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Is Cooperative Business the New Way to Succeed in Modern Business?

Is Cooperative Business the New Way to Succeed in Modern Business?

The world of modern retail is ruled by a number of big names who control a massive proportion of a market worth over $5 trillion in the United States alone. Walmart is the world’s largest retailer by revenue. If you are an independent farmer or food producer, how do you approach such an organisation?

The simple answer is you don’t. There is no way that an independent producer can make any inroads to the large retailers alone and so a cooperative model is often the only way in which individual producers can create a large enough brand to engage with the large players in the retail industry.

What is a Cooperative?

A cooperative will look, from the outside, like any other business however the major difference is rather than being owned by investors or shareholders they are owned by their members. Ordinary people who are farmers, food producers or employees. It is owned and managed by its members for the benefit of its members.

It allows individual farmers or producers to create a brand that can be competitive in a challenging market. Members of a cooperative democratically vote with a one organisation one vote model to make key decisions and to set policies.

Types of Cooperative Organisation

There are a number of basic models of cooperative:

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  • Producer – Owned by food producers like farmers or fishermen who join forces to process and market their products under a single brand.
  • Worker cooperatives – Organisations owned by some of all its workers. It gives workers the chance to own their own company, something which would be out of reach of any individual. There are various businesses from restaurants and bakeries to small manufacturing cooperatives.
  • Consumer cooperatives – Consumer cooperatives allow numerous individuals to come together to buy anything from groceries to utilities and fuels with the benefit of bulk buying, which allows them to command better deals from suppliers.
  • Retail cooperatives – These consumer cooperative generally involving independent business owners. For example, Best Western Hotels encompasses a number of independent hotels that benefit from an international cooperative to reduce the cost of products and services to create a powerful, international brand for otherwise relatively small businesses.

The power of a cooperative allows otherwise small companies or individuals to act with the power of larger organisations while retaining inclusive business practices.

Why Producer Cooperatives Work

An producer cooperative allows individual farmers, fishermen or food producers to achieve a market scale and economic presence which would not be possible by themselves. By coming together as a collective they can create a central, large bargaining power when dealing with the major retailers for the sale of their products. In addition, they can achieve reduced costs by pooling capital and resources to employ bulk purchasing and centralised production and processing.

Cooperative organisations can create marketing resources and brands that would be out of reach of individuals. However allowing an organisation to be formed following the ethical and business ideas of the individuals creates an organisation with shared values as opposed to a ‘faceless’ conglomerate.

Introducing the Rochdale Principles

Most major cooperatives follow the Rochdale Principles, a set of ideas established in 1844 by the Rochdale Society of Equitable Pioneers in Rochdale, England. The Rochdale Society of Equitable Pioneers was a group set up with the challenges of the Industrial Revolution which forced large numbers of skilled weavers into poverty as their roles were replaced by factories. They banded together to open their own store which sold food which they otherwise could not afford. They pooled resources of £1 per person to allow them to open a store selling high quality, unadulterated goods.

The principles they created to run their first cooperative were formed by trial and error but created a set of ideas that stand even today. The principles set out values such as self-responsibility, democracy and equality as well as the importance of honesty and social responsibility.

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Cooperatives are naturally democratic organisations controlled by their members, there is no discrimination allowed in the establishment of the membership and an expectation that each member contributes and that at least part of the capital is given as common property of the cooperative.

The principles build in elements that value and develop local communities and cooperation between cooperative organisations. It is good for business, developing links and allowing smaller organisations to work together to become powerful yet responsible alliances. The most important element is that you as a consumer can trace your product through the organisation to an individual farmer or producer.

Old Fashioned New Business

In an age where consumers have a greater interest in the source of their food, the ability to trace products through a brand to individual producers is a major asset. It gives an opportunity to prove the brand heritage.

Case Study – Cabot Creamery

Cabot Creamery is one of America’s most popular cheese brands and it was established in 1919 when 94 families in Vermont formed a cooperative to secure their livelihood. Now the cooperative encompasses over 1,000 individual farms and over 1,000 employees in four production plants.

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Photo credit: Cabot Creamery

    Photo credit: Cabot Creamery

    The scalability has allowed the cooperative to grow to a business with a turnover of hundreds of millions of dollars.

    The People Behind the Cooperative

    The important story behind cooperatives are the individuals who make up the membership. Cabot Creamery encompasses over 1,000 farming families, many of whom have been members for generations. From small specialty farms with 50 cows to larger establishments with many hundreds of cattle, the key is that each is a small to medium-sized business working within and supporting a local community yet an intrinsic part of a major food brand.

    Cabot Creamery is keen to share the stories of their individual farms and the families which own them, it is a major part of their marketing and most welcome consumers to visit the farms and to meet the families allowing them to understand and appreciate the nature of the cooperative.

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    Cabot Creamery - one of the farming families

      Photo Credit: Cabot Creamery – Birch Mill Farm

      You can learn more about how Cabot Creamery have developed their sustainable cooperative online at: https://www.cabotcheese.coop/our-coop

      Creating a Better Business

      It is the unique nature of a cooperative is as engaging for a modern consumer as it was necessary for the original co-op members 100 years ago. The cooperative model still makes considerable financial sense for small organisations or producers. However, a more enlightened consumer who wants to understand the source of their food can be satisfied with the story that a cooperative business delivers. We can see from the Cabot Creamery case study that the cooperative have enabled a large number of producers to make a viable business. A major part of their success is the transparency of their membership and they make a large play on the fact that their members are family farms, reinforced by supporting a large number of community activities. In this way, they ensure that their local producers are seen to be grounded within their community.

      The value of local community is vital for the development of a cooperative brand, not only is it built into the values of cooperative organisation it is a vital differentiator between cooperatives and other corporate entities.

      An organisation which is built from its foundations on sound, ethical values with sustainability, individuals and local community at its heart seems to be a very modern principle, yet the Rochdale Principles have just held their centenary.

      A Cooperative Future?

      Whereas the cooperative model is one based in the past, it is one which is growing from strength to strength. There are 2.6 million cooperatives worldwide with over 1 billion memberships and clients, generating $3 trillion in annual revenue (Results of the 2014 Global Census on Co-operatives).

      It is clear that cooperative business is good business.

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      Last Updated on September 23, 2020

      Do What You Love and Love What You Do to Achieve More

      Do What You Love and Love What You Do to Achieve More

      Are you waking up each day looking for that perfect thing, activity, or job that will make your life work? Or, maybe you are looking for that perfect relationship. Once you “get” this new thing that will allow you to do what you love, you are sure that you will be happy forever.

      In reality, life doesn’t work like that, and we would probably get bored if it did. There is likely no one thing, experience, or activity that will keep you feeling passionate and engaged all the time. What’s important is staying connected to what you love and continuing to grow in the process.

      Here, we’ll talk about how to get started doing what you love and achieving more in life through the motivation it brings. Doing this doesn’t have to take a long time; it just takes determination and energy.

      Most People Already Know Their Passion

      So many people walk around in life “looking for” their passion. They look for it as if true passion is some mysterious thing that is difficult to find and runs away once you find it. However, the problem is rarely lack of passion.

      Most of us already know what we love to do. We know what excites us, even if we haven’t done it for years. Instead, we focus on what we think we “must” do.

      For example, maybe you love building model cars or painting pet portraits. Yet, each day you work a completely unrelated job and make no time for the activity you already know you love. The truth is you probably don’t need to find your passion; you just need to start doing what you already know you’re passionate about[1].

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      No Activity Is Exciting All the Time

      Even people who are living their dream lifestyle or working their dream job don’t love it all the time. Every job or lifestyle has parts of it that we won’t like.

      Let’s say your dream is to become an actress, and you succeed. You may not enjoy the process of auditioning and facing rejection. You may experience moments of boredom when you practice your lines over and over again. But the overall experience is totally worth it.

      Most of life is like that. Don’t set yourself up for disappointment by demanding that life be perfect all the time. If things were perfect and easy, you would ultimately stop learning and growing, and life would begin to lack even more meaning in that case.

      Be grateful for both the good and bad moments as they are both entirely necessary if you genuinely want to do what you love and love what you do.

      Doing What You Love May Not Be Easy

      Living a life you love is unlikely to be easy. If it was, you would not grow very much as a person. And, if you think about a great book or movie, the growth of the main character is what matters most.

      What if the challenges you meet along your path to living a life you love were designed to make you grow as a person? You may actually start looking forward to challenges instead of dreading them. An easy life hardly ever makes a compelling story.

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      If you struggle to overcome challenges, try writing them down each time you encounter one. Then, write down three ways you could tackle it. Try one, and if it doesn’t work, try another. This way, you’ll learn what does and doesn’t work for you.

      How to Do What You Love

      There are many small steps you can take to ensure you are making time to do the things you love. Start with these, and you’ll likely find that you’re already on the right track.

      1. Choose Your Priorities Wisely

      Many people claim they want to do something, yet they don’t do it. The truth is they might not really want to do it in the first place[2].

      We all end up following through on what matters most to us. We make decisions moment by moment about what we need to focus on. What we choose to do is what we deem most important in our lives.

      If there is something you claim you want to do but you don’t do it, try asking yourself how much you really want it or where it’s currently placed on priority list. Are there other things you want more?

      Be honest with yourself: what you currently do each day is a reflection of your priorities. Recognize that you can change your priorities at any time.

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      Make a list of your priorities. Really take the time to think this through. Then, ask yourself if what you are doing each day reflects them. For example, if you believe your top priority is spending more time with your family, but you consistently take on extra hours at work, you’re not really prioritizing things in the way you think you are.

      If this is happening, it’s time to make a change.

      2. Do One Small Thing Each Day

      As stated above, doing what you love doesn’t have to mean finding that perfect job that makes you want to jump out of bed in the morning. If you want to do what you love, start with one small thing each day.

      Maybe you love reading a good book. Take ten minutes before bed to read.

      Maybe you love swimming. Get a membership at the local YMCA, and go there for thirty minutes after work each day.

      Dedicating even a short amount of time to something that brings you joy each day will improve your life overall. You may find that, over time, a career path related to what you love to do pops up. After doing the thing you love each day, you’ll be more than prepared to take it on when the opportunity arises.

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      If you need help making time for your passions, check out this article to get started.

      3. Prepare to Make Sacrifices

      If you are an exceptionally busy person (aren’t we all?), you may have to make sacrifices in order to make space for the things you are passionate about. Maybe you take on less extra hours at the office or take thirty minutes away from another hobby in order to develop another that you enjoy.

      Looking at your priority list will help you decide what can get put on the back burner and what can’t. Remember, do this thinking about what will help you feel good about how you’re spending your time. 

      For example, if you love writing but rarely make time for it, consider getting up 30 minutes earlier than normal. Or instead of browsing your phone for 30 minutes before bed, you can write instead. There is always a way to find time for what you love.

      Final Thoughts

      If you love what you do, each day becomes a joyful adventure. If you don’t love what you are doing, life feels like a chore. The best way to achieve success is to design a life you love and live it every day.

      Remember, doing something you love doesn’t have to include big gestures or time-consuming projects. Start small and grow from there.

      More on How to Do What You Love

      Featured photo credit: William Recinos via unsplash.com

      Reference

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