>> PRODUCTION FUNDING FOR VENTURING HAS BEEN PROVIDED BY THE FARMERS HOME ADMINISTRATION, ASSISTING EMERGING RURAL BUSINESSES.

>> I THINK IT ALL DEPENDS ON WHAT YOU WANT TO DO WITH YOUR LIFE, WHETHER YOU WANT TO FARM OR MANUFACTURE.

>> I DON'T EVER WANT TO BE LAST.

>> THE WAY WE RUN THE BUSINESS IS A LOT LIKE CONNECTING DOTS.

>> THEY ARE GOOD FOR YOU.

>> IN THE SPRING WE HAD COMING MONEY IN SO FAST, SO IT JUST SEEMED LIKE WE ARE GOING TO BE RICH.

>> WELCOME TO VENTURING AM I'M CAROL DILLON.

THROUGHOUT THE LAST TEN EPISODES OF VENTURING WE EXPLAINED EVERY ASPECT OF ENTREPRENEURSHIP.

FROM START-UP TO FINANCING.

FROM MARKETING TO MANAGING THE PEOPLE YOU BRING ONBOARD TO SHARE YOUR VISION.

AND NO MATTER WHAT VENTURE YOU CHOOSE, SOONER OR LATER YOU WILL NEED THESE AND MANY MORE SKILLS.

TONIGHT WE ARE GOING TO LOOK AT A GROUP OF PEOPLE WHO HAVE TAKEN THEIR SKILLS AND MADE THE ENTREPRENEURIAL LEAP IN A SPECIFIC FIELD, AGRICULTURE.

THEY ARE LOOKING BEYOND A SMALL FAMILY FARM TO THE BIGGER PICTURE, THE MULTI-BILLION DOLLAR FOOD INDUSTRY.

THEY ARE OPERATING IN AN ARENA THAT HAS BEEN INCREASINGLY DOMINATED BY GIANT COMPANIES WHO TURN OUT MASSIVE QUANTITIES OF GOODS.

THE COMPETITION IS FIERCE, AND REQUIRES MORE THAN JUST A KNOWLEDGE OF FARMING.

THE OWNERS OF BUTTERWORKS FARM AND JACK LASER REALIZE THAT THE SMALL FAMILY FARM IS ON THE WAY OUT.

THE TERMS FOR WORKING THE LAND ARE MINIMAL TO BEGIN WITH ARE CONSTANTLY DIMINISHING, AND IN ORDER TO SURVIVE, LIVING THE LIFESTYLE THEY CHOSE, THEY DID NOT SELL THEIR MILK TO A MIDDLE MASSAGE.

THEY KEPT IT ON THE FARM AND USED IT TO CREATE THEIR OWN LINE OF PRODUCTS.

THEY SAW A NICHE AND FOUND IT IN YOGURT.

>> BUTTERWORKS FARM TAKE PLACE ON OUR HIM TOP HERE.

WE HAVE 100 ACRES OF OPEN LAND, 75 IN CROPS AND 25 IN PASTURE.

YOU COULD CALL BUTTERWORKS FARM A VERTICALLY INTEGRATED OUTFIT SINCE WE ARE DOING ALL PHASES OF THE PROCESS FROM GROWING WHAT OUR COWS EAT RIGHT HERE TO FEEDING THEM TO TAKING THEIR MILK AND TURNING THE MILK INTO A PRODUCT, AND DELIVER IT GO TO THE STORES, SO AS WE SAY ON THE YOGURT CONTAINERS, FROM FROM THE SOIL TO THE SHELF.

IN 1979, WHEN WE HAD MORE MILK THAN WE NEEDED TO FEED THE CALVES, WE STARTED MAKING DAIRY PRODUCTS.

ALL DIFFERENT KINDS OF DAIRY PRODUCTS, AND ALL OF A SUDDEN I FOUND MYSELF BEHIND THE STEERING WHEEL OF A CAR KNOCKING ON DOORS IN THREE TOWNS TRYING TO GET RID OF THE STUFF, AND I GOT A FEW SUCCESSES UNDER MY BELT, AND PEOPLE SEEMED TO WANT IT, AND WE HAD 20 TO 25 FAMILIES, AND WE HAD MILK AND JARS AND WE HAD BUTTER AND YOGURT AND COTTAGE CHEESE AND A BIT OF HARD CHEESE.

>> WE DECIDED TO MAKE YOGURT BECAUSE IT WAS A STRAIGHTFORWARD PRODUCT, AND IT HAS NO WASTE INVOLVED, SUCH AS CHEESE, WHERE YOU HAVE ONLY 10% OF THE MILK ACTUALLY MAKING THE PRODUCT AND THE OTHER 90% GOES OFF IN WHEY AND WATER.

EVERY QUART OF MILK COULD MAKE A QUART OF YOGURT, SO YOU ARE INCREASING THE VALUE OF THE MILK TO A POINT WHERE YOU HAVE TO MILK LESS COWS FOR THE SAME RETURN OFF OF THEIR FARM.

>> I THINK A VALUE ADDED PRODUCT IS SOMETHING THAT IT'S YOU TAKE A RAW MATERIAL AND YOU INJECT LABOR AND PROBABLY SOME CAPITAL INTO IT, ALSO, AND YOU COME OUT WITH SOMETHING THAT'S TRIPLE OR QUADRUPLED IN VALUE.

>> WE DECIDED TO MAKE A VALUE ADDED PRODUCT SO WE WILL HAVE PROFITS THAT CAN BE PUT BACK INTO THE LAND.

WE FIND MOST FARMERS IN THIS COUNTRY ARE FARMING THEIR LAND AND GETTING A LOW RETURN SO THICK NOT AFFORD TO PUT MONEY BACK INTO THE FERTILITY OF THE LAND THAT'S PRODUCING THE GRASS THAT'S FEEDING THE COWS, AND DIRECTLY PRODUCING THEIR MILK.

I AM THE CROP MAN, I SEEM TO GET THE MOST THERE ARE ARE GOING AROUND ON A BIG TRACTOR AND RUNNING A COMBINE, AND I SPEND QUITE A BIT OF TIME IN THE PROCESSING ROOM.

WHEN WE FIRST STARTED WE WERE A BIT TECHNO PHOBIC.

WE SEEMED TO PUT THE EMPHASIS ON GETTING HIGH QUALITY, GOOD FARM MACHINERY AND FORGOT THE YOGURT ROOM.

WE CARRIED THE MILK UPSTAIRS IN CANS.

TONS OF MILK.

POURED THE MILK INTO THE YOGURT CONTAINERS FROM BUCKETS, AND IN THE LAST COUPLE OF YEARS WE MODERNIZED A BIT.

ONCE WE REALIZED THE STORES SEEMED TO BE WHERE IT WAS AT FOR SELLING THE DAIRY PRODUCT, YOU TOOK IT THERE AND GOT PAID WITHIN TEN DAYS.

I SPENT MORE TIME BEHIND THE STEERING WHEEL AND WENT INSTEAD OF DOOR-TO-DOOR LIKE I USED TO, I WENT STORE-TO-STORE, AND WITHIN A YEAR WE HAD 20 TO 30 ACCOUNTS, AND GOT INTO A FEW GRAND UNION STORES.

WE ARE NOT REALLY IN THIS BUSINESS JUST FOR THE SAKE OF GROWTH AT ALL.

WE KIND OF WANT TO KEEP IT AT A MANAGEABLE LEVEL WHERE WE CAN PRODUCE ENOUGH FEED ON THIS FARM TO FEED THE NUMBER OF ANIMALS THAT WE HAVE AND MAKE ENOUGH MILK TO SUPPLY A MARKET THAT WE CAN HANDLE.

>> I HAVE ALWAYS BEEN MORE DETERMINED TO KEEP THE FARM A SMALL ENTERPRISE THAN JACK HAS.

I FEEL LIKE YOU CAN DO A BETTER JOB WITH FEWER COWS, TAKING BETTER CARE OF EACH INDIVIDUAL COW.

IT'S NICE WHEN WE CAN BE PART OR FAMILIAR WITH EVERY ASPECT OF THE BUSINESS.

IF ONE OF US IS NOT THERE THE OTHER CAN FILL IN.

AND IT'S HARD TO DO THAT IF YOU GET MUCH BIGGER THAN WHAT WE ARE RIGHT NOW.

>> WHEN YOU START TALKING ABOUT MASSIVE DISTRIBUTION COSTS AND BIG ADVERTISING BUDGETS, PROMOTION, I DON'T KNOW IF YOU COME OUT ANY BETTER.

I THINK IT ALL DEPENDS ON WHAT YOU WANT TO DO WITH YOUR LIFE, WHETHER YOU WANT TO FARM OR WHETHER YOU WANT TO RUN A FACTORY.

>> JACK TALKS ABOUT MANAGED GROWTH.

IT'S IMPORTANT TO GROW YOUR BUSINESS BASED ON YOUR OWN GOALS AND LIFESTYLE CHOICES, AND HE TALKED ABOUT VALUE ADDED.

MILK IS JUST MILK.

BUT THEY HAVE CREATED A NEW, MORE SPECIALIZED MARKET BY TURNING IT INTO YOGURT.

FOOD PRODUCTS START OUT AS COMMODITIES.

THE YOGURT WAS MILK FIRST, FROM THE CONSUMER'S POINT OF VIEW, THERE IS VERY LITTLE TO DISTINGUISH ONE QUART FROM ANOTHER.

AND THE CHALLENGE FOR THE ENTREPRENEUR IS TO GET THEM TO CHOOSE YOUR PRODUCT.

DAVE MARVIN OF BUTTERNUT FARMS PRODUCES A COMMODITY PRODUCT, MAPLE SYRUP, LET'S SEE HOW DAVE HAS BUILT A BUSINESS ON HIS ABILITY TO CREATE A DEFINITE AND APPEALING PRODUCT DISTINCTION.

>> WE HAVE A COLLECTION OF THINGS.

OUR PRIMARY BUSINESS IS THE WHOLESALE PACKAGING, THE SALES, AND DISTRIBUTION OF THE MAPLE SYRUP.

WE SELL EQUIPMENT TO OTHER MAPLE SYRUP PRODUCERS, AND WE HAVE RETAIL STORES, AND WE HAVE OUR OWN FARM OPERATIONS WHERE WE PRODUCE TIMBER PRODUCTS, MAPLE SYRUP AND CHRISTMAS TREES.

I AM ONE OF THOSE LUCKY PEOPLE.

I HAVE ALWAYS KNOWN WHAT I WANTED TO DO.

I WANTED TO WORK OUTSIDE AND TO WORK FOR MYSELF AND I WANTED TO WORK IN AGRICULTURE, I KNEW I DID NOT WANT TO BE INVOLVED WITH COWS.

AND FOR A LONG TIME, SINCE I WAS EIGHT OR NINE, I KNEW I WANTED TO BE A SUGAR-MAKER.

MY FATHER WAS INVOLVED IN MAPLE RESEARCH AT THE UNIVERSITY OF VERMONT, SO I LEARNED FROM HIM ABOUT NEW TECHNOLOGY IN THE INDUSTRY, AND PLANNED SINCE I WAS IN HIGH SCHOOL TO GO INTO THE MAPLE BUSINESS.

>> EVER SINCE I BEGAN PRODUCING MAPLE SYRUP I FELT THAT WE WERE A MARKET DRIVEN COMPANY, AND UNLIKE SOME AGRICULTURAL PRODUCTS, MAPLE SYRUP ISN'T JUST PICKED UP AT THE FARM AND SOLD FOR YOU.

WE HAVE TO FIND OUR OWN MARKETS AND WORK WITH THOSE MARKETS, AND IT'S IMPORTANT TO INTRODUCE AND PRESENT WHAT THE CUSTOMER WANTS, NOT WHAT WE WANT, AND IT'S IMPORTANT IF THE CUSTOMER WANTS SYRUP IN A ONE OUNCE BOTTLE OR 55-GALLON DRUM THAT, WE PROVIDE IT AS THEY WANT IT, AND SUPPLYING OUR CUSTOMERS NEEDS GIVES US THE OPPORTUNITY TO BE AS PROFITABLE AS WE CAN BE.

THE PROBLEM WITH THE COMMODITY PRODUCT IS THAT SINCE IT DOES NOT HAVE A LOT OF DIFFERENTIATION FROM A BRANDED OR SPECIALTY PRODUCT, THE CUSTOMER FOR THAT PRODUCT IS LOOKING FOR PRICE.

NOT SOME OF THE THINGS THAT WE THINK THAT WE ARE SPECIAL ABOUT, WHICH ARE FINE C QUALITY AND GOD SERVICE, AND A SPECIAL PRESENTATION.

>> WE HAVE DEVELOPED AN ARRAY OF PACKAGING THAT'S NOT AVAILABLE FROM OTHER PEOPLE.

SPECIALTY GLASS PACKAGING.

WOODEN PRODUCTS THAT ARE MADE HERE IN VERMONT THAT ARE ADDING VALUE TO THE SYRUP PRODUCT AND MAKE IT A PRESENTATION OUT OF A FOOD PRODUCT.

SO IT'S QUALITY AND SERVICE, BUT EVERYONE USES THOSE BUZZ WORDS.

IT'S ALSO PRESENTATION, I THINK.

IF THE CUSTOMER WON'T TRY THE PRODUCT THEY WON'T KNOW IT'S GREAT QUALITY SO WE HAVE TO ENTICE THEM TO BUY IT AND WANT IT.

OVER THE LAST TWO YEARS, WE SPENT A LOT OF TIME AND RESOURCES GOING TO FOOD SHOWS.

THEY ARE NOT A LOT OF FUN FOR ME.

IT'S REALLY HARD WORK, FOUR DAYS OF STANDING ON CONCRETE AND REPEATING THE SAME THING TO PERSON AFTER PERSON THAT COMES BY.

AND HOPING THAT YOU WILL LAND A BIG ACCOUNT OR MAKE A BIG SALE.

WE'VE BEEN AT IT LONG ENOUGH THAT I SEE THE PRIMARY VALUE NOW IS HAVING AN OPPORTUNITY TO VISIT OUR EXISTING CUSTOMERS.

I RECOGNIZE WE ARE NOT GOING TO LAND A BIG ONE EVERY TIME WE GO TO A SHOW.

I DON'T HAVE WANT TO BE LAST, AND IT'S SAFER TO BE SECOND, AND MAYBE THAT'S HOW WE DO IT.

I LOOK AT WHAT OTHERS ARE DO, I HAVE LOOKED AT THE OLIVE OIL BUSINESS AND SPECIALTY FOODS INDUSTRY SHOWS AND SEE HOW PEOPLE ARE PACKAGING OTHER PRODUCTS AND WHAT WE CAN BRING BACK TO OUR BUSINESS.

>> TO TRY TO DIVERSIFY OUR BUSINESS LIKE ANY FARM BUSINESS HAS BEEN A GOAL.

AND IT'S VERY DIFFICULT BECAUSE THE KNOWLEDGE BASE I HAVE BUILT IS PRIMARILY RELATED TO THE MAPLE INDUSTRY.

IT'S DIFFICULT TO MOVE OUTSIDE OF THAT FOR ME.

WE DO ALSO DO TIMBER PRODUCTS AND CHRISTMAS TREES BUT THEY ARE ALLIED.

IN THE LAST YEAR OR TWO WE HAVE BEGUN TO ADD OTHER PRODUCTS TO OUR LINE, PRODUCTS NOT NECESSARILY MADE BY US, BUT THAT ARE ALLIED TO WHAT WE SELL AND AS AN EXAMPLE WE HAVE PACKAGED UNDER OUR OWN NAME A PANCAKE MIX THAT IS A NATURAL PRODUCT TO GO ALONG WITH THE MAPLE SYRUP.

IT'S AN EASY UPSELL.

THE REASON THAT WE ARE SUCCESSFUL IS BECAUSE WE ARE STILL HERE, AND THAT'S NOT MAGICAL.

IT'S JUST BY A LOT OF CONTINUOUS HARD WORK AND STAYING IN THERE.

IT'S NOT -- IT'S NOT AN OVERNIGHT SORT OF THING.

IT TAKES A LOT OF TIME.

>> MAYBE PEOPLE START A BUSINESS AROUND ISSUES OF TIME.

THEY WANT TO WORK THEIR OWN HOURS AND NOT 40 HOURS A WEEK FOR SOMEBODY ELSE.

OF COURSE, THERE ARE SOME DAYS WHEN THEIR 40 W 40 VERSUS YOUR Y LOOK APPEALING.

A LOT OF PEOPLE HAVE A ROMANTICIZED VISION OF WHAT IT'S LIKE MAKING A LIVING OFF THE LAND IN A COUNTRY SETTING.

THOSE TWO ENTREPRENEURS, SUSAN AND MICHELLE OF VERMONT COUNTRY LAMB, ILLUSTRATE HOW DEMANDING IT IS TO MAKE YOUR LIVING PRODUCING FOOD, AND ADD TO THAT THE RIGORS OF GROWING A BUSINESS AND YOU HAVE GOT MORE THAN A FULL-TIME JOB.

>> I THINK THAT BECAUSE PEOPLE HAVE SUCH A PROBLEM MAKING THE CONNECTION BETWEEN AGRICULTURE AND A BUSINESS, THAT THERE ARE TREMENDOUS NUMBER OF VERY PROFITABLE BUSINESS OPPORTUNITIES BEING OVERLOOK.

>> VERMONT COUNTRY LAMB SAW A BUSINESS OPPORTUNITY WHERE OUR PRODUCT HAS NO HORMONES, AND BECAUSE WE VIEWED THIS AS A CULTURAL ADVENTURE, AS A BUSINESS, WE WERE ABLE TO SUCCEED AT IT.

AFTER WE HAD DONE THE INITIAL RESEARCH REQUIRED, OR WE FELT WAS REQUIRED, TO REALLY MAKE VERMONT COUNTRY LAMB A BUSINESS, WHICH WE FELT VERY STRONGLY THAT IT HAD TO BE.

WE DETERMINED THAT WE HAD TO TAKE OUR LAMB PRODUCT, AND IT HAD TO BE SPECIAL.

IT COULD NOT BE JUST AN ORDINARY LAMB PRODUCT.

WE HAD TO ADD VALUE TO IT.

WE PRODUCED A PRODUCT GROWN WITH NO ANTIBIOTICS OR HORMONES IN THE ENTIRE LIFE OF THE LAMB.

WHEN WE STARTED OUT, WE STARTED TRYING TO SELL DIRECTLY TO ALL OF THE RETAILERS, WHETHER THEY WERE RESTAURANTS OR SUPERMARKETS.

WHAT WE FOUND WAS THAT THERE IS A SYSTEM, IF YOU ARE GOING TO BECOME LARGE AND SUCCESSFUL, THAT YOU HAVE TO PARTICIPATE IN.

AND THAT CONSISTS OF THIS, AND IF YOU TRY AND BYPASS THAT SYSTEM, YOU FIND A LOT OF DOORS WITH LARGE CHAINS ARE CLOSED TO YOU.

YOU LEARN BUSINESS IN A BUSINESS SCHOOL, BUT THERE IS THE UNDERLYING BUSINESS, AND WHAT WE ENCOUNTERED IS WHAT'S CALLED PLOTTING ALLOWANCES FOR FOOD PRODUCERS.

IN THE OLD DAYS THE MANUFACTURERS USED TO CONTROL THE MARKETPLACE, AND NOW IT'S THE RETAILERS THAT ARE CONTROLLING THEM SAYING LOOK, WE ONLY HAVE SO MANY SPACES AND WE ARE GOING TO GIVE THAT TO THE HIGHEST BIDDER, SO THE LARGEST COMPANIES, KRAFT, GENERAL MILLS, GENERAL FOODS, THEY ARE CONTROLLING WHAT CONSUMERS ARE EATING BECAUSE THEY CAN AFFORD TO PAY THOSE OUTRAGEOUS FEES.

THE LITTLE GUYS HAVE TO REALLY FIGHTING TO IN THERE.

>> THE WAY THAT WE RUN THE BUSINESS IS A LOT LIKE CONNECTING DOTS.

THERE IS DOTS OF THE PEOPLE WHO PRODUCE LAMB FOR US.

THERE ARE THE DOTS OF ALL OF THE MARKETS THAT WE HAVE TO PURCHASE THEM.

THERE ARE THE DOTS OF THE VARIOUS WAYS THAT WE NEED TO GET THE LAND HERE, THE SLAUGHTER FACILITY, OUR OFFICE, THE PACKAGING.

A LOT OF OUR BUSINESS IS CONNECTING THESE DOTS AND MAKING SURE THAT THE LINE, THE DISTANCE BETWEEN THE DOTS IS BEING DONE WITH THE SHORTEST LINE POSSIBLE AND NOT A ZIGZAG.

>> HI.

WOULD YOU LIKE TO TRY SOME NATURAL COUNTRY LAMB?

THIS IS A SPECIALTY MEAT PRODUCT THAT'S CARRIED BY THE GRAND UNION.

>> SOME PEOPLE HAVE PRECONCEIVED NOTIONS ABOUT THE TASTE OF LAMB, SO ONE OF THE GOALS OF WHAT I AM DOING WHEN I AM AT A TASTE DEMO OR WHATEVER, IS TO TRY TO GET THEM TO TASTE THE PRODUCT BEFORE THEY ALLOW THOSE PRECONCEIVED NOTIONS TO GET IN THE WAY.

WE PUT TOGETHER A POINT OF PURCHASE MATERIALS THAT REALLY MAKE THE DIFFERENCE SO WHEN THE CONSUMER IS COMING ALONG AND THEY LOOK DOWN AND SAY, LOOK AT THAT LAMB, AND LOOK, IT IS GROWN WITH NO ANTIBIOTICS OR HORMONES, AND THAT HAS BEEN ESSENTIAL TO THE SUCCESS OF OUR FRESH LAMB PROGRAM.

PEOPLE COME INTO AN AGRICULTURAL VENTURE WITH VISIONS OF SUNSETS AND PASTORAL SCENES AND THAT YOU GET TO STAND THERE AND WATCH THE SUN COME UP AND THE SUN GO DOWN.

THEY DON'T THINK ABOUT THE FACT THAT YOU ARE OUT THERE IN THE BLAZING HEAT AT 105 SITTING ON A TRACTOR THAT'S ANOTHER 20 DEGREES HOTTER THAT YOU HAVE TO BE OUT IN THE BARN IF IT'S 40 BELOW ZERO, AND THAT IT'S JUST A BUSINESS, AND THAT YOU HAVE TO UNDERSTAND ALL OF THE ELEMENTS OF THE AGRICULTURAL BUSINESS YOU ARE IN.

>> PASSION AND NURTURING ARE KEY ELEMENTS TO RUNNING ANY VENTURE.

TO CHOOSE THE LIFESTYLE REQUIRED OF THE AGRICULTURAL ENTREPRENEUR, TALKING ABOUT PASSION FOR YOUR IS AN UNDERSTATEMENT.

PARTICULARLY IN AN AGRICULTURAL VENTURE, NURTURING IS NEVER ENDING, AND BY THAT, I MEAN IN ADDITION TO CARING FOR THEMSELVES AND THE BUSINESS, THEY HAVE TO TEND TO THE NEEDS OF THEIR CROPS OR LIVESTOCK, AS WELL.

LET'S SEE WHAT SMITH AND POST ARE UP TO.

THEY ARE THE ENTREPRENEURS WHO HAVE BEEN GROWING THEIR SNACK FOOD BUSINESS WHILE OUR EITHER HAS BEEN IN PROGRESS.

THIS WEEK WE JOIN LORI AND CHARLIE, THE SALES MANAGER, AS THEY MAKE SALES CALLS TRYING TO ENTICE RETAIL BUSINESS OWNERS TO CARRY THEIR APPLE CHIPS.

>> WE ARE CURRENTLY SHIPPING ACCOUNTS AS FAR AS TEXAS.

THE OVERWHELMING RESPONSE TO THE PRODUCT IS ONE OF AMAZES -- IT IS ONE OF AMAZEMENT.

>> YOU HAVE GOT TO BE PEOPLE TO TASTE IT.

PEOPLE WOULD WALK BY THE TABLE AND KIND OF TURN THEIR NOSE UP AT AN APPLE CHIP, AND YOU TALK THEM INTO HAVING ONE, AND IT'S LIKE, ONCE THEY HAVE HAD ONE, THEY GO AND GET THE REST OF THEIR FAMILY AND THEY WERE JUST IN AWE OVER HOW GOOD OF A TASTE, AND THEY COULD NOT BELIEVE IT WAS AN APPLE.

>> YOU HAVE THE PRODUCT AND THE POINT OF PURCHASE.

>> ABSOLUTELY.

>> AND MY NORMAL DELIVERY DATE WILL BE ON FRIDAYS, AND THERE IS A FEW ACCOUNTS AROUND HERE, SO I WILL BE STOPPING IN HERE ON FRIDAYS IF YOU WANT.

>> WE HAVE A NICE DISPLAY THAT WE DID FOR THE BRING, WHICH IS A STACK OF PAINTED APPLE CRATES, THAT HAVE STENCILINGS ON THE SIDE WITH THE NAME, AND A NICE HEADER CARD, AND -- >> YOU HAVE IT AT ALL YOUR STORES?

>> WE WILL SET YOU UP WITH ANYTHING FROM A BASKET TO SINGLE CLIP STRIP TO A FULL-BLOWN DISPLAY IF YOU ARE WILLING TO DO THAT.

>> THEY ARE REALLY GOOD, AND THE REASON THAT I AM EXCITED ABOUT IT IS THAT WE ARE LOOKING FOR SOME NEW PRODUCTS.

>> HOW DID YOU RATE THIS ONE?

>> GOD ONLY KNOWS.

HOW ARE YOU TODAY?

>> GOOD.

>> I AM CHARLIE, I AM FROM SMITH AND POST CRISPY APPLE CHIPS, AND THIS IS A NEW PRODUCT THAT WE HAVE OUT.

AND ALL IT IS SLICED APPLES, AND THEY ARE FRIED.

AND THEY ARE EXCELLENT.

WE ARE FINDING THAT THEY ARE MOVING REALLY WELL IN VARIETY STORES, AND THAT TYPE OF THING AND WONDERING IF YOU ARE INTERESTED IN -- FIRST OF ALL, MAYBE SAMPLING ONE?

SEE WHAT YOU THINK OF THOSE?

>> THEY LOOK LIKE APPLES.

>> HOPEFULLY THEY TASTE LIKE THEM, TOO.

>> DELICIOUS.

>> YOU LIKE THAT.

>> YEAH, I DO.

>> THE NET COST ON THESE TO YOU IS 34 CENTS.

THE AVERAGE RETAIL IS 49 CENTS.

>> WHY DON'T WE START WITH THIS AND GIVE YOU A TOP PRIORITY HERE.

GET IT GOING.

>> OKAY, I LOVE IT.

THANKS.

>> THAT'S JUST A STRAIGHT CRISPY APPLE CHIP.

>> IT IS GOOD.

NICE FLAVOR.

I THINK YOU WILL DO VERY GOOD.

>> YEAH.

>> YOU HAVE GOT A LOT OF PEOPLE COMING FROM THE E.R.

AND DIFFERENT PLACES.

>> GOOD.

>> DO YOU DO A LOT OF LUNCHTIME BUSINESS?

>> YEAH.

>> WHAT IS THE PRICE?

>> YOUR COST ON THIS IS 34 CENTS A BAG.

THE AVERAGE RETAIL IS 49 CENTS.

THIS GIVES YOU A 30% MARKET.

CHARLIE WILL COME IN AND BE HERE AND CHECK THE STOCK AND MAKE SURE YOU ARE IN STOCK.

>> IT'S LIKE ANY OTHER VENDOR.

>> AS YOU ARE GROWING YOUR BUSINESS, YOU HAVE TO MEET CHALLENGE AFTER CHALLENGE, AND THEY HAVE MET THEIR FINANCING, PERSONNEL, AND PRODUCTION CHALLENGES.

NOW THEY FACE THE GREATEST CHALLENGE TO ANYONE ENTERING THE FOOD INDUSTRY.

CONVINCING RETAILERS AND DISTRIBUTORS TO CARRY THE PRODUCT.

AND THIS GROUP OF THE COOKS GARDEN HAVE TRANSLATED THEIR PASSION FOR GARDENING AND COOKING INTO AN SUSTAINED SEED CATALOG BUSINESS.

FOR THEM THE CHALLENGE IS GROWTH.

WHAT STARTED OUT AS A SOLUTION TO THE SEASONNITY OF THE BUSINESS HAS TURNED INTO A DILEMMA.

THEY ARE TRYING TO BALANCE THE DEMANDS OF MEETING THE NEEDS OF THE BUSINESS WHILE MAINTAINING THEIR PASSION FOR GARDENING.

>> IT'S A MAIL ORDER SEED BUSINESS WITH A SPECIALTY IN SALAD GREENS, BUT WE SELL ALL KINDS OF SEEDS FOR HOME GARDENERS.

WE GOT STARTED BECAUSE MY GRANDFATHER WAS A MARKET GARDENER, AND I TOOK UP MARKET GARDENING, AND WE THOUGHT THE WINTER BEING SO LONG WE SHOULD FIND A WAY TO MAKE MONEY IN THE WINTER, AND WE DEVELOPED A, AN EXTENSIVE SELECTION OF VEGETABLES THAT OTHERS DIDN'T HAVE SOURCES FOR THE SEED, SO WE THOUGHT THAT PERHAPS, IF WE SOLD IT TO OTHERS, IT WOULD GIVE US SOMETHING TO DO IN THE WINTER.

NOW IT HAS TAKEN OVER, AND WE DON'T HAVE THE FARM STAND OR MARKET GARDENS ANY MORE.

THE GARDENS ARE THERE BUT USED ENTIRELY FOR TESTING VEGETABLE VARIETIES OR TOOLS WE MIGHT WANT IN THE CATALOGS.

>> THE CHEF AND I ARE LUCKY TO BE LIVING IN THE COUNTRY AND RUN THIS BUSINESS FROM OUR HOUSE.

FROM OUR GARAGE.

CHEF IS THE GARDENER AND I AM THE COOK, OR AT LEAST WE THINK OF OURSELVES, AND I AM CONSTANTLY TRYING THE VEGETABLES IN THE KITCHEN AND IN THE GARDEN AND TASTING THEM AND REALLY SEEING IF THEY ARE WORDS CARRYING IN THE CATALOG.

>> OUR CATALOG IS LOW BUDGET IS THE WAY THAT IT IS CRITIQUED.

WE DON'T SEE TO SPEND A LOT OF MONEY ON THE CATALOGS, A LOT OF COMPANIES DO, IF YOU GO TO THE SEED COMPANY YOU WON'T FIND ANY GARDENS OR VEGETABLES BUT A WAREHOUSE AND THE CATALOG.

OUR CATALOG IS NOT MUCH TO LOOK AT AND OUR OFFICE IS NOT MUCH TO LOOK AT BUT WE HAVE GARDENS, AND WE PUT THE TIME INTO THE GARDENS, AND WHAT WE TRY TO DO IN THE CATALOG IS CONVINCE PEOPLE THAT'S WHERE THE ENERGY HAS GONE.

OUR CATALOG IS SEEDS AND SUPPLIES FOR THE NEW AMERICAN KITCHEN GARDEN, AND THAT'S IMPORTANT BECAUSE WE THINK THAT, WELL, WE KNOW THAT VEGETABLES ARE THE LOW RENT SIDE OF GARDENING, AND ORNAMENTALS ARE WHERE THE COMMITTED GARDENERS HAVE PUT THEIR TIME AND MONEY.

AND WE HAVE FOUND THAT THE INCREASING INTEREST IN GOOD COOKING IS REALLY WHERE A LOT OF THE NEW VEGETABLE GARDENING INTEREST IS COMING FROM.

AND SO, WE ARE VERY CLOSELY CONNECTED TO THE FOOD BUSINESS.

BECAUSE I REALLY THINK THAT IT'S EASIER TO GET PEOPLE WHO HAVE A LOVE OF COOKING, THAN IT IS TO GET ORNAMENTAL GARDENERS INTERESTED IN GIVING UP THEIR FLOWER SPACE FOR VEGETABLES, IN THE SPRING, WE HAVE MONEY COMING IN SO FAST THAT IT JUST SEEMS LIKE WE ARE GOING TO BE RICH, AND FOR THE REST OF THE YEAR, IT'S DRAINING OUT LIKE YOU HAVE GOT A HOLE IN YOUR SIDE AND IT'S FLOWING AND YOU HAVE TO BE AWARE OF THE FACT THAT IT IS GOING TO BE LIKE THAT.

>> I THINK THAT WE ARE VERY LUCKY TO BE IN A SEASONAL BUSINESS BECAUSE IT GIVES US A LITTLE BIT OF FREE TIME.

AND WE CAN LUMP OUR SERIOUS WORK INTO FOUR MONTHS, WHICH IS WHEN WE ARE SHIPPING OUT THE ORDERS AND FOUR MONTHS WE CAN SPEND OUTSIDE WORKING IN THE TRIAL GARDENS, AND THAT'S NOT REALLY GOING TO WORK.

>> WE STARTED THIS BUSINESS BECAUSE OF GARDENS AND GARDENING AND BEING GARDENERS, AND THAT'S WHAT WE LIKE TO SPEND OUR TIME DOING.

IT'S POSITIVE BECAUSE THAT KEEPS US COMMITTED TO THE TEST GARDENS INSTEAD OF A CATALOG.

THE NEGATIVE SIDE IS THAT IT AFFECTS OUR ABILITY TO GROW BECAUSE YOU CAN'T REALLY DELEGATE THE HEART OF THE BUSINESS, AND THE HEART OF THE BUSINESS INVOLVES A LOT OF OUR TIME AND THAT'S SEEN IN THE GARDENS.

AND IS A PROBLEM THERE IS THAT WE NEED GROWTH BECAUSE WE NEED TO HAVE A HIGH ENOUGH LEVEL OF SALES TO SUPPORT THE KIND OF GARDENS THAT WE WANT TO HAVE TO BE ABLE TO HAVE THE KNOWLEDGE BASE THAT WE THINK THAT WE OWE OUR CUSTOMERS, AND THAT KEEPS US INTERESTED.

BUT AT THE SAME TIME, THAT LEVEL OF SALES GETS US INTO A LEVEL OF ADMINISTRATION, WHICH STARTS TO CONFLICT WITH THAT.

SO WE ARE REALLY IN A DOUBLE BIND IN THAT RESPECT.% >> SO WE ARE AMBIVALENT ABOUT THE GROWTH.

ON THE ONE LAND, WE SEE THE BENEFITS AND ON THE OTHER WE SEE THE COSTS.

WHAT WE THINK CURRENTLY WOULD BE THE IDEAL SITUATION, WOULD BE TO GET IN SOME SORT OF JOINT VENTURE WITH PEOPLE WHO ARE BETTER BUSINESS BEAM -- BETTER BUSINESS PEOPLE, WE SEE OUR STRENGTH IN THE GARDENING.

>> EVERY ENTREPRENEUR FACES THE DILEMMA OF HOW TO BALANCE PASSION AND THE INCREASING DEMANDS OF GROWING A BUSINESS.

DUE TO THE INCREASED PRESSURE BY LARGE AGRICULTURAL CONGLOMERATES AND THE DIMINISHING FINANCIAL RETURNS, AGRICULTURAL ENTREPRENEURS HAVE HAD TO DIVERSIFY AND DEVELOP A NICHE IN THE HIGHLY COMPETITIVE FOOD INDUSTRY.

THEY HAVE TO WEAR MANY HATS, AND BROADEN THEIR BUSINESS SKILLS.

THE CHALLENGE IS HANGING ON THE PASSION AND THE SIMPLICITY WHILE MANAGING THE GROWTH.

NEXT WEEK WE WILL EXPLORE THE PERSONAL ASPECTS OF CHOOSING THE ENTREPRENEURIAL LIFESTYLE, AND THERE CAN BE GREAT HIGHS AND DEVASTATING LOWS.

AND THEY CAN OCCUR IN THE SAME DAY.

THE RESULTING STRESS EFFECTS ENTREPRENEURS AND EVERYONE AROUND THEM.

RECOGNIZING AND MANAGING THESE EFFECTS IS THE ULTIMATE CHALLENGE, AND THAT'S VENTURING.

I'M CAROL DILLON.

SEE YOU NEXT WEEK.

>> PRODUCTION FUNDING FOR VENTURING HAS BEEN PROVIDED BY THE FARMERS HOME ADMINISTRATION.

ASSISTING EMERGING RURAL BUSINESSES.

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