Meeting with Heather Heineken at UAF Small Business Center (Dec. 2008)
Present were Dave Lacey, Lela Ryterski and Suzy Fenner.
Dave explained that a Not For Profit model of business is specific to cooperatives.
Heather asked about which tax forms were needed.
We spoke about the market/feasibility study. She had concerns that it was taken from the 2000 census and that the samples taken were from the lower 48, although Fairbanks data was considered in the study.
We mentioned Vision Fairbanks for the Foodland location–pros and cons. She suggested we consider other locations like Teddy Bear Plaza. Bill St. Pierre has several units available there. Gene DuVall is a commercial realtor.
She suggested we speak to Mike and Kay Nolan from the old Whole Earth, contact New Sagaya and Natural Pantry in Anchorage to find out what their annual sales are.
We discussed methods of capitalization: 30% member loans, 20% member investments (full memberships), and 50% bank loans and/or State loans.
We have a list of 700 potential members. Heather agreed that the co-op would be good even with Farmers Market possibly competing during the summer–there’s overflow.
When presenting plan to banks for a loan be very specific. State sources and uses for capital: Who can provide what–how much?
Projections: statement of cash flow, profit and loss, balance sheet.
Details: Financial statements to members. 9 person board. Elect 3 new board members annually at Annual Meeting. The Election Meeting should be held first, then the Financial Meeting (so the new members know what’s going on), or both can be held together in one Annual Meeting. Financial statements to members in a quarterly newsletter.
(Heather’s concerns were emailed to Debbie Suassuna who wrote the market/feasibility study. Debbie responded fairly completely.)