Entrepreneurship is no easy business

By MINDY POEHL | Central Texas Edition

Gerald Popp, vice president of Extraco Banks, spoke about business plans and financial statements at the entrepreneurship conference at the Waco Convention Center. -- Photo by Mindy Poehl

Jan. 27, 2005 - Are you interested in being an entrepreneur? Many people have great ideas of beginning their own small business, but making that idea a reality can be difficult. On Wednesday, Jan. 19, a workshop focusing on entrepreneurship and agricultural identification was held in conjunction with the 43rd Blackland Income and Growth Conference at the Waco Convention Center.

The objective of the conference was to provide information, necessary tools and techniques, and access to resource specialists and support.

Leo Sullivan, a business development specialist with the Small Business Development Center at McLennan Community College, spoke about "marketing for success."

When choosing a business, Sullivan said, "There are a lot of ideas, but in reality there are not a lot of new ideas."

When promoting your business, use word of mouth in terms of promotion, Sullivan said. Spend plenty of time spreading the word. Also, look at your competition and see what you can do to make your business better.

"See what others in a similar business are doing," Sullivan said. "You need to understand your market and remember, nothing happens until the sale takes place and you're getting paid for it."

You need to understand your strengths and weaknesses. "Augment the down season with other opportunities," Sullivan explained. "There are opportunities to overcome weaknesses."

He stressed to not be afraid to promote events, and use local newspapers and news stations.

"Everything you do affects the value signals of the business," Sullivan concluded.

Gerald Popp, executive vice president of Extraco Banks of Gatesville spoke about "where is the money." You must ask yourself 20 questions or more, including who, what, when, where and why, Popp said. Ask yourself how are you proposing to finance this venture?

The easiest thing you can do to get a loan is to take care of your credit score, Popp emphasized. You also must have financial statements and business plans ready.

"Today, there's not as much handholding in banking as there was 20 years ago," Popp said. "We're not quite the venture capitalist anymore."

You must ask yourself why are you taking this risk. Will it affect your wealth, health or marriage?

"If you need to get somewhere fast, you should probably get a professional," Popp advised. "But, you can learn by trial and error at first."

Popp summarized with the many resources that are available to help with businesses: internet, bankers, small business administration, small business development center, FSA, Chamber of Commerce and a mentor.

Popp's motto is "Fail to plan- plan to fail."

Golda Eldridge, director of the Small Business Development Center at McLennan Community College, spoke about business plans.

"Remember, the definition of an entrepreneur is one who takes risks," Eldridge said. "A business plan consists of three C's."

Concept: Why do you want to go into business? What industry are you in? Who are you? Customers: Who are they? What are they buying? Is there a market for them? Capitol: How much do I need? Where is the money going to come from? What is this money going to produce?

Those are all questions your business plan must address the answers to, Eldridge explained.

Dr. Judon Fambrough, senior lecturer and attorney with the Texas Real Estate Center at Texas A&M University, said real estate and landowner liability is often a factor for entrepeneurs.

He said the liability to persons injured on company property depends on legal classifications. There are four common law classifications.

1) Invitees: These are economic visitors or fee paying guests.

"You don't guarantee safety on your property," Fambrough said.

2) Licensees: These consist of social guests or those who are permitted to enter, stay or recreate without paying.

"You don't have to warn about indigenous species," Fambrough said.

He then told about a court case in which a man went hunting on property around San Antonio. He was laying on the ground setting up his equipment when he was stung by fire ants. This man was allergic to fire ants and he died two weeks later. His wife sued the landowner and the court ruled in favor of the wife, saying the man was not warned about the fire ants. Fambrough said the mistake the court made in the ruling of the case was that fire ants are not indigenous.

3) Trespassers: Those who have no permission to enter.

4) Children: Those who are unaccompanied by an adult, and this follows under the Attractive Nuisance Doctrine (AND).

Fambrough said to get waivers for property use. Waivers are save-and-hold harmless agreements and they are not affective for minors, even from parents, he added. Waivers warn of dangerous conditions, releases the owner from liability and secures permission to use images and testimonial for promotion.