3.5 Operational And Technical Characteristics

V. Operational and Technical Characteristics

A. Supply of labor and its quality (including management)
B. Supply and costs of key inputs needed for operations
C. Technical characteristics and specifications of required plant and equipment
D. Assessment of potential operational capacity and efficiency
E. Location considerations (if one has not been already selected) and assessment (if one has been selected)

This section lays out the operational aspects and procedures of the proposed business including: the supply of labor and its quality; which key inputs will be required (raw materials such as soybeans or wheat, for example), their source (supported by a survey of potential members, if applicable) and their cost; the technical characteristics (e.g., the type of plant design required, equipment, facilities, building systems, etc.); the feasibility of finding proper management; location aspects; and operational issues or options; etc. The study should address the ability of the project to operate efficiently within the scope of the project's parameters.

It is important to provide information on the technical aspects of the project and to show how the proposed technologies will work within the context of the entire project. In projects with unproven technologies, this can be the most important aspect of a study and it provides a basis for close assessment. In projects with proven technologies, the study can serve to correct design flaws before costly mistakes are implemented.

If the project requires construction of a sophisticated facility, such as a meatpacking or soybean processing plant, professionals such as architectural, engineering, or management specialists will need to be consulted early in the process. The needed expertise should be described in the feasibility study. Assistance that will be needed for loan agreements, legal contracts, and construction should be documented also.

If a location has been selected, the study should address the implications of that location-is it efficiently situated for the potential labor supply, is it adequate for delivery and distribution channels, does it meet city/town ordinances and regulations, will permits be required, resources be available to cover its costs, etc.? If a location has not been selected, the feasibility study may provide some prerequisite stipulations, data, and standards by which to choose a location given the type of project, industry, and technology involved.