$tarting a Business...$tarting a Business...Is It for You?Is It for You?

Entrepreneurship, Value Entrepreneurship, Value Retained & Louisiana Retained & Louisiana

StrawberriesStrawberriesPresented by: Presented by:

Scuddy J. LeBlanc & Deborah C. CrossScuddy J. LeBlanc & Deborah C. Cross

LSU AgCenter – Community Economic DevelopmentLSU AgCenter – Community Economic Development

AgreementAgreement

The LSU AgCenter, through its Department The LSU AgCenter, through its Department of Ag Economics and Agribusiness and its of Ag Economics and Agribusiness and its Cooperative Extension Service, will Cooperative Extension Service, will investigate ways of strengthening the investigate ways of strengthening the viability of the Louisiana strawberry viability of the Louisiana strawberry industry, and it will conduct educational industry, and it will conduct educational activities to increase the awareness of and activities to increase the awareness of and appreciation for the local strawberries appreciation for the local strawberries among consumers. among consumers.

Agreement Agreement (Continued)(Continued)

The LSU AgCenter will conduct:The LSU AgCenter will conduct: An entrepreneurship workshopAn entrepreneurship workshop A strawberry tour for the mediaA strawberry tour for the media Research on the merchandising of Research on the merchandising of

Louisiana strawberries in retail outletsLouisiana strawberries in retail outlets

Strawberry Media Tour Strawberry Media Tour 20032003

Ponchatoula High SchoolPonchatoula High SchoolWilliam Fletcher FarmWilliam Fletcher Farm

Eric Morrow FarmEric Morrow FarmPonchatoula, LouisianaPonchatoula, Louisiana

Testimony on the Media Testimony on the Media TourTour

““The media tour is a true success story The media tour is a true success story because of the partnerships that have been because of the partnerships that have been fostered with the AgCenter, the Strawberry fostered with the AgCenter, the Strawberry Festival and the industry, thank you for Festival and the industry, thank you for your contribution.”your contribution.”

-Dr. Pamela Hodson, Southeast Region Director Dr. Pamela Hodson, Southeast Region Director

LSU AgCenterLSU AgCenter

Media Coverage of the Media Coverage of the 2003 Strawberry Tour2003 Strawberry Tour

Times Picayune Food Section feature storyTimes Picayune Food Section feature story Louisiana Farm Bureau NewsLouisiana Farm Bureau News

news articlenews article television showtelevision show radio showradio show

Local cable televisionLocal cable television The Hammond Daily Star – 2 news articlesThe Hammond Daily Star – 2 news articles The Ponchatoula Enterprise – news articleThe Ponchatoula Enterprise – news article Louisiana Network News - 2 radio interviewsLouisiana Network News - 2 radio interviews LSU AgCenter News - photo & news articleLSU AgCenter News - photo & news article

Strawberry Media Tour Strawberry Media Tour 20042004

Springfield High SchoolSpringfield High School

Hammond Research StationHammond Research Station

Media Coverage of the Media Coverage of the 2003 Strawberry Tour2003 Strawberry Tour

WWL-TV television news showWWL-TV television news show Louisiana Network News radio networkLouisiana Network News radio network The Hammond Daily Star news articleThe Hammond Daily Star news article The Livingston Times news articleThe Livingston Times news article Times Picayune Food Section feature Times Picayune Food Section feature

storystory

Value-Retained Ag Value-Retained Ag Entrepreneurship PaperEntrepreneurship Paper

Scuddy J. LeBlancScuddy J. LeBlanc

Deborah C. CrossDeborah C. CrossCommunity Economic DevelopmentCommunity Economic Development

Why Do Farmers Need Why Do Farmers Need Value-Retained Options?Value-Retained Options?

Farmers received less than 21% of the nation’s Farmers received less than 21% of the nation’s retail food dollars in 1997.retail food dollars in 1997.

In spite of the farmers receiving less for their In spite of the farmers receiving less for their products, food prices are rising.products, food prices are rising.

Retail food prices are more costly because of Retail food prices are more costly because of rising costs of labor, transportation, packaging, rising costs of labor, transportation, packaging, food services, and marketing. food services, and marketing.

DefinitionDefinition

Value-added entrepreneurship includes Value-added entrepreneurship includes increasing the value of farm products increasing the value of farm products through further packaging, through marketing through further packaging, through marketing techniques, as well as increasing the value techniques, as well as increasing the value of agricultural products through further of agricultural products through further processing. processing. -University of Tennessee Agricultural Extension Service -University of Tennessee Agricultural Extension Service

Do Farmers Need Value-Do Farmers Need Value-Retained?Retained?

““Value-retained” activities provide ways for Value-retained” activities provide ways for farmers to receive more income from their farmers to receive more income from their products that is normally captured after the products that is normally captured after the commodity or product leaves the farm. commodity or product leaves the farm.

$tarting a Business . . . $tarting a Business . . . Is It for You?Is It for You?

Entrepreneurship WorkshopEntrepreneurship Workshop

Across our country, Across our country, citizens are reaching out citizens are reaching out to grasp their piece of to grasp their piece of the American Dream... the American Dream... and the opportunity to and the opportunity to be their own boss….be their own boss….

The potential business owners of The potential business owners of the future come from all walks of the future come from all walks of life, and have backgrounds as life, and have backgrounds as diversified as their faces.diversified as their faces.

$ Some live in rural areas…Some live in rural areas…$ Some live in the suburbs… Some live in the suburbs… $ Others live in large cities…Others live in large cities…

However, all business owners However, all business owners have three things in common…have three things in common…

$ INDEPENDENCEINDEPENDENCE

$ INITIATIVEINITIATIVE

$ IDEAS…IDEAS…

They also fear the They also fear the same things…same things…

0%

5%

10%

15%

20%

25%

30%

RecessionRetirementCapitalUnexpected Growth Succession

Source: 501 small business owners surveyed by USA Today –September 2003

Small Business owners say their planning is most vulnerable in the following areas. . .

Starting a Business… Is it for You?Starting a Business… Is it for You?

$ Designed to help micro enterprises and Designed to help micro enterprises and home based businesses to get a start.home based businesses to get a start.

$ Show the importance of a Show the importance of a Businesses Businesses Plan.Plan.

$ To help the Entrepreneur to think To help the Entrepreneur to think through the process.through the process.

$ To get them ready to work with their To get them ready to work with their local SBA.local SBA.

The Program Includes…The Program Includes…

$ Deciding to Start a BusinessDeciding to Start a Business$ Organizing Your TimeOrganizing Your Time$ Types of BusinessesTypes of Businesses$ Evaluating Business IdeasEvaluating Business Ideas$ Web-based, Global and Franchise Web-based, Global and Franchise

BusinessesBusinesses$ The Business PlanThe Business Plan$ Finding Financial ResourcesFinding Financial Resources

Deciding to Start a BusinessDeciding to Start a Business

$ What attracts people to start a business? What attracts people to start a business? $ Why you're interested in starting a business?Why you're interested in starting a business?$ What makes an Entrepreneur?What makes an Entrepreneur?$ How your family relates to the business?How your family relates to the business?$ You’re personal commitment?You’re personal commitment?$ The pros and cons of owning a business.The pros and cons of owning a business.$ What personal talents and skills do you What personal talents and skills do you

have?have?

Organizing Your TimeOrganizing Your Time

$ Investigate your personal decision- Investigate your personal decision- making style.making style.

$ How to improve your ability to balance How to improve your ability to balance choices?choices?

$ What are your time wasters?What are your time wasters?$ Do you procrastinate?Do you procrastinate?$ How do you handle a crisis?How do you handle a crisis?$ Special time strategies when working Special time strategies when working

from home.from home.

Types of Businesses Types of Businesses Their advantages and disadvantagesTheir advantages and disadvantages

$ Sole ProprietorshipSole Proprietorship

$ PartnershipPartnership

$ CorporationCorporation

$ Protecting your ideas . . . Protecting your ideas . . . CopyrightsCopyrights PatentsPatents TrademarksTrademarks

Evaluating Business Evaluating Business IdeasIdeas

$ ManufacturingManufacturing

$ Home-based businessHome-based business

$ Marketing or sales outletMarketing or sales outlet

$ Buying an established businessBuying an established business

Web-based, Global and FranchisedWeb-based, Global and Franchised

$ Internet/worldwide webInternet/worldwide web$ Benefits Benefits $ Making money on the InternetMaking money on the Internet$ User friendly Web siteUser friendly Web site$ Promoting the Web site- “Promoting the Web site- “KeyKey” words” words$ Strategies for small firms as a global Strategies for small firms as a global

enterpriseenterprise$ Franchise types, advantages and limitationsFranchise types, advantages and limitations

The Business PlanThe Business Plan

$ What is it?What is it?

$ Why do you need one?Why do you need one?

$ How much planning is necessary?How much planning is necessary?

$ Serves as a tool for raising capital.Serves as a tool for raising capital.

$ Use as a managing tool.Use as a managing tool.

$ What is an “effective business” plan?What is an “effective business” plan?

Finding Financial Finding Financial ResourcesResources

$ The 5 Cs of “Credit”The 5 Cs of “Credit”$ Where will the money come from?Where will the money come from?$ How much will you need?How much will you need?$ What kind of collateral will you need?What kind of collateral will you need?$ Financial information required for a loanFinancial information required for a loan$ SBA LoansSBA Loans$ Short-term business loansShort-term business loans$ Other types of business loansOther types of business loans

Other Topics Covered in Program…Other Topics Covered in Program…

$ The Big Picture The Big Picture Creating a financial planCreating a financial plan

$ Customer ServiceCustomer Service

$ Exit StrategiesExit Strategies

$ Case StudiesCase Studies

For More Information Please Contact:For More Information Please Contact:

Deborah C. CrossDeborah C. Cross

Area Agent- Community Economic Area Agent- Community Economic DevelopmentDevelopment

LSU AgCenterLSU AgCenter

Phone: 225/642-2044Phone: 225/642-2044

E-mail: E-mail: dcross@agctr.lsu.edudcross@agctr.lsu.edu

Research Interim ReportResearch Interim Report

May 12, 2004May 12, 2004

Contact: Dr. Roger A. HinsonContact: Dr. Roger A. Hinson

RHinson@agcenter.lsu.edu

Cooperators: Cooperators: LSU Department of Ag Economics & LSU Department of Ag Economics &

AgribusinessAgribusinessPonchatoula Strawberry Festival, Inc.Ponchatoula Strawberry Festival, Inc.

Ponchatoula High SchoolPonchatoula High SchoolSpringfield High SchoolsSpringfield High Schools

Hammond Research StationHammond Research StationTangipahoa Economic DevelopmentTangipahoa Economic DevelopmentSoutheastern La. University SBDCSoutheastern La. University SBDC