The assumption behind this manual and, in particular, this prefeasibility or exploratory section is that a group is discussing the possibility of starting a business to slaughter cattle raised by group members and selling the meat in a variety of products. A 10-step checklist is included here to guide the group through the process.

• It’s time to put ideas, discussions and early findings down on paper.

Step 2
Purpose: To guide the formation of a team and to understand the dynamics of group
member interactions.
Action items:

• Form a team to explore your idea. For guidelines on recommended team members or the type of expertise to include, please read “How Will the Process Start?”
• Since the process most likely will involve working with a group, read “Working With
• Groups” to gain an understanding of the five phases that groups go through during
• projects. Discuss the implications for your group.

Step 3
Purpose: To do preliminary cost and revenue analysis of the business idea.
Action items:

• Review together the article “Cost and Financial Models.”
• Discuss how to gather the information required.

Step 4
Purpose: To learn about the information required for a preliminary financial feasibility of
the idea before writing the business plan.
Action items:

• Review the cost model for categories of data.
• Read two articles to help determine additional information that may be required for your financial analysis. The two articles are “Factors in New Business Success” and “Deals from a Bankers Perspective.”
• Decide what data is missing and needed for an initial review.
• Assign teams to gather the missing data.

Step 5
Purpose: To gather the necessary data.
Action item:

• Gather data.

Step 6
Purpose: To complete the financial analysis using the data gathered.
Action items:

• Develop computer spreadsheets and enter data.
• Analyze data to determine if idea is still feasible.
• If the idea is not feasible, decide what can be changed to make it so. Then redo the financial analysis and reevaluate.

Step 7
Purpose: Begin the business planning stage if idea is feasible.
Action item:

• Review the remainder of the manual to learn the business plan sections, determine the information required and identify sources for that information.

Step 8
Purpose: To gather the data and information required for the business plan.
Action items:

• Assign committees to work on each section of the business plan.
• Whole team meets as needed to form needed strategies.

Step 9
Purpose: To review the idea and plan as the business plan writing progresses.
Action items:

• Group meets on a planned basis to review progress, discuss issues and set business strategies.
• Group also continues to evaluate the idea to improve the feasibility of the plan.

Step 10
Purpose: To obtain financing once the plan is complete.
Action items:

• After the plan is complete, is the idea still feasible?
• Have the plan read by an independent source, such as an Extension agent or specialist, to ensure the plan is complete and sound.
• Review the manual articles “Sources of Capital” and “Working with an EconomicDeveloper.”

The process should take six to nine months to complete with the longest phase the writing of the actual business plan. Good luck!

10-Step Checklist