>> THIS PROGRAM WAS MADE POSSIBLE BY A GRANT FROM THE UNITED STATES DEPARTMENT OF AGRICULTURE RURAL VERY MANY.

-- AGRICULTURE RURAL DEVELOPMENT.

>> I REALLY NEVER WANTED TO START MY OWN BUSINESS.

I NEVER REALLY THOUGHT ABOUT IT.

IT WAS MORE PUSH THAN PULL.

WE WERE SOMEBODY DRIVEN FROM MORE THAN WE WERE BEING DRIVEN TO OR DRAWN BY THE DREAM OF STARTING ONE'S OWN BUSINESS.

>> THE PLAN IS YOUR ROAD MAP AS TO HOW TO GET FROM POINT A TO B. WITHOUT THAT, IT WILL BE VERY DIFFICULT, AND ALSO, PROBABLY THERE WON'T BE A BANK ANYWHERE THAT WILL LOAN YOU A DIME WITHOUT A BUSINESS PLAN.

>> WHEN I STARTED THE FIRST QUESTION PEOPLE ASKED ME WAS WHERE IS YOUR BUSINESS PLAN.

AND I HAVE TO TELL YOU THE IDEA OF WRITING A BUSINESS PLAN WAS SO OFFENSIVE TO ME.

NOT EVEN FOREIGN OR IMPOSSIBLE, BUT OFFENSIVE THAT I WOULD BECOME SO CORPORATE, THAT I NEEDED TO HAVE A BUSINESS PLAN, THAT I WAS USED TO DOING.

IN SOME WAYS IT'S CHEAPER TO GO TO MARKET THAN TO PAY SOMEONE TO DO THE MARKET RESEARCH TO FIND OUT HOW WELL YOU WILL DO.

WELCOME TO VENTURING.

I'M CAROL DILLON.

IMAGINE LOSING YOUR JOB BECAUSE YOU WOULD NOT MOVE HALFWAY ACROSS THE COUNTRY.

SUPPOSE YOU FELT LIKE YOU WANTED MORE CONTROL OVER YOUR WORK LIFE.

WOULD YOU START YOUR OWN VENTURE?

THIS WEEK WE WILL FEATURE ENTREPRENEUR WHO IS FACE THOSE AND OTHER CHALLENGES AND RESPONDED BY SEIZING AN OPPORTUNITY AND STARTING THEIR OWN BUSINESS.

OUR FIRST ENTREPRENEUR IS TOM AND SALLY, SPENT YEARS IN CORPORATE AMERICA BEFORE TAKING THE VENTURING LEAP.

>> BEEN THINKING ABOUT IT, AND I THINK I HAVE MADE UP MY MIND.

START MY OWN BUSINESS.

I NEVER REALLY THOUGHT ABOUT IT.

IT WAS MORE PUSH THAN PULL.

WE WERE BEING DRIVEN FROM MORE THAN BEING DRIVEN TO OR DRAWN BY THE DREAM OF STARTING ONE'S OWN BUSINESS.

TOM AND I WERE WORKING IN CORPORATE REAL ESTATE -- IN MANHATTAN, AND WE WERE DOING WELL THERE, AND SOME UNFORTUNATE THINGS STARTED HAPPENING.

TOM GOT TRANSFERRED.

>> SALLY WORKED AT A BANK TAKING OVER ANOTHER BANK IN A HOSTILE TAKE-OVER IN NEW YORK CITY.

AND HER JOB SEEMED NO MORE SECURE THAN MINE.

SO WE FELT THAT WE WANTED TO GO INTO BUSINESS FOR OURSELVES AND GET SOME CONTROL OVER OUR LIVES.

>> WE DECIDED WE DID NOT WANT TO BUY AN EXISTING BUSINESS.

IT SEEMED LIKE WE WOULD BE BUYING SOMEONE ELSE'S PROBLEM AND OUR JOKE WAS, WE CAN MAKE OUR OWN PROBLEMS, WHY SHOULD WE BUY SOMEONE ELSE'S.

SO WE DECIDED TO START FROM FRESH, AND WE KEPT COMING BACK TO CHOCOLATE.

WE LIKED TO EAT CHOCOLATE.

THERE IS A GREAT DEAL OF TIME REQUIRED IN THE PLANNING.

THERE WAS MARKETING AND PRODUCT DEVELOPMENT, PHYSICAL LOCATION, AND SALES, AND ALL THOSE THINGS HAVE TO BE FIGURED OUT IN ADVANCE.

EVERY DAY AT LUNCH TIME I WOULD GO OUT TO SOME DEPARTMENT STORE OR FANCY CHOCOLATE SHOP OR TO SOME NEIGHBORHOOD CHOCOLATE SHOP AND BUY CHOCOLATES, AND THEN EVERY EVENING WE WOULD TASTE THEM.

AND WE STARTED PICKING QUALITY PIECE, PRICING.

IT WAS A WONDERFUL LABORATORY TO DO OUR MARK RESEARCH.

WE HAD THIS IDEA THAT WE WOULD UPLOAD OUR SERVICES FOR FREE IN EXCHANGE FOR TRAINING.

WE THOUGHT THAT MIGHT APPEAL TO SOME SMALL CHOCOLATE-MAKER, AND WE APPROACHED A COUPLE OF CHOCOLATE-MAKERS IN MANHATTAN, BUT THEY WERE NOT INTERESTED.

ONE LADY SAID IF WE PAID HER 15,000 -- AND WE SAID WELL, A TYPICAL NEW YORK APPROACH.

[LAUGHTER] >> SO WE TRIED ONE MORE STORE, AND THAT WAS A WONDERFUL THIRD GENERATION CHOCOLATE SHOP, AND IN JERSEY CITY, MINN -- NEW JER.

AND THEY HAD BEEN IN BUSINESS SINCE 1907 IN THE SAME LOCATION.

AND THE FAMILY WELCOMED US WITH OPEN ARMS.

WE STARTED WORKING FOR THEM THE DAY THAT WE WALKED IN AND PROPOSED THE QUESTION.

SO WE HAD A GOOD GROUNDING TO START A NEW BUSINESS.

WE MOVED TO VERMONT IN JANUARY, AND WE GAVE OURSELVES, I FORGET NOW, I THINK IT WAS THREE MONTHS, THREE MONTHS TO FIND A STORE LOCATION, IMPROVE THE STORE, AND MANUFACTURE THE INVENTORY REQUIRED TO OPEN THE DOOR.

FINDING THE STORE WAS RELATIVELY EASY.

IT TOOK US A WEEK.

AND SO WE STARTED MAKING THE CHOCOLATES, AND THAT WAS ABSOLUTELY ONE OF MOST HORRIBLE PERIODS OF MY ENTIRE LIFE.

WE WOULD BE HERE, I DON'T KNOW, 14, 16 HOURS A DAY, GO HOME STRESSED OUT, WITH NO CHOCOLATES PRODUCED.

I REALLY THOUGHT AFTER THE BEGINNING OF THE FIRST WEEK OF THAT MONTH THAT WE MIGHT BE THE ONLY BUSINESS IN THE WORLD TO CLOSE BEFORE WE OPENED.

I WAS VERY, VERY TENSE BECAUSE OF THE UNCERTAINTY NOT KNOWING WHETHER WE WOULD MAKE IT, NOT KNOWING WHETHER WE WERE JUST IDIOTS.

PUTTING ALL OUR MONEY INTO THIS BLACK HOLE THAT WOULD EAT UP THE MONEY AND GIVE US NOTHING IN RETURN BUT WE WERE COMMITTED TO DOING THIS PROJECT, AND WE ARE NOT PEOPLE WHO FAILED.

WE WERE HERE, WE WERE COMMITTED, AND WE OWNED A HOUSE AT THAT POINT.

WE HAD RENTED A STORE, AND WE WERE GOING TO DO IT, IF IT WAS POSSIBLE.

AND IF OTHER PEOPLE COULD DO IT, WE WERE SURE THAT WE COULD, TOO.

>> I REMEMBER MAKING UP ONE MORNING IN THE HOTEL AND I WOKE UP SALLY AND I SAID, COW PIES.

THAT'S IT.

COW PIES.

AND SHE SAID WHAT ARE YOU TALKING ABOUT?

AND I SAID WE CAN MAKE A CANDY BAR IN THE SHAPE OF A COW PIE.

AND WE WILL CALL IT THAT, AND BECAUSE WE ARE IN VERMONT, WHERE THERE IS SO MANY COWS AND IT'S AN AGRICULTURAL STATE, IT WILL SELL LIKE HOT CAKES TO THE TOURISTS.

THE COW PIES HAVE BEEN OUR BESTSELLERS.

THEY HAVE NEIGHBORHOOD US TO CONTINUE IN BUSINESS WHEN -- THEY HAVE ENABLED US TO CONTINUE IN BUSINESS WHEN NOTHING ELSE PROBABLE WOULD HAVE.

PLANNING IS ONLY POSSIBLE TO A CERTAIN EXTENT.

YOU HAVE TO GO WITH THE FLOW.

AND YOU CAN ONLY DEVELOP WHAT WORKS IN YOUR BUSINESS, AND PROBABLY WHAT WORKS IS SOMETHING THAT YOU MAY NEVER EVEN THINK OF IN THE VERY BEGINNING OF THE ESTABLISHMENT OF THAT BUSINESS.

>> SEIZING OPPORTUNITIES IS ONE OF THE THINGS THAT DISTINGUISHES ENTREPRENEURS FROM THE REST OF US.

TOM AND SALLY SAW THEIR OPPORTUNITY IN A TOTALLY NEW FIELD.

>> GREG TURNED HIS CORPORATE EXPERIENCE INTO A SUCCESSFUL BUSINESS OF HIS OWN.

HE GOT STARTED DURING A RECESSION IN A TOWN THAT EXPERIENCED YEARS OF TOUGH ECONOMIC TIMES.

LIKE MANY ENTREPRENEURS, HE HAD DREAMED ABOUT GOING INTO BUSINESS FOR HIMSELF.

>> I WORKED FOR JONES AND LAMPTON FOR SIX YEARS, AND THEY MADE ME AN OFFER THAT I COULDN'T REFUSE AT ONE POINT.

THEY SAID I GO TO THE HEAD OF CHICAGO OFFICE OR I WAS FIRED, AND I PICKED DOOR NUMBER TWO.

THERE WAS NO WAY THAT I WAS GOING TO MOVE AND LIVE IN CHICAGO.

I THINK A LOT OF TIMES INVENTORIES NEED SOMETHING LIKE THAT TO GIVE THEM THAT FINAL BIT OF MOTIVATION, AND THAT'S WHAT I HAD, AND THAT'S WHAT MADE ME DECIDE TO START VERMONT REBUILD.

I HAD A NATURAL RESOURCE TO DRAW FROM.

THAT BEING SKILLED MACHIN TOOL PEOPLE IN PRECISION VALLEY THAT WERE OUT OF WORK.

WE HAD BEEN MANUFACTURING MACHINE TOOLS, IN THIS VALLEY FOR 150 YEARS.

AND THE OLD DAYS, THIS WAS REALLY THE HEART OF THE MACHINE TOOL INDUSTRY IN THIS COUNTRY.

THIS IS A VALLEY OF ESPECIALLY SKILLED PEOPLE YOU DON'T FIND IN MANY AREAS.

ALL I HAD TO DO WAS PUT THE COMPANY TOGETHER AND I HAD THE PEOPLE WITH THE CAPABILITIES TO UNDERSTAND WHAT REMANUFACTURING A MACHINE TOOL IS.

AT VERMONT REBUILD WE REMANUFACTURE AND RETROFIT THE MACHINE TOOLS UNDER CONTRACT FOR VARIOUS INDUSTRIAL MANUFACTURING COMPANIES THROUGHOUT THE UNITED STATES.

REMANUFACTURING IS BASIC ECONOMICS 101 THAT ALL COMPANIES HAVE A SHORTAGE OF MONEY, SO HERE WE WERE GIVING THEM A VEHICLE IN WHICH TO SAVE MONEY.

AND BE MORE PRODUCTIVE AND MAKE BETTER QUALITY, AND THAT'S WHAT EVERYBODY IS LOOKING TO DO.

WHEN I FIRST STARTED I HAD TO DO EVERYTHING.

I HAD TO DO THE ENGINEERING, THE ASSEMBLY, THE CLEANING, AND THE BOOKKEEPING, BUT BELIEVE ME THE FIRST SIX MONTHS WERE VERY DIFFICULT BECAUSE IN THIS BUSINESS,IST ONE IN WHICH REPUTATION HAS A GREAT DEAL TO DO WITH THE BUSINESS YOU ARE AND A COMPANY WITHOUT A REPUTATION, WITHOUT A FACILITY, SHOW ME WHAT YOU HAVE DONE, YOU KNOW, A LOT OF BUYERS ARE VERY MUCH FROM MISSOURI, SHOW ME.

I SPENT A LOT OF TIME TRYING TO GET THE FIRST ORDERS BECAUSE WITHOUT ORDERS, WITHOUT A SALE NOTHING HAPPENS.

THE SALE IS NUMBER ONE, AND IT TOOK ME SIX MONTHS TO GET THAT FIRST SALE.

OR ORDER.

I GUESS IF I HAD NOT GOTTEN THAT, FOR THE NEXT COUPLE OF MONTHS I MIGHT HAVE HAD TO ALTER MY PLANS AND CHANGE MY DECISION AS TO WORKING FOR MYSELF FOR STARTING VERMONT REBUILD.

I PROBABLY COULD BE WORKING FOR SOMEBODY ELSE FOR THE LAST EIGHT YEARS AND MADE CONSIDERABLY MORE MONEY THAN I HAVE MADE FOR MYSELF.

WORKING FOR SOMEBODY ELSE IS NOT EXACTLY WHERE I WANT TO BE.

EVERYTHING HAS ITS PLUSES AND MINUSES.

IT'S ADVANTAGES AND DISADVANTAGES.

I AM DOWN HERE ON SATURDAYS AND SUNDAYS AND WHATEVER IT TAKES TO GET THE JOB DONE.

I HAVE A LOT OF OTHER PEOPLE HERE IN THE PLANT THAT DO THE SAME THING.

PLANNING IS VERY IMPORTANT.

IN FACT, THAT WAS PROBABLY THE FIRST THING THAT I DID, FIRST COUPLE OF MONTHS SITTING IN THAT OFFICE WHILE I WAS ALSO TRYING TO GET ORDERS, WAS PUTTING TOGETHER THIS PERSPECTIVE FOR A BUSINESS PLAN AS TO HOW WE WOULD ACHIEVE OUR GOALS.

AND I WOULD SUGGEST TO ANYBODY STARTING OUT AS AN ENTREPRENEUR, WRITE YOURSELF A BUSINESS PLAN.

THE PLAN IS YOUR ROAD MAP AS TO HOW TO GET FROM POINT A TO B. WITHOUT THAT IT WILL BE VERY DIFFICULT AND ALSO PROBABLY THERE WON'T BE A BANK ANYWHERE THAT WILL LOAN YOU A DIME WITHOUT A BUSINESS PLAN.

IT IS VIOLATIONS.

YOU MAY NOT THINK IT, IN THE BEGINNING, BUT IT IS NECESSARY EVEN THOUGH YOU THOUGHT IT OUT IN YOUR MIND, IT SAYS SOMETHING ABOUT PUTTING IT DOWN ON A PIECE OF PAPER AND SEEING IT IN BLACK AND WHITE.

>> PLANNING IS IMPORTANT TO ANY NEW BUSINESS.

BUT, OF COURSE, SOME THINGS CAN'T BE ANTICIPATED.

WE CALL THIS SERENDIPITY.

JOAN HAS HER OWN IDEAS ABOUT PLANNING.

PERHAPS IT'S BECAUSE SERENDIPITY PLAYED A BIG ROLE IN HER CLOTHING BUSINESS.

YOU NEVER KNOW WE ARE DOING A FAVOR WILL LEAD.

>> I HAD BOUGHT A PIECE OF LAND IN NORWICH AND DECIDED TO BUILD A HOUSE THERE, BUT A FRIEND OF MINE WOULD NOT COME UNLESS I MADE HIM A WARM HAT, SO ONE DAY I WAS FLIPPING THROUGH A MAGAZINE AND I MADE A GREAT PICTURE OF A HAT, AND I DECIDED I COULD FOOL AROUND ENOUGH, A TERRIBLE SEAMSTRESS BUT I THOUGHT I COULD MAKE IT WORK.

AND I MADE HIM A HAT, AND THE HAT TURNED OUT TO BE A WONDERFUL HAT.

THIS IS THE HAT.

BIG SACK.

IT'S SEVERAL SIZES, DEPENDS ON HOW WE SHOW IT, AND YOU PUT THE HAT ON TO KEEP YOUR EARS WARM.

HE DID NOT WEAR IT LIKE THIS.

I WILL SHOW YOU HOW HE WORE IT.

THIS IS A BERET, AND YOU CAN WEAR IT LIKE A TURBIN, LIKE A BEANIE.

AND THE FINAL WAY, WHICH IS THE WAY THAT HE MADE IT, WAS LIKE A WATCH CAP.

AND I STARTED MAKING THE HAT BECAUSE PEOPLE WHO SAW ROY WEAR THE HAT WANTED ONE, SO PRETTY SOON I THOUGHT I AM NOT MAKING ANY MONEY.

I NEED A WAY TO MAKE MONEY SO SOMEBODY TOLD ME ABOUT CRAFT SHOWS, WHICH I HAD NO IDEA WAS A WAY TO MAKE A LIVING, AND ENDED UP GOING TO BURKE MOUNTAIN, AND I PILED THE KIDS IN THE CAR AND PILED A BARREL IN THE CAR THAT THIS FRIEND WHO BUILT MY HOUSE MADE ME A BARREL.

WE MADE $97, AND I THOUGHT I STRUCK IT RICH.

THE HAT WAS A MEAGER OFFERING AT A SHOW WHERE PEOPLE HAD THIS BIG BOOTH FILLED WITH THINGS THAT THEY MADE.

SO I HAD TO COME UP WITH OTHER THINGS TO MAKE, AND THAT'S WHEN I CAME UP WITH THE IDEA OF LOOSE FITTING, DRAPEABLE CLOTHING.

THAT'S HOW WE BEGAN THE VICTORY, THE ETC.

PART IS ALL THE CLOTHING.

I FOUND PATTY, AND PATTY STARTED LINING THE COATS FOR ME AND HELPING ME TO MAKE THE CLOTHING.

SHE HAD BEEN CLEANING HOUSES BEFORE THAT, AND A FRIEND OF MINE KNEW HER AND SAID, I KNOW SOMEBODY WHO SEWS LOTS OF YOU.

AND THAT'S HOW IT STARTED, HIT AND MISS.

DIDN'T KNOW WHAT TO DO.

SCARED TO DEATH, AND THE CRAFT SHOWS WERE MY ONLY MEANS OF EARNING MONEY, AND PRETTY SOON AT $97, IT BECAME $1500, AND THEN THAT BECAME $2,500, AND IT JUST GREW.

WHEN I STARTED THE FIRST QUESTION PEOPLE ASKED WAS WHERE IS YOUR BUSINESS PLAN, AND I HAVE TO TELL YOU THE IDEA OF WRITING A BUSINESS PLAN WAS SO OFFENSIVE TO ME, NOT EVEN FOREIGN OR IMPOSSIBLE, OFFENSIVE THAT I WOULD BECOME SO CORPORATE THAT I NEEDED TO HAVE A BUSINESS PLAN THAT I REFUSED TO DO IT.

SO I RAN WITH JUST MY BRAIN, FREELANCING ALL THE TIME, AND HAVING NO BUSINESS PLAN OR GOAL, MISSION STATEMENT, THE WORD MISSION STATEMENT STUCK IN MY HEAD LIKE WHAT DO YOU MEAN MISSION STATEMENT?

WHY DO YOU NEED A MISSION STATEMENT?

I COULD NEVER FIGURE THAT OUT.

TIMES HAVE CHANGED BUT AT THE BEGINNING, THE STATEMENT, WRITING A PLAN WAS JUST IMPOSSIBLE FOR ME TO DO.

AND I FOUND A BANKER WHO CONVINCED ME A BUSINESS PLAN DID NOT HAVE TO BE A SERIOUS PIECE OF WORK.

IT HAD TO BE YOUR STORY, SO I WROTE THE PLAN, AND IT IS STILL WRITTEN THIS WAY TODAY, AND AS I GET BIGGER IT MAY NOT WORK BUT IT'S A STORY OF HOW I BEGAN, WHO I SELL TO, AND HOW I FEEL AND WHY I THINK THAT I HAVE A MARK, AND HOW I COMPETE WITH THE OTHER PEOPLE IN MY MARK, AND IT FITS ME JUST LIKE MY CASUAL STYLE OF RUNNING A BUSINESS.

IT'S VERY LOOSE.

SO YOU ARE RUNNING ON YOUR INSTINCTS.

I STILL RUN THE BUSINESS THAT WAY.

EVEN STARTING A STORE WAS A STRUGGLE WITH MY ACCOUNTANT SAYING YOU CANNOT HAVE A STORE WHERE YOU SEW AND SELL.

IT WAS MY INSTINCT, IT WAS THE WAY THAT I WANTED IT TO WORK, AND IT HAS PROVEN A PERFECT DECISION FOR HOW TO RUN A STORE IN A PLAIN RETAIL STORE I WOULD HAVE DIED.

SO MY WHOLE BUSINESS HAS ALWAYS BEEN, INSTINCTIVELY RUN.

AND NO MATTER HOW BIG IT GETS, I THINK THAT THE MAIN TRUST LEVEL WILL COME WHETHER I FEEL GOOD ABOUT A DECISION RATHER THAN WHETHER SOMEONE TELLS ME IT'S THE PROPER DECISION.

ONE OF THE THINGS I REALIZED IS THAT BUSINESS WOMEN RUN BUSINESSES DIFFERENTLY THAN MEN.

WE RUN THEM BY INSTINCT, OR I SAY WE, THAT'S A BIG GENERALIZATION, IN MY EXPERIENCE WOMEN RUN BUSINESSES MORE INSTINCTIVELY THAN MEN, AND ONE OVER IN MY MIND AT THE BEGINNING WAS THAT WOMEN INSTINCTIVE DECISIONS IN BUSINESS I WOMEN WERE AS VALID AS OTHER KINDS OF DECISIONS, AND MY BUSINESS WAS COMPLETELY INSTINCTIVE.

I AM DEFINITELY A SURVIVOR.

THIS HAS NOT BEEN EASY BUT ALSO IT'S NOT BEEN SO HARD.

I DON'T KNOW ANY OTHER WAY TO MAKE IT.

I HAVE AN ENORMOUS AMOUNT OF ENERGY, AND THAT MAKES EVERYTHING WORK.

IT ALSO IS THE THING THAT GETS INTO EVERYONE'S WAY, YOU CANNOT GET RID OF ME, I HAVE SELLING ENERGY AND PRODUCTION ENERGY, AND I WANT THIS TO WORK, AND I THINK MY ENTHUSIASM FOR WHAT I DO AND MY EXCITEMENT TO THIS DAY, THAT PEOPLE LOVE WHAT WE MAKE REALLY MAKES IT WORK.

>> WE HAVE HEARD ABOUT PLANNING FROM ALL OF OUR ENTREPRENEURS.

WHAT'S IT LIKE TO WRITE A BUSINESS PLAN?

>> LORI AND PETER OF SMITH AND POST ARE IN THE START-UP PHASE OF THEIR ADVENTURE AND HAVE COMPLETED A COMPREHENSIVE BUSINESS PLAN.

IT WILL BE AN IMPORTANT DOCUMENT FOR THEM WHEN THEY BEGIN TO LOOK FOR FUNDING.

BUT THEY ALSO PLAN TO USE IT IN ANOTHER WAY.

ONE WHICH MANY ENTREPRENEURS LOSE SIGHT OF.

>> OUR PLAN IS A WORKING DOCUMENT.

I VIEW IT AS A ROAD MAP, AND MY PERCEPTION OF A PLAN IS THAT IT IS ONLY COMPLETE THE MOMENT THAT IT IS WRITTEN, AND IT'S FOREVER CHANGING FROM THAT POINT ON.

IT'S OUR -- IT'S OUR SOUNDING BOARD.

IT'S OUR ROAD MAP.

IT'S OUR GUIDE TO LET US KNOW HOW WE ARE PROGRESSING COMPARED TO WHAT OUR EXPECTATIONS WERE.

>> YEAH, WE CHANGED IT SHOULD THE L SHAPED TANK WE DON'T HAVE.

>> WRITING A PLAN WAS AGONIZING.

IT WAS A LONG, TEDIOUS PROCESS BECAUSE OF THE DEPTH OF RESEARCH AND INFORMATION GATHERING THAT WE NEEDED TO GO THROUGH TO GET A COMPREHENSIVE PLAN.

IT'S JUST ANOTHER EXAMPLE OF HAVING TO TAKE ONE STEP, YOU KNOW, AND GETTING INVOLVED IN IT, AND BEING CARRIED ALONG IN THE PROCESS.

ALWAYS THE NEXT STEP IN FRONT OF YOU.

>> I THINK IT'S IMPORTANT TO TALK TO A NUMBER OF PEOPLE ABOUT YOUR PLAN, PARTICULARLY, IN THE BANKING COMMUNITY.

>> DO YOU SEE THAT DECREASING.

>> THE PLAN HAS THAT 100,000 PAID DOWN BY THE END OF THE SECON YEAR.

IT'S AN OPPORTUNITY TO GET VALID FEEDBACK, AND IF A BANKER DOES NOT LIKE YOUR PLAN HE MAY SEE SOMETHING THAT NOBODY HAS SEEN AND MAYBE I HAVEN'T SEEN, AND IT GIVES ME AN OPPORTUNITY TO VALIDATE MY ASSUMPTIONS OR CONFIRM THE THINGS I HAVE MISSED.

>> A LITTLE NERVOUS?

>> WELL, WE WILL GET THERE.

>> I SEE US AT THE MIRACLE STAGE OF A PROJECT DEVELOPMENT.

IF SEPTEMBER COMES AND WE HAVE OUR PRODUCT PACKAGED IT WILL BE A MIRACLE.

THERE ARE DOZENS AND DOZENS AND DOZENS OF LITTLE STEPS WE NEED TO TAKE.

ALL THAT HAVE TO GO LIKE CLOCK WORK TO GET US WHERE WE WANT TO BE ON-TIME.

AND THE PRIEST BUSINESS I HAD BEEN INVOLVED IN, THE SCHOOL I HELPED TO ESTABLISH, I HAVE SEEN GO THROUGH THIS PROCESS WHERE THE BREATHING PROCESS IS A MIRACLE.

PEOPLE LOOK AT IT AND GO, IT CANNOT BE DONE, AND IT HAPPENS, AND THESE FORCES COME TOGETHER AND UNEXPECTED, AMAZING THINGS CAN HAPPEN.

THIS PROJECT HAS BEEN A BLAST.

IT HAS BEEN A LOT OF FUN.

IT HAS BEEN ANXIETY PROVOKING, AN EMOTIONAL ROLLER-COASTER.

DAYS I AM REALLY EXCITED ABOUT THE PLAN, FEEL LIKE WE HAVE A GREAT PRODUCT AND REALLY ARE ON TARGET AND WE KNOW WHAT WE ARE DOING, AND THEN SOME DETAIL WILL CHANGE AND WE WILL GET A PIECE OF BAD INFORMATION OR SOMETHING WON'T GO THE WAY WE EXPECTED AND YOU ARE IN THE DOLDRUMS, WHY ARE WE DOING THIS?

THIS IS RIDICULOUS.

>> ANY ENTREPRENEUR WILL TELL YOU THE SAME THING, SOME DAYS YOU DOUBT THE WISDOM OF CHOOSING TO RUN YOUR BUSINESS.

BEFORE WE GO WE HAVE ONE MORE ENTREPRENEUR TO HEAR FROM.

ONE WHO KNOWS IT TAKES A LOT MORE THAN ENTHUSIASM TO LAUNCH A SUCCESSFUL VENTURE.

AND MATTHEW, IS A CLASSIC STORY.

HE TOOK SOMEONE ELSE'S PROBLEM AND TURNED IT INTO A THRIVING BUSINESS.

>> I'VE BEEN ON THE BOARD OF THE VERMONT PUBLIC RESEARCH GROUP FOR YEARS AND WAS AWARE OF THE GROWING SOLID WASTE PROBLEM.

SO I MET A PROFESSOR AT UVM, NOW EMERITUS, AND HE SAID WELL, YOU KNOW, THERE ARE A LOT OF INDUSTRIAL WASTE PRODUCTS IN VERMONT THAT WOULD BE TERRIFIC.

FOR FERTILIZER OR AGRICULTURAL USE.

WHY DON'T YOU TALK TO THE VERMONT COMPANY IN GEORGIA.

SO I DID.

IT TURNED OUT THAT THEY HAD A VERY SUBSTANTIAL PROBLEM WITH DISPOSING OF THE SLUDGE, WHICH IS THE TAIL END OF WHEY PROCESSING.

THEY WERE SPREADING 50,000 POUNDS A DAY OF SOMETHING THAT LOOKED LIKE BUTTERSCOTCH PUDDING.

IT WAS GREAT 49ERS -- IT WAS GRT FERTILIZER BUT IT WAS 90% MOISTURE.

WE SAID IF YOU CAN DRY IT, WE WILL BUY IT, AND MARKET IT AS AN ORGANIC FERTILIZER, SO TO MAKE A LONG STORY SHORT, AFTER 18 MONTHS OF ASSOCIATION, WE SIGNED AN AGREEMENT, AND THEY PUT IN HALF A MILLION DOLLARS WORTH OF EQUIPMENT TO, IN FACT, TURN THAT INTO A DRY GRANULAR MATERIAL.

AND THAT WAS THE BASIS UNDER WHICH WE GOT STARTED.

SIMULTANEOUSLY WITH DISCUSSING WITH THEM PUTTING IN A DRIER, WE ALSO WANTED TO BE SURE THAT THE MARKET THAT WE THOUGHT EXISTED FOR ORGANIC FERTILIZER REALLY DID.

WE REASONED THAT IF THERE WAS A MARKET FOR ORGANIC FERTILIZER, A PRODUCT MADE IN VERMONT REALLY WOULD HAVE THE SAME EDGE THAT BEN AND JERRY'S ICE CREAM HAS IN THE ICE CREAM MARKET.

SO WE WENT TO THE ERNA TRADE SHOW, WHICH IS THE LARGE REGIONAL LAWN AND GARDEN SHOW IN NEW YORK STATE, AND IT WAS CLEAR THAT THE DEMAND FOR ORGANIC FERTILIZER WAS GROWING, THAT THERE REALLY WAS A HOLE IN THE MARKET, ESPECIALLY IN SMALLER SIZES, AS OPPOSED TO 50-POUND BAGS, AND WHAT WE FOUND ALSO QUICKLY WAS IN SOME WAYS IT'S CHEAPER TO GO TO MARKET THAN TO PAY SOMEONE TO DO THE MARKET RESEARCH TO FIND OUT HOW WELL YOU WILL DO.

THE SMALL COMPANY, YOU CANNOT AFFORD TO PRODUCE A PRODUCT AND SEND IT OUT THERE FOR A YEAR AND SEE IF IT WORKS.

YOU WILL RUN OUT OF CASH BEFORE YOU GET ANYWHERE.

SO WHAT WE DID WAS TO TAKE THE ARTWORK.

WE MADE A COLORED XEROX OF THE WORK, AND WE MADE A BAG, AND PHOTOGRAPHED THE BAG, AND AGAINST AN OUTDOOR VERMONT SCENE, AND THAT WAS WHAT WE TOOK AROUND, AND IT LOOKED AS THOUGH THERE WAS A REAL PRODUCT THERE.

WE WERE ABLE TO CREATE A DUMMY, IF YOU WILL, OF THE PRODUCT, AND THAT GOT BUYERS, AND SO FORTH, TO TAKE A LOOK AT IT AND SAY, LOOKS PRETTY GOOD TO ME.

OKAY.

YEAH, I WILL ORDER SOME.

ONE OF THE DIFFICULT THINGS IS MAKING PROJECTIONS FOR SMALL COMPANIES.

ALL THE BUSINESS PLANS IN THE WORLD REALLY ARE NOT WORTH THE PAPER THEY ARE PRINTED ON BECAUSE NO ONE KNOWS WHAT NEXT YEAR'S SALES WILL BE.

I SUPPOSE SEARS ROEBUCK MAYBE CAN TELL BUT A SMALL COMPANY, WE KNEW FOR FOR EXAMPLE THAT THE LAWN AND GARDEN MARKET FOR ORGANIC FERTILIZER IS FRAGMENTED.

THERE ARE NO LARGE COMPANIES.

IT'S NOT LIKE DOG FOOD.

WHERE KENNEL RATION CONTROLS A MAJOR PIECE OF IT.

SO IT WAS NOT THAT WE HAD TO PUSH ANYBODY ELSE OFF THE SHELF.

BUT THE QUESTION IS, WILL YOU GET HALF OF 1% OF THE MARKET?

1%, 2%?

THERE IS NO WAY TO MAKE REALLY GOOD PROJECTIONS.

FROM THE TIME THAT I HAD THE IDEA, THAT I SAW THAT THE DRIED WHEY BY-PRODUCT WAS A TERRIFIC FERTILIZER UNTIL THE TIME THE FIRST BAG WENT OUT THE DOOR, IT WAS MORE THAN TWO YEARS.

TO TURN AN IDEA INTO REALITY YOU HAVE TO BE ABLE TO OVERCOME YOUR INITIAL ENTHUSIASM.

OKAY.

YOU HAVE TO HAVE THAT ENTHUSIASM, BUT THAT ENTHUSIASM CAN GET YOU IN BIG TROUBLE.

BECAUSE SOMETIMES WHEN TUR ENTHUSIASTIC ABOUT SOMETHING YOU DON'T ASK YOURSELF THE HARD QUESTIONS.

IN SOME WAYS FOR A NEW VENTURE, I THINK YOUR BANK IS YOUR BEST FRIEND BECAUSE THEY ARE THE ONLY ONES WHO WILL ASK YOU THE DUFF QUESTIONS.

YOUR FRIENDS WILL SAY WHAT A GREAT IDEA, YOU KNOW.

AREN'T YOU WONDERFUL.

THE BANKER WILL SAY, YOU ARE WONDERFUL BUT WHAT ABOUT THIS.

IF YOU CAN SATISFY THE BANK'S CRITICAL OBJECTIONS, PROBABLY YOU HAVE THOUGHT THROUGH MOST OF THE PROBLEMS.

>> THINKING IT THROUGH.

IN THE WAKE OF THE INITIAL ENTHUSIASM, MOST ENTREPRENEURS EXPERIENCE WHEN THEY FIRST HAVE THEIR IDEA, THIS PROCESS IS SOMETIMES THE MOST DIFFICULT THING TO DO.

WE TEND TO THINK OF ENTREPRENEURS AS FREE-WHEELING, RISK-TAKING DAREDEVILS, BUT THE MOST SUCCESSFUL START-UPS I HAVE SEEN HAVE COME FROM PEOPLE WHO TEMPER THEIR ENTHUSIASM WITH A HEALTHY DOSE OF DISCIPLINE AND PLANNING.

SOME OF THE FIRST COMES THAT COME UP CONCERN MONEY, HOW MUCH DO I NEED AND WHERE WILL I GET IT?

NEXT WE WILL EXPLORE DIFFERENT WAYS THAT ENTREPRENEURS HAVE FINANCED THEIR START-UP AND WILL ALSO TAKE A LOOK AT FINANCING FROM THE OTHER SIDE OF THE TABLE.

HOW DO FINANCING SOURCES EVALUATE A NEW BUSINESS WHEN IT'S NO MORE THAN AN IDEA ON PAPER?

THEY ARE BEING ASKED TO JUMP IN AND TAKE A RISK, TOO.

THAT'S VENTURING.

I'M KAROL DILL ONTO.

>> I'M KAREN DILLON.SEE YOU NEX.

>> THIS PROGRAM WAS MADE POSSIBLE BY A GRANT FROM THE UNITED STATES DEPARTMENT OF AGRICULTURE, RURAL DEVELOPMENT.

FOR MORE CLASSIC PROGRAMS, VISIT VERMONTPBS.ORG/FROMTHEARCHIVES.