[Critique Group 1] submission for 10/26/16 session

[sitting.duck at springmail.com]

I am sorry this is so long. I'm trying to get it down to 5 pages.
A few years ago, I had an experience with gathering information for starting a home business. Many people have encouraged me to write up my experience. This is my first attempt.
I want'ed the piece to be intertaining as well as informative.
I leave it to everyone to decide how much time they would like to spend on it. Any comments are welcome and appreciated.
So, here goes.
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3,256 Words (10 pages)

The Enterprising Entrepreneur

by C. S. Boyd



Back in 2011, I took a course in being self-employed. One of the assignments required me to come up with a type of business and go through all the steps, fictitiously of course, of going through the process of getting it started.



Do your passion, they say. Find what you love. What you would do whether you were paid or not and make that your life's work. The money will follow. Clearly, this assignment is my opportunity to put together a plan to start my business. Problem is, I have a 10 year vocational attention span. Throughout my life, the only thing I have done consistently and with a passion, is nothing. My goal in  life -- retirement.



After much thought, I decided to do the research on having a lemonade stand. It’s simple, easy to fix lemonade, low startup cost, ready market (most people like lemonade), readily available customers in the form of joggers and neighbors out for an afternoon stroll. To complete my marketing and business plan, all I need is what licenses, permits, and other particulars I may need to get started.



Day 1:

2:29pm I called the city inspector's office

Honestly, while I waited on hold, I wondered if I could do it with a business this simple. I couldn't imagine there was much to it, but I forged ahead.

Eventually, a person with a pleasant sounding voice came on the line.

"Does a person need anything to start up a lemonade stand," I asked.

"I don't know. You need to talk to the city office," she said.

I thought that's what I was talking to. Oh well, whatever. "do you have that number?" I asked.

She gave me the number and transferred me.



A few minutes later.

What sounded like an older woman answered.

I told her what I needed.

I was told I needed to talk to Planning and Development .

She gave me the number and transferred me.



A few audible clicks and a moment of silence later, an automated system answered.

"Planning and development," it announced.

. I punched buttons for the choice that seemed to match best. 

"Your call is very important to us. Please stay on the line for the next available agent."

Does anyone other than callers ever listen to these hold tapes?

Ten minutes later I decided to hang up and try again after getting some lunch.



4:44 PM still day 1: 

I dialed the city Planning and Development number.

Someone identifying herself as Laura. answered

Shocked by the sound of a live person, my mind went blank. I paused desperately trying to remember why I had called.

"Does a person need anything to open a lemonade stand at the curb in front of their house?" I stammered .

"You need a certificate of occupancy," she said.

"A what?" I asked.

"The person will be conducting business on the property, right?"

"Um, yes, I guess so."

"Then, the area has to be zoned for a business."

"But, this is just a little lemonade stand,"  I said.

"There will be people stopping. in front of the residence so it needs to be zoned for a business. You can get a permit for 30% business 70% home.

You may also need a permit from the health department, since the product is something that will be consumed by the public."

"How much is the certificate,” I asked.

"$120," she replied.

I was dismayed. "Isn't this a little like when a person has a garage sale?" I argued. " Could the person have the lemonade stand as part of the garage sale and use that permit?

"Yes," she said. "as long as the lemonade stand is actually in the garage sale.

"How much is the garage sale permit?"

"a garage sale permit is free. It is for 3 consecutive days only and there is a limit of two per year."

So much for that idea. I really wanted to do the business for more than six days.

"Goodness," I said. "I was just thinking about a simple child's lemonade stand. Something for a child to make a little money for the summer. the stand likely wouldn't make enough to pay for the certificate and It probably wouldn't be worth the effort for just 6 days."

"Oh," she said, "no certificate is required for a child's stand."

But, you still need to contact the health department."

Suddenly, I was struck with inspiration.

 remembering a man who sells onion rings and hotdogs out of a trailer he parks on the Home Depot parking lot, I asked about having the stand in a neighborhood park.

“You will need permission from the parks department,” she said.

Thinking ahead, "Just in case, what is needed to get the permit for the garage sale?"

“Call and give name address number and date of sale. Only one sign in the yard for advertising is permitted. You could also post it on a community board and cragslist. the garage sale permit is for three consecutive days only and there is a limit of two per year.”



5:09 PM Day One: 

I Called the city health department.

The automated system picked up.

"consumer health," it said "The office is now closed. Our  hours are 8:00am to 5:00pm  Monday thru Friday."

I left a message on their voice mail.



1:30pm Day two: 

I started by calling the city parks department. 

"You will need approval."

"Approval?"

"Yes,  from Contract Compliance."

Yet another department. Why am I not surprised?

"I think you will also need a Health permit," he adds.

I remembered once when I went to the bank and they were selling baked goods to raise money for some charity.

"a church or other nonprofit organization also needs a health permit," he told me.

He gave me the number for contract compliance and transferred me.



A few minutes later.

"Contract Compliance," answered someone identifying himself as Will.

I ask about having a lemonade stand at a neighborhood park.

"The vendor has to sign a written contract agreement for a 15% / 85% split for a non-profit organization. The split for a for profit organization is 30% / 70%, and an audit process will be set up in order to verify receipts.

state law says city has to recoup some of the cost"

I'm wondering what cost the city is recouping but I don't ask.

"all vendors are required to have liability insurance of at least $500 thousand to max of one mil depending on the type of business.

Insurance is around $300 per month

This is in case someone is injured in the park as  a result of the stand."

I ask if I could set up the stand at the curb. That way the stand is not on the park.

Will points out that if the customers are standing on park ground the park rules will still apply.

"what if it is set up so the customers have to step off the park to make their purchase?"

"That will involve the transportation department

"The vendor will need a Health permit,"  he makes sure to tell me. "I can transfer you if you like." he offers.



I still haven't received a call back from the Health Department. 

"okay," I agree.



A few clicks and a ring later, Kim at the Health Department answers.

"You need to talk to hazel at the peace center to get the permit for a lemonade stand," she says.

Strange name but this group checks to see that the stand is co compliant. That is, insures that the stand complies with the following standards:

* The stand has to be covered.

To meet this standard, the vender can lease one or more of the sheltered structures in the park.

This structure, called a pavilion, leases for $35 per day per structure. It can be anything from a building to a picnic table. as long as it has a roof over it.

"I thought picnic tables were there for the public to use." I protest.

"Yes, you can use one without paying," she says, "but, if someone shows up with a lease, you have to move.

People lease them for picnics, birthday parties, weddings, etc.

Or, you can set up your own stand as long as it has a roof.

"What if the stand is in the street beside the park?" I ask.

"I'll have to check and call you back," she says. 



2:18PM Day two: 

I'm beginning to understand why most businesses don't make a profit for the first five years. Looks like I'm going to need that loan section of the Business Plan after all.

I am transferred to hazel of the peace center and leave a message on her voice mail.

I smile to myself remembering that Hazel was the name of the maid for the Baxter household.



2:21PM still day two:

Meanwhile, will (contract compliance) has returned my call and left a message.

If the vendor sets up his stand at the curb, the area needs to be coned off but he doesn't have to work with transportation because his people are on the park grounds.

If the stand is set up so customers are standing in the street, it interferes with public right of way and would require dealing with the city transportation and public works Department.

He left the number for Gordon  at city transportation and public works.



2:31PM Day Two: 

Gordon at city transportation and public works tells me that permits may also require insurance

He will check around and see what he can find out

I am to call him back if I don't hear from him by tomorrow



2:46pm Day Two: 

I try again to reach hazel at the peace center 

johnnie answers and transfers me to Bob 

According to Bob, a Health permit can only be issued to an establishment that has permanent plumbing.

One exception is they could issue a temporary Health permit in conjunction with an event.

A temporary health permit costs $50 for one day $15 each additional day up to 14 days

It has to be in conjunction with an event and a garage sale qualifies as an event. 

Well, back to the garage sale unless I could have my stand in conjunction with some event at the park.



We now know that

1. food cannot be served to the public without some kind of permit,

2. hard plumbing and other things are required for a permanent permit, and preparing the lemonade inside the house for sale at the stand doesn't satisfy this requirement.

3. The vender must have a city food handling card. the vendor must attend a one hour food handling class at $16 in order to get A city Food Handling Card. 

The class covers the codes to follow:

- method of hand washing 

- keeping the product cold

- type of overhead protection, 

- method of washing utensils - need 3 little boles to wash bleach chlorine test strips to check the sanitary level. 

I can check with the state of Texas for a complete list of the codes.

Supposedly these codes have been in place for 50 years and are the same for all cities in Texas.

It is all part of the  FDA food code.

I missed my chance to have a lemonade stand by 50 years.



I Could still have it at the park but would need an event of some type. Maybe I could get with the local kids and have a turtle race or something.

We could put a cup of lemonade at the end of the walk way to entice the turtles to race toward a drink.

I wonder if I would need a permit to use the walkway as a race track. Based on what I've learned so far, I could put cones at each end of the race way and then cone off the area around the  race way for attendees to stand and root for their favorite turtle while sipping their $10.95 cup of lemonade.

It would be fun. But, then, why should anyone pay to see a race they can just slip inside the coned area and watch for free.

I guess that's out. Back to the garage sale .



Okay, let's review what we know so far.

I can't have a lemonade stand at home because it would interfere with traffic. I could have it at home if I had it in conjunction with a garage sale, but then I could only have it for a total of 6 days in one year.

I could have it at the park, as long as I have it in a covered stand and in conjunction with an event.

If I park my stand on the street, I still have to have insurance because my customers would either be standing on the park or in the street. No hovering near the stand, please.

If I arranged it so they had to stand in the street, I need to cone off the street and have a permit and one million dollar liability insurance in case a customer gets ran over.

It's cheaper to have it in the park. That liability insurance is only for 500 thousand liability. But, to get the health permit I have to have it with an event.



To get the temporary permit, I must 

attend the food handling class  to get my Food Handling Card,

come in and apply for a temporary  health permit,

get the garage sale permit,

make a sign to advertise my garage sale and find a community board to post the event on,

arrange for an inspection the day of the event

find some junk to sell at my garage sale so I will have customers to buy $500 worth of lemonade.



3:22PM Day 2: 

This was an eye opener. If it was this much trouble to have a simple child's lemonade stand, how did anyone ever start a real business? 

I still needed to talk to Hazel to get final information to complete my assignment.

I tried to call her again and was transferred to bob of code compliance consumer affairs.

I got his voice mail and left a message.

Then I thought of another question and called back. By chance I was transferred to Wendy. 

She told me about something called the cottage industry bill passing this year.

She couldn't (i.e. not permitted) tell me much about it but encouraged me to google cottage food industry bill in Texas

But, she went ahead and told me the following:

There is a limit of $50,000 per year,

Goods can only be sold in person from the person's home, 

the customer has to come to the home and pick up the item and pay for it in person,

items may not be sold on the internet -- no ebay, Amazon, or through a website where the customer adds the item to a shopping cart and pays for it.

- the vender may have a website where the goods are advertised, but no shopping cart to add the item to and pay for it.

Goods sold cannot need refrigeration.

If the business can meet the requirements of the bill, a health permit is not needed.

Basically, any baked good that does not require refrigeration may be sold from out of the home.

The bill is very specific about what can be sold.

The list includes, cookies, pies, cakes, pastries, breads, Danish, donuts, canned jams and jellies, and dried herb mixes (must be an herb and not a spice). If the item is not on the list, it may not be sold.



Day 4: 12/15/11 

9:53am Bob from city consumer health division 

returned my call and left a message.

11:44am I called him back

He clarified that 

- the lemonade stand must be outside the house and must be covered,

- the garage is considered to be in the house - putting the stand in the garage doesn't meet the "covered" requirement

- a temporary Health permit may be issued for a lemonade stand that is run in conjunction with a garage sale or other event.

With regard to the Cottage Industry

- the sellers could bake cookies at the house and sell them in the house. garage qualifies as in the house

- there is a $50,000 per year limit on sales

house bill may be 170

try googling Texas cottage food law



Day 4: 

googled Texas cottage food law.

The law was signed into effect by Governor Rick Perry on June 17, 1911.

Summary of sections 5 and 6 of the bill, which pertain to Cottage Food Operations.

1. Food must be sold from your home, directly to another consumer.  No sales at farmer's markets, county fairs, roadside stands, local festivals, craft shows, wholesale, or resale to restaurants, grocery stores, coffee shops, etc.  The food must be purchased at your home.

2. Foods are limited to non-potentially hazardous baked goods (cookies, cakes, breads, Danish, donuts, pastries, pies, and other items that are prepared by baking the item in an oven), canned jams, jellies, and dry herb mixes. THESE ARE THE ONLY FOODS ALLOWED.  If you do not see it on this list, it's not allowed.

3. Annual gross income from sales of above food items must be $50,000 or less.

4. The local health department may not regulate these home cottage food operations, but they must maintain a record of any complaint made.  This is a consumer safeguard, so that consumers can call the local health department and check for complaints on their "cake lady" before they purchase, if they wish.

5. The food items sold must be labeled with the name and address of the cottage food production operation, and a statement that the food was not inspected by the health department.  

Per Representative Kolkhorst, the label does not have to be affixed directly to the food item, it can be handed to the customer.  

You will need to have labels with your name, address and the statement "This food is not inspected by the state health department or a local health department." 

Temporary labeling information provided by the Farm and Ranch Freedom Alliance.

6. Food must not be sold through the internet.  This simply means that these operations can't set up a shopping cart on your web site and let people purchase blindly.  The "no internet sales" clause goes back to the fact that we ARE small "cottage" operations, and helps ensure that sales are local and face-to-face, which is in keeping with the spirit of the bill.   Again, it does NOT mean that web sites are prohibited.  Web sites, Facebook pages, Twitter, and any kind of marketing you want to do are all perfectly allowable.  Just don't allow purchase and payment on the internet. 

7. The bill went into effect 9/1/2011.



It was an interesting assignment and I learned a lot about how government at all levels has infiltrated our lives.

I googled the bill again in preparation for this article and found that many changes have been made in the bill. For one thing, it is not as strict as it was originally. While having a lemonade stand has basically been illegal for the last 50 years, and still requires a Health permit, a Cottage Industry business does not. The Cottage Industry Bill has made it possible for people to have a small low cost business out of their home that even children can participate in.



Details can be found at 

http://www.nbcdfw.com/video/#!/news/local/Educating-the-Public-on-the-Cottage-Food-Industry/135137438  CopyCloseEmbed this video