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 How should a value-added enterprise be started?
In addition to determining the best idea for your situation, here's a list of other things you should do to find and develop a unique, differentiated, successful agri-manufacturing business.
BACKGROUND PREPARATION
· Conduct research on your idea at libraries, universities, trade journals, on the Internet.
· Talk to others familiar with agri-manufacturing including MEP Utah, Cooperative Extension, RC&D Council, foundations, and other value-added entrepreneurs.
· Learn the marketing side of value-added agriculture and business because marketing will make or break a value-added enterprise.
· Visit fairs, trade shows, conferences, meetings, etc. that discuss value-added enterprises.
· Contact the SBDC, as well as appropriate local, county, regional, state and federal agencies, and also agri-business supporters such as tourism bureaus, chambers of commerce, etc.
· Join organizations that serve your peer group and your customer base. Join associations, cooperatives and other value-added groups. Form partnerships and work with others.
START-UP ACTIVITIES
· Start small and simple. This enables you to remain flexible and minimizes downside risk.
· Identify your product. Is it unique and how long can it remain unique? What big problem does it solve (or is it perceived to solve)? How elegantly does it solve that problem?
· Identify your customers. The secret in all successful business is find a big market looking for a solution, THEN build an elegant, unique solution to meet the needs of that existing market.
· Build a customer base BEFORE venturing into the "product processing" phase of your agri-manufacturing enterprise.
· Develop appropriate plans: short-range, long-range, business, finance, marketing and exit.
· Arrange financing, resource allocation and contingencies.
· Review the value-added aspects of your agri-manufacturing enterprise with MEP Utah.
MANAGEMENT CONSIDERATIONS
There are several management issues that need to be addressed in any agri-manufacturing enterprise. Click on each of the following items to learn more about it.
Quality Products
Good Marketing and Management Activities
Sufficient Capital
Liability Issues including Food Safety
Other Legal Issues
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