GROUP 10

ORGANIZING A PRIMARY
COOPERATIVE
Get organized you must Have at least
15 members to do that
 DEFINE THE PURPOSE

Clearly define the purpose and objective

of your cooperative. What will it produce
or provide? Who are the target member or
customer?
 GATHER INTERESTED MEMBERS

Identify individual who are interested in joining

the cooperative. These could be potential
members, worker, or customer.
 Develop a business plan

Create a detailed business plan that outlines

the cooperative structure, activities and
projections. This plan should include information
on how the cooperative will be financed and how
profits will be distributed.
 Legal registration

Register the cooperative as a legal entity in

accordance with your country’s laws. This
typically involves selecting a business structure,
such as a corporation or LLC, and completing the
necessary paperwork.
 Membershipn agreements

Develop membership agreements or bylaws

that outline the rights, responsibilities, and
obligations of the member. These agreement
should also specify the process for admitting new
members and exiting current member.
 FINANCIAL MANAGEMENT

Set up a system for financial management,

including opening a bank account for the
cooperative, keeping accurate financial records,
and creating budget.
 DECESION-MAKING STRUCTURE

Establish a decision-making structure that

outlines how major decision will be made within
the cooperative. This might involve a board of
directors or a general assembly of members.
 OPERATIONS AND MANAGEMENTS

Define the day-to-day operations and

managements structure. Assign roles and
responsibilities to members, and establish
procedures for handling daily tasks.
 MARKETING AND SALES

Develop a marketing and sales strategy to

attract customers or clients to your cooperative.
Consider how you’ll promote your product or
services.
 FUNDING AND CAPITILIZATION

Secure the necessary capital and funding to

start and operate the cooperative. This could
involve contributions from members, Loans,
grants, or other sources of financing.
 COMPLIANCE

Ensure that your cooperative complies with all

legal, tax, and regulatory requirements in your
jurisdiction.
 LAUNCH AND GROWTH

Officially launch the cooperative and this start

providing products or services to your target
market. Focus on growth strategies and continue
to build a strong presence in your community or
industry.
 EVALUATION AND ADAPTATION

Continously evaluate the performance of the

cooperative and adapt to changing circumtances.
Regularly review financial reports, asses the
satisfaction of members and customers, and make
improvement as needed to ensure long-term
sustainability.
 CONCLUSION

Organizing a primary cooperative is asignificant

undertaking that can have a positive impact on
the economic and social well-being of each
members. This reports provides a structured
framework to guide individuals and groups
through the process of creating a primary
cooperative.
STEPS ON REGISTERING A COOPERATIVE
1. Feasibility

*Conduct a feasibility study to assess the viability

of your cooperative business idea. This should
include market research, financial projections,
and a business plan.
2. CHOOSE A NAME

*Select a unique name for your cooperative that

complies with local naming regulations. Check for
name availability.
3. CONSTITUTIONS

* Prepare a cooperative constitution or bylaws.

This documents should outline the cooperatives
rules and regulations, Including membership
criteria, governance structures, and decision-
making processes.
4. MEMBERSHIP

* Recruit members who share the cooperatives

vision and meet membership requirements as
defined in the constitution.
5. LEGAL STRUCTURE

* Determine the legal structure of your

cooperative, which could be a partnership, limited
liability cooperative, or another suitable legal
entity based on local regulations.
6. REGISTER THE COOPERATIVE

* File the necessary registration documents with

the appropriate government authority. This
typically involves completing registration forms,
paying registration fees, and providing supporting
documents.
7. BANK ACCOUNT

* Open a bank account in the cooperatives name

to manage its finances.
8. TAX AND PERMITS

* Obtain any required licenses, permits, and tax

identification numbers to operate legally.
9. BOARD OF DIRECTORS

* Elect a board of directors or governing body

according to your constitutions provisions.
10. RECORD KEEPING

* Set up a system for maintaining financial

records and meeting statutory reporting
requirements.
11. OPERATION PLAN

* Develop an operational plan for your

cooperative, including marketing, production, and
member participation strategies.
12. COMPLIANCE

* Ensure ongoing compliance with all applicable

laws and regulations.
13. TRAINING

* Provide training to members and employees as

needed to run the cooperative effectively.
14. PROMOTION AND MARKETING

* Develop a marketing and promotions strategy to

attract customers and grow the cooperative.
15. FINANCIAL MANAGEMENT

* Implements financial controls and

managements systems to sustain the
cooperatives operations.