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Critical questions
- Is there general agreement on the nature of the problem?
- Does the cooperative form of business meet the group’s
needs?
- Is there sufficient interest among potential co-op members
to proceed with a feasibility study?
- Are there individuals willing to serve in a leadership
capacity?
- Are qualified individuals conducting the feasibility
study?
- Does the feasibility study indicate that the co-op would
be viable as a business?
- What are the major obstacles and opportunities the co-op
will face and how can the co-op prepare for them?
- Given the results of the feasibility study, is there
still enough interest and commitment to pursue forming the
co-op?
- Are there enough potential members willing to invest the
required equity to provide the co-op sufficient start-up
capital?
- Has the steering committee determined whether or not
the co-op will issue stock?
- Has a lawyer familiar with cooperatives reviewed your
co-op’s articles of incorporation and bylaws?
- Has a bank account been opened in the cooperative's name?
- Will the steering committee do the business plan themselves
or will the co-op obtain technical assistance? Or some of
both?
- Does the steering committee have the necessary skills?
- Has the committee tried to obtain grants and loans available
to help pay for technical assistance?
- Is the co-op able to obtain the necessary capital through
a combination of equity and debt financing?
- Does the co-op have sufficient member support to continue?
- Is the co-op able to identify and recruit qualified individuals
for key management positions?
(Source: “Cooperatives: A Tool for Community Economic
Development”, University of Wisconsin Center for
Cooperatives and Cooperatives Development Services, 1998)
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