• Obtain financing for the viability study from such sources as:
  • internal financing by the members
  • special grant
  • a technical assistance or business start-up agreement with a specialized organization.
• Define the strategic objectives.
• Evaluate the various strategic scenarios, production costs, and human, material and financial resources necessary.
• Evaluate the various start-up financing scenarios.
• Do a preliminary projection of budgeted statements and of a cash budget (revenues and expenditures, investments by members in share capital, partners, credit union or bank loans, grants).

If the study shows that the new co-operative will be financially viable, the group can proceed to the third phase. If the study concludes that the planned co-operative, while seeming feasible, would not be financially viable, the group should consider terminating the project.

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