(Adapted from How to Start a Co-operative, United States Department of Agriculture, Rural Business/Cooperative Service).

Several of the guidelines for the formation of a co-operative apply to more than one step of the process and are also critical to the continuing success of the co-operative's operations.

Keep members informed and involved.

When members are involved and informed about the co-operative, they are more willing to patronize and invest in the co-operative. Member responsibilities start with the conception of the co-operative and remain throughout the life of the business to assure successful organization, sound management, and operation.

Ongoing communication and education programs (targeted to co-op members, directors, management and staff) are an integral part of the success of a co-operative business. Such programs require financial support and must be backed by specific board and management policies.

Use advisors and committees effectively.

Effectively organizing human resources and using the expertise of advisors is central to the success of any business. Maximum participation by potential members is crucial to the success of a co-operative.

Committees provide members with the opportunity to develop skills and to participate in the affairs of their co-operative-increasing their feeling of ownership and responsibility for its success. Committees are useful for both the start-up and the ongoing management of the co-operative.

Maintain good board-manager relations.
The differing responsibilities of the board of directors and the manager must be clearly understood and carried out. Directors represent members and are legally responsible for the performance and conduct of the co-op. Directors' three major responsibilities are to set policies, employ and evaluate the general manager, and secure adequate financing for the co-operative. Management carries the responsibility for the daily operations of the co-op. The use of policy and procedure manuals and job descriptions along with frank discussions of questions when they arise can help to maintain good board and management relations.

Conduct effective meetings.

A co-operative is a business and its meetings should be conducted in a businesslike manner. Parliamentary procedure is appropriate for orderly democratic group action. An effective meeting is the result of carrying out several successive steps: preparation, good facilitation, member participation, following an agenda, and following through on meeting actions.

Follow sound business practices.

The major challenge to co-operative members, the board of directors, and operating management occurs after business operations begin. Operating on a sound business basis includes the implementation of an accurate accounting system, regular preparation of financial statements, reporting to the membership in a clear and timely manner, and keeping exact member records. It also involves a continual evaluation of costs and the productivity of labor, facilities, equipment and technology employed by the co-op.

Once the co-operative is organized and operating, members will need to consider how they want it to grow. This task requires both short-term planning and long-term strategic planning. Strategic planning looks three to five years ahead and involves developing a vision and mission statement, appraising the future, assessing the external and internal business environment, defining desired goals with stated objectives, and developing a course of action to achieve these
goals.

Forge links with other co-operatives and organizations.

The search for beneficial links with other co-operatives, businesses and associations should continue on an ongoing basis. Alliances with other businesses can be valuable sources for supplies, marketing outlets, and related services. Membership in provincial and national associations can keep the new co-operative abreast of what others around the country are doing. These associations can be sources of education and training programs, and legislative and public relations support activities. They can also help to identify sources of special expertise.