Entrepreneurial Forum

Highlights from Entrepreneurial Forum
Presented by: IDC and JOBS 2020
October 23, 2003
Sawmill Inn, Grand Rapids

Panelists: Mary Mathews, President of the Northeast Entrepreneurial Fund, Drew Prochazka, owner of Rapids Rental & Supply and Derek Vekich owner of Colonial Castings.

Keynote speaker: Alan Klapmeier, co-founder and CEO of Cirrus Design Corporation.

The Entrepreneurial forum held October 23rd was the tenth in a series of JOBS 2020 forums designed to help the community form a common vision for the future of the Itasca region. Panelist Mary Mathews was invited to share her expertise on rural entrepreneurships. New business owners Drew Prochazka and Derek Vekich were asked to tell the story of their business start-up experiences and share some of the hurdles and obstacles they faced.

Observations from the Entrepreneurial Fund – Mary Mathews

• In the past we functioned much like company towns – we raised and educated our children and helped them get good jobs in mining and timber companies. We thought of ourselves as employees, rather than employers.
• Mining and timber industries are still primary employers but we must build other options to diversify and strengthen our economy.
• Entrepreneurship is a critical element in reshaping the region’s economy.
• Locally owned businesses bring economic decision making back into the region and provide opportunity for people to make their own decisions and have more control over their economic future.
• In most cases, successful Minnesota entrepreneurs started and grew their businesses with little fanfare or notice until many years later when they became “an overnight sensation”!
• Minnesota used to be home to many top 500 corporations. Many have moved. Mary Mathews suggested that it is less about our tax structure than it is about the fact that Minnesota has rested on its laurels and not focusied enough time and attention on new business growth. Policies that acknowledge and support new business growth and entrepreneurship must be created.
• There are two extremes in economic development strategies – one puts all energy into recruiting a big box, the other creates an environment that fosters local business growth. One looks for outside business interest to solve the problem, the other looks primarily within. The reality is that a community needs to do both.
• Facts: As of 2000 census there are: 3,349 self-employment and micro businesses in Itasca County; 2,910 people are self-employed and the rest are businesses with 4 or fewer employees. Those entrepreneurs and their employees constitute 18.7% of the county’s workforce.
• There are no dumb business ideas – every idea has potential for the right person, in the right market, at the right time.

New Business Recommendations/Challenges – Drew Prochazka and Derek Vekich

• Must be willing to do your homework – site surveys, workforce availability, business plan, etc.
• Along with the drive to succeed, entrepreneurs need to love what they do
• Read and study anything available to help you understand the challenges of running a business – talk to fellow entrepreneurs, form networks
• Keep eyes and mind open for opportunities
• Remain determined – don’t accept “no”; keep trying

Trends:

• Grand Rapids is a growing, thriving town. City government and community are business friendly and supportive
• More business is being done with China- it is important to understand that trend, it allows small companies to compete with larger companies.

Options:

• Following a devastating fire at Colonial Castings, business had to learn to outsource more and become more efficient
• Acquire available businesses that add value whenever possible – a key to growth
• Go outside the box to find funding sources
• Get help from the Small Business Development Center

Need from the Community:

• Continued support for local businesses – big and small
• Community should offer assistance and remain pro-active
• Continued support from Iron Range Resources and IDC’s Small Business Development Center
• Need a more active support network for young entrepreneurs and/or a mentoring program

Keynote Address: Keynote speaker was Alan Klapmeier, co-founder and CEO or Cirrus Design Corporation. Cirrus Design, based in Duluth, Minnesota began mass-producing its small planes in 1999. Today Cirrus is the world’s second largest manufacturer of a single engine general aviation aircraft. Cirrus currently has over 800 employees.

Alan Klapmeier told the audience that in order to be successful in business you have to ask “Do I have a customer who will actually pay me for a product or service that I can deliver for a profit?”

Elements for success include:

1. Have the right team (motivated, supportive individuals)
   
2. Work with the regulatory authorities
   
3. Capital – it is always a challenge to raise the necessary capital, be innovative
   
4. Have a passion for what you are doing and believe in it
   
5. Be willing to take risks
   
6. Supportive environment
   
7. Loyal customer base
   
8. Continually look for ways to improve your product
   

Along with an alluring lifestyle, a friendly, supportive community environment led by accommodating economic development leaders is what many business owners are looking for in their location decisions. A capital formation process is also vital to the growth of the economy.

Klapmeier reminded the audience of young and old entrepreneurs that failure is something you learn from and is an essential element for success . Entrepreneurship can’t be taught, but it can be learned. “You have to be dumb enough to start, and smart enough to finish”.