Sources:
Member Equity: Money from MCM Co-op memberships.
Donations & Grants: From community groups, individuals, etc. and grants related to Co-op Development (Howard Bowers Fund Grant).
Member Loans: Interest-bearing loan investments from MCM Co-op Member-owners.
Vendor Credit: Suppliers will extend credit to the Co-op in order to allow it to buy its products and services upfront but defer the payment for a later date. After our Co-op purchases a product, vendors will issue an invoice which the Co-op will have ~14 – 21 days to pay, which will help the Co-op to conserve cash flow, etc.
Gap Loan: Potential additional loan from landlord or bank, if needed.
Uses:
Building improvements: Design and décor elements such as lighting, signage, etc.
Inventory: The food and products our Co-op will sell.
Fees – Various: Consulting fees, legal fees, and business and health department licensees.
Pre-Opening Staffing: Hiring our General Manager, other managers, and start-up staff needed to run the store.
Pre-Opening Admin: Printing, phone, job interviews, advertising, insurance etc.
Contingency: Any unknown costs that exceed our projections.
NCGA JLF Deposit: National Cooperative Grocer Association Joint Liability Fund deposit—membership in a trade association that provides us with a discount on purchases and guarantees our payments to our largest supplier.
Working Capital: The cash needed to operate the Co-op on a daily basis.
