When running a successful business, one option that is often overlooked, but can be incredibly beneficial, is joining a cooperative. In this article, we will explore the advantages of cooperatives and why joining one might be the best move for your business. From shared resources and purchasing power to a sense of community and support, cooperatives offer a unique and valuable approach to business ownership and operation.
If you’re a business owner seeking a more collaborative and sustainable working environment, discover why joining a cooperative could be your most brilliant move yet.
Getting Involved With Cooperatives: What is Cooperative?
A cooperative, or a co-op, is a business owned and operated by its members. These members may be individuals, businesses, or organizations with equal say in decision-making.
Cooperatives can be found across various industries, and their main goal is to provide goods or services at a lower cost than they would typically be.
Types of Cooperatives
There are several types of cooperatives, each with unique characteristics and benefits. Some of the most common types of cooperatives include:
Consumer Cooperatives
These are owned and operated by consumers whose primary purpose is to procure and distribute commodities to members and non-members.
Producer Cooperatives
Cooperatives owned and operated by producers who provide the goods or services sold by the cooperative.
Service Cooperatives
These are cooperatives engaged in medical and dental care, hospitalization, transportation, insurance, housing, labor, electric light and power, communication, professional and other services
Workers Cooperatives
These are cooperatives owned and operated by the workers who provide the goods or services sold by the cooperative. Examples of worker cooperatives include construction cooperatives and tech cooperatives.
Multipurpose Cooperatives
Cooperatives that combine two or more different business or economic activities, such as providing services coupled with tools and equipment.
Advantages of Cooperatives
Cooperatives move differently according to the economic activity/ies they are focused on. As such, the advantages they present naturally differ in nature. However, in the advent of the very competitive market, multipurpose cooperatives have been increasingly turned to by companies.
A multipurpose cooperative combines diversified business activities instead of a singular purpose, often by providing manpower and tools. At the state of the different industries now, companies will find that it is by embracing the principles of cooperation that they can unlock the many benefits cooperatives have to offer.
Here is a glimpse into how cooperatives can be advantageous for businesses:
1. Shared Resources and Purchasing Power
One of the most significant advantages of cooperatives is shared resources and purchasing power. By pooling resources, businesses partnered with cooperatives can achieve economies of scale unavailable to them when operating individually. This leads to lower costs for partners, which can help businesses be more competitive in the industry.
2. Sustainability and Social Responsibility
Cooperatives hold social responsibility in higher regard than traditional business models. Since members who form part of the group practice democratic governance, they are more likely to make decisions that align with their values and beliefs. Additionally, since members are treated as part-owners, profits are distributed among the members rather than concentrated in the shareholders’ hands.
3. VAT Exemption
Multipurpose cooperatives, specifically Kabraso Multipurpose Cooperative, provide companies with considerable cost savings. Businesses utilizing a cooperative will manage their monthly cash flows as Kabraso does not charge the 12% VAT and 2% creditable withholding tax as certified by the Bureau of Internal Revenue.
4. Lesser Administrative Burden
Companies can focus on the core of their competencies since businesses partnered with cooperatives experience lessened administrative burdens. Specifically, cooperatives cover the manpower and labor relations aspect of the partnership, from finding talent to retaining said workers.
Looking to Make the Most of These Advantages But Don’t Know Which Cooperative to Pick?
Partnering with a cooperative can bring numerous advantages to businesses. It opens up many opportunities, including increased market strength, collaboration, and social impact. However, evaluating the cooperative thoroughly and the long-term implications before deciding is crucial.
If you’re looking for a cooperative that checks out your objectives, Kabraso Multipurpose Cooperative might be a good option for you.
We bring to the table quality and dynamic manpower services that are sure to propel your business to success. Kabraso Multipurpose Cooperative specializes in full service contracting that helps you maximize your organization’s capabilities.
Choose Kabraso And Enjoy the Different Advantages of Cooperatives!
We firmly believe that by choosing Kabraso as your partner cooperative, you will greatly benefit from our exceptional performance and commitment to customer satisfaction.
We look forward to possibly working with you and contributing to your success!