Developing an Entrepreneurial Economy in Iowa

There has been a great deal of discussion in Iowa over the recent months and years about how to encourage entrepreneurial development. The formation of new businesses has lagged other states for decades and now that the recession has curtailed new plant locations all eyes are on starting new businesses. Certainly we need to do something after all unbeknownst to most, we were the slowest growing state in the 20th century and the first decade of the 21st century was not much different.


Most of the proposals have as there centerpiece an angel or venture capital fund. This is not new either it goes way back to the 1980’s with the creation of the “Iowa Fund” and the “Iowa Product Development Corporation.” These were followed by the Business Development Finance Corporation and the Iowa Capital Investment Corporation. All of these have been noble experiments but in some cases they were not given enough time to work and in other instances they were ill conceived. None of them were enough.

When I say they were not enough, I don’t mean enough money although that could be argued. Providing investment capital does little good if there is little or no entrepreneurial culture, support services or training. These initiatives really need to come before at least simultaneous to the investment capital. They will cost as much or more that the funds directed toward investment capital and they must be given years, perhaps decades to work. If one reads documents prepared by those involved in the North Carolina “Research Triangle” initiative one finds that significant results were not seen for ten to twenty years following its launch.

An entrepreneurial development program that will bring success needs to identify potential service providers and train or re-train them. It needs to educate local and regional leadership and get there buy-in. It needs a commitment from these leaders to work regionally instead of parochially. Those same leaders need to re-direct most of the funds committed to traditional economic development towards developing entrepreneurial businesses. Finally, we need to change the cultural mindset of Iowans. This is the toughest because Iowans have engrained in them the notion that it is better not to take on risky or unfamiliar endeavors than to try and fail.

This initiative is doomed to failure if we do not do something that has opportunities for all regions of the state to succeed at some level. This means an initiative that may be statewide but where program design for a particular region is largely developed locally. The programs should also be, at least in part funded locally, as well.

I have seen this type of program work in other states not unlike Iowa. Recently I have had the opportunity to work with a group of people in Caribbean and South American Nations on an entrepreneurship program for a twenty nation area. I have also had the opportunity to provide input to those attempting to rebuild the economies of Iraq and Afghanistan. In all of these cases I have recommended a comprehensive program that begins with education, training and the building of support services.

I believe that state government has some role to play in all of this. And just like local governments needs to re-allocate funds away from traditional economic development programs and toward entrepreneurship. I also firmly believe that if we are to make significant progress in changing Iowa’s economy the lead and most of the funds must come from philanthropy. This is the only way to keep politics out of it, to keep it flexible and to make quick decisions when necessary. It is also the only way to get a commitment for sustainable. The problem with some of the funding programs mentioned earlier was that they were subject to the whims of people running for office every two or four years. A change in legislature or governors office could doom a program or take it a different direction.

I think this is far more important than many initiatives funded through foundations and other philanthropic organizations. It will take millions of dollars over a number of years but will return far more over the long term. Let me know if you agree or if you are someone with financial means whether you might consider financing a piece of it.

Words for Entrepreneurs to Live By

"The World is my country, all mankind are my brethren, and to do good is my religion." - Thomas Paine

I ran across this quote yesterday and copied it because it is the way I hope I live my life. As I thought more about it I began to think this is the way I attempt to run my business, as well - how applicable this is for entrepreneurs. First of all in today’s society business persons must think globally.

As an example, today before 10:00 am I spoke to two people who were born outside my homeland of the United States. In the first situation I was the customer or client, the person I was speaking to was a female born in Bosnia, who fled prison during the war, lived in Germany for seven years and is now in Iowa running her own business. In the second situation I was the supplier or in this case contractor. The person I spoke to was born in Trinidad and now lives in Jamaica and again runs her own business in Kingston. Whether we like it or not we are in a global society and to be successful in business or in life we must not only except it but embrace it.

My feeling is that there are two ways to do this. One is by attempting to sell to them without knowing their culture, beliefs and traditions. Depending upon the product one is selling this may work for a time, possibly even for five or ten years but eventually someone who understands the customer and their needs will take away the market.

A better way is to fully understand the needs of each customer and provide the product or service in a way that best fills their needs. Even if your product is the same for customers regardless of geography, the payment terms may be different or the way the product is sold or perhaps the way it is delivered. This gets to the part of the quote “…all mankind is my brethren,…”. A customer is a person or group of persons and they should be treated with the same respect and understanding as the customer down the street or across town regardless of race, religion or politics.

All too often, I think business people whether in the U.S. or elsewhere look at customers in a different land as a market to be exploited instead of individual customers with distinct needs and ways of doing business. When we think this way more often than not we have difficulty even penetrating the market let alone capturing it. But if we take the time to understand what they have gone through and what their distinct problems are, we can identify how to help them just as we might the business across town.

Finally, and possibly the most entrepreneurial important part of this quote, “…and  to do good is my religion.” – means that the product or service we produce and sell must do good, it must somehow improve the condition or need of the customer and hopefully mankind.

There are many people who call themselves entrepreneurs who are just out to make a fast buck. I see them on social media and through spam e-mails everyday. They are no more than snake oil salesman and are throwing the word entrepreneur around all over the place. These people are no more entrepreneurs than the person who leaves his or her idea or invention on the shelf and never gets it to market.

The true entrepreneur has a product or service that they truly believe will help solve a problem, large or small and in the end will help people. Whether they are right or wrong about this, they are passionate about what ever the product may be and work day and night to tell the world about it. It is more about seeing their dream to fruition than it is to make money. Making money is only secondary - a way to develop their next product or get even wider distribution of the existing one.

In the end, if successful these products and services will be more sustainable and these true entrepreneurs more financially rewarded than anyone with a get rich scheme. The bonus is that they will be rewarded psychologically, as well. This is the way I approach my business everyday – First and foremost, is what I am doing morally and ethically right and second is it helping someone? If not, hopefully I move on.

So even though Thomas Paine was not referring to business when he said, "The World is my country, all mankind are my brethren, and to do good is my religion"  I believe it applies to entrepreneurs and their businesses today more than ever before. What do you think? Am I reaching here? What have your experiences been? Please comment below.

What Entrepreneurial Training Would be Most Valuable to You?

For the past eight months I have been providing training to economic development professionals on different topics related to working with entrepreneurs. It seems there is a great need for this in Iowa and other Midwestern states. Economic development professionals are skilled at working with established firms, whether those they are attempting to attract into their area or those that are well established in their community. When it comes to helping a star-up or young company, especially ones that may have some technology or non-traditional product it is another matter. I will continue to provide this training, with such workshop topics as "Working with Entrepreneurs," "Developing and Entrepreneurial network and Culture,"  "Assessing Entrepreneurial Opportunities," Entrepreneurial Finance Basics," and "Creating a Regional Angel Fund." 

Are their other topics that you think are missing for community leaders and economic development professionals? Is a half day workshop on each topic that is presented on site the right format? Are economic development professionals the ones that will move entrepreneurial development forward in a community or region or should I be targeting someone else?

I have also developed a couple hour workshop entitled "Is Their an Angel on Your Shoulder" for entrepreneurs that are trying to decide whether angel investment is appropriate for their business. This course could certainly be expanded to four or even eight hours if desired. There are also numerous other topics that could be provided in a workshop format for entrepreneurs. One that comes quickly to mind is, "Preparing Your Business for Outside Investment," and another, "The Pros and Cons of Receiving an Angel or Venture Investment." Can you think of others I should offer? What days work best? Is an eight hour intensive course better or two four hour segments? Is it better if taught in person or would a webinar or some other remote method be better? Are you willing to pay more for an in person workshop. How far would you travel to take such a workshop?

I would like to hear from as many of you as possible so that I can better design courses on meaningful topics and improve those already developed. Please let me know what you think. Thank you. 

Entrepreneurial Networking in Southeastern Nebraska

I spent last evening at the monthly meeting of the I2E Club in Nebraska City, Nebraska. I2E stands for Inventors, Investors & Entrepreneurs and there were some of each at the University of Nebraska Kimmel Education and Research Center in Nebraska City last night. You can find out more about the group if you go to www.i2eclub.org. Since the Nebraska City area borders two other states, I should mention that Iowa and Missouri entrepreneurs are welcome to attend, as well.

The entrepreneurs that showed up are not necessarily the technology nerds that one might find in a university town or Silicon Valley entrepreneur’s club, but they are entrepreneurs nonetheless. They are taking the same risks with their money and security and attempting to start something that if successful will in some way improve the local and possibly regional economy. They came to learn about angel and venture investing – what it is and how it works. I’m sure that many decided it wasn’t a fit for their business which is fine. It allows them to concentrate on the type of financing that does fit. Others in the audience were better equipped to secure equity financing.

The group was extremely interested in the topic asking questions as we went along and contributing their own experiences. It wasn’t a large group by many standards, probably about fifteen people but it was obvious that most of them were regular attendees. I would rather have a group of fifteen involved participants than fifty people sitting on their hands or nodding asleep. Remember, it only takes one or two of these people to make a significant impact on a local economy.

Part of what makes entrepreneurial networking events successful are the people behind the scenes that arrange for food, put the agenda together and secure speakers. Dr. Connie Reimers-Hild and her staff at the Kimmel Center do a wonderful job of organizing everything. “Dr Connie” also does a great job of emceeing the event, getting the crowd involved, making them feel comfortable. These are the things that bring people back time and time again.

I have no doubt that the I2E Club will continue to grow and will lead to other more informal networking by its members at local coffee shops, bars and restaurants. Over time, as people gain trust in one another business will begin to be transacted between members of the club and an entrepreneurial culture will be created. Of course, it takes more than a monthly meeting. It takes technical assistance from area resource providers, some formal business training and coaching and leadership. But its all doable.

It may not look the same as the cultures developed in Boston or San Francisco but will still eventually permeate the local society and create a collaborative, confident, “can do” attitude throughout Nebraska City and the region. This has happened in similar places, such as Fairfield, Iowa, Appalachian Ohio and Valley County, Nebraska and can happen in many other rural areas that take the first step.

What is your community or region doing to promote entrepreneurism? Is it a real program with committed resources or just the newest buzz word? Is it working? If not, what do you think is missing?

Book Review - "Energizing Entrepreneurs, Charting a Course for Rural Communities,"

As promised, here is a review of Energizing Entrepreneurs, Charting a Course for Rural Communities," by Deborah Markley, Don Macke and Vicki B. Luther. Published by RUPRI Center for Rural development and Heartland Center for Leadership, both in Lincoln, Nebraska, Copyright 2005.

It took me longer than it should have to read this book. I guess too much going on this summer. It is not a long book and one that is written so those with some knowledge of local economic development can easily understand it. I finished the book last night while waiting for my daughters and their friend to get out of the Midnight showing of the movie "Eclipse", so I hope my 57 year old brain retained everything at that wee hour.

This book is a "Must Read" for anyone thinking about developing an entrepreneurial development strategy for a rural community. The authors have, arguably more experience working with rural communities on entrepreneurial development than anyone else, at least in North America.

The book does not only guide one through the process of developing a program in a rural community, It discusses different methods used in different situations and it provides cases from throughout Rural America to illustrate that what is being proposed can and does work. It doesn't stop there however it explains why things do or do not work, how to work with different types of entrepreneurs and it suggests alternatives to try if one method doesn't work in your particular instance.

The book provides checklists and forms at the end of most chapters that can be used or adapted for your community and it provides a website where the reader can go for even more resources or to download the forms and checklists -www.energizingentrepreneurs.org.

I also like that the writers do not pull any punches. They continually remind the reader that all of this is hard work and can only be accomplished over many years with persistence, widespread community involvement and adequate capital.

This is as close to a "How To" book as I have found on the subject of rural entrepreneurial development. I hope you get as much out of it as I did.

Book Review of "Entrepreneurship and Local Economic Development, Edited by Norman Walzer

I just completed reading "Entrepreneurship and Local Economic Development", edited by Norman Walzer, published by Lexington Books, copyright 2007. Each chapter written by different authors or set of authors.

I think the book is really a bit mis-titled. A better title might be Entrepreneurship and Rural Economic Development as the book really focus on what rural communities can do to spur entrepreneurship. The book interested me because I am in the heart of Iowa where many of my clients are rural communities or regions. I may have been disappointed had I purchased this book and were an economic development professional in Chicago, New York or Los Angeles.

The book is really a combination of empirical analysis/rural entrepreneurial strategies and case stuidies. I found it extremely useful, if a bit dated. The book was written in 2007, really not that long ago but given that the whole social media industry has blossomed since then it's difficult to stay current. Several of the authors are associated with the Rural Policy Research Intitute's (RUPRI)Center for Rural Entrepreneurship, whose website www.energizingentrepreneurs.org keeps current on such topics.

I would recommend this reading for any economic development professional, local elected official or community leader in all but perhaps the 50-100 largest cities in the U.S. It is extremely comprehensive, makes a great case for entrepreneurship as "The" economic development strategy.It shows the reader how the strategy can work and where it has been successful.

It also emphasizes a regional approach to entrepreneurial development which I belive is the only way to create critical mass in rural areas. The case study of Appalachian Ohio is a great illustration of how one of the poorest areas in the nation can turn things around! It really shows that any region, with the right strategy, leadership and focus can move their economy into the 21st century.

Have any of you read the book? I'd love to hear what you think.

I am currently reading another book by some of the same authors, "Energizing Entrepreneurs, Charting a Course for Rural Communities by Deborah Markley, Don Macke and Vicki B. Luther. Published in 2005, this book is just slightly older than, "Entrepreneurship and Local Economic Development." It is a bit shorter and seems to be more of a how to guide with case studies to provide credibility. I'll let you know what I think when I'm finished reading it.

What Not to do When Using Social Media for Business or Profession

There are certain things that should be left for your personal life. If you are using social media simply for social purposes and your still in school, retired or independently wealthy this article does not apply to you. Otherwise, listen up!

1. Stay away from Discussing Political Issues:

If you have connected with me on a social media site through our common interest in business then you should not discuss politics. I see this in normal conversation, as well. There is an assumption that if one is in the same business or profession one also shares the same political beliefs. This could be no farther from the truth. People that know me well know that my views on one topic can be on one end of the spectrum and on another it can be at the other end. Very few people have the exact political views as you.

I believe business is business and usually do not let someone's political beliefs cloud my decision as whether or not to engage in business with them. There has been that exception where someone seems to be unbalanced to the point where I believe it will cloud business decisions, however.

Many other people are turned off by anyone who holds different beliefs. There have been numerous times people have told me something to the effect of, "I won't do business with that right wing ... or left wing .... " Why take the chance? Leave politics out of it.

It's fine to let people know your a Democrat or Republican or to follow your favorite candidates but don't get in my face about controversial issues. In otherwords, don't be a zealot and expect that it won't hurt business.

2. Don't Play Games With Me:

Are you serious about running your business or about your profession? If you hooked up with me to obtain business advise then don't ask me about Farmville, the Mafia or your virtual garden. I'm amazed at the number of so called entrepreneurs that seem to have so much time for such foolishness.

I have the utmost respect for most people that work in government. My first 15 years of professional life was in state and local government, but there are many out there that have disdain for government employees. That's why I was aghast at one such employee who during office hours would continually update me on their farm, gemstones or garden. What message does this send? Are they working or playing?

I don't care if you want to play these social games but if you are trying to impress me with your work ethic or if your profession is publicly srutinized, don't do it during office hours and don't clutter my "Notifications" site with eggs, vegetables and gemstones that you have gifted to me.

3. Don't Burn Bridges:

I have seen people harangue about their former employer or boss ad nauseum on Facebook. I'm sure the feeling is, "I'm out of there what can it hurt?" Well how many people that read your posts are still connected with that company or boss? What does your current employer think about it? If you trash your former employer what are you saying about your current one or what will you say when you eventually leave?

The other part of bad mouthing anyone publicly is that it just generally reflects badly on the person doing it. I, and probably many others feel it demonstrates, pettiness and a lack of maturity. This is better left in a private conversation with your best friend, sibling or parent.

4. Do Let me Know Appropriate Feelings and Special Events:

Social media is, after all meant to be social. I know there are business people out there that have no time for your children's pictures, birthday parties or your mood. My feeling is that this is an opportunity to get to know those I conduct business with on a deeper level and the more you know about a customer, supplier or business partner the better you can serve them.

Of course, by now everyone should know that there are inappropriate personal things I should not know about my business associates. Keep those to yourself please!

The entire time I was writing this article, it seemed I was missing a "Don't" that I wanted to include. I imagine over the next few months I may discover others. Do you have some "Don'ts" that I missed? Let all of us know by commenting below.

Is It Time for Economic Development to Move On?

I was sitting at an economic development conference recently listening to the speaker talk about business climate in terms of incentives to recruit or retain businesses, cost of labor and tax structure. His conclusion was that five states in the Southeast United States and another five in the Great Plains/Mountain region were the most “Pro Business.” But when one looks at these states there seemed to be no clear correlation between these states and economic growth. It wasn’t that there was a negative correlation. Some of the states were growing faster than the national average and incomes were quite respectable but others were not. Certainly there were states that were doing better even though some of the states had landed on the top ten for five years running!

Two things hit me. Why should a state strive to be “pro business? Isn’t it better to be “pro” economic growth? Aren’t businesses just a vehicle to attain this growth? When we think in terms of “pro business we lose sight of what it is we are really trying to achieve. When we think of things in terms of pro business others get hurt. Tax credits get abused, Enron pops up or the environment suffers.

My second thought was, “pro” what business? For decades we have known that incentives to one business can be damaging to another. We also know that a tax code that may be advantageous to large corporations can place a burden on small businesses. In fact, study after study has shown that large incentive packages to select businesses have little or no impact on the long term economic growth of a state or region. It may have a significant local impact but is that what we really maters?

What we do know is that the vast majority of new jobs created in the United States are created by companies with less than ten employees and with companies that are less than ten years old. We also know that as technology and the service industries have become dominant in the U.S., traditional economic development practices have become less effective. Land and building costs, tax structure and infrastructure costs have given way to access to capital, educational services and quality of life.

In the past, it was thought that while new businesses accounted for most jobs, there was little an area could do to affect the formation and growth of these businesses. In the past decade or two this has changed dramatically and we know that states and regions that have emphasized this have grown at a much faster rate than those that have not. In fact, some of the states that have recently moved off the “Top Ten Pro Business” list referred to above, have done so intentionally, deciding instead to emphasize entrepreneurial growth.

During the recent economic downturn many economic development professionals tried to move toward assistance to entrepreneurs. In most cases, this has been ineffective because the ground work was not completed first, adequate financial resources were not provided and the economic development professionals did not have the proper training to deal with the entrepreneur.

Why has it taken so long, especially in certain areas of the country for the economic development community to adopt a new paradigm? It has been widely accepted for years that the old model was out dated. First of all, it is easy to keep doing what is comfortable, especially if every few months one can hold out the possibility of a big plant opening, how ever remote. Secondly, there are limited resources. To implement an entrepreneurial growth strategy resources must be re-directed from traditional economic development to the new strategy. Those that have taken advantage of the old system have fought this tooth and nail.

Finally, and probably most importantly, entrepreneurial development is a long term strategy. It’s kind of like using your farm system in baseball as opposed to trading for players, or waiting for underclassmen to mature in a college athletic program instead of brining in junior college transfers. One has at least the allure of a quick fix while the other is more sustainable.

Is it time for economic development to move on - To move from a 1960’s model to a 21st century model. I believe it is. What do you think?

99 Amazing Reasons to Be an Entrepreneur Right Now

99 Amazing Reasons to Be an Entrepreneur Right Now

Pediatrician Mom Creates Innovative Children

Pediatrician Mom Creates Innovative Children’s Learning Tool

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The Daffodil Principal

This article is being reprinted with permission by the author, Mary Dee Freeman. If you like it, you may wish to read more by Mary. She publishes a newsletter entitled, "WOW-ZINE" at: http://www.mynewsletterbuilder.com/email/newsletter/1410292681.

The Daffodil Principle

Hi Everyone,

I was talking to a client the other day. She was frustrated because her business wasn’t growing as quickly as she wanted. I hear it a lot. Many people think that if things aren’t going their way, there’s something wrong with them.

It’s not their fault. It’s the way we live. Our society is one of instant gratification. We have drive thru everything; instant downloads on the internet and the list goes on. We are taught from birth that we should get whatever we want when we want it.

Don’t get me wrong, it’s great that we are so blessed in the United States. The negative side of such a successful society is if we don’t succeed the way we think we’re supposed to, we think there must be something wrong with us.

It’s just not true. That’s where the Daffodil Principle comes in. I don’t know where this story came from and I’ve edited for brevity. I hope the original author doesn’t mind as it’s one of my favorites. Hope you enjoy it as well.

Several times my daughter had telephoned to say, “Mother, you must come see the daffodils before they are over.” I promised, a little reluctantly, on her third call.

Next Tuesday dawned cold and raining. Still, I promised, so I drove there. When I finally walked into Carolyn’s house, I said, “Forget the daffodils, Carolyn! The road is invisible in the clouds and fog, and there is nothing in the world except you and these children that I want to see bad enough to drive another inch!”

My daughter smiled and said, “I was hoping you’d take me over to the garage to pick up my car. It’s just a few blocks. I’ll drive, I’m used to this.”

After several minutes in the car, I had to ask, “Where are we going? This isn’t the way to the garage.”

“We’re going to my garage the long way,” Carolyn smiled, “by way of the daffodils.”

“Carolyn,” I said sternly, “please turn around.”

“It’s alright, Mother, I promise. You will never forgive yourself if you miss this experience.”

After about twenty minutes, we turned onto a small gravel road and I saw a church. On the far side of the church, there was a hand lettered sign that read, “Daffodil Garden”. We got out of the car and I took each child’s hand as I followed Carolyn down the path. Then, we turned a corner and I looked up and gasped… before me lay the most glorious sight.

It looked as if someone had taken a great vat of gold and poured it down over the mountain peaks and slopes. The flowers were planted in majestic, swirling patterns… great ribbons and swaths of deep orange, white, lemon yellow, salmon pink, saffron and butter yellow. Each different-colored variety was planted in a group so that it swirled and flowed like its own river with its own unique hue.

There were five acres of flowers!

“But who has done this?” I asked Carolyn.

“It’s just one woman,” Carolyn answered. “She lives on the property. That’s her home.” She pointed to a well-kept A-frame house that looked small and modest in the midst of all that glory.

We walked up to the house. On the patio, we saw a poster Answers To The Questions I Know You Are Asking was the headline. The first answer was simple, “50,000 bulbs”, it read. The second answer was, “one at a time, by one woman. Two hands, two feet and very little brain.” The third answer was, “Began in 1958.”

There it was, The Daffodil Principle. For me that was a life changing experience. I thought of this woman whom I had never met, who, more than forty years before, had begun one bulb at a time to bring her vision and beauty and joy to an obscure mountaintop.

This unknown woman had forever changed the world in which she lived just planting one bulb at a time, year after year. She had created something of indescribable magnificence, beauty and inspiration.

“It makes me sad in a way,” I admitted to Carolyn. “What might I have accomplished if I had thought of a wonderful goal thirty-five or forty years ago and worked at it ‘one bulb at a time’ through all those years. Just think of what I might have achieved!”

My daughter summed up the message of the day in her usual direct way. “Start tomorrow.”

The principle the daffodil garden taught is one of the greatest principles of celebration. That is, learning to move toward our goals and desires one step at a time, often one baby-step at a time… and learning to love the doing, using the accumulation of time.

Turning a Bad Situation into a Good Experience

Friday was one of those days. At about 9:30 a.m., I left for a conference that was approximately two and a half hours away. I go to the venue and no one is there. I stop by City Hall to see if they can tell me anything. The lady there was nice enough to make a call and find out that the featured speaker had turned ill and so the conference was re-scheduled for three weeks out. Supposedly, a e-mail went out to confirmed attendees. Hmm, I e-mailed my RSVP and even received a confirmation back but no e-mail informing me of the change. Also no change was made to the “Event Page” on Facebook.

So, I’m two and half hours away from home do I turn around and go home, getting there just when everything is closing down for the week. I thought seriously about it but then thought about a prospect about 20 miles farther away from home that I could drop in on, so I got in the car and dropped in. She was out of the office and would not be back for hours.

Now I am on the Western border of Iowa and if I stopped in Council Bluffs on the way back home, I would only go another 20 miles out of the way. It was an opportunity to visit with Bob Mundt, President and CEO of Council Bluffs Chamber of Commerce. Council Bluffs is the Host City for this year’s American Food Venture Forum and the Chamber of Commerce is our biggest sponsor. I am the founder and executive director of the forum.

Bob was in his office and was gracious enough to allow me a half hour of his time. We discussed the conference and came up with an idea that will make it better than ever. We talked about some training opportunities for professionals in the region and clarified whether a critical component of the conference would be the responsibility of the Chamber or the conference staff. This clarification will make sure things get done on time and within budget.

I could have turned around when I found the original of my trip had been postponed but instead I tried to think of ways to make the trip fruitful. It is all about attitude and a few years ago I might have turned around and gone home ruining not only Friday but my weekend. But I have learned, quite late in life that you can learn something out of almost any situation and you can usually make a bad situation better if you keep a positive attitude. In some ways the meeting with Bob was more important than the original purpose of my trip.

So next time you find yourself in a bad situation try to come up a way to some how save the day. It may not always work but you will feel better just trying. Another lesson, if you find yourself somewhere you hadn’t intended, think marketing. Is there anyone in the area you can call on, even if it’s a cold call?

Ten Keys to Civility

The Gulf Coast Community Foundation of Venice, Venice, Florida developed the following "Ten Keys to Civility" their web address is www.gulfcoastcf.org. I think this sums up how we should all act when dealing with others. Let me know if you can think of any that might be aadded.

I would like to thank Krista Jagerson Knapp of C&C Home Services, Altoona, Iowa for alerting me to the list. Their web address is http://www.iowapestandhandyman.com. Check them out if you get the chance.

TEN KEYS TO CIVILITY

Respect Others - Honor other people and their opinions, especially in the midst of a disagreement.

Think Positively - Keep an open mind and assume others have good intentions.

Pay Attention - Be aware and attend to the world and the people around you.

Make a Difference - Get involved.

Speak Kindly - Choose not to spread or listen to gossip.

Say Thank You - Let others know they are appreciated.

Accepts Others - Our differences are what make us interesting.

Rediscover Silence - Keep noise to a minimum.

Listen - Focus on others in order to better understand their points of view.

Keep Your Cool - Accept life's challenges with grace.

Culture

Check out this SlideShare Presentation:

Culture

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Stream of Consciousness

It’s been a while since I posted something on this blog. I had promised myself when I started blogging that I would post something each week. Up until the last few weeks I was doing quite well at keeping that promise. It’s not that I haven’t thought about it. It just seems that it’s been tough coming up with fresh topics. Today, Donna Johnson, a Facebook friend and fellow blogger commented on FB that she was suffering from Blogger’s Blog. By the way, I love Donna’s Blog, by the way it can be found at http://www.unemployedentrepreneur.com/.

Another FB friend of Donna’s, Scott Bradley suggested that she just “stare at a blank sheet of paper and write whatever comes to mind...words, pictures, phrases, quotes etc....this stream of conscience will lead you to your next blog.” By the way you can find Scott at http://www.NetworkingEffectively.com. So excuse me while I write this “stream of consciousness.”

Have you ever noticed the proliferation of personal, business and spiritual coaches recently? Perhaps they have always been out there and I didn’t realize it because social media was not connecting all of us the way it does today. Or maybe social media allowed them to proliferate. I am certain there is a need for coaches or mentors but with so many and no uniform licensing, certification or educational requirements to become a coach, how does someone choose the right one? On Saturday, I had suggestions or requests on Facebook to become friends with over twenty coaches of some sort. By the way none of these were athletic coaches, unless you count the former coach that was running for Congress!

I am sure there are some that provide a valuable service, in fact I know this to be true but it seems that so many are little more than cheerleaders, with a few motivational tidbits and a system to get rich quick. I’m sure this attracts a great many people but I have not found many successful entrepreneurs that have not had to work their tails off and face numerous setbacks before making it big.

A couple of other observations are that at least half of the hundreds of coaches I have encountered through social media are focused on coaching women and the vast majority of coaches are also women. Most of the research on small business formation in the U.S. point to more men starting businesses than women, so is it that more women have an inferiority complex or lack of confidence and therefore feel they need coaching or is it that men do not like to ask for direction (or directions in the case of driving)?

It could also be that more women gravitate to the coaching profession, because of personality or necessity and that they feel more comfortable coaching women. If this is the case, are they all getting a small piece of the “women clientele pie?” Would men rather have women coaches? Do male coaches have more clients than female coaches because the pie isn’t divided into as many pieces or is there just less demand for their services?

As I mentioned this is just rambling about an observation I recently noticed. I tend to research a topic and test my theories before writing because I don’t want to be too severely criticized or tarnish my reputation (whatever that is). But today’s writing is just me hanging out there with many more questions than answers. So what do you think? Am I all wet? Can you answer any of my questions?

Top Tens for Entrepreneurial Advisors FB Fan Page

Yesterday the Entrepreneurial Advisors' fan page on Facebook reached the 500 fan level(actually it is at 505 fans). I thought it would be interesting to analyze the make-up of the fans for both Entrepreneurial Advisors, Inc and the fans themselves. Here are some "Top Tens" and the percent and/or number of total fans each represents:

Profession

1. Entrepreneur 177 35%
2. Economic Development Profesional 90 18%
3. Business Consultant or Coach 65 11%
4. Students 20 4%
5. Entrepreneurial Center Staff 18 4%
6. Marketing Firm Staff 9 2%
7. Venture and Angel Investors 7 1%
7. Association Staff 7 1%
9. Faculty 6 1%
10.Attorneys 5 1%

* Not Available or Other 101 20%

Cities

1. Des Moines, IA 146 29%
2. Waterloo/Cedar Falls, IA 36 7%
3. Peoria, IL 32 6%
4. Chicago, IL 16 3%
5. Ames, IA 9 2%
5. Los Angeles, CA 9 2%
7. Cedar Rapids, IA 8 2%
8. Fairfield, IA 7 1%
9. Iowa City, IA 6 1%
10.Mason City, IA 6 1%

Honorable Mentions: Ft. Dodge, IA 5; Denver,CO, 4; Indianapolis,IN, 4; Austin, TX, 4; Champaign, IL, 4; Quad Cities, IA/IL 4.

States (35 states are represented by fans)

1. Iowa 288 57%
2. Illinois 63 13%
3. California 16 3%
4. Nebraska 14 3%
5. Texas 8 2%
6. Colorado 5 1%
6. Indiana 5 1%
6. Minnesota 5 1%
6. Ohio 5 1%
10.Missouri 4 1%
10.Pennsylvania 4 1%

Foriegn Nations

1. Canada 3
1. United Kingdom 3
1. Jamaica 3
4. Australia 1
4. Japan 1
4. Indonesia 1
4. Nepal 1
4. New Zealand 1
4. South Africa 1

Just for fun these are the most popular names of our fans:

Men - James (Jim), Michael (Mike), Steve (Stephen/Steven), David (Dave).
Women - Lori (Lorie), Mary, Deb (Debi,Debbie), Amy.

The large number in Iowa is to be expected given that Entrepreneurial Advisors, Inc is located in Des Moines, Iowa. Similarly, the founder of Entrepreneurial Advisors spent 2004-2009 as a partner in an Illinois venture capital firm and the numbers represented for Illinois reflect that.
Given the strong Midwest influence on Entrepreneurial Advisors, it is not surprising that nine of the top ten cities are in Illinois and Iowa and that three of the top five states are in the Midwest. It is heartening that places like California, Texas, Colorado and Pennsylvania are so well represented.

I hope this has been entertaining if not informative. It was fun to put together. Thanks to all of you for your continued support. Let me know if you have any other data about our fans that you would like to see.

20 Thoughts on Leadership by Rick Burns

I am re-printing an article that Rick Burns posted on my fan page last week. Rick is a Colonel in the U.S. Army Reserves who has served two tours in Iraq, the last in 2008 as a Community Affairs Officer. His day job is Division Leader at Primerica Financial Services. In his spare time Rick is has founded an effort to bring Western business practices to Iraqi businesses. Here are Rick's 20 thoughts on Leadership. They are as applicable to entrepreneurs as they are to the military, non profits, education or any other organization.


20 THOUGHTS ON LEADERSHIP

(The following are some thoughts on leadership I created for my kids as they are starting to move out into the world)

1. Put people in positions where they can succeed. This may mean changing the organization to fit your talent pool. In the end your people are your biggest assets, not your organizational structure.

2. Your people have to know that you are willing to be in the trenches with them. You may not always be able to be there, but they have to know that if you could be, you would be. This will require you having shown them by your actions that you have been with them when circumstances were not pleasant. You cannot just talk about it. Rank may have its privilege, but privilege should be used judiciously. Your ability to get people to do unpleasant things at necessary times is in direct relationship to the perception others have of how much privilege you have taken.

3. You can only throw your rank or position around for so long before it becomes meaningless. People can always find a way to circumvent your authority if you have not developed a foundation of respect.

4. My mother told me when I was beginning to date girls, and reiterated on numerous occasions thereafter, that if I was dating someone and everyone around me was saying something was wrong with my choice, I should stop and listen. If everyone around you is saying something is wrong, it is probably wise to stop and figure out what they are saying. They are probably right.

5. There are only two things you can control…ATTITUDE and ACTIVITY. A positive attitude coupled with productive activity will take you far.

6. It is better to address small things while they are small things, rather than waiting until they become larger and have had time to fester. Problems, generally, do not go away. They only get bigger and more difficult to deal with over time. Better to deal with the immediate problem than delude yourself into thinking the problem will take care of itself. This is particularly true of relationship problems.

7. It is easier to criticize than it is to lead. If you are on top, you can count on others to second guess your decisions and leadership. Remember this when you are being led as well.

8. “In the absence of orders, ATTACK!” Make a decision and move out. Few decisions are terminal. You can always adjust when new information or opportunities present themselves.

9. Define and clearly communicate your parameters and boundaries up front or you may find yourself herding cats down the road.

10. Ask questions and listen. You won’t know everything. That is why you should surround yourself with the best people you have and then listen to them. A well placed question to the right person will almost always reveal insights critical to solving problems. The smart leader focuses on asking the right question to the right person and then listens intently for genius.

11. Example is the most powerful motivator. Be consistent. Do what you say.

12. There are no excuses. Excuses only limit. Be a doer and not a victim at the mercy of your circumstances.

13. Believe. Believe you can. Believe your team can.

14. Fear is the greatest deterrent to action. Good leadership requires that you move beyond your fear and act. No great deed has ever been accomplished without the fear of failure.

15. Focus on fixing real and existing problems. Get at the root of problems. Do not invent problems to solve because it is easier and looks like you are solving problems.

16. The scriptural injunction, “If you are prepared, you shall not fear,” is applicable in all facets of life. The better prepared the leader; the easier it is to get others to follow. Surround yourself with people who will insure you are prepared with the best information and analysis available, not what you want to hear. Insure you have a personal development program that makes learning a life-long pursuit. Never rest, thinking you know it all.

17. Do the right thing…always. It may not be pleasant or easy, but your reputation for integrity is more important than present discomfort.

18. If things are not going right, it may require a radical change to make it right. Don’t be afraid of change. Change for the sake of change, however, is just a gimmick. If you must change, make sure you are making calculated changes with an effect in mind.

19. Emotional control is critical to consistent success. Controlled anger may be an an acceptable strategy to get things done. The imperative, however, is to be in control. In most circumstances, a little honey may be the better strategy. Emotional control allows the effective leader to make choices based on mission accomplishment and not on the whim of the moment. A leader who does not have control of his/her emotions confuses others and expends, unnecessarily, energy in trying to deal with a leader’s temperament of the moment rather than accomplishing the mission at hand.

20. Vision is the indispensable element of leadership. Being able to see around, under and above obstacles is critical to keeping teams on track. Good leadership requires that leaders constantly look around the corner even in the face of tactical problems of the moment that tend to distract. The leader must always be holding the flag high so that others can follow.

Food Technology Companies Urged to Apply to Present at the Premier Food Technology Investor Forum

As many of you know, a few years ago I founded a group that conducts an angel and venture capital forum for the food industry. Each year we select approximately 25 promising food companies to make a ten minute presentation to investors interested in the food space. To the best of our knowledge, this is the only investor forum focused exclusively on the food industry in the United States.

What we are particularly interested in are companies with transformative technologies in food production, processing, safety or distribution.

These technologies should significantly impact the industry in one of five ways:
• increase food production on same number of acres;
• significantly increase the nutritional value of basic foods to the world at the same or lower cost;
• significantly increase the safety of the world food supply;
• allow for the production, processing of our global food needs with significantly less environmental impact and/or energy consumption, or;
• logistic solutions that improve the safe deliver of nutritional foods to the worlds remote areas that are most critically in need.

The conference is held in Iowa in the fall of each year but as anyone who has been involved in event planning knows, the process is continual. We are beginning the process right now of soliciting companies wishing to present to the potential investors. The conference is aptly named the American Food Venture Forum because it is truly Pan American. In the past two years we have had company applications from Canada, Bolivia, Paraguay and twenty-one U.S. States. Last year’s conference featured presenting companies from as far away as Montreal, San Francisco and New York. Investors have been well represented as well from eight different states, including New York and California.

If you are interested in presenting, or know of companies that might be interested please contact me at entrepreneurialadvisor@live.com or go to our website www.foodventureforum.com. This is a juried event where applicants are evaluated relative to others applying. Last year approximately 50% of those applying were invited to make presentations. Thank you.

A Vision Beyond Virtual - Entrepreneurship.org

A Vision Beyond Virtual - Entrepreneurship.org

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Professional Answers to Your Questions (A Bit of Self Promotion)

Have you recently started a business? Do you have questions? Do these questions sound familiar?

How do I write a business plan that will get a lender or investors attention?
How do I create a financial model or financial projections that mean something?
How should I sell my product, direct, through distributors, on-line VARs or manufacturer’s reps?
Who should I hire first, second and third?
Who can I trust?
I have a business plan but how do I implement it?
How do I market my product with little cash?
How should I price my product?
How big is my market, is it growing or declining?
When and how should I role out my product?
I have a good product but how do I best brand it?

There are dozen more questions like this depending upon the stage of your small business. Each of these questions has a different answer and each take a different amount of time depending upon the situation. That’s why canned programs by so called business consultants don’t work. There are thousands of people hawking their “method” to answer any number of these questions. I have seen promotions where someone will write you a business plan for $1,000 and others that will provide a better one for $5,000. One size fits all! What if you’re the company that needs a $5,000 plan but buys the $1,000 one? Or perhaps you have a simple business that could get a good business plan for $3,000 but pays $5,000. Marketing plans, patent searches, and financial models at a “one price fits all” rate are really “one price fits none.”

I am not saying that the price needs to be open ended or based on an hourly rate. We at Entrepreneurial Advisors will visit with you to determine what is needed and then quote a price. Each client is special and each engagement is customized to meet the needs of the particular business. If you have questions or just need assistance sorting things out. Even if you know what to do but do not have the time or expertise to complete the task, give us a chance to talk with you. The initial meeting or call is always free and we can usually work out a plan if you need to pay over time. We won’t always have the answers and we won’t attempt to do work that is better completed by an attorney or CPA but we can many times refer you these resources. Even if your questions are what fork to use at an important dinner or what to wear to a fund raising gala we can help or find someone who can.

We can be reached at entrepreneurialadvisor@live.com, or leave contact info in the comment section below or on our Facebook page. Thank you.

Projecting Sales, One Customer at a Time

I was reading an article today by Jay Conrad Levinson, the Author of “Guerrilla Marketing” and over a dozen other “guerrilla” business books, when it struck me that he was approaching sales the same way I had been advising entrepreneurs to approach sales projections in their financial pro forma.

In his article, Mr. Levinson said, "There is no need to hit a home run the first time your at bat. A single will do, then another single, then another, one following each other, none grandiose, but all bringing you closer to your goal."

So many people want to approach sales projections in a business plan pro forma by finding out the size of the market and projecting they will capture what to them seems like a reasonable share of that market. The problem is, business doesn’t work that way. It is extremely unlikely that one will get 5% of the market. In order to succeed long term in most markets you must be market leader meaning that 5% percent is not enough. To do this you must have a superior product and model comapred to that of the competition and then you're likely to get anywhere from 20%-50% of the market but not 5 percent. It’s possible to stay small and under the radar of the major competitors but then you are likely to have only a fraction of that 5% market share. All of this is academic anyway because picking a percent of the market as your sales projection is a formula for not meeting, let alone exceeding projections.

Another approach inexperienced entrepreneurs use is to decide they will slay the giant. It goes something like this; “If we could just get our cough syrup into all the Walgreen’s in the country we would be $100 million revenue company.” But you won’t, at least not for several years!

When well run, established companies forecast sales they use a pipeline approach. In other words, they look at what is in their pipeline, what the chances are of closing each lead or prospect in that pipeline and how long it will take to close each deal. Farther out they look at niches they would like to penetrate, who the players are in that niche and how and when they will approach each of them. In other words, they build their forecast one single at a time. They don’t decide that next year they will supply Honda with all their transmissions or get the contract for 100% of Home Depot’s lumber needs.

Pro forma sales projections should be approached the same way that the established company approaches next year’s sales – one customer at a time. First look at your products position in the market. Is it high end, low end or somewhere in between? Secondly, who needs your product the most? Which of these companies are most likely to give you an audience? Should you start with local customers and work your way into regional, then national sales, or is it necessary to go national immediately? Who will you approach first, how long do you think it will take to close (add a couple of months to that) and what is the likelihood that you will close the deal. Who’s the second customer you wish to approach, “then another, one following each other, none grandiose, but all bringing you closer to your goal."

Is Food Production the Biggest Challenge of The Next 25 Years?

The estimated world population at 10:00 a.m. CST, February 5, 2010 is roughly 6.8 Trillion by most projections. It has increased more than two and a half times from the 2.5 billion humans on earth in 1950. During that 60 years, we relied on genetic improvements, more effective pesticides, herbicides and fertilizers and improved land production practices. We also put millions of acres of once natural forests, prairies and wetlands through clearing and draining projects.

This came at a huge future cost to the environment. Dr. Jeffrey Sachs, Director of the Earth Institute at Columbia University may have put it best when giving his presentation to the World Food Prize’s Norman E. Borlaug International Symposium. He stated and I quote:


“It (the food industry) is the number-one sector of greenhouse-gas emissions in the world. This is because around 18 percent of greenhouse-gas emissions come from clearing rain forest and other forest for pastureland and cropland. And roughly another 12-15 percent reflect the carbon dioxide of fossil-fuel use in food production, the methane from our rice paddies and livestock, and the nitrous oxides that come from the now more than 100 million tons of nitrogen-based fertilizers, which we absolutely need to feed the planet but which have fundamentally altered the nitrogen flux and are a major independent source of greenhouse gas forcings….

What food does is pervasive in terms of its anthropogenic impacts. The food question is the number-one driver of habitat loss for other species. And there’s hardly a class of species around the world that is not suffering a significant decline of abundance because its habitat is being taken by humanity for the purpose, essentially, of feeding ourselves.

Water stress I’ve already mentioned; [it’s] multifaceted, whether it’s the 50 or 60 thousand dams on major rivers around the world, whether it’s the groundwater depletion, whether it’s the evanescent use of glacier melt, which will no longer be available in 40 or 50 years. This is essentially the key input, of course, to food production. And the food sector, to put it conversely, is by far the leading consumer of freshwater around the world.

The food industry is the source of the nitrogen and phosphorous loading that affects what we know in the Mississippi and in the Gulf of Mexico as the dead zone. But now science has shown that [there are] about 130 significant hypoxic zones in estuaries on virtually every populated river system around the world.”


We cannot continue business as usual. Most population projections estimate that there will be 9 trillion human inhabitants sometime between 2040 and 2050! This is another 2.2 trillion mouths to feed with very little quality land remaining to clear or otherwise make fit for agricultural production, most of this population in undeveloped or developing countries. It also means that while those that can afford natural, organic and local foods can opt for them, it is not the solution to our growing food demand. It would of course help the stress on food production if we all ate less meat, but that by itself is not enough.

Of course, like all major problems there are incredible opportunities. The world will need even better genetics, more environmentally friendly pesticides, herbicides and fertilizers and lower impact farming practices. This will all need to be done in a relatively short time period by scientific standards, probably in the next twenty years. Those that can discover and commercialize these opportunities in a timely manner stand to make millions of dollars.

I believe that at some point the angel and venture community will see the opportunity in agricultural and food technology industry and begin focusing on it. Those that do it sooner than later will be the big winners. What is your perspective?

Not Such a Good Idea.

Have you ever had what seemed to be great idea, but the more you looked into it the dumber it became. That happened to me this week for my blog topic. I finally decided to trash the idea, but then what to write about? How about assessing whether an idea warrants further investigation or action?

Nearly, 25 years ago I had a boss that said to me, "I can come up with 100 ideas a week. Your job is to tell me which one of those 100 are good." Nineteen years ago I began a career in venture capital. During that nineteen years I have often thought of that former mentor's words. That is much of what I did in those nineteen years. The task is much more difficult than it seems. Interestingly most successful venture capital firms invest in about one idea for each 100 they see.

There are all sorts of checklists, rules of thumb and and models that one can and should use to help deteremine which deals are viable. But this only gets you so far. Certainly, out of 100 deals there are 5-10 that have a chance - probably two or three that are about the same quality. How do decide between these? Unfortunately, I don't believe it's taught. Life's experiences teach you that certain people you can trust and others you cannot or who is going to work their tail off and who will turn tail and run.

Those same experiences teach you that certain types of business are much more difficult to pull off than others or that certain things must be in place before an investment is made. It teaches you that even though you can take advantage of situation you shouldn't. It will usually come back to bite you in the rear.

Finally, and perhaps most importantly you learn that there is a time to admit your mistakes and stop putting good money after bad or investing valuable time. Usually, the first time you wonder whether something is going to work is the time to get out. Most of us have to much ego to make that decision at that time, trying to save the investment or project instead.

I'm sure glad I decided not to write about that initial topic, but like most, I waited until the last possible minute. That's why I am writing this at 3:00 p.m. Friday. Live and learn.

2010 State of Entrepreneurship Address

2010 State of Entrepreneurship Address

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Is Time More Important to an Entrepreneur?

My 9:00 a.m. meeting was postponed for a few hours due to icy roads all between Omaha and Des Moines. This gives me an opportunity to write my weekly blog. How often when we get unexpected free time do we wile it away on less productive activities? I know I do it far too often. In many cases this is ok after all we all need some down time.

Over the years, one thing I have observed about successful entrepreneur is that they nearly always use these little segments of “found” time to accomplish something that might otherwise go undone. I’m not sure whether this trait is due to the enormous number of tasks they have on their “to do” list, whether it’s that most are ADHD and can’t stand the calm or some other personality trait.

It’s not that they don’t allow for down time, but they schedule the downtime for family and friends, for exercise or for reading. So many have told me, “Oh, I don’t watch TV.” or “I don’t have time for video games or chat rooms.” From a mental health standpoint perhaps it’s better to have an hour or two in front of the “boob tube” or tweeting. I just know successful entrepreneurs just don’t. Instead they jump into action.

I think part of it is that they love to do many of us hate. They love the challenge of e making that cold call. They aren’t dissuaded by rejection because they know they are right and will prevail, whether or not they truly are. They hate the boredom of keeping books or developing policy. They are after all entrepreneurs, not administrators.

They are a combination of dreamer and doer. Too many of us are one or the other. Not that the combination of doer and dreamer is enough. There must be a balance of passion and discipline. There must be some business knowledge and a willingness to take risk. It appears to me that perhaps there must also be a feeling of urgency - A feeling that every second must be optimized. Do you have this trait? Is it absolutely necessary to be successful? Let me know what you think.

Does My Business Need to Be Concerned with Intellectual Property Issues?

Many companies that are not technology driven believe they have no reason to be concerned with intellectual property matters. After all, their product cannot be patented or copyrighted. But is your product the only thing that needs protection? Aren’t there other types of intellectual property? What about user manuals? Should they be copyrighted? Do you need to protect infringement of something written in your newsletter or some other publication? And what happens if one of your employees plagiarizes when publishing something under the company’s name? These things may seem trivial but have tripped up companies in the past.

One of the most overlooked types intellectual property is that involved with branding. Most business people know that trademarks can be registered to protect a company’s brand but many do not bother registering their own name or logo. I would also, be willing to bet that most small businesses have no idea of the extent of registered “marks”. Not only are there trade marks, but service marks, color marks and collective marks. For instance, Caterpillar Yellow and John Deere Green are registered as part of their intellectual property portfolio.

For years, Waukee Community Schools in Iowa was using a “W” on all of there athletic uniforms, school promotional clothing and publications. A few years ago they, along with other schools were ordered to discontinue use of that particular “W” design or face legal action by the University of Wisconsin, even though it was purple not red, as is Wisconsin’s. You see the University of Wisconsin had registered that particular “W” design as a logo, regardless of color.

Some businesses that have protected the intellectual property in their product forget that they have other property to protect. I was on the board of directors of a software company about ten year ago. This company had many registered copyrights on its software algorithms. One day in a board meeting the President stated that a competing company was infringing on the brand name of our primary product line. When I asked whether we had registered the trademark, he replied, “No, they actually have it registered.” Guess what, we were the infringing party.

Finally, many companies have intellectual property that cannot be registered such as trade secrets and confidential information. This property may not have the protection of a patent, copyright or trademark, but it may have some limited legal protection depending on measures taken by the company to keep it out of other’s hands. If you have a secret recipe or a confidential customer list, you may need to understand what safeguards should be taken to protect this information.

I am not an attorney and would never opine on whether your company has intellectual property or needs an intellectual property attorney. I have served on over a dozen company boards and have seen companies caught with their pants down. I do think it is prudent for any business that has a question about intellectual property to speak to a qualified attorney about your particular situation.

What is Your Definition of an Entrepreneur?

I have been working with two groups lately. One is a group of entrepreneurs in a metropolitan area and the other a group of small business service providers in a non-metropolitan area. Both need to define the term entrepreneur, in order to move forward with future initiatives.

Having taught entrepreneurial finance at the college level, I have nearly a dozen definitions dating back to the 18th century and evolving to the 21st century - Most developed by economists and finance professors. These definitions refer to innovation or creation of something new. They mention redirecting resources in a different manner. Words like visionary, risk taker, barriers to entry, opportunity and uncertainty are often used. The popular press seems to have a much broader definition, many times using it interchangeably with any small business owner. Others see the definition as somewhere in between.

I certainly don’t believe that all small business owners are entrepreneurs. Is the son or daughter who inherited a clothing store, manufacturing facility or restaurant from their parents, an entrepreneur? Is the person that decides to build a convenience store at a busy intersection where two others already exist, an entrepreneur? I would argue no. But, what about someone one who starts the same type of business in a community of 2,000 people where no one has tried it before? Does it depend on the circumstance – on the location?

I believe that if we are going to promote entrepreneurism in rural or even small urban areas we must use a broader term than that used in Boston, San Francisco or even Madison, Wisconsin. For those, like myself that have seen hundreds, if not thousands of business proposals it may be similar to Justice Potter Stewarts’ definition of Pornography, he stated in a Supreme Court decision, “I shall not today attempt further to define the kinds of material I understand to be embraced within that shorthand description ["hard-core pornography"]; and perhaps I could never succeed in intelligibly doing so. But I know it when I see it….” Just like those that have seen hundreds of business plans, Justice Stewart had seen his share of pornography. You see, Stewart was a Navy lieutenant during World War II. He was the watch officer for his ship that was based in Casablanca. He had seen volumes of locally produced pornography brought back by the ship’s crew and knew the difference between the hardest of hard core pornography and that which may be slightly offensive to some. He called it his “Casablanca Test."

But if we use a “Casablanca Test” for the definition of an entrepreneur we are apt to be criticized as Justice Stewart was, as being too vague. We need to have a workable definition for all those that don’t know it when they see it. We need a workable definition yet quantifiable. Maybe it’s several definitions. I’m not sure what it is. So, I would like to hear your definition of an entrepreneur. Please comment below.

Entrepreneurial Advisor: A Cautionary Tale About Partnership - Entrepreneurship.org

Entrepreneurial Advisor: A Cautionary Tale About Partnership - Entrepreneurship.org

A Cautionary Tale About Partnership - Entrepreneurship.org

A Cautionary Tale About Partnership - Entrepreneurship.org

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