Building A Team of Advisors

Cooperative entrepreneurs have a lot to think about as they build their business. What is the cooperative’s purpose? Who will be the members? How will the cooperative operate? These questions, and more, are explored as part of the business planning process for a cooperative.

An illustrated graphic with planning icons above silhouettes of people in business attire.

Undoubtedly, cooperators will run into areas where they need specialized expertise to answer questions or help make plans. Building and growing a business often takes a team of professional advisors with specific expertise – like:

  • lawyers,
  • accountants,
  • tax professionals,
  • bankers or financial experts,
  • insurance advisors,
  • industry experts,
  • and others.

As questions arise during business planning, preparing for start-up, or in early operations, cooperators may find it valuable to note those questions, identify the expertise that could help them answer their questions, and construct a list of advisors who can help answer their questions.

Prepare for Working with Advisors

Cooperators and other entrepreneurs can make working with professionals like attorneys, accountants, tax professionals, and other advisors, effective by doing some ‘homework’ ahead of time, including exploring their needs, growing their understanding of potential issues, and developing questions for advisors.

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One way to prepare for working with professional advisors is by consulting knowledgeable experts such as cooperative developers or resource providers who can provide technical assistance to pre-venture and early phase businesses.

For example, cooperative developers can help cooperators learn about cooperative models and concepts, identify common pitfalls in the development process, and develop business plans. The National Cooperative Resource Ecosystem Map from University of Wisconsin Center for Cooperatives identifies cooperative technical assistance providers, financing resources, and more. Counselors with Small Business Development Centers (SBDC) can help entrepreneurs develop business plans, understand business finance options, and more. There are SBDC programs across the United States through the Small Business Administration and state partners; entrepreneurs can Find Your SBDC using the America’s SBDC online directory. Other experts in your community might include Extension educators, entrepreneurship centers or associations, or even other business owners.

Another way to prepare for working with professional advisors is by growing cooperators’ understanding of potential issues and concepts that are vital to their business development process. For example, cooperators may enroll in educational programs or explore online resources from reputable organizations like:

Cooperative entrepreneurs can use the worksheet, “Building & Consulting a Team of Business Advisors,” to help themselves prepare for locating and meeting with professional advisors.

A thumbnail of a worksheet called "Building & Consulting a Team of Business Advisors," available for download as a pdf.

Questions to Ask your Attorney When Building your Co-op

One of the professional advisors that entrepreneurs building a cooperative will likely need to consult is an attorney. Attorneys Jacqueline Radebaugh, Esq., with Jason Wiener p.c. and Mike Russell, Esq., with The Legal Aid Society of Cleveland, talked with entrepreneurs and business developers about working with an attorney in a learning session with the CFAES Center for Cooperatives Appalachia Cooperates Initiative, where they shared their recommendations for 10 questions cooperators should ask an attorney when building a co-op. Watch a recording of the session and view a handout summarizing Mike and Jacqueline’s recommended questions below!

Finding Legal Services for Cooperative Development

Cooperators should seek advice from competent, appropriately licensed advisors as they make decisions for their cooperatives. However, cooperators may find it challenging to locate attorneys familiar with the cooperative model. The resources below can provide a helpful starting point but are certainly not the only way cooperators can locate the right attorney. Cooperators may also find it useful to ask similar businesses about the service providers they used.

The CFAES Center for Cooperatives built the Cooperative and Collaborative Enterprises Legal and Accounting Resources Directory to help locate cooperative expertise in the Ohio and West Virginia area. The information in the directory was provided by the listed individuals and does not indicate a referral or reference by the Center or The Ohio State University.

The Cooperative Professionals Guild is a national member-led community of legal and accounting professionals specializing in cooperatives.

In some areas, legal aid service providers may provide transactional support to cooperatives for qualifying individuals, while community-facing business law clinics at law schools may also provide limited assistance to cooperatives as part of their mission.

Finally, state and local bar associations and law libraries may also help cooperators identify legal service providers in their own communities. In Ohio and West Virginia, the online resources below may provide a starting point:

This information is provided for educational purposes only. It is not legal advice. It is not a substitute for the potential need to consult with a competent attorney licensed to practice law in the appropriate jurisdiction.

References

Russell, M. & Radebaugh, J. 10 Questions to Ask your Attorney When Building Your Cooperative. [Presentation]. CFAES Center for Cooperatives Appalachia Cooperates Initiative. go.osu.edu/ten