Hire a manager, aquire fixtures and equipment, finalize layout, establish accounts with suppliers, set up the store.
GOAL: To prepare for the start-up of the co-op’s operations.
WHAT TO DO: The business plan should be your guide on what to do at this stage.
When hiring a manager:
- identify the skills you expect your first manager to have.
- Prepare a clear job description. It should establish that the manager reports to the board, the manager’s goals and priorities, how his or her performance will be measured, and what compensation will be offered. Set goals and responsibilities for the manager in the first year, including communications with members, researching facilities and equipment, working on marketing or sales efforts, and making arrangements to being the co-op’s operations.
- Advertise the position as widely as possible, including on CGIN’s jobs web page http://www.cgin.coop/classifieds. Note that trade magazines require a lot of advance notice for position listings; local papers and employment offices often list jobs very quickly. Depending on the skills and experience needed, you may wish to consider engaging a search firm. Use as many local contacts as you can think of — economic development agencies, chamber of commerce, business people, other co-ops, etc. — to publicize your position.
- Carefully screen all applicants. Check references and job experience in detail.
- Give preference to candidates with experience in the retail operations or the grocery industry.
- Remember that the right manager for a start-up may not be the right manager in the long term.
- Design an interview process that allows input from all interested parties, but keeps interviewers and interviewers to a minimum. Focus questions on the skills and experience a candidate has; ask questions about how they have handled similar situations, not how they would handle a theoretical situation.
KEEP IN MIND:
This stage can be tricky and somewhat traumatic for a startup co-ops. While the board and members have been heavily involved in making operational decisions to this point, once a manager is hired, a new role for the board must be crafted and followed. The board will no longer be involved in operational decisions; its continued involvement in operations will undermine the experience and authority of the manager you hire.
Other preparations:
- Contact other food co-ops in your region to find used or refurbished equipment that might work in your new store. Other co-ops can also give advice about and contact information for vendors and suppliers.
- Contact equipment suppliers; look for used or refurbished equipment through local auctions and business closures.
- Consult a grocery professional about your store layout and have a professional negotiate your lease.
- Get in touch with suppliers and distributors. Negotiation credit terms, the opening order, and ordering procedures. Many distributors can provide support in product placement and setting inventory. Brokers and manufacturers can also provide your store assistance — especially specials for opening inventory. Keep in mind that these businesses should not dictate product placement, however.
KEY DECISION: IS THE CO-OP READY TO BEGIN OPERATIONS?
Do we have the expertise, experience, and resources to start operations?