By Erica Quin-Easter
Recently, Alain Ouellette at the Northern Maine Development Corporation phoned me to share news of the successful World Acadian Congress and efforts to further develop entrepreneurship programs in Aroostook County. Our conversation got me thinking: What does it take to make an entrepreneur?
After seven years of supporting entrepreneurs in Aroostook with Women, Work and Community, here are the top three things I see producing success in our region:
1) Money.
Many of our best small businesses are more financially fragile than they appear. Your favorite restaurant, hair salon or other Main Street retail storefront may barely be making enough to pay its owner a living wage, let alone budget for marketing or product development. Every small business is familiar with the chicken-and-egg dilemma: How do you grow without money to invest in growth?
Competitions like the World Acadian Congress’ “Realize Your Business Dream” contest can put money in the pockets of working entrepreneurs to help them take the next step. Maine winner Nick Textor, owner of Textor’s Greenhouse in St. Agatha, took home a $5,000 cash prize and $3,000 in counseling services — pennies compared to most large-scale capital investments, but a significant investment in helping a small rural business succeed.
WWC’s marketing mini-grant program (next deadline: Dec. 1) operates on a similar premise: $400 for marketing can translate into a professionally developed logo instead of clip art or inconsistent branding; offset-printed custom business cards instead of DIY cards with fringe on the edge or free glossy cards that aren’t your own design; a functional website where you can sell your products or schedule your services; an inviting trade-show booth and the branding to make your business shine.
A small investment makes a big impact when applied to a tiny business. This translates into greater sales, generating net profits and livable incomes for entrepreneurs in our community. Microloans, crowd funding, matched savings programs, and other creative financing for business also help entrepreneurs build their business without drowning in debt.
2) Planning.
Whether you have a $1,000 startup or a $1 million corporation, a strong business plan is your ticket to financing as well as figuring out what works. Planning on paper helps you crunch the numbers, prepare your pitch, and map out logistics before taking the plunge with your pocketbook.
In the very first class I taught, one entrepreneur went above and beyond to develop three cash-flow projections before buying her business: a) the profits she thought she would conservatively see; b) the point to which she thought she could grow the business given increased hours and marketing; and c) the worst-case scenario, below which she knew it would not be worth the effort to keep the business open.
She purchased the business, increased its sales and profits, and hit a wall when the recession slowed business activity to a crawl a few years later. Her bottom-line scenario was essential in helping her make the decision to move on to the next business venture without losing her shirt.
Too often, we jump in with both feet without figuring out what we and our families need to survive and what our businesses need to thrive. Your business plan sets parameters for growth…and helps you know when to say when. Despite the “failure” rates for small businesses (nationally, about 50 percent of businesses remain in operation five years after startup), your plan helps you define what success means for you and helps you achieve your goals — however large or small, however long-term or short-term.
3) Positive people.
Anytime we tell someone — or imply through our lack of interest or follow-through — that they can’t do it, we close the door on economic possibility in our region.
Whether you are a business owner in the position to mentor others, a commercial lender, a municipal employee or elected official, a leader in economic or workforce development, or a community member and potential customer, practice saying “Yes.”
An entrepreneur’s dream may take one to two, five to 10 or 20-plus years to achieve, but your belief that it is possible will help people decide to put their idea into action and enable them to maximize the resources available.
Can a family eligible for food stamps grow a farm that can leverage a commercial loan? Yes — and the asset they build in their business can move them forward out of poverty. Can a young woman with a great business idea and no high school diploma successfully commercialize her product? Yes — and the lessons she learns along the way may make her an expert in educating others to follow in her footsteps. Can a sole proprietor with a home-based business create jobs? Yes — every time that business turns a profit, it is “employing” at least one person by returning an owner’s draw to its founder.
It takes one inspired entrepreneur and a village of customers to grow a business, and it takes all of us to make an economically viable rural region.
Erica Quin-Easter is the microenterprise specialist for Women, Work and Community’s Aroostook region.
