Cooperatives (co-ops) are businesses that keep people at the center of the business versus money. The co-op business model is defined by three fundamental interests:
The co-op model is the only for-profit enterprise where all three interests are vested directly in the hands of the owner/member/customer. For-profit companies are designed to produce a profit for the owners/shareholders. Yet, since owners/members of a co-op are also the customers, lower prices and extra services are acceptable instead of profits.
To survive, co-op’s still require a sustainable business model just as any successful organization does. There is a financial benefit to the co-ops operations; this is not to be overlooked. For many owner/customer/members it is a key part of the value for owner/customer/members. Currently over 120 million people are members of 48,000 U.S. cooperatives. As cooperatives expand in the U.S. and globally it is critical for every employee of your cooperative to understand the cooperative business model which exists because of the Cooperative Legacy.
The cooperative business model was founded upon and maintains its intricate balance as co-ops commit to continuing the legacy of revering the values it was founded upon The Seven Cooperative Principles.
- Who controls the company?
- Who benefits from the company?
- Who owns the company?
The co-op model is the only for-profit enterprise where all three interests are vested directly in the hands of the owner/member/customer. For-profit companies are designed to produce a profit for the owners/shareholders. Yet, since owners/members of a co-op are also the customers, lower prices and extra services are acceptable instead of profits.
To survive, co-op’s still require a sustainable business model just as any successful organization does. There is a financial benefit to the co-ops operations; this is not to be overlooked. For many owner/customer/members it is a key part of the value for owner/customer/members. Currently over 120 million people are members of 48,000 U.S. cooperatives. As cooperatives expand in the U.S. and globally it is critical for every employee of your cooperative to understand the cooperative business model which exists because of the Cooperative Legacy.
The cooperative business model was founded upon and maintains its intricate balance as co-ops commit to continuing the legacy of revering the values it was founded upon The Seven Cooperative Principles.
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