Potential risks to a new co-op include:

  • Lack of a clearly defined mission, purpose and focus.
  • Lack of member leadership.
  • Inadequate feasibility study and/or business plan.
  • Failure to use experienced advisors and consultants.
  • Lack of financial commitment from members.
  • Lack of competent management to run the cooperative’s operations.
  • Failure to identify and minimize business risks.
  • Lack of adequate financing.
  • Inadequate communications.