Co-operative Business Model Comparison with Other Models - Co-op Creator

Early Stages

How to start a co-operative: a step-by-step guide Creating an action plan What is a steering committee, and what does it do? Choosing a business structure: A questionnaire How to name your co-op: a by-province guide Transitioning a Business to a Co-operative Co-operative Members and Governance Choosing a Co-op Type Hosting a Community Meeting Focusing Ideas for Your Co-operative Co-operative Business Model Comparison with Other Models Building Consensus

Incorporating

A Guide to writing Rules of Association in BC Guide to Writing a Financial Plan

A Guide to writing co-op bylaws in Manitoba

Guide to writing Bylaws in Saskatchewan

Guide to Federal Bylaws

Choosing a ‘Co-op Type’ and its Impact on Your Business Incorporating a co-op in Western Canada — a provincial comparison Incorporation time frame Articles and bylaws (video) Choosing a name (video) Why should you incorporate your co-op? (video) Shaping your Co-op’s Identity Incorporation Checklist

Business Planning

How to create a governance structure Creating a Preliminary Budget — A Guide Building a Business Model Canvas Risk Identification and Management Legal Risks for Co-op Start Ups How to write a value proposition Do a PESTLE Analysis How to find new co-op members Why create a business plan? (video) Roles and Responsibilities Business Planning Pitch Practice How to allocate your co-op’s profits Co-operative Members and Governance

Financing

How to handle share capital in a co-op Debt vs Equity (video) Tax Treatment of Co-operative Businesses Ongoing Capitalization Guide to Writing a Financial Plan Financing your Co-operative Business Budgeting and Co-operatives

Up and Running

Three AGM Resolutions Every Co-op Needs for their Annual General Meeting What you need to know for your first AGM How to Waive an Audit Sample Board Duties How to Build a Board Calendar How to write a Board of Directors’ Code of Conduct Write a compliance checklist How to issue dividends Creating a Terms of Reference Creating a Strategic Plan Creating a Human Resources Policy Free Online Governance Course Creating a Conflict of Interest Policy Board of Directors Evaluations Board Member Recruitment Board Decision-Making Exercise How to allocate your co-op’s profits

How to write a Board of Directors’ Code of Conduct Write a compliance checklist

How to Read Financial Statements Keeping track of members in a co-op Everything you need to know about managing records Board Governance Tips for Indigenous Co-operatives Sample Bookkeeper Contract How to write a Board of Directors’ Code of Conduct Write a compliance checklist How to issue dividends Sample Co-op Equity Statement How to write a communication plan A Guide to Co-operative Insurance Member Engagement and Onboarding Guidelines for co-operative elections Filing your Annual Return Co-operative Annual General Meetings Ongoing Capitalization How to allocate your co-op’s profits

Additional Resources

Goparity Pacific Economic Development Canada Co-ops and charitable status Prairies Economic Development Canada

Back

Co-operative Business Model Comparison with Other Models

The co-operative business model combines the best of small business ownership and a corporation. It often includes local wealth creation and reflects community interests, like a small business. But it also provides governance, potential for longevity and limited liability, like a corporation. Here’s a look at how the model compares to other types of business models.

Business Model Comparison

The co-operative business model has two key advantages. The first is how well it supports local economic, business and community development. The second is how versatile the model is – capturing both a small, three-person shop or a multi-stakeholder global partnership, and just about everything in between.

Differences to note

The co-operative business model combines the best of small business ownership (local wealth creation, reflects community interests) and a corporation (governance, potential for longevity and limited liability).
The co-operative model is the only one on this chart that provides a governance model where every voice around the table is equal.
Remember that a co-operative is NOT (necessarily) community-owned. Rather enterprises in a co-operative business model are owned by members of a community who organize as co-op. For example, KPMG is a global group of independent accounting firms. The Co-operative Retailing System is a unique group of independent retails in western Canada. The BC Livestock is a group of ranchers in British Columbia.
All members or shareholders generally have one vote. This differs from an investor-driven shareholder group where influence is based on number of shares owned. That said, you can have different classes of shareholders, which will impact decision-making influence. However, it will not impact the one share, one vote rule.
Profit distribution – especially for consumer co-ops, like gas stations or grocery stores – is often based on shareholder or membership use of the service or product the business delivers.

Was this useful?

Downloads

Business model comparison