Background
To contribute to capacity improvement of cooperatives
in providing services to their member, has been outlined as goal of technical
assistance to cooperatives in NTT and Bali implemented by LWR.. This will be
achieved through better access to finance and extensive market that qualifying
cooperative to buy more of their member’ produce with decent price. Reflecting
to this goal, cooperatives should have sufficient capacity in managing and
organizing both the people (member) and the business. At the end of the day,
member will look back to why they joined cooperative and willing to contribute.
Which will regard to what makes cooperatives different from other business
entities in the market is that member receiving share of net profit after
receiving better selling price.
As social business, cooperative is expected not only
socially benefiting but also business profitably to be able to develop the business
of its members. Therefore, cooperative should be completely effective in two
aspects: comparative and competitiveness.
Comparative effectiveness refers to service(s)
provided by cooperative to its member compared to similar services available in
the market system. When members find cooperative does not perform better (or at
least same) service with other providers, it will be challenging for
cooperative to obtain (more) contribution from member. While, competitiveness
will be referring to business managerial of cooperative. As market player, how
effective cooperative in managing its business to be able to generate economic
benefit for its member.
Very often, cooperatives were established without
measuring this effectiveness, not to mention, assessment on cooperative’
feasibility– financial and number of effective members. Which eventually,
cooperative is (only) recognized as group of people whose role is in organizing
collective marketing with expectation to gain better price. In initial phase,
for 1-2 years, this role might be adequate to accommodate the price and
knowledge gap between farmers and market, yet as market grows cooperatives is
required to extend their insight on market and business to be able to compete
and endure in the market. Otherwise, cooperative will be stagnant or even
collapse.
Since the establishment, cooperatives have
been widely equipped with technical knowledge on farm to post harvesting and
fewer on market aspect. When it comes to market, cooperatives rely on
assistance and facilitation from program/project facilitators. Cooperatives did
not have sufficient knowledge in figuring out the market they entered in.
Acknowledging their position in the market- between and among other players
(supplier, buyers and competitors) is still least. Cooperatives did not have
business plan as reference in running their business and organization.
Estimating cost was formulated as a bulk rather than going in to details, which
allowing cooperative to overspending. Projecting revenue normally is done by
calculating the projection of member’ produce that cooperative is not firmly
confident to link with various buyer. Skipping the business plan has also
influenced the resource mobilization in cooperatives. That, investment on
developing cooperative as progressive business and provider has not been put in
to account yet and accessing credit scheme (loan) is still intended frequently
for financing ‘buying-selling product’ activity.
LWR will
take this opportunity to provide assistance to prepare cooperative in
performing suitably as expected by its members as well as its positioning in
the market. This assistance will be carried out through building up
cooperative’ capacity in understanding business and financial management.
Objective
Training
on business plan will be covering facilitation in designing business model and
business plan development with objectives as follow:
a. Business
model explains how an organization generates income. For existing
business/organization, business model can be used to analyze whether the
business/organization will survive or not and as a strategic tool to
business/organization expansion and how to deal with competition. Designing
business model meaning facilitating cooperative board member to become creative
and considering many aspects in developing business idea as well as foreseen
solution rather than focus on the problem.
b.
Facilitation to cooperatives in developing
business plan. Business plan describes the projection of main activities, cost
and income of cooperative. Effectiveness in resource mobilization that reflects
the projection of business/organization growth in the future is captured in
business plan. A proper business plan can be used as proposal in accessing loan
from financial institution, as well as scheme in establishing network and
partnering with buyers and other stakeholders.
Expected Outputs
·
Business model cooperative describes the
analytical logic of value created by cooperative and influencing factors within
the business environment such as competitive analysis, market analysis, trends
and economic situation is developed.
·
Business plan cooperatives comprises activities
to be carried out, product and service of coop including the strategy of
expanding the business/service, projection of cost and profit/loss and cash
flow projection for at least 2 years (first year with support from program and
the following year as the result of business expansion).
Deliverables
Facilitator is
expected to provide deliverables as follow:
1.
Training
report comprises the process of training, participants feedback and
recommendation for further improvement.
2.
Cooperatives
have feasible business plan to be used for assisting cooperatives in running
their organization effectively.
3.
After training
support as follow up action. This should include the work plan, person in
charge and measured progress.
Facilitator Qualification
Experienced
trainer/facilitator on business plan development for SMEs training will be
hired for this activity. The facilitator will provide service in facilitating
the design of business model and assisting coop in developing their business
plan. Candidate(s) with following qualifications is invited to submit proposal
to facilitate this training.
1.
Having
experience in facilitating training on business plan development for SME- and
cooperative is preferable.
2.
Familiar with
business model canvass and used to facilitate SME in designing their business
model.
3.
Having
extended understanding on market and value chain- particularly on coffee and
cocoa is preferable.
4.
Having advance
facilitation skill.
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