Woodbury Makerspace Plan

Woodbury Makerspace Business Plan

Newland Cooperative, Minnesota

by Lyno Sullivan, Founder and President

MISSION STATEMENT

coopnesting

Utilizing Minnesota’s Newland Cooperative system capabilities, we enable 3D model designers, sculptors, artists, and 3D product idea people. We do this by consistently providing co-operatively owned spaces in Woodbury, Minnesota, filled with high quality classic, multi-color, and exotic material 3D prototype printing tools and services. We apply principles of time investor co-operative workforces, to bring idea people together with producer people, who together, invest time developing an idea and bringing it to market. The principles are that time investment hours and capital investments are repaid from sales. Excess sales income spreads to nearby coops to help them bring their new ideas to fruition. Product royalties provide an incentive for time investors in a Newland chartered virtual coop.

A simple motivation is the opportunity to work with people teaching and learning in a cooperative environment. Professionals and students meeting one another in low-key learning environment. Local professionals get to assist up-and-coming professionals, some of whom seek internships, scholarships, mentors, to become a mentor, and so forth. These incentives attract time investors and capital investors, investing today and sharing future rewards fairly among coop members. The excess goes back to the coop community, so that other idea people might get a leg up with their ideas.

Newland Cooperative hosts each Makerspace co-operative. In the manner of a franchise operations, once a Newland hosted idea cooperative becomes operational it may be spun-off into an independent gross income, small share royalty paying affiliate. Its sales and royalty income is distributed to its coop members, based somewhat on their time investment. This royalty compensates the DevOps team who support the open source systems that each virtual coop uses upon the internet and personal devices.

SUMMARY

A makerspace is a place where customers go to design digital 3D models created in software like Autodesk 123A, which is free for download, or professional grade software like SolidWorks and Fusion 360, or a host of alternatives. In-house software converts models into automated printer control commands. 3D prototypes are printed in various materials like plastics, carbon fiber, Kevlar®, composite plastics with materials like metals and experimental materials capable of withstanding extreme loads and pressures. The 3D printing process uses plastic filament, input at melting temperatures of around 250 C.

PROBLEM STATEMENT

We do 3D printing. Who is our customer? Why do they frequent our virtual coops? Why do they frequent our Makerspace physical coop facilities, warehouses, and databases? Why do they continue to pay their membership fee month after month?

We operate initially as a virtual coop within the physical coop named Newland Cooperative as registered in Minnesota. Once our Makerspace coop becomes commercially viable, we may want to become our own independent company, albeit endowed with an initial starting set of articles, bylaws, and workflow processes from its parent and ancestral coops. This behavior is referred to as “incubation and emergence” phases. From your idea, a new company is born, in some incorporated form. It pays royalties back to its parent company and to the Newland Cooperative. Every community in Minnesota will want to create their own makerspaces so their young have a place to learn.

SECURITY AWARENESS

We bring idea and production people together in a security conscious, mutually supportive virtual cooperative. Our workflow keeps drawings, documents, and digital materials separated by customer member, and virtual coop accounts. The premises used by our members receives commercial security services.

It is important that members and customers know that their prototypes receive security protection. All members sign an NDA concerning any prototypes in any workflow. Security systems abound throughout the premises including location tracking by means optional existence and location tracking chips embedded within some printed 3D products. Security camera footage of outside and inside is provided. The Makerspace facilities are secured with commercial electronics access controls and tracking databases.

CASE STUDY: ARTISTS, SCULPTORS, 3D CREATORS

Do you have a hobby that involves making stuff with your hands? Artist kinds of stuff; sculpture, pottery, or woodworking; making stuff that persists. Gift card parts. Rubber stamp designs with your 3D art on the face. Plastic toys. 3D color sculpture in exotic materials; artifacts; reproductions.

CASE STUDY: IDEA PERSON

Are you an idea person? Do you ever have ideas for 3D objects that might be patentable? Want to experiment with lightweight plastic products, some stronger than steel. Need access to simple materials testing capabilities? Want to know how many tons of force it takes to crush a carbon fiber reinforced plastic toy? All useful stuff if you are experimenting with materials.

If you have a need for a prototype, model, or finished 3D product, what do you do? Where do go? ANSWER: You go to a nearby Newland Makerspace 3D printing shop. Bring your memory stick containing your 3D model of own designed creation. Or use one from out catalog of 3D printable products provided by our royalty receiving members. We can print of up to 4 copies on the spot, if the customer chooses to hang for a while. Products can be printed overnight.

CASE STUDY: PRODUCER

When seeking a continuing membership in Makerspace, professionals, artisans, hobbyists and students, will frequent the Makerspace website to establish their identity with a scan of their state issued ID card. That gains them entrance to the backroom premises.

Every member must read a Non-Disclosure Agreement (NDA) and sign it. Time accounting is done through the website. Designs needing printing can be submitted via the website. They will be placed into the work queue. Going to the warehouse personally with your memory stick is the most secure way to do your 3D print setup.

WORK IN MAKERSPACE

All inside and outside spaces except bathrooms are under video and audio surveillance. The warehouse facility requires a member to insert their state issued photo ID scanner. The warehouse is like a laboratory and production shop. The facility is heavily secured to prevent theft of prototype designs.

SPREADSHEET RESULTS

makerspace-1st-year-budget

The spreadsheet shows a cost of $1.25 per square foot per month turns the light. Research into space in a safe commercial park found one perfect 2400 ft2 that is currently one space now which can be divided in half. The entire space has a conference area for twelve, a public facing glass walled “laboratory” like space, two joined spaces, each with a human door and a twelve foot garage door.

SUPPLEMENTAL MATERIAL

Newland Cooperative

The Newland Cooperative is established under Chapter 308B. Cooperative Associations statute. Within Newland Cooperative a separate entity with these components

  1. Makerspace Coop (a virtual Coop) is established as a board sub-committee under a Charter, within Newland Cooperative, during idea incubation phase. Members of Newland Cooperative may be eligible to sign the Makerspace Coop Non-Disclosure Agreement and join the Coop, subject to the approval of the existing members. After the incubation phase the Coop will be spun off into its LLC, S Corp, C Corp, etc. The spin-off pays a royalty to Newland Cooperative.
  2. Makerspace Fund is established to track all money. Transparent transaction detail is available to members of the Coop. Transparent balance sheet information is available to other Coops and to Newland Cooperative accountants, auditors, tax authorities, et al.
  3. Makerspace Coop members invest time which will be repaid from future income in the manner specified in the Makerspace Coop Charter. A royalty on gross income is paid to Newland Cooperative. Up to 60% of unreserved net income can be directed to capital investors of the Newland Cooperative. The remainder of profit is available for other expenses and patronage to the for the time investors.

3D Printer Options

$2,000 FORMBOT T-Rex 2 https://www.aliexpress.com/store/product/Formbot-T-Rex-Large-3D-Printer-with-400x400x450mm-Build-Size/2061058_32616252202.html

3d-printer-formbot-t-rex-2

$5,000 RoVa4D http://www.ordsolutions.com/rova4d-full-color-blender-3d-printer-pre-order/

3d-rova4d-full-color-blender-3d-printer

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Why Choose Co-operative Model

Why Choose a Co-operative Business Model?

A co-operative (also known as co-op, cooperative or coop) is a type of corporation which is an autonomous association of people united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled business.

Co-operatives are based on the values of self-help, self-responsibility, democracy, equality, equity and solidarity. In the tradition of their founders, co-operative members believe in the ethical values of honesty, openness, social responsibility and caring for others.

Newland Co-operative MISSION: We enable idea people by consistently providing the highest quality tools and services for superior quality co-operative development. We empower each co-operative workforce by ensuring income opportunity and organizational governance.

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Choose Your Business Structure

The Small Business Administration provides guidance on “Starting a Business”.

The business structure you choose will have legal and tax implications. Learn about the different types of business structures and find the one best suited for your business.

Sole Proprietorship

A sole proprietorship is the most basic type of business to establish. You alone own the company and are responsible for its assets and liabilities.

Limited Liability Company

An LLC is designed to provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.

Cooperative

People form cooperatives to meet a collective need or to provide a service that benefits all member-owners.

Corporation

A corporation is more complex and generally suggested for larger, established companies with multiple employees.

Partnership

There are several different types of partnerships, which depend on the nature of the arrangement and partner responsibility for the business.

S Corporation

An S corporation is similar to a C corporation but you are taxed only on the personal level.

Co-operative Core Principles

Cooperatives around the world generally operate according to the same core principles and values, adopted by the International Cooperative Alliance in 1995. The International Cooperative Alliance is a global membership association of co-ops and co-op support organizations.

The co-operative principles are guidelines by which co-operatives put their values into practice.

Voluntary and Open Membership

Co-operatives are voluntary organizations, open to all persons able to use their services and willing to accept the responsibilities of membership, without gender, social, racial, political or religious discrimination.

Democratic Member Control

Co-operatives are democratic organizations controlled by their members, who actively participate in setting their policies and making decisions. Men and women serving as elected representatives are accountable to the membership. In primary co-operatives members have equal voting rights (one member, one vote) and co-operatives at other levels are also organized in a democratic manner.

Member Economic Participation

Members contribute equitably to, and democratically control, the capital of their co-operative. At least part of that capital is usually the common property of the co-operative. Members usually receive limited compensation, if any, on capital subscribed as a condition of membership. Members allocate surpluses for any or all of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to their transactions with the co-operative; and supporting other activities approved by the membership.

Autonomy and Independence

Co-operatives are autonomous, self-help organizations controlled by their members. If they enter into agreements with other organizations, including governments, or raise capital from external sources, they do so on terms that ensure democratic control by their members and maintain their co-operative autonomy.

Education, Training and Information

Co-operatives provide education and training for their members, elected representatives, managers, and employees so they can contribute effectively to the development of their co-operatives. They inform the general public – particularly young people and opinion leaders – about the nature and benefits of co-operation.

Co-operation among Co-operatives

Co-operatives serve their members most effectively and strengthen the co-operative movement by working together through local, national, regional and international structures.

Concern for Community

Co-operatives work for the sustainable development of their communities through policies approved by their members.

Co-operative Best Practice

There is a growing body of literature on best practices of businesses based upon the co-operative business model. These practices cover several areas. Within the United States, by the constitutional separation of powers doctrine, cooperative law is the purview of the states. Minnesota law. The laws provide standardized solutions usable by a starting co-operative. Within these laws co-operatives are granted broad powers.

Governance

Management and direction of a cooperative is both an art and a science. Ultimate power is vested in the one member equals one vote democracy. The day to day management decisions are handled by the elected board of directors. Strategic direction setting may be the responsibility of board, which is subject to refinement by the membership.

The Newland™ business model provides the LivingVote™ process, as a primary direction setting technique, used by the members to provide the framework for day to day operations.

The stakes have never been higher for cooperatives. They operate in a business environment with less margin for error. As cooperatives grow larger and face increasing internal and market complexity, the critical factors for their success must be continually re-examined.

The most successful cooperatives develop a culture for continuous learning.  Managers and board members must understand the on-going need for knowledge and information.  It is human nature to operate in our comfort zone.  However, new technologies, or changes in the political, regulatory or farming environment may have major implications for future operations.  The best cooperatives identify information gaps and develop strategies to address them.  The annual strategic planning session is an ideal time to consider what you don’t know.

A final factor in cooperative governance is balancing returns at the firm and member level.  Managers and boards focus on the bottom line and balance sheet strength.  Members often focus on prices, service and equity retirement.  Cooperatives must not only maintain this balancing act but also communicate the multiple dimensions of successful performance to their members.

Minnesota Cooperative Statutes Chapters

Minnesota has two sets of statures pertaining to co-operatives. Some definitions are necessary.

308B.005 DEFINITIONS.

Subd. 5.Association. “Association” means an organization conducting business on a cooperative plan under the laws of this state or another state that is chartered to conduct business under other laws of this state or another state.

Subd. 15.Member. “Member” means a person or entity reflected on the books of the cooperative as the owner of governance rights of a membership interest of the cooperative and includes patron and nonpatron members.

Subd. 19.Nonpatron membership interest. “Nonpatron membership interest” means a membership interest that does not require the holder to conduct patronage business for or with the cooperative to receive financial rights or distributions.

Subd. 20.Patron. “Patron” means a person or entity who conducts patronage business with the cooperative.

Subd. 21.Patronage. “Patronage” means business, transactions, or services done for or with the cooperative as defined by the cooperative.

Subd. 22.Patron member. “Patron member” means a member holding a patron membership interest.

Subd. 23.Patron membership interest. “Patron membership interest” means the membership interest requiring the holder to conduct patronage business for or with the cooperative, as specified by the cooperative to receive financial rights or distributions.

Chapter 308A Cooperatives statutes pertain to a cooperative formed and incorporated on a cooperative plan for the purpose of conducting an agricultural, dairy, marketing, transportation, warehousing, commission, contracting, building, mining, telephone, manufacturing, mechanical, mercantile, electrical, heat, light, or power business, or for any combination of these purposes or for any other lawful purpose.

Chapter 308B Cooperative Associations statutes pertain to a cooperative formed and organized on a cooperative plan for any lawful purpose, including: (1) to market, process, or otherwise change the form or marketability of products, including crops, livestock, and other agricultural products, the manufacturing and further processing of those products, other purposes that are necessary or convenient to facilitate the production or marketing of products by patron members and others, and other purposes that are related to the business of the cooperative; (2) to provide products, supplies, and services to its members; and (3) for any other purposes that cooperatives are authorized to perform by law.

Minnesota’s Newland Co-operative chose Chapter 308B organization for several reasons, including 308B.601 MEMBERSHIP INTERESTS and in particular, Subd. 3.Patron membership interests. The patron membership interests collectively shall have not less than 60 percent of the cooperative’s financial rights to profit allocations and distributions. If authorized in the original articles as filed, or articles or bylaws adopted by an affirmative vote of the patron members, or the articles or bylaws are amended by the affirmative vote of patron members, then the cooperative’s financial rights to profit allocations and distributions to patron members collectively may be not less than 15 percent.

Subd. 5.Nonpatron membership interests. If authorized by the articles, the cooperative may solicit and issue nonpatron membership interests … distributions shall be made on the basis of value of the capital contributions of the patron membership interests collectively and the nonpatron membership interests to the extent the contributions have been accepted by the cooperative.

Patron and Nonpatron Membership Interests in Newland Co-operative

Minnesota’s Newland Cooperative filed the minimalist business organization charter required by law. Everything else is subjected to the LivingVote™ decisions in the bylaws. With this fact in mind, the bylaws speak to all matters of patrons and nonpatrons.

“Patron membership interests” are established for time investors who provide services. Necessary expenses, as established in the bylaws, which are approved by the board, may be reimbursed.

“Nonpatron membership interest” is reserved for capital investors.

What Is a Co-operative?

Co-operatives put people at the center of their business and not capital. Co-operatives can be defined in terms of three basic interests: ownership, control, and beneficiary. In a co-operative all three interests are vested directly in the hands of the user. Some co-operatives are designed to produce a profit. Profits are distributed back to the members in the form of patronage.  Since the owners of a co-op are also the customers, lowered prices and extra services are acceptable, instead of profits.

The International Cooperative Alliance defines a cooperative as “an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.”

Typical Kinds of Cooperatives

There are several types of cooperatives based upon their business model. Within each business mode, products and services vary.

Consumer Cooperative

With buyer’s co-ops, people who shop at a store are members, they pay a fee to be a member which essentially buys them a ‘share’ of the co-op. The benefits of this type of co-op for the members are usually either (a) lower prices for products (b) specific control of the types of products offered. For example, you might start an internet co-op to bring broadband to a rural area where it otherwise wouldn’t be affordable enough for a single person to pay the costs. Buyer’s co-ops can take other forms; for example, ACE Hardware is a co-op, but it’s an owner’s buyer’s co-op; all owners of ACE Hardware stores are owners of the co-op, and use it to buy goods collectively.

Worker Cooperative

With worker’s co-ops, the workers are the beneficiaries of the co-op structure. Sometimes the workers will have to invest money if they join an established co-op, but more often than not, the workers are the founders of the co-op and are invested in ways that aren’t just monetary. The main benefit of this structure is that it enables the workers to set business policy. These co-ops are often collectives at a small level, but may adopt more hierarchical structures as they get bigger.

Producer Cooperative

With producer co-ops like Minnesota’s Newland Co-operative, the patron and non-patron member benefits form a hybrid cooperative with elements of time investment and capital investment membership interests. The basic principle is simple. Capital investment members are repaid their principal and then a share in downstream income, providing optional time limited return on capital investment. Once fully repaid, a capital investor may be convertible to a time investor.

Major Movie Co-operative

When a Producer Co-operative takes on a task, like a major movie, they will assign sub-projects to time investors within subsidiary co-operatives, nested to any desired degrees of sensibility. Each sub-cooperative takes its place among all the pipelines through which product improvements flow. Such a project would involve hundreds of union-based co-operatives filled with thousands of workers trained to the individual time investment areas.

Union Associated Co-operative

Union associated co-operative means that all union dues are paid and all votes are taken.

Multiplier Hourly Rate $US Purpose
1/4 x $6 per hour $6 allowance for one documented hour of time investment recorded
1/2 x $12 per hour for Journeyman’s grade assessment $12 study reward rate for documented time investment records grades in academic school of union sponsored apprentice trade school
2/3x $16 per hour for great grades in college or trade school $18 for adults who are at least 18 years old and working for completion of a bachelors academic degree
2/3x $16 per hour supervised time investment $18 for adults in supervised time investment schooling to journeyman level in one trade.
1x $24 22-29 years old
1.5x $36 30+ skilled
2x $48 40+ year old master level by education experience, or age

Time Investment Royalty Distribution

In the final toll, each workers time investment is paid for as a share of the net profit. In a billion dollar move that could divide the income fairly at the base hourly rate for journeyman class worker or college graduate is the (1x) rate of $24 per in for U.S. workers, $3 per hour in Malaysia. And so it goes for every local bank-note currency, national currency, digital currency, hard currency, and so forth. All of it only becomes payable and taxable at profit distribution time. It is scaled to the local economy. This stabilizes the Newland™ economy.

References

Cultivate.Coop is a library of information about cooperatives. Everything is created by and for people who work in co-ops. You can edit and upload content to Cultivate.coop just like Wikipedia. Cultivate.coop is also home to the Cooperative Education Network, a group of practitioners developing a centralized collection of materials on co-op education. The article Starting a Co-operative is comprehensive and well worth studying.
The U.S. Small Business Administration has delivered millions of loans, loan guarantees, contracts, counseling sessions and other forms of assistance to small businesses. See Choose Your Business Structure for information about co-operatives.

The article Expert advice: How to start up a co-operative contains tips from experts, gathered during a live Q&A. It clears up terminology and provides principles useful in deciding start-up issues.

References

The co-operative photo: This is Money website.

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