Now that you know what wheatgrass is, how to use it, and how to grow it, you might be interested in learning how to sell it for profit. Many wheatgrass businesses began as an extension of personal wheatgrass usage. Users began growing for themselves and their families and realized that they could probably grow for others as well. Wheatgrass has increased in popularity in recent years and many health-conscious individuals are purchasing juicers and trays of wheatgrass to prepare their own fresh drinks at home. Health food stores across the nation are selling tray after tray of the green, slender blades. But, someone needs to grow the wheatgrass. Could it be you?
With a little ingenuity, perseverance, and some basic business skills, it can be you. You can be a supplier of fresh-grown wheatgrass. You might not have been born a businessperson, but business skills can be acquired. Often, they are acquired through experience. This is not to say that owning your own business will be easy. There are sure to be a few challenges along the way. You must also ask yourself some pertinent questions. Do you have a desire to make this idea work? Are you a hard worker? Are you self-motivated? Can you focus? Do you enjoy growing wheatgrass? The idea of owning a business might be glamorous, but to achieve success, it takes desire, planning, discipline, organization, dedication, marketing, and a positive attitude.
Setting Up a Home-based Business
Driven by the desire to be financially self-sufficient, thousands of individuals have taken up the challenge of starting a business at home. In fact, the easiest and fastest way to financial independence is by having your own business. But, unless you inherit that business, it is going to take some time and effort to build and establish your brand, gain customer confidence, and obtain a respectable position amongst the competition. According to data by the Small Business Administration, 99.7 percent of all employer firms are represented by small businesses. You will not be the only one out there selling wheatgrass. It is also going to take much patience and careful planning to navigate through legal and tax issues, determine space allocations, and establish time management discipline.
A home-based business is a good business model for beginning entrepreneurs; it allows for the opportunity of owning a business but with limited responsibilities and risks. Home-based businesses are growing in popularity and are fast becoming the No. 1 way to operate a small business. One of the greatest advantages of a home-based business is reduced start-up costs, such as leasing space, phone and utility deposits, lease hold improvements, and major office equipment. Other benefits include personal freedom, control of capital, tax advantages, increased productivity and growth opportunities, and greater flexibility and creativity. The good thing is that you do not need to have all the major pieces in place to start. You do not have to have a large building, extensive staff, or abundant capital to begin your wheatgrass business. You can start by conducting business as a sole proprietor, following the rules and regulations of your city or state. Contact the local planning/zoning department of your county to make sure that your location is zoned for business activities. Once zoning is cleared — inquire about a conditional-use permit if zoning is a problem — you can begin planning.
Start with a plan
A business plan is a document that outlines the key functional areas of a business, including operations, management, finance, and marketing. It does not have to be complicated, but it does need to be complete. In most cases, it should have the following in place:
• Executive summary: Key points detailed in the plan; should be able to stand independently
• Company analysis or business overview: Describes type and history of the business, location, business model, legal entity (structure), key assets, and method of operation
• Industry or market analysis: Market overview; plans for catering to target market
• Customer analysis: Identifies target customers; identifies customer need; plans for catering to target customer
• Competitive analysis: Outlines the strengths and weaknesses of competitions; states competitive edge strategy
• Sales and marketing plan: Pricing and sales information; product attractions; methods of reaching audience
• Operations plan: How the business will function; physical set-up; explanation of tasks
• Management plan: Descriptions, backgrounds, and working relationships of all involved in operation of business
• Financial plan: All financial information; start-up costs; maintenance costs; projection costs
• Appendix: Sales forecasts; performance sheets; balance sheets
Having a business plan equates to having a road map. Any good driver understands how important it is to have the travel plans mapped out before the journey begins.
The plan: A twofold purpose
The reason for the business plan is twofold: 1) to help you, the entrepreneur with the planning and development of the business; and 2) to demonstrate the feasibility and potential profitability to potential investors, lenders, and other outside audiences. The length of the plan generally depends on the size and scope of the business. According to author and business planner Tim Berry of BPlans.com, plan length should not be measured by pages, but by readability and summarization. According to Berry, the proper length should be according to the purpose and nature of the plan. The purpose and nature of a home-based wheatgrass business plan should be to describe the business and how it will be managed and to identify a customer base. The market — people with possible interest in the product — is already identified: wheatgrass buyers.
The business plan can be used for management purposes, to help identify workable partners and staff, to serve as a feasibility study for the business (allows the identification of a business’s strengths and weaknesses), and to help you stay focused. Most importantly, the plan can help you control the destiny of your business, including obtaining necessary funding for operating and growing the business. For a free reading of Tim Berry’s book Hurdle: The Book on Business Planning, go to www.hurdlebook.com. A variety of free sample business plans can be found at the following sites:
• Bplans.com (www.bplans.com/sample_business_plans.cfm) offers free sample business plans for various industries and a software program for purchase that can edit these plans. This site also has a number of articles geared toward helping the beginning entrepreneur.
• MoreBusiness.com (www.morebusiness.com/business-plans) has sample business plans and a free business e-book available. Their Marketing Plan Pro software is ranked as the world’s most popular marketing planning software program.
• PowerHomeBiz.com (www.powerhomebiz.com/bplan sampleplans.htm) lists all the free business plans that are available on the Web. It offers several articles about business start-ups as well as free expert advice.
Select a business structure
Within the company analysis of your business plan, you must declare a legal or business entity or structure. This means you must decide which type of business form you will operate under. The choices include: sole proprietorship, partnerships (general and limited), corporations (C and S), and limited liability company (LLC). These business forms are established by state law for legal and federal tax purposes.
A sole proprietor is someone who operates the business as an individual. Starting a sole proprietorship is fairly easy and not too expensive set up. It usually entails paying a small, one-time fee to the county or state to register your business. It is also just a matter of filing a “Schedule C” on your personal tax returns to report the business income. The problem with operating as a sole proprietor is that there is no legal protection for your business assets, including your business name. You also cannot take advantage of any tax breaks offered to corporate businesses, and you cannot sell your business or pass it down to any inheritors. To obtain any special business amenities, you must set up your business under one of the other corporate entities.
Partnerships are formed when two or more individuals decide to join together to operate the business. Each partner contributes money, labor, time, or property and expects to share the profits and losses of the operation. In a general partnership, each partner is personally responsible for the liability of the entire business. In a limited partnership, the limited partner is only responsible for his or her individual investment in the business. In a partnership, each individual is considered self-employed and must claim an individual share of the partnership’s income of the tax return.
A corporation consists of an individual or a group of individuals owning shares in a company and who are protected by the company from legal liabilities. A share is a divided portion of the value of a company. A C Corporation can have any number of shareholders with various legal structures. A C Corporation pays tax as one unit and individuals of the corporation must claim dividends as taxable income individually, resulting in double-taxing for each corporation member. An S Corporation allows the investors to claim their individual portion of the corporation’s income on their tax returns directly. S Corporations are more expensive to form and are generally limited to 75 shareholders, which is ideal if you are interested in a small business.
An LLC is a cross between a partnership and a corporation. It is not a corporation. It has the management structure of a partnership with the tax and liability benefits of a corporation. There are many advantages to forming an LLC, and it is becoming the most popular way to start a business. LLCs are easy to set up and maintain, and they have a flexible ownership structure. One person can form an LLC and is not considered a sole proprietor if an LLC is the elected business structure. LLCs, by default, are taxed as a sole proprietorship or partnership but have the option of corporation taxation. Other benefits of an LLC include:
• Ease of transfer
• No ownership restrictions
• Living trust flexibility
• Flexibility in fundraising
• Credibility
You do have the option of changing the business structure of your company, if the need or desire arises. However, you should really put some thought into how you wish to be classified, as switching gears down the road could cost you time and money.
Seek outside assistance
Starting a new business can be an exciting adventure, but it involves working through several technicalities. The very thought of writing a business plan can be daunting, and it can be easy to get discouraged before you have even begun. There is no rule that states a home-based business must be planned and organized by the owner alone. In fact, it would be wise to seek outside help, especially in the planning stage.
Free online counseling and training programs are offered by the SBA and other organizations that can help you with the start-up and expansion of your business. There are also several local in-person services, such as the Service Corps of Retired Executives (SCORE) Association, which can provide you with the help you need. SCORE (www.score.org) offers free mentoring, low-cost workshops, and business counseling. Other sources of business help include the following:
• Small Business Institute (SBI) (www.smallbusinessinstitute.org) is an organization dedicated to helping small businesses, entrepreneurial firms, and other organizations through field-based student consulting and outreach.
• Small Business Development Centers (SBDCs) (www.sba.gov/aboutsba/sbaprograms/sbdc/index.html) are designed to help the small business owner in all aspects of business start up and management.
• Cooperative Extension System (www.csrees.usda.gov/Extension) offers assistance in management to current and prospective business owners.
• Start Your Wheatgrass Business Today (www.wheatgrassbusiness.com) offers a variety of programs including online tools and training to help you launch a successful wheatgrass business.
It is advisable to seek the assistance of a lawyer and professional accountant to help you with the actual writing of the business plan. Their guidance can help you produce a concise plan that you can rely on to successfully build your business.
Licensing and registration
Operating a home-based business most likely will require some type of legal documentation. Seeking the help of a lawyer can be beneficial in securing the proper documents you need to become a legal, established business. Most businesses need a city or county license. There might also be county, state, and/or federal licensing requirements. If you plan to register your business under a fictitious name, or a name that is not your own, you might have to register that name with the county as required by the Trade Name Registration Act. Your local government will be able to help you determine if this needs to be done. If you have a particular idea or concept that needs protection, you might need to seek trademark, patent, or copyright protection. Once again, your state or local government can advise you. Call or visit your local city hall to find out where to purchase the various licenses. The fees that accompany these licenses are usually minimal. It is important that you get your business off to a good start by taking heed to all regulatory details. Negligence in this area could cause you some major obstacles down the road.
Registering your business name
The name of the business owner is the legal name of the business. If you are the sole proprietor of your business, then your full name becomes the legal business name. If the business is operating as a partnership, the business name is the last names of the partners or the agreed upon name in the partnership agreement. For corporations and LLCs, the legal name of the business is the name registered with the state government. The legal name of the business is required on all government forms and applications concerning the business. You can, however, conduct business under a fictitious name or “doing business as” (DBA) status, but this name might also need to be registered with a government agency, depending on where you reside.
Obtaining an EIN
A federal tax identification number or employer identification number (EIN) is assigned by the IRS to all businesses that offer products or services that are taxed. It is used to identify the business to federal offices responsible for regulatory practices. If you are not sure whether you need an EIN, call the IRS Business and Specialty Tax Hotline at 800-829-4933. Most businesses, however, must file an SS-4 Application to apply for this number even if they are not hiring employees. Businesses are also required to file a DR-1 Application for Certificate of Registration, which is a sales tax number. Certain items must be taxed, according to state law. Visit the IRS site at www.irs.gov/businesses/small/article/0,,id=102767,00.html to apply for an EIN online. You can also visit the SBA website (www.sba.gov) for a start-up guide and free online business planning training.
Also, the Internal Revenue Service (IRS) has a clear definitions as to what can and what cannot be considered a business deduction on tax returns. It is important to become familiar with this criteria, which can be done by visiting the IRS business site at www.irs.gov/businesses/small/article/0,,id=109807,00.html. You can also find income tax rules outlined in the IRS publication #587, “Business Use of Your Home,” which can be found at www.irs.gov/pub/irs-pdf/p587.pdf. Now is the time to learn as much as you can about operating a home-based business so that you can put all the pieces in place. Laying a solid foundation is key to building a strong, successful organization.
Laws and regulations for selling wheatgrass
Although most businesses must comply with a general set of rules and regulations, some laws might apply only to specific businesses. Wheatgrass production sites and facilities are regulated by the FDA because wheatgrass is a food and wheatgrass “sprouting” is considered food processing by the FDA. In 1998, due the large number of foodborne illness cases reported, the FDA issued an advisory against consuming raw sprouts. Therefore, government regulations concerning facilities and production processes are currently under examination. Keep up to date with FDA advisories for wheatgrass by visiting the FDA website at www.fda.gov.
Contact your state’s Department of Health to learn about current regulations for food handling. The local sanitarian, an on-site inspector of restaurants and food preparation facilities, will also be able to assist you. Anyone in food services, even a home-based food processing service, must have their kitchen or area plans approved before establishing a business. The National Sustainable Agriculture Information Service (ATTRA) recommends learning what an inspector can and cannot require of commercial producers. Also, check federal and state code requirements for space, ventilation, lights, and heating.
To operate your wheatgrass business, you might be required to obtain a business license or reseller certificate. A reseller certificate allows you, as a business, to purchase tax-free goods from distributors and wholesalers that would normally require a valid tax ID. You will be required, however, to collect taxes from those living in your state who buy your goods. More information about starting a food products business can be obtained from your local Cooperative Extension. Virginia Tech and Virginia Cooperative Extension offer training, product development research assistance, and one-on-one consultation through their Food Products Assistance Program.
Financial logistics
One of the most important aspects of running a business concerns understanding the financial requirements for your business. Having a good handle on cash flow management will enable you to keep your business out of debt and into profits, which is the purpose of starting the business in the first place. Estimated start-up costs and operational costs, current and future, must be determined and placed in the business plan. At this point, you also need to determine how you will fund your business. In reality, you should have a certain amount of money set aside for business use before you begin your business. According to the Virginia Department of Business Assistance (VDBA), outside investors and lenders “like to know that the entrepreneur has some personal investment in the enterprise beyond their labor.” Personal investments might include savings, credit cards, and gifts or investments from family and friends.
According to the VDBA, about 95 percent of new businesses are financed by personal funds and loans. To obtain a listing of financial resources, contact the Capital Resources Directory of the VDBA at www.dba.virginia.gov/financing_business.shtml. The Community Affairs: Small Business Resource Guide (www.occ.treas.gov/cdd/sbrg09032003.htm) and the Citizen’s Guide to State Services (www.sec.state.ma.us/cis/ciscig/a/a2a17.htm) are also helpful resources. A solid business plan is required by most lenders and investors, so be sure to have this in place before seeking a commercial loan application. Preparing the financial portion of the business plan can be difficult if you do not have a background in accounting. Remember to seek assistance when necessary.
Business insurance
Liability insurance must be purchased for the operation of any type of food production business. This insurance will protect you and your business from unforeseen circumstances that could be financially devastating, such as a lawsuit pertaining to an illness or death traced to your facility. It is critically important that you keep a high standard of cleanliness in your facility to avoid contamination of your products. Also, maintain records of supply purchases, especially seedlots, which have been under much investigation since the mid 1900s. Consult with your attorney to discuss liability insurance and other types of business insurance that you might need such as health insurance, property insurance, or workers’ compensation. The Legal Guide For Direct Farm Marketing by Neil Hamilton is a good book to have in your library.
Banking
Whether you have applied for a loan or not, you should research and choose a good banking system. As a small business owner, you will need to have a business checking account and a business credit card. You may even need a business referral or credit reference from your banker, so try to establish a good banking relationship as soon as you open your account. Remember to keep business finances and personal finances separate to simplify bookkeeping and tax issues. While you are opening your bank account and establishing your business line of credit, start thinking about how you will receive payment from your customers. The options include cash only, checks, credit cards/debit cards, credit loans and leases, and online payments. To learn about the pros and cons of each of these methods go to the Business.gov website at www.business.gov/manage/finances.
Create key business assets
Business assets are business purchases that have long-term value such as a truck or computer equipment. Office supplies and gardening tools are not considered assets but are deducted expenses. Business assets are categorized as tangible and intangible. Tangible assets have a physical existence such as real estate, equipment, and cash while intangible assets represent values that cannot be physically touched such as copyrights, patents, trade names, and franchises. Key business assets, both current and projected, should be purchased and/or created and included in the financial segment of the business plan.
Choose a theme or brand identity
One of the most important assets your business will own is its brand or identity. A company brand is much more than a log or tag line. It is the image that appeals to your target audience and sets you apart from the competition. Creating a strong brand will prove beneficial once customers build confidence in you and your product; it helps with the selling process. Brand expert and author of best-selling business book Brain Tattoos: Creating Unique Brands That Stick in Your Customers’ Minds Karen Post points out that brands are built on a four-point platform: purpose, personality, point of difference, and promise. Steps for establishing a successful brand are:
1. Draft your brand, making it totally you
2. Learn your target audience and relate the brand to them
3. Choose a unique brand name
4. Create a compatible logo
5. Apply the brand to all aspects of your business
6. Create a demand for your brand
Patent or copyright any original ideas
Many times, opening a new business generates innovative ideas or concepts. If you have developed a unique theme or idea, you might want to get it patent protected or copyrighted. Ideas should be thought of as property. Patents, copyrights, trademarks, and business secrets are considered intellectual property, and it is a good idea to get all intellectual property protected. Many business owners have failed to quickly move forward with the protection of an idea only to find that someone with a similar idea has already taken advantage of copyright laws and moved that idea into the full marketing phase. Once this has happened, the idea legally belongs to the other party, and in most cases, they have full rights to it. Visit the SBA website at www.sba.gov/smallbusinessplanner/start/protectyourideas for information on copyright and patent laws. A confidentiality agreement is also good to have in place when discussing your business ideas with others. Confidentiality agreements are available as legal forms and can serve to protect both parties exchanging business information. Keep in mind that even if you do not wish to preserve an idea of your own, you are responsible as a business owner for not infringing on the rights of others.
Obtain a spot on the Web
You have probably heard it several times: “Every business needs a website.” In today’s environment of intensive internetworking, yes, it would be profitable to have a website. In fact, your domain name, or your website’s URL, is one of the greatest assets of your business. It gives you an online identity, which is essential for promoting your brand. As soon as you settle on a company name, register it through a domain registration service. By doing so, your domain name can be secured, even if you do not build a site right away. Many business owners are capable of building a website themselves. “There’s no reason not to do it yourself, particularly with the out-of-the-box solutions available nowadays,” said author and marketing coach John Jantsch of the Duct Tape Marketing system for small businesses. Popular website building software includes Adobe Dreamweaver, retailing for about $399, and Microsoft’s Frontpage, selling for $199. If you would rather not take up the challenge of building your own site, several low-cost Web services offer domain registration along with site building, web hosting, and e-mail and e-commerce set up. Web hosting is the space given to you for the publishing of your website. Having an e-commerce site allows you to take orders. Intuit Small Business (www.intuit.com/website-building-software) is a good example of an all-in-one hosting service. Of course, you can always hire a professional Web designer, ranging in cost from about $2,000 to $20,000.
Websites can serve several purposes. Before launching your site, you should determine the purpose of the site. What do you want it to do? The entire design and development of the site should relate back to its primary purpose. The following are some functions a website can perform:
• Provide general information about your company and its products or services
• Generate sales leads and provide online customer support
• Sell products or services online
• Allow communications and transactions with suppliers
Having a website can help you promote your business. Keeping the site updated with relevant content is important. Promoting your business can be done through methods such as online display marketing by purchasing display space on relevant sites with a link back to your own site; search engine marketing by driving traffic from searchers of Yahoo!, Google, and other search engines to your site; and e-mail marketing by using e-mail to get the message out about you and your products or services. Visit Startup Nation (www.startupnation.com/steps/66/3767/1/plan-web-presence) for help with building a successful website. BizWeb2000 (http://bizweb2000.com/freehelp.htm) can help you with marketing strategies for your business. The Home Business Advantage (www.home-business-advantage.com/website-marketing-strategies.html) explains the different methods of online marketing and how they can work for you.
Develop a marketing strategy
Developing a marketing strategy is a very important aspect of the business plan because it helps to identify how you will reach your prospective audience. Production and distribution of goods largely depend on marketing, and marketing contributes to the success of the business. Marketing is the means of letting your audience know about you and your product or service. It helps boosts product sales and builds a reputation for the business. Marketing entails advertising, public relations, promotions, and sales. A marketing strategy works to increase the profit and revenue growth of the company by addressing the need of the customer and increasing the level of competitiveness against other businesses.
The marketing plan
What is the purpose of your business? The marketing plan should reveal this purpose, vision, or mission statement. It should also highlight the objectives you wish to achieve and produce the research that was done to develop your marketing strategy. The action plan for the marketing strategy should be outlined.
It is important that a business knows its product well and is also familiar with industry trends concerning the product. The marketing plan should detail the product and services. By reading this book, you have learned about the history of wheatgrass, the benefits of wheatgrass, and how to grow and use wheatgrass. Now, it is necessary to become familiar with the current happenings with wheatgrass. It is also time to identify your target audience. Who will you sell this wheatgrass to? Are there health food stores or juice bars in your area that can buy from you? Is there a farmer’s market? Do you have neighbors who drink wheatgrass? How old are they? What are their lifestyles or beliefs? You might be able to gather information from the agricultural trade association in your area. Remember that you are marketing fresh produce, so do not consider markets too far out of your area. Also remember that, in reality, people are not seeking products; they are seeking solutions to problems. Your product or service should be able to provide the solutions that they seek. Evaluating a Rural Enterprise and Organic Marketing Resources published by ATTRA are two publications that can help you with your marketing endeavors.
By identifying your target audience, you will also identify your competition. Who else is selling around you? Are they selling by the tray or by the bag? Once your competition — and your competition’s product — has been identified, it is time to establish your pricing, method of distribution, and product positioning in the market. If you have direct, local competition, you might wish to price your wheatgrass in the same price range of your competitor. Having the lowest price is not necessarily the smartest pricing strategy, as it keeps you from obtaining needed profit margin. Profit margin is the company’s net profit, or the total earnings over a given period of time, divided by total sales. It is usually better to have average prices and focus on quality and service. Knowledge of the product and services of your business is not enough to effectively generate sells. Your business also needs a unique way of capturing the attention of the audience and introducing your product or service to them. What is the plan? Can you offer free delivery? Your marketing plan tells exactly what is offered by your company and outlines a plan for the future.
Marketing material
To implement your marketing strategy, you will need to invest in materials for marketing your services. Marketing materials should be informative and persuasive. You want to inform your audience that you have something to sell and persuade them to purchase from you. Your marketing material must stand out from that of your competition or you sales will suffer. Marketing material includes a logo, business cards, post cards, flyers, brochures, and other direct marketing devices. A logo is especially important because it gives both visibility and credibility to your business. You should have your material professionally designed to avoid amateurish or unpolished designs. If you are on a tight budget and would rather create these materials yourself, try Brandoozie (www.branddoozie.com), a do-it-yourself marketing tool that allows you to create a logo and match it with business cards, flyers, and brochures. Companies such as Vistaprint (www.vistaprint.com) offer professional-looking material at affordable prices. Marketing materials will increase business sales as well as your confidence, so complete this task as soon as possible.
Preparing for work
You have developed a business and marketing plan your new business. This is not enough to begin operations. You must plan again. This phase of planning entails setting up a workspace, creating a work schedule, and purchasing equipment and supplies. If these items are not in place before you actually begin working, you are bound to run into problems that will be a hindrance to business progress. To avoid confusion and disorganization, take the time to prepare for work.
Setting up workspace
It is important to have a designated area for operating your business, preferably separated from your regular living quarters. Business records must be kept separate from family papers. Prior to setting up space, make certain that you have obtained the necessary permits and licenses for the operation of the business. Investigate your method of getting the produce into your customer’s hands. Will you offer delivery? Can the customer pick up the produce? While planning your workspace, be sure to allow for customer parking and entrance into the work area. Check with the local chamber of commerce to check if there are limitations as to the type and number of workers that can be used in your area. Check with city hall or the local zoning office to make certain you are following all of the codes and zoning restrictions related to your business. Consider your neighbors. How will they be affected by your decision to create a workspace at home?
Creating a work schedule
Operating a home-based business, no matter how small, takes discipline. Some people find it hard to make and keep work schedules, even within an organized corporate organization. It is essential, however, that you are focused and develop certain time-management skills to eliminate avoidable distractions and kill procrastination. Creating a daily list of responsibilities and checking them off as they are completed might be necessary in the beginning months of the business. Keep a planning and operating log to keep track of vital information. Consider the installation of a business phone line with an answering machine to eliminate phone distractions.
Purchasing equipment and supplies
Despite the Federal Seed Act, which was established in 1939, contaminated seeds are still found in growers’ supplies. The Federal Seed Act serves as a protection for the farmer from the effects of purchasing seed that is defected, contaminated, or mislabeled. These restrictions can be enforced by the Secretary of the Department of Agriculture and action is taken against violators, but little remedies are offered to the purchaser. Therefore, it is important to inspect the labels and even test products before purchasing a seed lot that might be defective. For pricing of materials and supplies, refer to Chapter 5.
Operating your business
Once your business and marketing plans are in place and you have adequately prepared for work, you can feel comfortable with opening the doors of your business. This is an important time and one that can be marked with some type of momentous event. Many businesses have grand openings that include sales, giveaways, and much fanfare to highlight their existence in the community. Generally, however, this does not happen until the business has been in operation for a few weeks. A new business can have a “soft opening” to commemorate the first day or week of operations. A soft opening takes place without much fanfare, but it lets the public know that you are officially open for business. Sometimes, this can take place with word-of-mouth advertising or a sign over your door signifying that you are open. A soft opening can help you to ease into the routine of work, while working out problems that still need to be addressed before you become swamped with customers. Of course, if your business is in a remote location, your “soft opening” might have to entail more than just opening the door and waiting for customers.
Once you have become accustomed to operating the business and have a few customers, you just might want to have that “grand opening.” The following online articles can help you out with this event:
• “Free Grand Opening Ideas for a Small Business” by Chris Wolsk (http://smallbusiness.chron.com/grand-opening-ideas-small-business-3323.html)
• “Grand Opening Ideas for a Business” by Miranda Brookins (http://smallbusiness.chron.com/grand-opening-ideas-business-515.html)
• “Making the Most of a Grand Opening” by Al Lautenslager (www.entrepreneur.com/author/977)
• Golden Openings (www.goldenopenings.com/ProductPages/Guide/GrandOpeningGuide.htm) has a guide book that walks you through the steps of the grand opening process.
Working toward a grand opening can be exciting. After the hoopla is over, however, you must settle down and carry on business with sobriety and purpose. There will be many days filled with challenges that you must overcome. When things get a bit difficult, remember to reflect back on your vision — the reason you wanted to start your own business in the first place. Also, remember to seek help when dealing with the unfamiliar. A business support group can also be beneficial. The benefits of connecting with other growers is discussed in Chapter 11. Many small businesses fail because they do not seek the help and support they need to get them through the hard times.
Exploring other business angles
Once you have been growing and selling wheatgrass for some time, you might want to consider a few things. Ask yourself some questions. Have you been successful growing and selling wheatgrass in your area? Do you want to continue in this direction? Do you want to change your method of growing? Expand your business to include other angles? Exploring other business angles might be profitable at this time. There are several possibilities as wheatgrass can be used in many ways.
Open a wheatgrass juice bar
Organic wheatgrass
shot with tray of
wheatgrass shoots,
items typically sold
in a juice bar.
You have your business license. You have been cleared by the health department to sell food products. You are convinced that wheatgrass is good for you. Why not open a juice bar featuring wheatgrass drinks? It might also be possible to buy into an existing juice bar franchise system. This means that you will have the rights to market the goods of a company that is already established. You might have to revisit your marketing plan, do some extended marketing research, consider a loan, and purchase some additional equipment, but opening a juice bar is a feasible angle to explore. Visit the following sites to get you started in this direction:
• Gaebler.com Resources for Entrepreneurs (www.gaebler.com/Opening-a-Juice-Bar.htm) provides step-by-step instructions on how to get up and running.
• StartupBizHub.com (www.startupbizhub.com/start-a-juice-bar-business.htm) offers basic tips on starting a juice bar business including business structure, menu, location, start-up costs, and profits.
• Juice Gallery Multimedia (www.juicegallery.com) offers consulting, software, and recipes.
Sell other wheatgrass products
“Candle in Wineholder”
centerpiece designed
by Val Calpin for
The Wheatgrass Grower.
Photo used courtesy of
The Wheatgrass Grower.
Individuals who consume wheatgrass are generally health conscious and interested in consuming healthy foods and using natural products. Therefore, selling other wheatgrass products might be an angle worth exploring. You do not necessarily need to make these products yourself. There are several companies that do sell products that contain wheatgrass such as wheatgrass capsules, powders, and tablets, other food products such as wheatgrass pasta, cosmetics, and medicinal products. You might even be able to purchase these products wholesale and resale them on a local level. Please make sure you have your resellers certificate if you decide to go this route. You can find products to sell for your business by searching online, using library sources, joining buying groups, attending trade shows, and asking other wheatgrass growers. The following websites can help you learn more about purchasing products wholesale:
• Love to Know (http://buy.lovetoknow.com/wiki/How_to_Buy_Wholesale_and_Sell_Retail) explains the basics of buying wholesale and selling retail.
• AllBusiness.com (www.allbusiness.com/specialty-businesses/home-based-businesses/4554491-1.html) speaks about wholesale pricing and how to determine pricing for resale.
If you are adventurous and up for the challenge, you can make and market your own wheatgrass products. The recipes in Chapter 7 can help you get started with this. Whether you make your own or purchase products for resale, selling other wheatgrass products could be a profitable venture.
Start a floral wheatgrass business
“Topiary” centerpiece
designed by
Val Calpin for
The Wheatgrass
Grower. Photo used
courtesy of The
Wheatgrass Grower.
In Chapter 5, it was mentioned that wheatgrass could be grown for decorative purposes. The floral wheatgrass business is a very unique business concept that is becoming trendy with some growers. These growers customize wheatgrass growing to meet the needs of a variety of customers. The wheatgrass is decked in an array of flowers, bows, or whatever else the customer requests. Some desire these floral wheatgrass pieces as centerpieces for weddings and other special events. Others, such as photographers, use them for props in photo shoots needing greenery. Decorators and florists are also requesting custom-designed grass. Expanding into a floral wheatgrass business might create a new position in the wheatgrass growing industry and is another angle worth exploring. For more information about how to get a floral wheatgrass business started, visit Dogwood Gardens Organic Farms (www.wheatgrassman.com/site/1538595/page/871486). This company offers DIY kits and other supplies. The e-book Creating and Growing Wheatgrass Centerpieces by Carolyn Gibson is also available, offering advice and tips from experienced growers. To purchase ready-made or customized floral wheatgrass pieces, visit The Wheatgrass Grower website (www.wheatgrassgrower.blogspot.com).
Acquiring a staff
You have now been in business for some time and have a growing customer base. You have even explored some other business angles and, perhaps, have taken on one or two. You might now realize that your one-man show can no longer continue. It is time to look for some hired help.
Finding employees for your wheatgrass business is a job in itself. Not only must you find someone with the skills you need to get the job done, you must find someone who can fit in with your business model. It would be ideal if he or she, too, were interested in health, gardening, or green living. If he or she has an interest in what he or she is doing, the employee will be more likely to put forth his or her best effort to help you succeed. Finding the right people to help you with your business might be a challenge. The following websites offer insights into acquiring a staff and can help you with the hiring process:
• Microsoft Startup Center (www.microsoft.com/smallbusiness/startup-toolkit/employee-management-system.aspx) outlines all you need to know about acquiring employees, including how to find the best candidate, considerations for employee benefits, and dealing with employee tax responsibilities.
• Dun and Bradstreet Credibility Corp (http://smallbusiness.dnb.com/human-resources/workforce-management-hiring/476-1.html) points you in the right direction for finding recruiters and offers tips about hiring and managing a staff.
• U.S. Small Business Administration (www.sba.gov/idc/groups/public/.../serv_pubs_pm_pdf_pm1.pdf) not only shows business owners how to hire workers but how to pay them as well.
Consider virtual assistance
With the rising costs of employee labor, many companies are turning to the Internet for “virtual” assistance. In many cases, hiring a virtual assistant (VA) can help offset employee costs. A VA is a professional online service provider. While an online assistant will be of very little use to you when it comes to monitoring sprouting seeds or preparing the soil for your wheatgrass trays, he or she might be very helpful in handling administrative tasks such as bookkeeping or managing your website. Hiring a VA is an important step in moving your business forward, as you can be relieved of time-consuming, although important, responsibilities and give yourself to other areas that need your attention. A good VA can also help you market your business. Hiring a virtual assistant might also be a consideration when dealing with space limitations. The following websites can give you more information about VAs and how to acquire one:
• Entrepreneur (www.entrepreneur.com/humanresources/hiring/article70586.html) points to sources for obtaining virtual assistance.
• Small Business Review (http://smallbusinessreview.com/technology/get_help_virtually) offers tips and advice for hiring VAs and where to find them.
• Ask Sunday (www.asksunday.com/) is a company that has trained VAs for hire.
|
Case Study: The Business of Growing and Selling Wheatgrass |
|
|
Ellen McGlynn, owner and grower The Wheatgrass Grower 419 Carbondale Road Clarks Summit, PA 18411 wheatgrassgrower@frontiernet.net Phone: 570-587-5704 Fax: 570-587-5704 |
|
|
Ellen McGlynn, an Herbal Information Specialist through the American Botanical Council, has been the owner and proprietor of The Wheatgrass Grower, LLC since 2005. The Wheatgrass Grower is a private residential micro eco-farm and USDA-certified nursery dedicated to excellence in the production of nutritional greens. The company has been featured in several local newspapers as well as a national farming magazine. |
|
|
I have been using and growing wheatgrass since 2002 when my husband was diagnosed with a very late-stage terminal cancer. Wheatgrass had such a positive impact on his end-of-life quality that several neighbors asked me to continue growing it for them even after he passed away in 2003. I guess that is technically when I began selling wheatgrass out of the garage of our suburban Philadelphia home. At that point in my life, however, faced with the situation of having to sell my husband’s restaurant and our home while raising our infant daughter, I decided to relocate back to my roots in Northeastern Pennsylvania. There, I purchased a home on agriculturally zoned land and established a micro eco-farm in the spirit of my late husband’s environmentalism. With a strong enough local interest in my product by the spring of 2005, I was able to turn Wheatgrass Grower into an LLC. Online marketing of the product followed in 2007. Concerning wheatgrass usage and dosage I personally use wheatgrass juice several times a week, if I am lucky. I would juice more often, but I all too frequently give up my own share of the crop to paying customers. I use wheatgrass for general detoxification and fatigue. I am in generally good health, so I do not drink wheatgrass on what I would consider a “therapeutic” level (several ounces a day). I do like to take at least an ounce a day when possible, and there are times when my body will actually crave more. I often just follow what my body tells me. Every day our bodies are pummeled with dietary and environmental toxins that build up in our systems and create chronic illnesses that often cannot be diagnosed through standard medical testing. It is this kind of constant pummeling that leads to more serious chronic illnesses like cancer. Wheatgrass juice with its high chlorophyll content has been shown to act as a chelator, a chemical that bonds with and removes toxins from substances, for damaging substances within the body, and it is my response to those types of physical stressors that cannot be individually controlled because they are so ubiquitous on a daily basis. I use wheatgrass in juice blends with things like pineapple juice, granny smith apples, orange juice, bananas, and berries. I also drink it straight. I also use wheatgrass as a base for floral arrangements. My late husband used wheatgrass when he was diagnosed as terminally ill with melanoma. He was given two months to live. His hemoglobin levels were extremely low. He was so anemic that he required multiple blood transfusions, and he also took iron supplements in a pill form, but neither was particularly effective. Once he changed his diet and began using wheatgrass regularly as a juice and in enemas, there was a measurable difference in his hemoglobin count, and he generally felt better. He was able to snap back after a crippling round of chemotherapy pretty quickly. This level of empowerment had a huge impact on his psychological outlook and improved his quality of life during his illness. He survived ten months instead of two. As a general dietary supplement, one ounce of wheatgrass juice can be used as a daily detox and to help combat fatigue. To treat an illness, one ounce three times a day before meals on an empty stomach is recommended. This is based on an observation I made speaking with customers who were referred to me by medical professionals. The amount of grass that a tray yields varies from grower to grower, depending on the size of trays used and how densely the grass is grown. Generally speaking, a 10x20-inch tray can grow ¾ to 1 pound of grass. One pound of grass will produce about 10 to 12 ounces of juice. |
|
|
An individual drinking only one ounce a day should only buy one tray and harvest it when the grass starts to split into its second shoot. They should then store the remaining grass in an airtight container and keep it in the crisper bin of the fridge to use as needed. Grass cut in this manner should retain its freshness for up to two weeks in the refrigerator. Based on this information, one can calculate how much a family might need to buy or grow to cover their juicing needs. Wheatgrass can be taken during pregnancy. There are no known negative side effects to taking wheatgrass while pregnant other than those reported in the general population, such as nausea and darkened stools. A pregnant woman who is already suffering from classic morning sickness and heightened olfactory senses might want to steer clear of wheatgrass during the first trimester. Wheatgrass juice has the capacity to build hemoglobin levels — that much exists in scientific literature — so I encourage anyone who has cancer or an anemia-related conditions to speak to their doctors about including wheatgrass juice in their diets. Wheatgrass juice, for reasons that are not entirely clear, is also effective at leaching environmental and dietary toxins from the body. In terms of antioxidants, its oxygen radical absorbance capacity (ORAC) rating is shown to be even higher than blueberries. Some people are against wheatgrass usage because there is not enough scientific investigation and support from conventional doctors due to the lack of scientific investigation. It is a vicious cycle. Sadly, at this point in time, most of wheatgrass’s good press comes from anecdotal reports. I do follow the scientific literature, however, and can tell you that universities (unfortunately, mostly overseas) have been producing more in the way of wheatgrass studies in the past several years. I am also dealing more directly now with medical doctors, especially in integrative medical fields, who support the use of wheatgrass and recommend it to their patients. Concerning the taste of wheatgrass Fresh wheatgrass juice tastes exactly as it smells — like a freshly mown lawn. Wheatgrass should be sweet, not bitter. If it is bitter, it has passed its optimal harvest date. Do I enjoy the taste? Yes; sometimes I even crave it. On the other hand, sometimes, I just cannot get it down, and I need to take a break from it. Frequent users of wheatgrass will often tell you they just cannot drink it anymore. It is a common phenomenon. It usually means it is time for a break or that you should try a little more variety by mixing it with other fruit or vegetable juices. It is better to take a break rather than ruining your relationship with wheatgrass juice forever by forcing it down. It is acceptable to experiment with the wheatgrass juice. You might be surprised at what you are able to mix it with. I have mixed wheatgrass with simple orange or pineapple juice, and the combination is quite delicious. Wheatgrass with banana makes for a great shake. I also like my wheatgrass juice chilled, so whatever I mix it with, I shake it with ice before drinking. Have fun with it. Treat it like a fancy cocktail. Drink it in different glasses. Add a fruit chunk for garnish, like pineapple, and chase the wheatgrass by sucking on the chunk of fruit. Three tips for using wheatgrass 1. Wheatgrass is not a silver bullet. Like all nutritional supplements, it has its beneficial properties, but it is meant to be used in conjunction with a healthy diet in order to reap its full benefits. 2. Do not overdo it. Daily regimens including more than two ounces of wheatgrass juice per day should be stretched out over the course of the day for maximum benefit (i.e., one ounce three times per day). Drinking more than two ounces at once will probably only result in a distaste for the product. 3. Do not give up on wheatgrass juice if you cannot stomach drinking it straight. Mix it with other juices to make it more palatable, such as pineapple, granny smith apple, or banana. On growing your own wheatgrass — advantages and disadvantages There are several benefits to growing your own wheatgrass. First and foremost would be cost. It is much cheaper to grow your own than to buy it. Most of the cost of wheatgrass is due to labor and packaging. It is also very therapeutic, almost magical, to watch your crop grow and know you have complete control over your end product. Growing your own also enables you to stagger your growing schedule in such a way that you can plant several trays each with different start dates and then cut it fresh every day if you like, which would be optimal. |
|
|
I think this last point, however, has often been a point of confusion for those who believe it is always better to buy grass in the tray as opposed to the cut product in the bag. Unless you are able to consume 10 to 12 ounces of juice within a three-day period (tops!), it is better to just buy a pound of fresh-cut grass in the bag and store it in the refrigerator for use as needed over a one- to two-week period. Unless taking it therapeutically, it takes most people a week or more to drink the juice that could be harvested from a tray of wheatgrass. That being said, wheatgrass does have an optimal harvest time when the grass starts to split and form its second shoot, generally around day ten, after which it begins to turn bitter and decline in nutritional value. It also starts turning yellow and keeling over and harboring mold. So, on one hand, if you start cutting before the grass splits, you get less than the optimal amount of juice from your tray because it is not fully grown or at its nutritional peak. But, on the other hand, if you cut after the grass splits, you get a bitter-tasting, less nutritional product. Fresh-cut product in the bag is cut at its optimal harvest time so that you get the most nutritious product for the most reasonable price. Harvesting determination can vary depending on the seed and the climate. Because I grow in a climate-controlled room, I am able to work on a more predictable harvesting schedule. Some of the drawbacks of growing your own grass include having the space, time, and interest in growing your own grass. Often, growing grass is just not practical for the fast-paced professional who spends most of his or her time at work or who has limited living space such as an apartment dwelling. It might also not be a practical option for those who are very sick and barely getting by rushing from one medical appointment to another. I grow my wheatgrass indoors and do not have any significant experience growing wheatgrass outdoors. When growing indoors, it is a good idea to have a separate room with a water source for growing wheatgrass. Soil prep and harvesting can be messy jobs, leaving soil and grass stains behind. Consider areas outdoors where you will be able to compost your wheatgrass mats so that you can either reuse the soil for growing more wheatgrass or use it in your outdoor gardens. Consider investing in large trash bins for storing things like soil and soil amendments indoors, especially if you live in the north where soil can freeze outdoors in the winter. Seed should always be kept in tightly lidded storage containers so that you do not attract mice. Indoor areas are best because temperature and humidity are able to be controlled. Unbelievably, the fear of high temperatures and humidity can be extremely stressful for the wheatgrass grower who does not have the proper climate-control measures in place. If sufficient ambient lighting is not available, invest in full-spectrum grow lights. Metal growing racks are prone to rust, so it might be best to go the plastic route. Always aim to work with racks on wheels so that they can be easily moved for cleaning and mopping. I would encourage anyone who has the interest and the time to grow wheatgrass themselves to do that rather than buy from a grower for two reasons: 1) It is cheaper to grow your own because you are not paying someone else for the labor; and 2) It is therapeutic. It is very emotionally uplifting and empowering to raise a productive garden. |
|
|
The infamous mold Mold is a very tricky subject. Because there are several ways mold can develop in your wheatgrass, there is no one definitive answer on how to combat it. Mold can develop from your soil, your seed, your water, or the air. If you are composting your own soil, particularly from wheatgrass mats that might have been moldy at the outset, you might find that you will need to find another soil source and just use your compost for outdoor use where the UV rays can deal with the mold and bacteria issues. If you are watering without a filter, you might be susceptible to molds that have collected in pipes, wells, or storage tanks. You can test your water for mold using kits available at larger hardware stores or online and should definitely consider using a water filter. Airborne molds are a larger problem. Be sure to clean growing-area surfaces regularly and consider using an air purifier. Most often, however, I find that the mold is a result of the seed — even Certified Organic seed. I have experimented with several all-natural additives to my rinse water on moldy seed, but I have never experienced significant improvement with regard to mold. While I do rinse seeds with a food-grade hydrogen peroxide for sanitation purposes with regard to sprout-related pathogens and have even used a UV wand for same purpose, this does not seem to reduce the potential for mold. It is best to rinse often with plain water throughout the sprouting process (several times over the course of 12 hours) and do a final thorough rinse on the seed immediately before it goes into the tray. Mold grows where it is wet and the air is stagnant, of course, so do not overwater your trays. Also, keep room humidity between 40 percent and 60 percent (a dehumidifier might be necessary) and use a fan, if necessary, to keep air circulating. Mold does not flourish in cooler temperatures, so keeping your room temperature around 70 degrees Fahrenheit (just enough for the grass to still grow at a normal rate) can help. In spite of doing everything right, there is no escaping the mold created by an ungerminated seed, and you will find ungerminated seeds in every batch of seed you buy. If you find that you have a lot of ungerminated seed, it is time for a new supplier. Generally speaking, molds that remain contained within the base area of the grass are safe, and cutting an inch above the root will help reduce your chances of ingesting it. Discard trays with molds that travel up the grass and create grass discoloration or slime. Three tips for growing wheatgrass 1. Mold is the bane of all wheatgrass growers. Keep humidity between 40 percent and 60 percent, temperature between 70 and 75 degrees Fahrenheit, air circulating, and growing areas clean. 2. If growing commercially, always order new shipments of seed weeks before your old shipment runs out so that you have time to test the new seed — even if you have a reliable supplier. If the new seed does not produce grass to your expectation, you will at least have time to order elsewhere. 3. Dirty growing trays rinse off quickly indoors using a deep utility sink and the jet feature on a garden hose. An inline fertilizer tank filled with a food-grade sanitizer can also be connected between your water source and hose connection to kill two birds with one stone. |
|
|
The business of selling wheatgrass If you are interested in a wheatgrass-growing business, you must first check with your local township to see if your home or property is zoned for agricultural or business use. While certain office-related businesses are allowed to operate from residentially zoned properties, agricultural businesses are generally not. If not, you will need to apply for changes to your current zoning. I operate a home-based agricultural business on a property that is zoned for agricultural use, which makes anything I produce as an agricultural product fair game for sale. The USDA inspects my scales every year. This is mandatory when selling agricultural products by weight. However, the FDA oversees the regulations regarding wheatgrass and sprout production. As such, I operate my business in a manner that is compatible with FDA’s published guidelines on sprouting and sanitation (2) and food labeling (3). The following websites can be used as references: 3. www.fda.gov/Food/LabelingNutrition/default.htm The return on investment time frame for a wheatgrass business depends on how large your investment is. I have found that my overhead — the costs required to run the business, not including payroll — generally account for 40 percent to 50 percent of my sales. So, if you are selling wheatgrass at $15 per pound, you can roughly estimate that $7.50 to $9 per pound goes back to you in the form of wages, profit, or return on investment. A person just looking to make an extra $100 or more a week selling a dozen pounds of wheatgrass can do so with just an initial investment of under $500 and a few hours of labor per week. If you want to consider payment for labor as part of your return on investment, return can be had in less than a month if you have already established a client base. Two steel growing racks ($80 each at Lowe’s), eight full-spectrum grow lights ($20 each at Lowe’s), and 32 10x20-inch growing trays (about $1.50 each at Lowe’s or online) are needed to get started. After that, expect to use three bags of top soil per week (about $6) and 15 pounds of wheatberries per week (about $30). You will also want to factor in the cost of packaging, utilities, and possibly automobile expenses to get a true estimate of your weekly expenses, and a portable conditioner/dehumidifier, if necessary, can run you several hundred dollars. |
|
|
Three tips for selling wheatgrass 1. Always answer the phone whenever possible and return calls promptly. Customers do not always understand that you might not be a larger organization with multiple employees, regular operating hours, or an office staff and will feel annoyed if they have to leave a message or wait longer than a couple hours for a return call. A cordless phone or business cell phone is a good idea in this profession. 2. Get a website even if you do not have an online store. 3. Make friends with your local grocers, health food stores, and food or farming organizations. In Conclusion My favorite wheatgrass story is more a marketing story of happenstance. It was at a time when I had just developed my website to accommodate online ordering and had not quite tested my shipping strategy. I happened to be attending the Philadelphia Flower Show and was enjoying a lunchtime break over at Philadelphia’s Reading Terminal Market when I stumbled upon the Fair Food Farmstand. I was not even thinking about handing out any business cards, but my brother-in-law insisted I give one to them. Within a week, they had placed an order for what I would consider my first “real” shipment. While they very much liked the product and the packaging, they informed me that the demand for wheatgrass was just not there. It was a disappointment, until a few weeks later when I received an online order from a woman who turned out to be a doctor from one of Philadelphia’s leading medical universities. She happened to inquire about wheatgrass at the Fair Food Farmstand, and they immediately referred her to me based on that one shipment. She has not only been ordering from me ever since (and it has been years!), she opened the door for numerous referrals through her colleagues, and they have become my best clients. It is because of my business relationship with them I can confidently say that wheatgrass has become more accepted among members of the conventional medical community, and people ought not be afraid of discussing their interest in using wheatgrass with their physicians. |
|
