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Macomb, IL – The Macomb Food Cooperative is still in the planning stages, but a national expert believes it stands a good chance of succeeding.
Stuart Reid of the Food Co-op Initiative said the Macomb group is taking the proper approach.
"Co-ops like this that are doing a really good job of laying the groundwork and doing their due diligence in business planning are almost always successful," Reid said.
Reid said co-ops are generally more resilient than other small businesses because they have members and thus enjoy a broad base of local support.
"Whereas the failure rate for most small businesses in the first couple years is upwards of 50%, I tracked the 50 or so co-ops that have opened in the last five years and found less than 10% that have failed," Reid said.
He said those that failed generally opened with insufficient capital or insufficient planning.
Reid believes it will be another two to three years before the Macomb food co-op opens. He thinks it will complement other grocery stores in town rather than compete with them.
Reid was in western Illinois over the weekend to help with planning and development of the Macomb co-op.
Food Co-op Initiative is a national organization that provides resources to co-ops. It has awarded a seed grant to the Macomb group.
"It says a lot for them right there because it's a competitive process and there aren't that many," Reid said.
Food Co-op Initiative is a non-profit group. Reid said it receives grants from the USDA and other sources.