Purpose: To clearly identify a common economic goal and asses the level of interest in the formation of a co-operative to address this goal.

The catalyst for forming a co-operative business is a group of compatible individuals who share a common economic goal and who believe that they can best achieve this goal by working together.

A common economic goal can be the result of a shared problem or opportunity. For example, the group may lack a market for their products or a satisfactory source of farm supplies. Or they may wish to engage in an activity, such as processing, which will allow them to develop their industry
and will provide additional sources of income.

Clearly identify the goal or reason for the formation of a co-operative.

In most cases a common goal will be identified by a group of prospective co-op members getting together to discuss the issues facing their farm business. These informal gatherings lead to further discussions and ideas of how a co-operative can address the issues common to the group. To clarify the idea for forming a co-operative:

• Research the issues facing your group, focusing on the biggest obstacles and identifying current options and potential alternatives;
• Collect general information on the structure and operation of co-operative businesses;
• Gather information about the kind of business that your group is interested in;
• Use the information collected to determine which goals a co-op can and cannot address;
• Discuss your findings with as many potential members as possible.

*Much of the material in this section is adapted from "How to Start a Cooperative", Rapp, G. and G. Ely, United States Department of Agriculture and "Steps to Starting a Marketing Co-op", Zimbelman, K., K. Coontz and A. Malan, Center for Cooperatives, University of California and the Northwest Cooperative Federation.