• Conduct a preliminary market review.
• Identify whether necessary technical and financial assistance is available.
• Assess receptiveness to the co-operative business in the local community.
• Evaluate if the co-operative is the best legal framework to use or if the kind of co-operative selected is the most suitable.
• Define the intended benefits for members (e.g. quality, price) and the co-operative's characteristics to determine what kind of co-operative it is:
  • products and services offered (consumers' co-operative)
  • products and services marketed (producers' co-operative)
  • salaries and working conditions (workers' co-operative)
  • New services for the community (multi-stakeholder co-operative)
• Evaluate the project's potential to attract the number of members needed to make it viable.

If this study shows that the planned co-operative is feasible, the group can proceed to the second phase. If the study suggests it is not feasible, or if the study is not conclusive, the group should re-evaluate its business idea.

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