The document describes a coffee roasting business and worker cooperative called Sumac Community Worker Cooperative. Sumac operates multiple coffee bar locations and divisions like Planet Bean Inc. Sumac uses a multi-class share structure where employees can become voting members after one year. It finances new initiatives through solidarity investment shares and debt. The cooperative focuses on starting businesses quickly to seize opportunities and matching development to available financing.

2. Freshly
Roasted
Specialty
Coffees
from
Fair
Trade
and
Organic
Coffee
Beans
Sidamo,
Yirgacheffe,
and
Harrar
coffees
from
Ethiopian
coffee
farmers
Sabina’s
Co-­‐op
brings
us
Café
Femenino
coffees
from
the
Peruvian
Andes

3. Ar#san
Coffee
Roas#ng
Barista
Customer
Service
Ar#san
Batch
Roas#ng
Single
Brew
Downtown
Guelph
Coffee
Bar
35
employees
–
75%
young
people

4. 3
Coffee
Bars
South
Guelph
East
Guelph
Downtown
Guelph

5. Sumac Community
Worker Co-operative Inc.
Membership
Shares
-­‐
voIng
Class
A
Preference
–investor
Class
B
Preference
–
member
Class
C
Preference
-­‐
corporate
All
preference
Shares
–
non-­‐
voIng
Member
employees
vote
in
Sumac
board
Common Shareholder- Sumac
appoints
Board
Wearfair
Inc.
Class
A
preference
–
investor
early
Class
B
preference
–
investor
later
All
preference
shares
non-­‐voIng
&
priority
over
common
as
per
series
Management Committee
CEO
CFO
Division
Managers
Employees
Eligible to apply for Sumac
membership after 1 year
Common Shareholder- Sumac
appoints
Board
Planet
Bean
Inc.
Class
A
preference
–
investor
early
Class
B
preference
–
investor
later
All
preference
shares
non-­‐voIng
&
priority
over
common
as
per
series
Management Committee
CEO
CFO
Division
Managers
Employees
Eligible to apply for Sumac
membership after 1 year
Common Shareholder- Sumac
appoints
Board
Future
New
Business
Class
A
preference
–
investor
early
Class
B
preference
–
investor
later
All
preference
shares
non-­‐vo<ng
&
priority
over
common
as
per
series
Management Committee
CEO
CFO
Division
Managers
Employees
Eligible to apply for Sumac
membership after 1 year
Members
work
for
divisions
under
contract

6. OrganizaIon
ObjecIves
Worker
Control
•
Employees
can
apply
for
co-­‐op
membership
aQer
one
year
Management
•
Scaled
for
effecIve
management
and
accountability
Incubate
new
ini#a#ves
•
as
a
division
of
Sumac
Tax
Efficient
•
Business
development
expense
in
pre-­‐tax
dollars
•
Recover
tax
on
losses
Growth
•
Opportunity
for
career
development
Delineate
Liabili#es

7. Common Shareholder- Sumac
appoints
Board
Planet
Bean
Inc.
Class
A
preference
–
investor
early
Class
B
preference
–
investor
later
All
preference
shares
non-­‐voIng
&
priority
over
common
as
per
series
Management Committee
CEO
CFO
Division
Managers
Employees
Eligible to apply for Sumac membership after 1
year

8. Financing
Development
Working
Capital
•
Class
A
shares
–
early
stage
•
Class
B
shares
-­‐
later
Source
•
individual
solidarity
share
purchase
On-­‐going
•
retained
earnings
•
sweat
equity
Purchase
Equipment
(used)
•
expansion
financing
2005-­‐06
•
loans:
asset-­‐based
financing
Source
•
two
social
purpose
loan
funds
•
private
loan
-­‐
-­‐
-­‐
-­‐
-­‐
-­‐
Expansion
Financing
2009-­‐10
•
new
equipment
and
3rd
coffee
bar
Source
•
Bank
using
Small
Business
Loan
•
Federal
Business
Infrastructure
-­‐ -­‐
-­‐
-­‐
-­‐
Expansion
Financing
2011
•
new
downtown
locaIon
Source
•
Bank
Small
Business
Loan
•
two
social
purpose
loan
funds
DEBT

9. Business
Development
CharacterisIcs
Just
Do
it!
•
check
feasibility
•
start
before
business
opportunity
window
closes
Match
Business
Development
to
Financing
availability
•
financing
will
be
limited
so
stage
growth
Recruit
People
with
a
Passion
for
the
Product
•
give
them
the
opportunity
to
advance
product
Ini#ate
and
Build
Cash
Flow
•
need
an
early
income
stream
Build
the
road
as
you
walk
•
plans
are
out
of
date
upon
implementaIon

10. ConsideraIons
U#lize
Solidarity
Investment
•
minimum
at
least
$5,000
•
keep
investors
informed
Beware
the
Garden
Path
•
consultants
and
programs
oQen
create
unrealisIc
expectaIons
U#lize
but
not
Depend
on
Government
Programs
•
program
Imelines
seldom
match
business
opportunity
windows
Flexibility
•
nimble
to
follow
market
opportuniIes
Joint
and
Several
Liability
Provisions
Stack
Financing
•
debt
for
asset
financing
•
lever
social
purpose
funds
for
bank
financing