Meeting with FORC, Columbus, Ohio
July 29, 1991

Both Linda and Bob felt that we have done a tremendous amount of work thus far. To date our monthly fixed expenses will be low for our business, considering our low cost for rent. It is grossly projected that we wi11 need $100,000 a year in sales to stay afloat, but that we can probably expect to bring in $250,000 a year in business.

It is highly recommened that:

1. We itemize cost for renovations.
2. That we have a general contractor to oversee our work, to pay one to do so if necessary, it is essential that the work is done properly, to save us money in the end.
3. That a general manager is hired, with additional staff as soon as possible. The managers' position is critical, and it is the board's responsibility to find the person who can really pull off the job, if they can't, replace them quickly. A job description for a manager was sent previously by FORC.
4. Profit sharing for the manager is encouraged, as it gives incentive for the person to priortize the need to always increase sales.
5. If a discount is given for volunteers, it is necessary to keep accurate records of those sales for the IRS will want their percentage of that money for federal tax record keeping.
6. The three tiered method of membership, volunteer, and non-member cost is not recommened, aside from the problems with the IRS, by giving the discount upfront, you are essentially giving money away, before it comes into the store.
7. Corporate memberships are not recommended, if you are giving lots of memberships away that entitles voting privileges. You may be giving power to persons who have no investment in the business.
8. It is recommended that voting privilege also be based on patronizing the store. ie. in the bylaws state that an average monthly business of $10 be done throughout the year in order to be able to vote. This eliminates the possibility of people making demands who have no investment consistent involvement in the co-op.
9. A business proposal is needed to take to potential large donors as well as any lending instiution. It should include information such as Market Analysis ie. the primary market for the store is a 1-3 mile radius around it. Natural foods account for 1% of sales in groceries, per capita grocery bill is $1200 a year.
10. Plan to spend about 1 1/2% of budget on advertising.
11. Athens co-op received a business advance from the Natural Co-op bank. The bank will loan up to $24,000 dollars, matching dollar for dollar what is spent by the business for start up costs. If the business fails, it is taken as a loss, if the business succeeds, it is considered a loan and re-payment is expected. FORC will check into the possibility that we can look into Athen's 18 page proposal to draw from it, and request an advancement from the bank.
12. We need to develop a budget, and forward it on to Linda and Bob for review.
13. Suggestions on our lease were made.

14. A refrigerator/cooler specialist would be wonderful to have, look at auctioners in the Sunday classified paper under industrial equipment. You can pick up some real bargains.

SUGGESTIONS REGARDING OUR BYLAWS:

1. One member, one vote is implied, but not clear.
2. Proxy voting is not recommended, mail in votes or a ballot box at the store could be used.
3. People who are patronizing the store should be the ones who vote, the bottom line is that people in good standing at the co-op should be those who vote.
4. It should be explicitly stated in the bylaws that the board has the right to enter indeptness, that they are vested with the authority to.....whatever
5. It should be clear when the memberships approval is necessary for certain decisions. FORC feels that membership approval is necessary in order to dissolve the business or to merge with another business. Moving to another building would be a board decision.
6. Need a finance article to to spell out capital, what is done with the profits, share equity and its distribution. The board needs to decide what is done with profits, what returns to the membership, and what goes back into the business, and whose authority is it to make these decisions.
7. Highly recommend that we put in the bylaws, Robert's Rules of Order as a backup to fall on. Undoubtedly there will be at some point a situation that could not have been predicted in which there are no guidelines that have been made that would resolve the situation. As apparently complicated as it is Roberts Rules of Order has an answer to every situation.