The Very People - generated significant additional revenue

The Very People is a co-operative of senior and experienced consultants in PR, journalism and marketing.

The company was established in 2006 with considerable advice and support from Co-operative Development Scotland, who recommended creating a co-operative consortium. This model allows the members of the co-operative to pool their skills to pitch for larger contracts, while retaining their independence as standalone consultancies.

The co-operative has a flat management structure, with each of the directors taking on responsibility for key roles such as finance and marketing.

Victoria Masterson, a director of The Very People who specialises in writing for business, said: "We're a group of six independent sole traders and limited companies who got together to increase our clout to go for bigger contracts. Being a co-operative allows us to do that, whereas as individuals we wouldn't have the resource or capacity to get that work."

Since forming the co-operative, The Very People has secured contracts with a number of large public and private sector organisations. For more information, visit: www.theverypeople.co.uk

Members

The members of The Very People are all independent practitioners in communications and marketing:

• Ian Spinney, Spinney & Partners - Public Relations
• Kenny Kemp, Kemp Communications UK - editorial and media consultancy
• Liz Taylor, Taylormade Marketing - business to consumer marketing
• Ruth Webber, Webber Marketing - business to business marketing
• Stewart McIntosh - journalist, business copywriter, media coach
• Victoria Masterson, City Desk - editorial and media consultancy

How it happened

Before forming the co-operative, several of the members had worked together in an informal capacity. In 2006, Ian Spinney suggested formalising these working relationships by setting up a co-operative.

The aim was to bring together the group's complementary skills under a single brand to pursue large public and private sector contracts requiring more capacity and resource than an individual practitioner could provide.

The set up process

Specialist advice - one of CDS's specialist advisers met with the group to discuss how they might benefit from setting up a co-operative. The advisor proposed a co-operative consortium, because this would allow the members to market complementary services, while retaining their individual businesses and brands.

Incorporation - the adviser recommended setting up The Very People as a standard limited company, regulated by Companies House. These are simpler to operate than bona fide Industrial & Provident Societies, which are regulated by the Financial Services Authority.

Memorandum and Articles of Association - the advisor provided a customised set of 'Memo and Arts' to submit with the company registration form to Companies House. These follow a standard format, but differentiate the business as a co-operative in key clauses. For example, that members only have one vote each and that funds can only be distributed on wind-up of the company if there is unanimous agreement.

Members' Contract - the CDS advisor helped The Very People draw up a Members' Contract, which sets out the aims of the co-operative and how the members work together. Key points include:

• Decision-making - decisions are made by majority vote
• Quality - each member agrees to provide a service of satifactory quality to the co-operative and its clients
• Pricing - prices for services will be decided by mutual agreement
• Availability - members will make themselves available for project commissions as required
• Termination of contract - notice and arrangements for contract termination

Member engagement

The six members of The Very People are based at different locations in Glasgow and Edinburgh. They work co-operatively in a number of ways, including:

• Board meetings - regular board meetings are held and minuted every one to two months to discuss opportunities, issues and work in progress
• Phone and email contact - members working together on live contracts are in daily phone and email contact; regular updates are exchanged between co-operative members
• Co-operative policies - a number of policies have been devised to encourage member participation, including personal and organisational training and development

The benefits

How do the member businesses benefit from being part of The Very People?

Key advantages include:

• Profit sharing - the co-operative retains 5% of revenues from services provided for reinvestment purposes and distribution among the members
• Income growth - by working together, each member business has increased its income by securing additional work and sharing costs
• Visibility - marketing The Very People has increased the profile of each member business, as well as the co-operative itself
• Scale - the co-operative allows the member businesses to be part of a bigger group, with more power and reach Independence - each member business retains its brand and identity
• Teamwork - the co-operative provides support and feedback for practitioners who previously worked alone

Find out more about alternative business models