News Release
For Immediate Release — December 21, 2011
Resolutions for Entrepreneurs in 2012
KNOXVILLE, Tenn. — Financial gurus, political candidates, and just about everyone in between seek reliable forecasts and predictions for 2012. Small business owners and potential entrepreneurs are no exception.
In Tennessee, some indicators confirm that the state fosters a ‘business-friendly’ environment: the state is ranked ninth in the latest Kauffman Index of Entrepreneurial Activity and third in percent change in the Index between 1998 and 2010. The state is also ranked ninth in the Small Business and Entrepreneurship Council’s Small Business Survival Index 2011. The introduction of business initiatives such as Start-Up Tennessee, Jobs4TN and Creating a Rural Entrepreneurial System in Tennessee (CREST) also point to a favorable environment for entrepreneurs.
University of Tennessee Extension rural business development specialist Michael Wilcox and his collaborator Elena Hacker, a small business owner from South Carolina, say entrepreneurs should take advantage of the favorable climate and combine 2012 resolutions with some well thought out reflections on 2011, especially regarding what worked and what didn’t in the business.
Wilcox says despite improving business climates, end-of-the year reflection is an important planning tool for business success. “Entrepreneurs need to plan for success. They need to ask themselves key questions and answer them honestly.”
Wilcox and Hacker offer these basic, tried and true ground rules for entrepreneurs to consider:
1. Follow your passion.
If there is one thing successful entrepreneurs do not lack, it is passion. Wilcox says the passion can be directed at the idea/innovation or simply at the ‘game’ of trying to bring the seed of an idea to fruition. “If you aren’t passionate about what you are doing, why spend the 60-80 hours out of your week to pursue your goal?” he asks. Wilcox recommends using your passion to focus your perspective, particularly during those difficult long hours when you start to ask the question ‘Why do this?’
2. Identify opportunities that are ahead of the trend and have long-term dividends.
Many beginning entrepreneurs work under unrealistic timelines. Being innovative means that there will be unanticipated setbacks and challenges, and the ultimate benefits of commercialization may not accrue instantaneously. Patience and determination are key characteristics during setbacks. Wilcox and Hacker recommend having a short-, medium- and long-term strategy (along with measurable outcomes!) to provide a clearer picture of where you want to go, by when and how you’ll know you’ve arrived.
3. Get trained.
You may have a business/marketing background and the “piece of paper” to back it up, but is your aptitude and current skill set appropriate for the task at hand? Taking advantage of opportunities to hone your skills (on-the-job training, internships, additional schooling, etc.) can make the difference and help you avoid obstacles as your idea or business develops.
4. Take calculated risks.
For entrepreneurs, financial risk is likely foremost in their minds, as starting/expanding a business is inherently risky. “Simply quitting your current job or plowing your life savings into an unproven venture often does not make sense,” Wilcox relates. “Successful entrepreneurs take thoughtful steps to manage or even prevent risk by coupling the proper planning horizon with an honest assessment of the demand for your product/service, and with the necessary amounts of time and money needed to bring it to market.”
5. Know the rules.
Entrepreneurs can find themselves in a position where product or market development may stall due to regulatory issues. Knowing the rules and finding the most efficient (and legal!) way to comply can avoid headaches later on.
6. Get free help.
“Remember, as a business owner you are not on an island,” says Hacker. She endorses peer-to-peer networks, visiting your local Small Business Development Center or attending a training hosted by a university’s extension office. “Keep in mind you are not alone. Others have, as they say, ‘been there, done that,’ so take advantage and ask questions!” she says.
7. Do the right thing…and stick to it.
Local. Sustainable. Fair. Organic. Affordable. Philanthropic. Responsible. Whatever moniker you choose, the Golden Rule is not inherently naïve; it is good business sense. Hacker stresses that entrepreneurs need to be mindful of their business practices because consistency is crucial. “If you change your focus, how will that appear to your customer base and affect your reputation?” she asks. “As long as you believe in it and stand by it, your customers will trust your ‘it’, and that may lead to a prosperous future.”
8. Know your personal strengths and be yourself.
As much as you try, you cannot be everything and do everything for your business. Carve out your niche and stay true to who you are and what motivated you in the first place. Wilcox adds, “It may be a cliché, but the seas are rough out there and trying to be or do too much will essentially leave you rudderless.”
9. Stay true to your vision.
Does it make sense to expand right now? Do you want your business to be ‘that big’? Is this new product or service a diversion or a logical component of your portfolio? When answering these questions, Wilcox reminds entrepreneurs not to ignore the basic philosophical underpinnings of their business or business concept.
10. Go at the right pace.
The life-cycle of a business is not as predictable as the textbooks make it out to be. Going too fast rather than proving your business concept may mean living out the life-cycle of your business prematurely. Wilcox and Hacker recommend thorough market testing and development with low or no overhead before scaling up business plans.
Like all “New Year’s Resolutions” these ground rules may seem to be fraught with common sense, but Wilcox and Hacker both say those owners who take the time to reflect on these ten important points may avoid some of the most common pitfalls for new and existing businesses.
###
UT Extension operates in each of Tennessee’s 95 counties as the off-campus division of the UT Institute of Agriculture. An educational and outreach organization funded by federal, state and local governments, UT Extension, in cooperation with Tennessee State University, brings research-based information about agriculture, family and consumer sciences, youth, and community development to the people of Tennessee where they live and work.
###
Contacts:
Dr. Michael D. Wilcox Jr., Assistant Professor, Department of Agricultural and Resource Economics, mwilcox2@utk.edu
Ms. Elena Hacker, Co-owner of EVO Pizzeria in North Charleston and Practice Manager of Maybank Animal Hospital in Charleston, South Carolina, elena@evopizza.com