BEST MANAGEMENT PRACTICES CHECKLIST
1. Select a promising business opportunity idea
Discuss idea among a small group of potential members        
Formalize specific project ideas        
Find agricultural producers to champion the idea        
Focus on building a business, not on creating jobs        
2. Select steering committee
Steering committee must be involved, committed and feel ownership of project        
Establish action plans and timelines        
Hold regularly scheduled meetings with prepared agendas        
Keep meeting minutes to record decisions and progress        
Expect a time consuming path to success        
Focus first on why it will work, then why it won't work        
3. Select consultants and advisors
Understand the industry        
Some information has to be discovered instead of absorbed        
Get legal advice before you need it (prevention vs. treatment)        
4. Conduct a preliminary market evaluation
Build business in response to market needs        
SWOT analysis (strengths, weaknesses, opportunities, threats)        
Consider partnering with other value-added groups and/or industry players        
5. Assess producer and investor interest        
Conduct a potential members producer survey        
6. Select interim board of directors        
Committee members should be honest, steady and trusted by potential members        
Need someone to challenge idea instead of everyone thinking the same        
Select representatives outside of agricultural producers        
Concentrate on the finished project        
Answer, "Why will this project be successful?"        
7. Organize with simple Articles of Incorporation and Bylaws
Elect official board of directors        
Obtain Directors and Officers insurance        
8. Acquire funding for analysis stage
Look for available grants        
Members show commitment by contributing financial obligations        

ANALYSIS STAGE STEPS

9. Conduct a feasibility study (Should we do it?)
Feasibility study should include: Market evaluation        
Economic evaluation        
Operating evaluation        
Financial evaluation        
Management evaluation        
10. Prepare a business plan (How do we do it?)
Business plan should included: Organizational plan        
Marketing plan        
Operational plan        
Financial plan        
11. Organize the financial plan
Don't underestimate capital needs (working capital, startup losses, contingency)        
Don't short projected equity requirements        

IMPLEMENTATION STAGE STEPS

12. Recruit members and investor

Prepare prospectus        
13. Hire management team        
14. Acquire facilities, hire employees        
15. Implement business plan and begin operations