Purpose: To implement the business plan and prepare for the start-up of the co-op's operations.

A number of important activities will need to be completed before the co-op can begin operations. These activities include: conducting a membership drive, acquiring capital, obtaining facilities, setting up accounting systems, hiring management and training staff.

To plan for the start-up of the co-op's operations, define and determine the sequencing of all the tasks connected with making the business operational and ready to serve the members. Assign directors individual tasks or committee responsibilities to implement the business plan. Use committees to work in areas such as membership, facilities and site selection, finance, and communications.

Committees can include members, but at least one board member should be on each committee to enhance communication. Committees can also be useful in the ongoing management of the co-operative. Additional temporary or permanent committees might include advisory groups for youth and young member activities, education and training, long-term planning, commodities and services, member and public relations, and legislative affairs.

Hold a membership drive to secure equity and patronage commitments.
A new co-operative must have enough members to start operation and justify its existence. To encourage membership, it is important for producers to understand what their co-operative is and how it operates. Prepare a summary of the co-op's business plan and use it to outline the advantages
of membership to potential members, such as the provision of services or the potential for increased returns. If the co-operative is unable to solicit sufficient patronage and equity commitments from producers during the membership drive, table the project and reassess the feasibility of the proposed
business, its operations and its financial and organizational structure.

Decision Question: Do you have a strong enough commitment from producers to begin operations as outlined in the business plan?

Apply for debt capital.

Once member financing is secured, it can be used as a basis to apply for debt capital. Lenders will insist on seeing certain key documents before considering a loan request, including:

• projected volume of business;
• market information;
• projected cash flow information;
• operating statement;
• balance sheet;
• schedule of fixed asset costs and depreciation;
• a summary of scheduled financing needs and capital sources.

This information should be readily available within the co-operative's business plan.

Acquire facilities.

Facilities need to be conveniently located for members but should also enable the establishment of good distribution links with suppliers, markets, and other business services. Factors to consider in locating facilities include:

• proximity to members and markets;
• transportation routes, highways and railways;
• availability of labour;
• availability of land and buildings;
• levels of taxation;
• environmental and other regulations.