The Cooperative Business Development Process
In most cases, developing a business is a complex undertaking
that consists of a number of stages. In cooperative development,
following a step-by-step deliberative process is important because
of the need to review progress and obtain input from potential
members after each step before making a decision about whether to
proceed with the project. The report "How to Start a Cooperative" (
RBS CIR 7), presents a 16-step
sequence of events recommended for creating a cooperative business
( see Appendix A).
This guide elaborates on the seventh of the 16- step event
sequence: conducting a feasibility analysis. A feasibility study is
an integral part of cooperative business development. Conducting a
feasibility study is not a theoretical research project, but rather
is a focused study for a specific group that wants to explore
forming a cooperative business.
Figure 1 condenses the sequence
of events of the cooperative development process into four stages
and shows how the feasibility study fits within that process. The
feasibility study occurs during the deliberation stage when the
focus is on whether to proceed with a project. (It should be noted
that the steps in Figure 1 are
sometimes approached and completed in a different order than shown.
The specific order of the steps taken in a development project will
be contingent on the type of venture being explored and the wishes
of those involved.)
The amount of time required in the cooperative business development
process depends on the complexity of the proposed business and the
attributes of the group involved. Typically, it takes 1 to 2 years
for a cooperative development project to be completed, although
there are some cases where projects are completed faster and others
that take longer.
The time needed to complete the feasibility study step varies
widely from project to project, again depending on the
characteristics of the group requesting the study, as well as the
specific aspects of the venture, such as technological complexity,
project scale, marketing conditions, member involvement, and
financial planning factors, etc. However, a good rule of thumb for
the feasibility analysis step for most development projects is 3 to
6 months.