WEST LAFAYETTE, Ind. — For small business owners, there is a balance between spreading themselves too thin among several locations and retail markets, and selling in enough markets to drive sales and get the word out about their venture.

An ever-increasing variety of selling venues seems to exist for peddling products from the farm, making the decision of where and how to sell a discussion of the desired outcome.

“It starts with setting business goals. It’s really about what each family wants to accomplish,” said Dr. Jennifer Dennis, assistant professor and specialty crops marketing specialist for Purdue University in West Lafayette.

Dennis advises many small farm business owners during the start-up phase of business and also works extensively in Indiana with farmers’ market vendors and managers, in addition to her classroom responsibilities at Purdue. She recommends small farm business owners employ a number of selling location strategies and that they consider using more than one type of location when starting out. Some types of selling venues include:

•Seasonal farmers’ markets

•Year-round farmers’ markets (often held indoors in the winter months)

•Setting up an on-farm store

•Leasing space in an existing store

•Consignment selling at an established business

•Selling via the Web, with shipping

•Wholesale to distributors

•Joining a farmer’s cooperative

With so many ideas, understanding which venue makes sense can seem difficult. Dennis discusses a few options.

“We see many people that put themselves in one category or another,” she explained. “Some love to go to farmers’ markets, but others, like a two-person husband and wife businesses, don’t have the manpower to go to many (markets). So, it comes down to what you can do with your time resources.”

Each type of selling strategy has advantages and drawbacks.

Dennis said producers should research each option as thoroughly as possible and visit with others who’ve tried something they are considering.

“It seems like a lot of farmers end up doing farmers’ markets as a default,” she said. “There are big advantages to farmers’ markets, one being that you can cut out the ‘middleman’ and usually take a higher profit.

“Others feel farmers’ markets are one of the easiest ways to get started and some really like how farmers’ markets help (maintain) their small production situation,” Dennis said, adding farmers’ markets are also widely available.

In their desire to work from home, Dennis said many entrepreneurs consider starting an on-farm store. “You’ve got to do your market research for this option. Look at your area’s demographics and decide how far you are from a major thoroughfare,” she suggested. “You’ve got to think about what you have to offer. What are the reasons people will come out and stay awhile?”

Access to an in-town storefront is often requested by customers, but Dennis cautions producers to really do their homework with this type of selling venue, as well.

“You need to be aware of other local products and the area’s foot traffic. It’s really important to talk to other store owners,” she said, adding that producers should find out who previously used the storefront, how long they were in business and if the business was successful in that location.

“You may have to get into (several selling schematics) in order to make money, especially when you are new. It’s best not to put all of your eggs in one basket,” Dennis said.

She explained variety can really increase exposure for the business. She encourages producers to consider several factors when planning selling venues, including: demand versus shortage and supply versus oversupply of their chosen product or service; seasonality of their area or product; product mix desired to offer; and the uniqueness of the product to the marketplace.

“You can do both wholesale and retail at the same time, successfully,” Dennis commented. “It goes back to goals and even deciding on a percentage breakdown of the business.”