After the study's quality has been deemed acceptable, the steering committee and group need to decide whether to proceed with the project.

Positive results from a feasibility study do not necessarily imply that the group should proceed with the project. Several factors could cause the group to stop or to revise the project:

• The situation/environment has significantly changed since work on the study was completed;
• The group has chosen another project it considered more beneficial;
• The risks are deemed greater than the group is willing to accept;
• Capital, size, or capacity requirements are more than the group can accommodate; or,
• New information shows key study assumptions to be unrealistic.

Negative study results do not necessarily signify that a group should stop developing the project. The group may cautiously proceed even if study results are negative. Any decision to continue should carefully weigh the risks involved and openly declare those to all involved before making a decision to proceed. Here are some reasons for the group to consider continuing with a business plan and project implementation when the study did not provide favorable results:

• The situation/environment has improved since the study was completed;
• Critical assumptions of the study are found to be unduly harsh or negative, or have significantly changed;
• More potential members and/or product volume have been identified;
• The group feels that more producers or volume will participate once the project is closer to implementation;
• The group has found a partner to share the cost, risk, capacity, etc; or,
• Technical limitations of machinery or design have been resolved.

The group should not proceed to develop a business plan with negative issues still pending. It is important that the steering committee and group address any recommendations and limitations the feasibility study outlines before it takes the time and approves the expense that a business plan will take.

If a decision is made to proceed with the project, the steering committee and group should first look at the study's recommendations to see what, if anything, needs to be accomplished before a business plan is developed. For example, does the study advise exploring joint ventures with processors or other industry partners or organizational structures (such as a limited liability company), obtaining marketing contracts from prospective members, getting attorney assistance to meet Federal or State security laws, researching other marketing avenues, etc.?

Written records of the decision-making process should be made and retained. The steering committee and group have a legal responsibility for adequate due diligence. An attorney should be apprised of project developments as they occur-in this case the acceptance, rejection, or need for further analysis-of the feasibility study. The attorney needs this information to provide appropriate legal counsel to the steering committee and group as it proceeds.

If all issues, recommendations, and limitations are fully explored, and the project is declared feasible, the group and steering committee proceed to develop a business plan (which is part of Step 7, in "How to Start a Cooperative", CIR 7). Many components and analyses contained in the feasibility study will be used in the business plan. The steering committee and consultant should work to identify those parts that are relevant and acceptable for inclusion in the business plan. With the development of the business plan, the steering committee and group will work toward completing the remaining events/steps of development, as explained in CIR 7.