Make a loan to your co-op and your community!
The good news:
Sales have exceeded our projections.
- Despite opening during tough economic conditions, we ended fiscal year 2009 with $8.1 million in sales, 6% above our sales goal.
- Membership growth is strong.
- We had 2,700 member-owners when the store opened and we have over 3,800 member-owners now.
- We are supporting the local and
- regional economy.
- 45% percent of our total purchases during our first year were made from New England and locally based companies contributing nearly $2.5 million to our local and regional economy.
- We employ approximately 80 staff.
- In a time of national economic struggles and high unemployment, we provide rewarding full-time and part-time jobs with benefits to people from our extended community.
The flip side:
- We had higher than anticipated expenses during our first year of business.
- $100,000 less in financing at closing than budgeted
- $85,000 extra in closing costs
- $56,000 less than expected in green building grant funding
- $350,000 in increased start-up labor costs and costs of goods and services
- All of these expenses add up and have reduced the cash the co-op has available for working capital
- (i.e. to pay our bills).
What we are doing to address this cash shortfall:
We are continuing to increase our sales.
We started with $8.1 million in sales in our first year and are on track for $10 million in our second year.
We have reduced labor costs.
At start-up, labor amounted to 34% of sales; now it’s down to 18%.
We are closely monitoring our cash flow and have reduced our expenses.
And we are continuing to control costs by troubleshooting and refining systems.
We are working to raise $300,000 in member loans.
How you can help:
Help us continue growing our sales.
Keep shopping at the co-op and tell all your friends!
Make a member loan.
Making a loan now will make a big difference because it will directly affect the co-op’s cash position. If you are able, please consider a loan of $5,000 or more.
The fine print:
- The Member Loan Program is open to all River Valley Market member-owners.
- The minimum loan we can accept is $1,000.
- Member loans will be held for a 7-year term.
- Member lenders may choose whether or not to charge interest.
- 0-3% for loans below $10,000
- 0-4% for loans $10,000 and above
- Loan interest is simple interest to be paid once a year, when it’s financially prudent.
- Member loans are unsecured and subordinate to our bank loans. Member loans are at risk, so be sure to consider your capacity to absorb potential losses that are inherent in any business endeavor.
Contact:
Sharon Rudnitzky, Member Loan Committee Chair at 413.268.3448 or sharon@rivervalleymarket.coop
