In our last post about Co-ops we talked about how cooperatives demonstrate the following principles: User-owned, User-Controlled; and User-benefitted. There are many positive attributes to the cooperative business structure, but it is not the appropriate structure for every business and its owners. Choosing the appropriate business structure is an important strategic decision for business owners.
You can easily “fall into” a marketing channel or a product that you did not plan because you want to take advantage of every opportunity you can in an effort to make your farming business work. Unfortunately, all too often an “opportunity” may not be as good as it first appears, and you end up with lots of things your business is doing that really do not match where you want the business to go. And you may be doing a lot of things that actually cost the business more money than they make.
KCARD is often contacted by individuals and groups that have a business idea and are interested in forming a cooperative. A cooperative can be a great choice and we help people form cooperatives all the time, but many times the cooperative business structure is misunderstood and people have the wrong idea about what a cooperative is and when it is the right business structure.