Key Questions to Assist Your Team in Choosing and Evaluating an Enterprise
Jonathan Kays, Maryland Cooperative Extension (www.naturalresources.umd.edu) 12/10/01
Considering an alternative income opportunity for your property requires finding an enterprise that matches the lifestyle, money, and resources of you and your other team members. Below you will find some sample questions that should help to address some these considerations. The questions are separated into five main areas: 1) goals and objectives; 2) personal and team preferences and skills; 3) physical and natural resources; 4) team labor and management resources; and 5) financial/marketing options. A more complete paper on Choosing and Evaluating a Natural Resource-Based Enterprise can be found on this website at: http://www.naturalresources.umd.edu/Pages/decisions_fs.htm .
Get together with your team members
and mark the enterprises below
that you may be considering. After answering the questions that follow with
your team members, reconsider the practicality of your choices based on your
answers. For example, based on the time available, is the enterprise still plausible?
This may require more research on enterprises that you are considering. Use
the references on natural resource income opportunities link of this website
to help you:
http://www.naturalresources.umd.edu/Income.cfm.
|
Forest Farming & Utilization ___ 1. Agroforestry Recreational Activities ___ 9. Fee hunting |
Alternative Agriculture ___ 17. Tree & small fruits Forest Management ___ 25. Marketing forest products |
Goals and Objectives
What is your objective for this new enterprise? List your top three reasons.
A: Hobby:
B: Family benefits;
C: Improve conservation practices;
D: To pay for
the property taxes;
E: To supplement my income (above & beyond paying for property taxes);
F: As my main source of income;
G: To utilize more
of the resources on the property.
H:
To reach a specific income goal of $______
I. Other ______________________________
Why do you own your property?
A: Inherited;
B: Purchased for my primary
residence;
C: Purchased to generate income;
D: It came with the residence;
E: To practice good stewardship;
F: For an investment;
G: Other
Personal and Team Preferences and Skills
Is your family willing to help with
the enterprise and as excited as you about this project?
Do you enjoy working hard
to make the enterprise a success?
Do you feel your opinions
and feelings about the potential new business are taken seriously by other team
members?
Does anyone on your team feel
well qualified in farming knowledge?
Does anyone on the team know
how to operate farm equipment?
Does anyone on the team know
how to fix farm equipment?
Does anyone on the team have
the necessary computer skills needed to run a business?
Does anyone on your team handle
multiple tasks at one time well?
Does anyone on your team
enjoy the following? Working with people? Hosting people in your home? Working
with animals? Working with plants? Working with machinery? Teaching? Physical
labor?
Do you consider yourself a:
A: traditional farmer (Your
principal source of income is from the farm);
B: part-time farmer (your
primary source of income is not from the farm);
C: Landowner (you may
lack farming knowledge and/or experience but you are seeking to establish
an income-opportunity);
D: Primarily a forest
landowner (your main interest is in forest & wildlife management;)
E: Other
Physical and Natural Resource
Have you ever had a commercial timber
harvest? How many years ago?
Do you have a written forest
stewardship plan?
How many acres do you own
in cropland? Pasture ______? Forest-land ________?
How many of the following
do you own? Ponds __; Streams __; Rivers __;
How many acres of your land
are rented to other farmers? _________
Does your land have any unique
locations such as beautiful scenery such as wetlands, rivers or rock cliffs?
Do you have a barn on your property?
Shed? Pole building?
Which of the following equipment
do you own? Farm tractor? Lawn tractor? Chain saw? Pick-up truck? Farm equipment
such as a tiller and plow?
Team Labor and Management Resources
Who are the members of your team
involved in this venture? A: Spouse; B: Children (No. __); C: Parent(s);
D: Business Partner
Which team members will be on hand to help with the day to day operation?
What season of the year will your
team be able to provide work? A: Winter; B: Spring; C: Summer; D: Fall;
E: Year round
How many hours per week-DAY will your team devote to this enterprise?
How many hours per
week-END will your team devote to this enterprise?
Do you live on the land you own?
If you do not live on your land, how many miles do you live away from it?
How many years have you owned your land?
Financial/Marketing
How much money are you willing
to commit in order to start this enterprise? A: Under $500; B: $500 - $1,000;
C: $1,000 - $2,000; D: $2,000 - $5,000; E: Over $5,000.
Where will this start-up money come from? A: Personal savings; B: Borrow
from a bank; C: Borrow from a family member; D: Other
What percent of your family income do you expect to earn from this enterprise?
Do you have a specific
income goal?
Which of the following do you prefer?
A: Selling directly to your
customers from a retail outlet outside your home;
B: Selling to customers
directly from your home;
C: Selling to wholesale
customers only;
D: Other
Do you live within a two-hour drive to a metropolitan area?
RECONSIDER YOUR ENTERPRISE CHOICES BASED ON THE ANSWERS TO THESE QUESTIONS.