Q & A WITH: John Hayek, Southern Tier Opportunity Coalition
10/20/2008 (Source: Southern Tier Business News)

Tier Opportunity Coalition, an academic/private sector partnership for the region's economic growth, recently held an "Entrepreneurs Table" at Binghamton University featuring a panel of local business owners discussing what it takes to succeed as entrepreneurs. Here, STOC Executive Director John Hayek elaborates on the importance of their efforts to the local economy.

Question: How do entrepreneurs help boost the Binghamton-area economy? Why is their work important?

Answer: Many studies have been published concluding that small business will be the future of the American economy in the 21st century. Greater Binghamton is rich in technology, and tech-based entrepreneurs bring quality jobs and consumer spending to our region. The "trickle down" of their spending benefits our economy many times over.

Q: What characteristics help define the "right stuff" for a budding entrepreneur and a lasting business?

A: A successful entrepreneur is someone with a passion for their idea, fully committed to making it successful and has a "whatever-it-takes" attitude toward bringing it to fruition. He or she embodies the "three C's" of small business: competence, credibility and confidence. Successful entrepreneurs invest a tremendous amount of "sweat equity" in bringing their idea to reality, and an even higher level of determination when they face adversity. Everyone associated with the business — from vendors to customers to investors — wants to see evidence of the owner's personal commitment to the business.

Q: What is the best preparation for entrepreneurship?

A: Successful entrepreneurs come from all walks of life and all educational backgrounds, as do great business ideas. STOC has seen ideas ranging from very simple yet unique ideas coming from a home-based hobby to the highly complex university-based inventions based on the latest scientific knowledge. Experience in the field of endeavor is often critical, as is a network of individuals who are able to support the idea as it is developed. Find an organization like STOC that offers valuable local contacts and experienced, passionate people who can support you as you develop your idea. Build a network and be willing to ask it for help.

Q: How does one develop an idea and then turn it into a business?

A: "Test" your idea with potential customers and truly listen to their input. Use marketing research with your customers and competitive research through services like www.hoovers.com. Ask why someone would want to buy your product or service, and then ask why they would want to buy it from you. Develop strong partners as both suppliers/vendors and distribution channels. Properly developed, your customer can be your best friend and will take care of you.

When you have adequately developed your thinking, commit it to writing in the form of a business plan. This will act as your "roadmap," providing you with focused direction and a plan you can present to investors when seeking their commitment. There is no replacement for a well developed business plan, and experience has shown time and again that your likelihood of success is much higher with a well written plan in place.

Q: What tools are available locally to help entrepreneurs start and then grow their businesses?

A: Greater Binghamton is rich in support resources. We have excellent organizations available to help with business planning, specifically the Small Business Development Center (SBDC) and the Service Corps of Retired Executives (SCORE). We have excellent local intellectual property (patent and trademark) lawyers, and valuable educational resources in BU, Broome Community College and Empire State College (based regionally in Syracuse). Financially, STOC has established an Angel Investment Network to help fund qualified entrepreneurs (generally in exchange for some degree of equity or debt from the business). Our local, state and federal governments may have grants and other financial incentives available. STOC performs a valuable role as a conduit, answering entrepreneurial questions and directing them to the best resources.

Q: What are some mistakes to avoid?

A: You must be committed and prepared. While an idea may start as a hobby, it is unlikely you will be able to commercialize it without a major commitment of your own personal resources (time and money). If you are unwilling to take the risks associated with such a commitment, you may wish to reconsider moving forward.

Develop a written business plan (take advantage of the free services of the SBDC and SCORE). We see individuals regularly who have the idea "in their head" but fail because they have not taken the time to assess the market, analyze the competition, establish sales and marketing strategies and develop financial projections. The plan can and should change over time but without it, your probability of success is significantly reduced.

Your people are your most important asset. As Jim Collins said in "Good to Great," get the right people on the bus and, equally important, get the wrong people off the bus.

Finally, be willing to recognize — and admit — when you are wrong. When persistence turns to hope, redirect.

—Compiled by My-Ly Nguyen

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