Development Model

The Food Co-op Initiative Development Model was developed by Cooperative Development Services, a partner with NCB and National Cooperative Grocers Association in designing this program. All three organizations believe that the model, if followed by the applicant, will result in a greater chance for success.

Food Co-op Initative Development Model
The model is based upon the four cornerstones of vision, talent, capital, and systems that are each within three stages of food co-op development: organizing, feasibility and planning, and finally implementation. The four cornerstones and their three stages comprise a process for developing a cooperative retail food business. This process recognizes the need for support systems along the journey and seeks to provide assistance to approved applicants during the various stages.

Four Cornerstones

The four cornerstones in the Food Co-op Initiative Development Model are Vision, Capital, Talent, and Systems. Each is critical to the success of a new cooperative and supported with assistance of the program and use of the model throughout the process. You may also download an expanded version of this outline.

I. Vision: “The articulation of hopes and dreams of a founding group”

  • Broad, Long-term, Inspiring and
  • Specific and Local
  • Refined as the emerging co-op moves through the development stages
  • Includes the co-op as a solution to a common problem or need
  • Core values and purpose
  • A vision of the process of developing a food coop

II. Talent: “Those invested in the co-op’s success”

  • Champion(s)
  • Steering Committee or Task force
  • Board of Directors
  • Developer
  • Management (Development Project Manager, Facility Project Manager, General Manager)

III. Capital: “Financial resources necessary for all stages of development”

  • Organizing
  • Feasibility
  • Business Planning
  • Implementation
  • Sustaining (recover and reinvest)
  • Internal resources are used to leverage external resources

IV. Systems: “Organized, integrated, coordinated, and interdependent methods”

  • Legal
  • Governing
  • Planning & assessment
  • Communication and Marketing
  • Finance & Accounting
  • Operations
  • Commitment to continuous improvement
  • Systems become more complex through the stages

Development Stages

Stage I: Organizing
Emerging Co-op:
Brings about the organization

  • One or more people start with an idea
  • Recognition of a common problem or need that a food co-op could meet
  • Includes
    • Convening a core group
    • Assessing common interest and needs
    • Designating leadership
    • Building a shared vision
    • Committing time and money
  • Brings about the organization

Stage II: Feasibility & Planning
Emerging Co-op:
Brings about the operation

  • An organized group with commitment, interest and capacity
  • Assesses market potential and internal readiness
  • Includes
    • Feasibility – deeper assessments of financial, market and organizational capacity
    • Planning – a business plan for financing and operations
  • Builds commitment and capacity (both leadership and management)
  • Brings about a secured site for the operation

Stage III: Implementation
Emerging Co-op:
Brings satisfaction of Member needs

  • Demonstrated capacity in all the cornerstones
  • Includes
    • Preconstruction
    • Construction & Renovation
    • Preparation for Opening
    • Sustaining - First Year and Beyond
  • Brings about the satisfaction of member needs