Business Transition Tools

Once a business starts there will be at least one more transiton in the life of the business. The owner will decide at some point to transiton the business through a sale or closure.

A series of Business Transition Models shows different business transition strategies as well as the timing of decisions that need to be made.   Many types of business transitions can take years to complete.  These models show business owners and advisors many of the steps needed to take in a business transition.  The models also show what steps are needed to be taken to build community support for a multi-owner business transition.  Each model is explained and lists pros and cons of each transition.

Business Transition Models
Discover which model fits your personal, financial and community needs.

Grocery Store Decision Making Tools

Starting a Grocery Cooperative can be a challenge in rural Nebraska communities.  This business closure can have a profound impact on the community. To assist with this process, NCDC has developed two financial planning tools to assist with outlining start up costs, creation of a the first year pro forma and planning for first year operations.

Decision Making Tools for Cooperative Grocery Stores

Research

Ownership Transition Research in Nebraska

In the Fall 2020, University of Nebraska-Lincoln researchers studied the perceptions and experiences of rural Nebraska grocers about transitioning rural grocery stores to new ownership. This study focused on transitions from grocery stores owned in proprietorships into stores jointly owned by a community group. Grocery store owners, employees, and community members described the ownership, market, and community context during ownership transitions, grocery store owner motives for involving community members in store ownership transitions, and community motives for involvement with these transitions. A grant from the W.K. Kellogg Foundation and the USDA Rural Cooperative Development Center helped to support this research/report as well as Nebraska Extension personnel.

The complete report is available for download here: Ownership Transition in Rural Nebraska Grocery Stores: A Multi‐Ownership Perspective

Conclusion and Recommendations

This study of Nebraska’s grocery industry cannot be generalized to all rural grocery operations. It provides insights into the challenges of operating a rural locally owned grocery as well as opportunities for pursuing models for multi-owner, community-owned operations that help to secure food access for our many rural communities. We analyzed responses from surveys of grocery store owners and employees, and responses from focus groups of individuals participating grocery stores owned by community groups and found three major themes related to lessons and challenges rural grocery stores are likely to face when they transition ownership into the hands of community groups. Key lessons include that the communities value the importance of a grocery store and that the community is willing to work together for a common goal.

Food Deserts in Nebraska: A revised methodology and analysis

Food deserts present a significant obstacle to healthy lifestyles and health outcomes for Nebraska residents. They are designated based on whether residents in a geographic region can access affordable, healthy foods. This study assesses the extent of limited access areas in Nebraska to affordable and nutritious food and describes how changes in food markets affect the ease with which Nebraska households can access food at retail outlets. Funding for this study was provided by the Center for Rural Affairs and the Nebraska Grocery Industry Association. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the CFRA or NGIA.

The complete report is available for download here: Food Deserts in Nebraska: A Revised Methodology and Analysis

Summary

The USDA provides a definition for food deserts based on accessibility and affordability. The USDA definition measures affordability based on income alone. We modify the affordability criterion to include a measure of spending potential relevant to rural Nebraska consumers. This definition indicates portions of several Nebraska counties can be designated as food deserts in 2028. Changes in spending potential between 2024 and 2028 will allow zip codes in 11 counties to ease financial strain on existing food retailers, but these will remain food deserts through 2028. Most zip codes meeting the 2028 food desert designation are unlikely to change their designation and food retailers will need economic remedies to reduce financial strain. Many remedies exist that can influence food retail markets. Among these are public policy, corporate-based, and those pursued by communities. The most effective solutions seem to be local solutions. Examples include community awareness about grocery store ownership transition plans or forming grocery cooperatives or public-private partnerships for food retail.

Legislative Resolution 374: Interim Study to Examine the Availability of Healthy and Affordable Food Choices in Nebraska Communities

Effectively addressing food insecurity in Nebraska requires a holistic approach encompassing multiple coordinated methods, each tailored to a various component of the complex statewide issue. The major contributing factor to household hunger in the U.S. is income level, but race, education, transportation access, rate of affordable housing, and chronic health conditions also play a significant part. 

The complete report is available for download at the Center for Rural Affairs here.  The Legislative Resolutinos 374 can be found here and can be status can be tracked from this site.

For More Information

Rural Grocery Resources

Visit the Nebraska Grocery Industry Association for a number of resources related to grocery improvements and transitions. 

Ownership Transition in Rural Nebraska Grocery Stores: A Multi‐Ownership Perspective 

For assistance from  creating a start-up plan, operations plan or exploring the business model,  please contact Charlotte Narjes (cnarjes1@unl.edu) or Cindy Houlden (choulden2@unl.edu).