Risks

RISKS

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 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.