A comprehensive feasibility study will contain all the ingredients necessary for the steering committee and group to make a sound decision on whether to proceed with a project. Although studies vary depending on the type and scope of the proposed business, all reports must contain enough elements to present a comprehensive view of the project. While some specific project details may be undecided, such as plant location or who the manager will be, a report must contain enough information and analyses to determine a project's potential for success or failure.

The feasibility study report serves as the written representation of the group and its potential cooperative business. Potential members, financiers, and others will use this document to help determine their level of support for the project. The report's appearance as well as its content can influence people's perception of it. Thus, the layout should be professional, well organized, and well written.

The appearance of and specific aspects included in the report will vary depending on the project, the group, and the consultant who prepares the study. Thus, there is no required length or number of components for a study report, but the study must provide an organized format with enough critical information and analyses pertinent to the project to help the group make an insightful decision. *2

Key elements will change depending on the nature of each project. As a rule of thumb, if reasonable changes in a factor could make the project change from successful to unsuccessful, it is a key element.

Examples could be the technology of production, volume of inputs, the market for goods sold, marketing channel, personnel costs, prices paid, and capital costs.

Figure 6 provides a general example outline of the major components a feasibility study might contain. This example includes eight major components, but the exact number and order of components for different studies could very well vary from these. In addition to the potential items listed in the outline below or others determined given the project, a study should include a title page, the name of the person(s)/firm who conducted the study, and a table of contents. General descriptions of each of the sample components included in Figure 6 are described in the following sections (sections include relevant outline items).

*2 Appendix D provides the USDA Rural Development summary guide for what a feasibility study should contain for a business applying for USDA Business and Industry guaranteed loans (note that the criteria in the guide can be incorporated into a feasibility study).