The goal of the feasibility study is to determine whether or not there is a reasonable expectation that the co-op’s business can be financially viable. By financially viable we mean that all the co-ops expenses can be paid including the members’ required wages and still have enough money left over to pay any loans or make new investments for the development of the co-op. The following outlines some key concepts you need to do this assessment. They will help you develop a basic financial model of the business.

 
Pricing

Requesting Government Assistance

Sorting out the many programs offered by government and other agencies can be a little confusing. But despite their various approaches, they all aim to help small business. Keep this in mind when approaching them for assistance, as well as the following advice.

There are two vital reasons for keeping financial records. The first is to provide the information required for your financial statements, which show whether or not you are making a profit and help you make management decisions. Secondly, records of your co-op’s financial transactions serve as the basis for your co-op’s income tax return, which is required by Canada Revenue Agency.

Remember, it’s easier to start with a good set of books and to keep them updated than to try to reconstruct them at the end of the year.

Your co-op’s future will be determined by the goals your members set and how effectively you make decisions and solve problems as a group. As noted above establishing common personal, business and social goals right from the start, and sticking to them, can help this process immensely. This not only keeps your decisions focused, but also helps to avoid misunderstandings that can lead to conflict.

Worker co-operatives are usually incorporated under the Co-operative Associations Act and Regulations. There is one federal act as well as different acts in each of the provinces and territories. Most worker co-ops are incorporated under provincial acts, although the federal act can be used if the co-operative is going to have a place of business in more than one province.