RIVERBENDMARKET FOOD COOP

1
-

• RIVERBENDMARKET FOOD CO-OP
• May 14, 2008

2
Tonights Presentation and Goals

• Review our Vision and Mission.
• Inform you where we are now in forming the food
  co-op in Red Wing.
• Discuss Feasibility Study and Process
• Break up into committees
• Regroup for final comments

3
Our Overall Vision/Mission

• Vision/Mission
• To provide a community co-op where Red Wing
  residents and visitors can buy organically and
  locally grown healthful, fresh food at affordable
  prices.

Co-op Advantage Good food. Its easy to find,
easy to prepare, easy to love. Because when you
shop at your local co-op, not only will you
experience the best and freshest selection of
wholesome foods, but also specials, recipes and
expertise to help you make the most of it. Look
for Co-op Advantage special offerings at your
local co-op or click on the link below to view
and download this months specials.
4
The Vision of Riverbendmarket Co-op

• Near or in downtown Red Wing
• 700 members
• 5,000 square feet grocery store
• 1,000,000 gross revenues
• Offers local foods whenever possible
• Encourages local food production
• Good paying permanent and part-time jobs
• Community gathering place

Wedge Community Co-op Minneapolis
5
Steps in Organizing a Food Co-op

• Organize Hold a meeting of potential members to
  discuss needs and options. Select a steering
  committee to coordinate the group.
• Review findings and incorporate Prepare and
  approve articles of incorporation and bylaws.
  Report on the results of the feasibility study.
  Elect a board of directors. Begin initial member
  fund-raising.
• Research feasibility Survey potential members
  and conduct market research. Prepare a
  feasibility study.
• Recruit members Hold meetings and prepare
  materials describing the co-op. Establish member
  investment options and conduct a member equity
  drive.
• Planning and financing Prepare a detailed
  business plan and research financing options.
  Identify possible locations and negotiate lease
  arrangements.
• Secure financing Finalize outside financing
  sources and terms.
• Begin operations Hire a manager, locate store
  fixtures and equipment, finalize layout,
  establish accounts with suppliers, and set up the
  store.
• Open the doors!

6
Where we are now in developing a food co-op in
Red Wing.

• Steering Committee
• Community Meeting
• Incorporation
• Feasibility Study

7
What is a Feasibility Study?

• An assessment whether the proposed co-op is
  likely to be successful and beneficial to its
  members.

8
What is the Feasibility Study Process?

• Initial Research
• Need for a food co-op
• Potential Membership
• Volume of business
• Facilities
• Operating Costs
• Capitalization and sources
• Other issues

9
Key Elements of a Feasibility Study?

• Determine common needs of potential members
• Products and Services
• Develop market potential and strategy
• Capacity
• Competition
• Distinction
• Financial benefits to members

10
Key Elements of a Feasibility Study?

• Consider Operations
• How does the co-op work?
• Primary Suppliers
• What services will be provided
• Calculate financial needs and sources
• Start-up capital
• Operating Costs
• Financial Feasibility
• What will be the members financial contribution
• Other sources of financing

11
Key Elements of a Feasibility Study?

• Study start-up needs
• What does it take to get the co-op started?
• Lead time
• Seasonal production cycles
• Management Skills
• Facilities
• Availability
• Size and type
• Cost

12
Committees Structure

• Planning Committee
• Membership Committee
• Finance Committee

13
PROPOSED TIMELINE
Review findings incorporate
Open the doors!
Research feasibility
Recruit members
Begin operations
Secure financing
Organize
August 2007
April 2008
June 2008
Fall 2008
Spring 2009
July 2009
August 2009
14
Next Steps

• Committees meet and discuss plan of action
• Determine duties
• Do research
• Complete feasibility steps
• Meet again as entire group