Starting a New Business Cooperative

Howard Brodsky of CCA Global Partners on choosing a co-op partner.

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If you are forming a co-op, don't accept just anyone, warns Howard Brodsky, the founder of CCA Global Partners, a multibillion-dollar company that manages co-ops and has more than 3,800 members. Some co-ops make the mistake of indiscriminately adding members in the interest of attaining scale quickly, he says. Here's what you should look for in a co-op partner:

Strong reputation in the industry If early members are known as effective sellers or leaders, others will want to join.

Good credit Co-ops must negotiate with manufacturers and others in the business community. Bad apples reflect poorly on the whole barrel.

A mix of skills Look for smart product, marketing, and finance people. Building a co-op is like staffing a company from the ground up.

Ears to the ground A big advantage for retail co-ops is members' closeness to their customers. Choose members who are good at sensing changes in consumer demand.

Compatible personalities Co-op members need to support one another. They often develop close friendships. Don't include anyonewith whom you wouldn't want to go to dinner.

Leigh Buchanan is an editor at large for Inc. Magazine. A former editor at Harvard Business Review and founding editor of WebMaster magazine, she writes regular columns on leadership and workplace culture. @LeighEBuchanan