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Permanent Link: http://ufdc.ufl.edu/IR00002521/00001
 Material Information
Title: Exploring Your Ideas
Physical Description: Fact sheet
Creator: Torres, Nayda I
Publisher: University of Florida Cooperative Extension Service, Institute of Food and Agriculture Sciences, EDIS
Place of Publication: Gainesville, Fla.
Publication Date: 1991
 Notes
Acquisition: Collected for University of Florida's Institutional Repository by the UFIR Self-Submittal tool. Submitted by Melanie Mercer.
Publication Status: Published
General Note: "Publication date: November 1991."
General Note: "HE 7106"
 Record Information
Source Institution: University of Florida Institutional Repository
Holding Location: University of Florida
Rights Management: All rights reserved by the submitter.
System ID: IR00002521:00001


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FactSheetHE7106 TheInstituteofFoodandAgriculturalSciencesisanequalopportunity/affirmativeactionemployerauthorizedtoprovideresearch,educational informationandotherservicesonlytoindividualsandinstitutionsthatfunctionwithoutregardtorace,color,sex,age,handicap,ornational origin.Forinformationonobtainingotherextensionpublications,contactyourcountyCooperativeExtensionServiceoffice. FloridaCooperativeExtensionService/InstituteofFoodandAgriculturalSciences/UniversityofFlorida/JohnT.Woeste,DeanExploringYourIdeas1 AdaptedbyNaydaI.TorresandGlennD.Israel2Thinkingandworkingthroughyourbusinessideas beforeyoubeginisveryimportant.Considerevery aspectofthebusinessandyourinvolvement.Usethe followingworksheettobeginyourassessment. Table1. Business#1 Advantages Disadvantages Business#2 Advantages Disadvantages WEIGHINGADVANTAGESAND DISADVANTAGESSelectoneortwobusinessesyouarethinking about.Listtheadvantagesanddisadvantagesin Table 1. 1.ThisdocumentisFactSheetHE7106,aseriesoftheHomeEconomicsDepartment,FloridaCooperativeExtensionService,InstituteofFood andAgriculturalSciences,UniversityofFlorida.Publicationdate:November1991. 2.NaydaI.Torres,AssociateProfessorandFamilyandConsumerEconomicsSpecialist,andGlennD.Israel,AssociateProfessorandProgram andEvaluationSpecialist,CooperativeExtensionService,InstituteofFoodandAgriculturalSciences,UniversityofFlorida,GainesvilleFL 32611.

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ExploringYourIdeas Page2Keepinmindthatitisnotalwaysthelengthof thelistoneitherside,butthevalueyouplaceoneach item.Ifyouhaveonlythreeadvantagesbuttheyare soimportantthattheyoutweighthesixdisadvantages, thatmaystillbethebusinessforyou.Besuretobe realisticwhenevaluatingyourchoices. TheworksheetsinTables 2, 3 and 4 willhelpyou thinkthroughyourideas.Planningyourbusinessnow cansaveyoutimeandmoneyinthefuture.ISITREALLYWORKABLE?Beforeyougointoahomebusinessyouneedto lookcloselyatits"doabilityquotient."Canyouget yourideaofftheground?Willitwork?Read throughthelistofconsiderationsbelowandanswer honestly.Putacheckbythoseitemsforwhichyou requirefurtherresearchand/orplanning.YourHomeandFamilyWhyareyoustartingahomebusiness?Isthis temporaryorlongterm? Wouldyourproductorservicebemarketed betterthroughahome-basedratherthanan outsidelocation? Isvisibilityorwalk-intrafficimportantinyour business?Howdoyouplantocreateawarenessof yourbusiness/service? Doyouhaveenoughspaceinyourhomefor production,inventory,supplies,anoffice,records, maintenance,etc.,forestablishingabusiness?...for maintainingagrowingbusiness? Doyouhaveenoughspaceathometoallowfor separationofbusinessactivities(telephone,mail, checkbooks,files)fromfamilyactivities? Mustworkspace/storageareasberentedor purchased? Whatvehicle/equipmentdoyounowhave?What otherswillyouneed?Willyouhavetopurchase neworcanyouobtainthemusedorsecondhand? Willyouneedanansweringservice/machine? Willyourequireapostofficeboxorparcel servicedropforthebusiness? Wouldyouhaveatendencytoprocrastinateyour businessresponsibilitieswithhome/familyneeds inconstantevidence? Howwillyoucopewiththeinterruptionsfrom friends,familymembers,etc.? Howwillyoumanagetheoccasionswhen personalfamilyschedulesaredisruptedby businesscrises?Whenthebusinessisdisrupted byfamily/businesscrises? Doesyourentirefamilysupportthiseffortand appearwillingtocooperate? Wouldyourhomebusinesspresentopportunities forfamilyparticipation? Isthefamilyincomesufficientenoughsothata regular,fixedsupplementfromyouremployment isnotnecessary? Wouldyourfamilybewillingtoforegootheruses ofyourearnedincomeinordertosupportthe growthofthebusiness?YourSkillsWhattypeofbusiness,productorservicedoyou ownorwanttoown.(Ifyoucan'tdescribeyour product/servicein50wordsorless,youwillhave ahardtimetryingtoadvertiseit.) Whatskills,personalityorexperiencewouldyou needtooperatesuchabusiness?Doyouhave anyofthemnow? Haveyouworkedinabusiness/servicelikethe oneyouwanttostart? Haveyouworkedforsomeoneelseasaforeman ormanager? Haveyouhadanybusinesstraininginschool?YourProductorServiceIsyourproductorservicesomethingpeoplewant orneed?Whatareitsbenefitstobuyers? Isthereaneedforapatent,copyrightor trademarkprotectionforyourproduct/service?

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ExploringYourIdeas Page3Ifitisnotsomethingthatpeopleneed,whymight theywanttobuyitanyway?Asagift?For businessconvenience?Tosavetime,money, energy?Forleisuretimeenjoyment? Isyourproductorserviceseasonorfad-related? Ifso,doyouhavesecondaryproductsorservices?YourCustomer/ClientWhoisyourtargetcustomerorclient?(male, female,young/old/middle-aged,white/bluecollar)? Wheredoyourclientsorcustomersliveorwork? Isthisruralorurban? Howcanyouestablishcontactwithpotential customers?(tradepublications,organizations, shows,mailinglists,directories)YourCompetitionWhatkindofcompetitionwill/doyouhave? Isyourproductorserviceavailableelsewhere? Convenienttoyourtargetcustomer?Canyou competeprofitably? Howdoesyourcompetitionadvertiseandsell? Willthesametechniquesworkforyou?How can/willyoubedifferent? Ifyouhavenocompetition,why?Istheneedfor yourproductorservicebeingmetsomeother way?YourBusinessandtheEconomyHowhaveothersfaredinthistypeofbusiness? Percentoffailuresandsuccesses? Isthedemandforyourproduct/servicelikelyto increaseordecreasewithachangeinthe economy? Isthedemandforyourproductorservicelikely togrowslowlyorquicklyornotatall? Isyourproductorservicecloselytiedtosome otherproductorserviceforwhichthemarket couldgroworcollapseveryquickly? Whatareyourfirstyear'sgoalsforsales/gross income/netprofit,namerecognition,clientsor customers?YourFinancesHowmuchfinancialbackingwillbeneeded? Whatriskswouldbeinvolvedinthistypeof business?Whatprecautionscouldbetaken? Doyouknowhowmuchmoneyyouwillneedto getyourbusinessorservicestarted?Forthefirst yearofoperation? Haveyoucountedhowmuchmoneyofyourown youcanputintothebusiness? Countyourpresentsalaryasmoneyyouputinto thebusiness.Canyouliveonless? Doyouknowhowmuchcredityoucanobtain fromsuppliers?Doyouknowwhereyoucan borrowtherest?YourManagementandOrganizationIsitpossibleforyoutomanagethisbusiness alone(asaone-personhomeoperation)? Ifyourbusinessisapartnership,whatarethe rightsandresponsibilitiesofeachpartner? Ifyourbusinessisapartnership,doyouhavea legalagreementspellingouthowthepartnership mightbedissolvedwithoutendangeringthe business? Howwillyouestablishprices/feestoensurea reasonableprofit? Whatisthespanoftimefromthepurchaseof rawmaterialsthroughfinalsaleandpayment? Canyoucontinuetopurchasematerials/paystaff, taxes,overheadduringthatperiod? Willyouhavepeopleworkingforyou?Willthey beemployeesorindependentcontractors?How aretheypaid? Ineithercase,doyouknowhowtoreport earningsorfeespaid?

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ExploringYourIdeas Page4Willyouberesponsibleforemployer contributionsforSocialSecurity,unemployment, ordisabilitytaxes? AreyouawareoftheEqualPayAct, OccupationalSafetyandHealthAct(O.S.H.A), minimumwage,agediscriminationand employmentofminorslaws? Haveyouconsultedyourinsuranceagentabout doingbusinessinyourhome?Willyourequire additionalcoverage? Dolocalzoningordinancespermithome operationoftherangeofactivitiesnecessaryfor yourbusiness? Dopublicsafetycodes(fire,health,etc.)affect theoperationofyourbusiness? Whatlicensinglawsorregulationsgovernthe productionandsaleofyourproductorservice? Mustyoubelicensedorbonded?

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ExploringYourIdeas Page5 Table2. DOYOUKNOWYOURCLIENT? Usethebusiness(es)inTable1.Filloutthisworksheettofurtherdevelopyourideas. QuestionorTopicandAnswer Information/Sources 1.Whowillbeyourprimarycustomers/clients?Beasspecificaspossibleaboutage, income,etc. Industrysources ChamberofCommerce Tradeassociation Yellowpages 2.Whatwouldyourcustomer/clientwant?Whatneedswillyourproductmeet?List: 1. 2. 3. 4. Informalsurvey Interview Industrysources Tradeassociations 3.Whywilltheybuyyourproductorservice?Listandrankinorderofimportance. 1. 2. 3. 4. Industrysources Tradeassociations Informalsurvey Interviews Media 4.Whenwillyourcustomers/clientsbuy?Willsalesbebiggeratcertaintimesofthe yearthanatothertimes?Describe: Industrysources Interviews Censusofbusiness 5.Wheredothepeopleyouwantascustomers/clientsnowbuytheproductor serviceyou'renowthinkingofmarketing?Listplaces: 1. 2. 3. 4. Noncompetingassociate Tradeassociation Industrysources Media

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ExploringYourIdeas Page6 Table3. COST-OF-LIVINGSPENDINGPLAN EXPENSES FoodMedical athome $ doctor,dentist,etc. $ awayfromhome $ medications,other $ HousingandUtilitiesEntertainment/Vacations $ rentormortgage $ electricity,gas,water $ SavingsandInvestments $ telephone,cable,garbage $ maintenance $ CreditPayments loans $ Transportation chargecards $ automobilepayments $ gasoline $ GiftsandContributions maintenance $ church $ publictransportation $ othercontributions $ gifts $ Insurance medical,disability,life $ Taxes home,property $ federal $ automobile $ property $ realestate $ Clothing,Personal,Miscellaneous $ Miscellaneous $ MONTHLYTOTAL $

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ExploringYourIdeas Page7 Table4. MONEYNEEDSFORFIRSTTHREEMONTHS LivingExpenses Fromlastpaychecktoopeningday $ Movingexpense Forthreemonthsafteropeningday (fromcost-of-livingspendingplan) Deposits,Prepayments, Licenses Lastmonth'sbusinessrent (firstthreemonthsinoperatingexpensesbelow) Telephoneandutilitydeposits Salestaxdeposit Businesslicenses Insurancepremiums BusinessSiteImprovements Remodeling Fixtures,equipment,displays Installationlabor Signsoutsideandinside Inventory Service,deliveryequipmentandsupplies Merchandise (approximately65percentofthisamounttobeinvestedin openingstock) TotalOperatingExpensesforThreeMonths ReservetoCarryCustomers'Accounts CashforPettyCash,Change,etc. TOTAL $ Setasidemoneyforlivingandbusinessexpensesforatleastthreemonthsinabanksavingsaccountanddonotuse foranyotherpurpose.Thisisa"cushion"tohelpgetthroughthestartingpointwithaminimumofworry.Ifexpense moneyforalongerperiodcanbeprovided,itwilladdtopeaceofmindandhelpyouconcentrateonbuildingthe business.