Understanding the responsibilities of a steering committee in a cooperative society

When starting a cooperative (co-op), forming a steering committee is one of the first steps. This committee plays a crucial role in establishing and guiding the co-op. Here’s a breakdown of the main responsibilities of a steering committee:
- Defining Purpose
The steering committee is responsible for clarifying the co-op’s purpose. They gather input from the people the co-op will serve to ensure the business meets community needs and goals.
2. Defining Ownership
The committee should include some of the co-op’s future owners or members. They determine who will be part of the co-op and the criteria for membership, ensuring that those involved have a stake in the business.
3. Determining Decision-Making Processes
The committee outlines how decisions will be made within the co-op. This includes setting up a transparent process for decision-making and involving stakeholders to guide the business both in the short term and in the future.
4. Business Planning
While not always mandatory, a business plan is valuable. It helps in communicating the co-op’s goals, attracting funding, and managing operations. The plan should cover staffing, sales strategies, financial management, and interactions with members.
5. Incorporation
The committee often drafts important documents like articles of incorporation and bylaws and reserves the co-op’s name. This may involve working with lawyers or business professionals to ensure the incorporation process is smooth.
6. Financing and Fundraising
One of the committee’s key tasks is to secure funding for the co-op. This involves creating a budget, identifying funding sources, and making financial projections to cover the co-op’s costs and operations.
7. Soliciting New Members and Engagement
The committee must engage with potential members and keep current members informed. They are responsible for reporting on progress and ensuring that members remain supportive of the co-op’s mission and goals.