Co-ops are different from other corporations. How they are different is generally found in the way they make decisions, interact with their owners, share profits, and raise capital. Choosing the right business structure is key to a successful operation.
To assess whether a co-operative structure is right for your business, try this short questionnaire.
NOTE: If you’re not familiar with the different options for how to structure your business, check out our business model comparison.
For the following questions, choose a, b, or c for the answer that best fits your situation.
If you chose mostly ‘a’s, a co-op is a good fit for your business idea. A corporation or partnership model may be your best option if you mostly chose ‘b’. If most of your answers are ‘c’, think about using a non-profit corporation, charity, or community service co-op model.
How you answered questions 1 (Why do you want to create this business) and 3 (How should profits be distributed) are very important in determining a corporate structure. If you answered “a” for both, you probably have a great co-op business idea.
Co-operatives provide a different, and sometimes better, way of doing business – but they are not the right option in every situation. How you want your business to make decisions, handle profits, raise money, and interact with its owners, should determine whether a co-op is right in your situation. Contact us if you are still not sure if the co-op model is best for your idea.
Need a business plan? Start here. The Biz Plan Creator is an easy-to-use and helpful tool. Designed to guide you through the process, the Biz Plan Creator offers a user-friendly platform and clear advice at every stage. Plus, it includes a secure account and customized branding of your plan. So, you can leave and come back to your plan as needed. And when you’re done, a branded PDF business plan ready for investors and financiers is your reward.