The strong interest in locally grown products offers a unique opportunity to begin a poultry or farm-related business venture.

Imagine the wonderful life of owning your own business: You can work from home on your own schedule, earn extra money, have more time with your family, and so on. Maybe you want to diversify the family farm, produce a superior product or fulfill a life-long dream. Maybe you just want the venture to "pay for itself" with the sale of eggs, meat, vegetables or other products. The dream of a home business can come true once you realize that a successful business takes more than dreaming. At a minimum, it will take thorough planning, hard work, a lot of your time and some money. We can offer some ideas to get the thought process going, but ultimately, starting a business takes planning and hard work, and no one can do that job for you.

What Products or Services Will You Offer?

To answer this question, you should begin by asking a different question: "What do people need that I can provide?" What do you need, or want, that no one is providing now? Have you improved on a current product design for your poultry, around the farm or in the garden? Is there a skill you have learned because you couldn't find anyone to do it for you? Could you convince others they need it too? If you think others may have the same need, this could be your business venture.

Product Pricing

So you've come up with the perfect product or service. Are you able to provide that product at a price customers will be willing to pay? How do you determine the price of that product? Pricing decisions can be difficult. Charge too little, you don't earn enough to cover expenses. Charge too much, you won't have enough customers. Ultimately, it will be a combination of what the market is willing to pay and your costs. What does it cost to produce your product? How much time is involved in producing your product, and what value do you place on your time? If you were at other employment, what would your time be worth? Are you willing to accept less just because you enjoy what you are doing, don't need to pay for child care or because you would be doing this "task" anyway, simply because you love what you are doing? These questions are just the beginning of your pricing considerations, but obviously, if the market is not willing to pay enough to make a profit, then you don't have a marketable product at all. An interesting discussion on pricing can be found at www.joelonsoftware.com/articles/CamelsandRubberDuckies.html.

Your Business Name

Your business name should help customers recognize your business at a glance. Choose a distinctive and descriptive name. Your business name should describe the products/services provided. Signs and other promotional material should be easy to read and understand. Fancy fonts are lovely, but can potential customers read your road sign and know what you offer when they drive by at 25, or even 55 miles an hour?

Target Audience

The volume of information available on the Internet is amazing, and can be helpful in planning your business. It can also offer tremendous advertising and promotion for little or no cost. The opportunity to sell products across the country, and even internationally is a true benefit, if that is where your product sales belong.

Maybe your products and business options are better served by thinking local. Besides the obvious local newspaper and other advertising options, think outside the box: network with other entrepreneurs by joining business clubs or organizations, join the chamber of commerce, spread the word of your new business by volunteering at related community events. Who is your target audience, and how do you reach them? Your business plan must answer this question to be successful.

Protect Your Assets

One subject rarely discussed regarding a business venture is the potential liability you hold with the products you sell. This is especially important when you sell any perishable product, including the simple dozen eggs a week to co-workers. What can be done to reduce your personal and financial liability?

Know the Law: Laws exist to protect the public and include everything from zoning, employee safety, food safety, processing, labeling and marketing. Find out what agencies at the federal, state and local levels have regulatory responsibilities in your product field and area. Know which regulations apply to your business. Many states have offices of compliance assurance or small business liaisons that will help you navigate through these state and local regulations. If you don't know where to find the regulations and laws, contact the extension agent in your area.

Legal Advice and Liability Insurance: Be sure that your existing assets are protected — don't risk the family farm for a new business venture! It may be advisable to structure a completely separate business entity. Never enter into a new business without contacting a legal advisor. Legal fees may seem high when starting out but they are a necessary business expense.

As important as legal advice is, it is also important to maintain liability insurance. Discuss your business plan with your insurance provider. It may be possible to obtain an insurance rider on a current policy, but be sure coverage for the business is clearly understood and separate from your personal insurance plan. Remember that perishable products you sell may be used long after the sale and against your instructions, so insurance policies should be in effect throughout the year and not just during the marketing season.

Owning a small business can be rewarding. The secrets to success include doing something you know and enjoy, that other people want or need, at a price that is low enough to attract and keep customers yet high enough to make a profit.

Developing a business plan, then reviewing, evaluating and updating that plan must be a part of any continued business venture.

Two ideas on income opportunities appear in articles on pages 24 and 28.