New Folder ish kind of service

Okay here is the basic permise. I have an automater action that creates a new sparse image and I kind of want it to act like the new folder option that is in the services menu bar of finder. What I have right now works in terms of creating the sparse image but it only gives the option if you have the folder selected or if you have a file in the folder selected. I would also like it to work if you were just inside a folder in finder and it was empty.

This is what i have and it seems to work in every other case except for the empty folder any help would be appreciated.