3.3 Industry Background

III. Industry Background

A. Basic background information on theindustry
B. Economic conditions of the industry
C. Implications and feasibility of entering industry

The state and status of the industry within which the cooperative will operate should be described in as much detail as possible and be broken down into geographic applicability (i.e., foreign, domestic, regional, local) to the project. The study should include charts and graphs of industry trends (e.g., volume, prices, byproducts, etc.), as well as a complete assessment of the competitive environment to properly define the need or fit of the cooperative within the industry sector. Pertinent data from industry organizations is helpful if it can be acquired. Government regulations and policies within the industry in question should be fleshed out and their relevance to the proposed business explained. Any regulations that might need to be met (e.g., environmental impact assessments, permits, etc.) should be clarified and analyzed. Costs associated with the government regulations and policies of an industry will need to be documented for the financial projections section.