Bank loan
2. Personal Investments

Heard that if we form a co-operative society, government will assign a person as secretary, to monitor the operations and will give some fund as loan. Need to read the laws for co-ops societies, to know more on this. If you know anything on this, please share the details.

We need to get volunteers or hire some people to do all the management activities.

Need to fix the following
selecting people
how long they can serve for the role
laws to solve any issues/reports on them

Transparency is one of the key pillars of this system.
All the buying prices, selling prices, profits, loss, bills, sales, accounts should be open for public. All the processes should be recored and kep onine immediately.

we may not able to buy from the source, aka farmers directly, But, we can buy from the fitst level agents. Need to plan for buying from the source/manufacturers itself, to eleminate man in the middle.

Need to fix Quality levels, QA process, people, inspections in all the levels.

Cost of the products:
The cost of the selling products should be lower for members. Non-members should buy for little higher and below market rate.

Market Survey:
Need to do a market survey, to choose the products to sell. It may vary on the place of the shops. We can do it ourself or outsource for some marketing agency.

Share cost and Dividend:
How to calculate share cost and dividend?
How many shares can one person buy?
How to make the share holders not to trouble the business operations?

Like this, there are so many things to be discussed, fixed. Need to create a strong system with all if’s and but’s. All the created laws should manage the entire system, regardless of the people involved in any position.

Started to discuss about the co-operative business model with friends. Have to discuss with some local business people. They may see it from different angel. May be as competitive. Hope they will give some interesting inputs. Will share after some discussions.

Are there any books available on how the co-operative business models are operating? How the OK Co-operative business are working?

Please share your thoughts on this business model.

will you be a member of such business model?


One thought on “Co-operative business model – few thoughts -2

  1. hey srini…
    after the meeting, i came to know about sontipur, consumer cooperative society. I do not know whether you have seen this or not. but thought of sharing it…

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