Step 0 of Starting a Tech Worker Co-Op: Define Your Goals

Worker cooperatives ("co-ops") are a growing alternative to traditional hierarchical tech company structures, which often rely on venture capital funding. Unlike conventional startups that take VC money in exchange for an equity stake, co-ops prioritize worker ownership, democratic decision-making, and profit sharing and strive to embody the 7 Cooperative Principles established by the International Co-operative Alliance.

Since launching Limeleaf in March, we've connected with co-op members all over the world and spoken with traditional tech workers who are fed up with traditional tech companies and curious about starting a co-op. We hope this increasing interest indicates a shift towards more equitable and worker-centric business models in the tech industry.

Setting our long-term goals was the most important thing we did when we started Limeleaf, so we decided to write about them hoping they would help others.

Why Goal-Setting Matters for Tech Co-ops

When starting a co-op, it's easy to get caught up in the excitement or perhaps the eagerness to leave a job in the Rot Economy. You might be tempted to dive in headfirst, fueled by passion and a desire for change. While this enthusiasm is valuable, you must channel it effectively to avoid pitfalls.

This is where setting long-term goals comes into play. Defining clear, concrete, values-driven objectives creates a solid foundation for your co-op's future success. These goals serve crucial functions:

1. Direction: They guide your collective efforts towards a shared vision.
2. Motivation: Clear goals give your team something tangible to work towards, boosting morale and your likelihood of success.
3. Decision-making framework: Developing a business model or strategy with guidance from your long-term goals is much easier and more effective.

Setting Goals Is an Antidote to Fear and Procrastination

Launching a worker co-op can be thrilling and fulfilling (it has been for us). However, it can also be overwhelming. As we discussed in previous posts, the process involves a ton of considerations and choices, including legal entity, corporate structure, business model, by-laws, and operating agreements. With so many tasks and decisions, it's understandable if you start feeling stuck, hesitant, or just terrified. Establishing your goals can do a lot to alleviate this.

Examples of Concrete, Achievable Goals for Tech Co-ops

Let's analyze the goals we set when we started Limeleaf. Keep in mind that these goals are aspirational. We knew we couldn't achieve them all right away; some might even take years to reach, but we knew they would be crucial for keeping us focused on what we want to accomplish.

1. Keep it small, no more than 10 members. Promotes a tight-knit, collaborative environment that draws on every member's skills and considers their input.
2. 100% self-funded, no venture capital. Ensures that we maintain control over our decisions and values, free from the external pressures and loss of autonomy that (in our experience) are inevitable when you take outside money. In addition, we believe VC business practices are incompatible with the aforementioned 7 Cooperative Principles.
3. Make customers happy enough that they will happily pay us a premium. Exceeding expectations justifies charging higher rates.
4. Each co-op member earns a minimum $200,000 gross annual salary + 100% company-paid health insurance. We want to earn a comfortable living doing work we love. Also, the transparency of everyone earning the same salary makes planning labor costs, and writing contract estimates much simpler. As for health insurance, we’d prefer a public option and save Limeleaf tens of thousand of dollars a year in profit-driven health insurance premiums, but we live in the United States, and unfortunately, that’s not going to be an option any time soon.
5. We will only take contracts and develop products that draw on our unique expertise and interest us. Leveraging our members' strengths maintains high engagement and motivation levels, produces high-quality work, and maintains customer and job satisfaction.
6. Each member averages 32 hours of work per week, giving them time for family, hobbies, charity work, etc. A true commitment to work-life balance is central to why we started Limeleaf and a critical factor in the company's long-term sustainability.

A Goal-Setting Process for a Co-op Environment

Your goals should encompass both your material ambitions and your core values. They should be ambitious yet attainable, providing a clear path for your co-op's journey. By dedicating time and effort to this process now, you're establishing a strong foundation for a successful and sustainable co-op.

Setting goals in a cooperative environment must involve all members. Here's how to approach it:

1. Brainstorm. All potential members write down their ideas and aspirations for the co-op in a shared document. What do you want to achieve as a co-op and as people? What is your ideal work environment? Will you be a growth company or a lifestyle business? What impact (if any) do you want to make in the tech industry?
2. Focus and vote. Gather your potential co-op members in person or on a video call. Discuss everyone's ideas and vote on which goals should be in the final list. We recommend a minimum of three goals and no more than ten.
3. Align goals with values. Ensure your goals reflect what your members really care about and their ethical standards.
4. Prioritize. You can't do everything at once. Decide which goals are most critical for getting off the ground.
5. Document and share. Publish your agreed-upon goals and make them accessible to all members.

Overcoming Goal-Setting Challenges

Limeleaf only has three members, and we've known each other for a long time, so our goal-setting process was pretty straightforward. However, setting goals in a larger co-op can present challenges. Here are some common hurdles and strategies to overcome them:

• Divergent visions: Use structured discussion techniques to find common ground and move past disagreements. Consensus Decision-Making is a useful approach for this.
• Overly ambitious goals: Break down large goals into smaller, more manageable milestones.
• Lack of specificity: Encourage members to provide concrete details and metrics for each goal they present.
• Resistance to change: Encourage open communication with resistant members to address their concerns and increase buy-in. Also, consider using trial periods for contentious goals to gauge their effectiveness before fully rolling them out.

Don’t Forget to Review Your Goals

Your co-op's goals may need to evolve as your business grows or the market changes. You should review and adjust your goals at least once a year to ensure your co-op stays vibrant and true to its values.

Get to Work!

Setting clear, values-driven goals is the foundational step in launching a successful tech worker co-op. By defining your objectives, you create a framework and roadmap that guide decision-making, motivate your team, and align your efforts with your shared vision. Your future self will thank you for the clarity and direction these goals provide.

If you want to talk shop about co-ops, contact us.

AI Disclosure: I accepted some suggestions from Grammarly to improve the clarity of this post's language and reduce wordiness.