You face a very basic question: What type of beef marketing business should the group start? Which prompts the next question: How do we get started?

Although the group is right in its desire to look for answers instead of more questions – the truth is that many questions need to be answered. This will be a discovery process about yourself and the group. You are the only one who will know if the answers are right for you.


Study Others
Many successful businesses are founded on skills and knowledge acquired when working for someone else.

Use Acquired Skills
Eight years ago, an individual who wanted to be self-employed chose to start a machine shop/tool and die business. He had been working for someone else in the same business and felt he had acquired the knowledge and ability to succeed on his own. He wrote a business plan, obtained financing and started a small shop.

Today?

He has expanded his operation to a bigger building, hired more people, purchased additional machinery and equipment, and increased his business volume through unique sales and service programs.

Successful business ideas are often a result of recognizing a need while working in a related field.

Turn an Observation into Profit
A number of years ago, three brothers were in the homebuilding business and were regular purchasers of custom-built cabinetry.

They spotted an opportunity and began building their own product. Soon, they were in the business of manufacturing cabinets and selling them to retailers and other builders. In time, they opened their own retail stores, expanded their plant, purchased new equipment and hired additional employees.


Do Your Homework
There are many examples of successful businesses built by individuals using the skills and knowledge they acquired through years of “doing.” Many case studies exist for agriculture ventures.

A Web site that contains a list of family farm-based enterprises is www.familyfarmsdirect.com/familyfarm/ind.html. Even though most of those families are not involved in Midwestern style agriculture, the farms featured on those Web pages are great examples of the variety of ways producers are attempting to diversify.

Experience is a great teacher. Members of the group might benefit from spending some time on the road and seeing for themselves what other producers have already done.
There is nothing like a face-to-face visit to learn things like:

• How others got started in a new venture.
• Where they secured financing.
• Who their customers are.
• What experience has taught them.
• How they manage their business on a day-to-day basis.
• What is the best way to maintain cash flow.
• Where would they make changes if starting over today.
• What would they advise you to do in your business.

Learning from others is the time-honored principle of success. Before going out to visit with others, put together a list of questions. The visits do not have to be made only with people and firms in the ag products or food business. Seek out the successful entrepreneurs in your communities, sit down with them and ask for their advice. Be honest with them, tell what you are thinking of doing and always ask questions about what has made them successful.

Three Big Questions

1. Where are we now?
2. Where do we want to be?
3. How do we get there?

If possible, put together a contact list of experienced business people who are willing to lend their experience to your business effort. Or, establish an advisory board that will meet with your group quarterly to provide advice and assistance as you start and grow your business.

The analysis is a starting point. An assessment needs to be made of each person in order to establish an inventory of the skills and knowledge. The needed skills can then be obtained through owner training, hiring of new staff, establishing relationships with key business vendors or contracting for accounting or other professional services.


Where Are We Now?
To ensure the tasks required match the group’s combined abilities right from the start, each member of the group should fill out the following form. The goal is to make sure that the idea being pursued matches the group’s total talents. 

• What type of business he or she is interested in forming?
• What is the personal commitment he or she is willing to make to the business?

• What does the analysis tell you about your willingness and desire to get involved in the business?
• What does the analysis tell about the group’s ability and desire to continue with the project?

At this stage, if most of the items on your list are checked as “no” or “not OK,” your involvement in the project should be reevaluated. If the group as a whole has mostly checked “no” or “not OK,” then the group should evaluate if the business should continue.


Resources
Shuck, Nancy, Knoblauch, Wayne, Green, Judy, and Saylor, Mary, Farming Alternatives; Natural Resource, Agriculture and Engineering Service, Cornell University; October 1988.