The vision from the beginning has been for the Co-op Market to start with a small but fully stocked grocery store.  In addition to organic and whole food items this store will also feature the widest selection possible of local meats, produce, and Alaskan seafood. 

To open our food co-op two important things are happening at the same time:

• building the Co-op membership and
  

• development of the business plan.

Membership is important because without members there is no co-op.  Equity in the form of the $200 membership fee is what makes up our co-op's  "owner's equity" and is the foundation of the investment needed to get the store up and running. 

Just like any other business, the Co-op Market will acquire the financing required to open the store from a combination of owner's equity and loans.  The business plan is critical for getting this financing. 

Not only do the careful projections of income and expenses in the business plan help to insure that this venture is successful from the start, these projections are also needed to demonstrate to banks and other investors that the Co-op Market will be a viable business.

Building our membership is progressing well.  Thanks to many of our members who have volunteered their time we have had membership tables at several events around Fairbanks. 

In addition, Evan Daigneault, our VISTA volunteer, has been visiting local businesses asking for their support.  As a result 3 businesses, Gulliver's Books, Cold Spot Feeds, and Grass Roots Guitar, have given us an opportunity to set up membership tables at their locations. 

At least 15 other local businesses have also offered assistance.  If you see a brochure for the Co-op Market featured at a local business please be sure to thank them for their support.

Also, many thanks to the volunteers who have helped with our fund raising efforts.  Money raised at our successful dessert auction at the Morris Thompson Cultural Center last November, the pancake breakfasts at the Ken Kunkel Community Center, and the sales of t-shirts and other items at our membership tables have made it possible to pay the expenses for developing the business plan, as well as the expenses for the membership drive.  

Because of these fund raising efforts,our owner's equity has not been used for operating expenses and remains in a separate interest bearing account.

The business plan is progressing well.  This will be the blueprint for operating the store when it opens and requires us to accurately lay out the financial projections in great detail for all aspects of operation.  This includes the big items like the opening inventory, the store equipment that will be needed,  and the cost to retrofit the lease space for our needs. 

Also included is detail on the day to day operations including  how the store will be staffed and the expenses for employees, marketing,  utilities, insurance, and things as simple as office supplies.    We plan to have the business plan completed within the next 2 months.

In addition to bank loans we also plan to seek loans from our members.  A Member Loan program, based on a program that has been used successfully by other co-ops, is currently being drafted by our finance committee.This will give members an opportunity to invest in the Co-op Market while at the same time reducing our dependence on bank financing.   The Member Loan campaign will be launched at the annual meeting in September.

Please feel free to contact me at if you have any questions or suggestions.