What it really means to be an entrepreneur: it isn’t easy, or safe

Last week was the 5th year anniversary of starting the Wise Economy Workshop– my second foray into entrepreneurship and my first that didn’t stem from a lack of conventional opportunities (meaning, this time I chose this path because I wanted to). Normally, that’s a cause for celebration, or at least a Facebook announcement to solicit some of those “Like” clicks that make you feel good even though you know they don’t mean all that much.

But I didn’t.  I said to myself that I had been too busy, too tired.  Too something.

But the fact of the matter is, at that moment it didn’t feel like much of a thing to celebrate. what success looks like

My business is in the middle of a pivot, a repositioning of what I do and what I offer. I added book publishing and sales, promoted myself as a speaker, built partnerships, tried to figure out ways to make money doing this work that can supplement the fee-for-services consulting that I have done for over 20 years.  From an income perspective, the consulting life can sometimes feel like a particularly nauseating roller coaster, and I wanted to even out some of the plunges.

Pivots are hard. Maybe harder than even a supposed small business economic development expert realized.  And certainly harder than then game plan I laid out a year ago looked like.

Entrepreneurship is hard.  Am I doing the right thing?  Can I trust that potential partner? What do my customers want? Do they know what they really want? (You’re supposed to ask them, but sometimes the answer they give you isn’t clear at all).

Entrepreneurship is scary.  Can I pay that bill?  What happens if I put that one off?  How the hell am I going to pay for (fill in the blank)? What happens if…

Entrepreneurship is tiring.  I finished this, but now that is overdue.  The list never, ever ends.  And the amount to do and the people and time you have almost never match up neatly, whether you’re on your own or managing employees. There is overwhelm and there is famine, and sometimes not much in between.

Entrepreneurship is risky.  What am I giving up? What do I lose, do others lose, if I fail?  We like to believe that anything is possible if you try hard enough.  But a high proportion of small businesses in every field fail to see the five birthday milestone that my business has somehow stumbled across.

And entrepreneurship is lonely.  You have to make the decisions. You have to put on the success mask, even when you might not feel so successful today.  You can’t admit to what’s not working, what you’re scared of, the wolf that seems to pace constantly just outside your well-painted door.  Even to your spouse, your partner, your friend, sometimes. They aren’t in your shoes, and trying to show them the dark places might scare them off.   There’s some evidence of a higher than average rate of depression among tech startup founders.  I would not be surprised if that trend covered a much broader small business population.

I’ve put a lot of thought lately into whether we as communities are really doing the right things to foster small businesses and entrepreneurs–and whether we aren’t unintentionally setting too many of them up for ugly and damaging failures.  Should we tell a poor person, a young person, a retired person that they can be an entrepreneur if they just want to enough, when they may lack personal savings, family support, mentoring, and more?

What do the entrepreneurs that our community really needv– needs that we aren’t seeing because we’re allowing us to be satisfied with feel-good stories, and not truly trying to understand?

How many of our entrepreneurship success stories actually end as a small scale tragedies, with failure lost savings, broken relationships, a deeper slide into the personal and community hopelessness that the “you can do it!!!!” of entrepreneurship was supposed to overcome…

Chances are we stopped looking shortly after the happy ribbon cutting, so we don’t find out.

We probably can’t avoid entrepreneurship failures – it’s part of the deal you accept when you start a business.  My suspicion is that we’re not doing enough.

But not asking the question, not paying attention to the full range of issues that differentiate successes from failures, and insisting that faith in yourself is all you need, you can do it if you just try hard enough…

I am pretty sure now that this is not enough.

If entrepreneurship matters, if healthy small businesses matter, if local ownership and investment matter, if economic opportunity for the historically disadvantaged through self-employment and minority-owned small business matter,  then singing our favorite songs from Sesame Street while tossing around a little money and some how-to-start-a-business classes is not enough. Nowhere near enough.

And that’s not a plea for more money.  The answers to small businesses’  needs are not all found in a pitch prize or a program grant.  And money without a sound underpinning can make the fall only that much harder if and when it comes.

I’m in an ideal situation.  I have a business with low costs, plenty of education, a household such that we will not starve when I have a bad month, good health insurance, a good credit score, friends, family… Not to mention a huge ego and an abnormal level of self-assurance.

And even with all those considerable advantages, I have bad months.  I struggle. I get scared.  I wonder if I made the right choice.  I doubt.

Imagine the situation I would be in if a few of those advantages were missing.

 

Entrepreneurship is also thrilling, exciting, empowering, and deeply self-actualizing.  On a deep, personal, fundamental level, I’ve been happier in the past 5 years than I ever was before that, because I can feel and see my own self moving into my potential, the potential that was there for a long time but got truncated and stuffed behind an employers’ priorities.  In a strange way, that’s a gut-level peacefulness that I didn’t start to realize until I took that brave (and, truthfully, kind of naive) step 5 years ago.  For the people whose guts cry out to be entrepreneurs, that is probably the most powerful intrinsic motivation.  And it’s what keeps you going through the lean times and the doubt and the fear.

We say that we value entrepreneurs and small businesses, that we want them to grow and prosper in our communities, for a bunch of reasons. But we don’t act on it very well.

We have to do that work of supporting entrepreneurship and small businesses  better, much better, if we are going to achieve any of those benefits.

We have to cultivate small business, the way we cultivate anything of value. Today we often do little more than throw some seed in a vacant lot (“you can do it!!!!), pass a watering can over the field once or twice (“here’s a loan!!!”), and then wonder why the garden doesn’t explode with produce.  As anyone who has worked a garden knows, successful cultivating takes much, much more.

I’ve been thinking a lot about what small businesses and entrepreneurs —  like me, I guess — really need if we’re going to get serious about growing that increasingly important small business sector of our local economies– you know, the ones that make most of the new jobs and all that.  But I’ve been putting off writing that down until I got some other projects out of the way.

Maybe I need to move that up the list. For myself as much as anyone else.

The Wise Economy Manifesto, Version 2.0

Over two years ago I wrote down something that I called the Wise Economy Manifesto (first draft).  The purpose of that statement was to try to capture the sea change that I think we need to make with regard to how we manage the world of local government.  I have worked with communities for about 20 years, and I’ve stood in the midst of places that were thriving and places that were collapsing.  From what I saw and what I know about economies, planning, organizations and psychology, I ended up joining the small but growing army of folks advocating for a a deep-seated reset to how we do the important work we do – convinced that the needs are bigger than a new program or a new method.  And because my experience has crossed many professional boundaries, I was inclined to seek a holistic approach – a sort of universal theory that takes the work of many who strive to make communities better and sets their efforts in a deep-structure context.

So I wrote a thing called the Wise Economy Manifesto, and in it I tried to encapsulate everything I was thinking.  And I think it did that.  But as I have been living with it, and speaking and writing from it over the last couple of years, I have been coming to the conclusion that I made that first attempt more complicated and more fragmentary than it needed to be.  So I’ve taken another whack at it, and I’d be grateful for your feedback.  In the coming months, I plan to be developing some tools to help you put this into action, so the secondary question I have for you is, what can I provide to help you get there?

 

Here is the Wise Economy Manifesto (version 2.0):

  • Communities are human ecosystems.  Everything we do, whether a land use plan or an economic development incentive, or any other public policy, isn’t going to stay in the silo where we put it.  What we do will have wide and deep, and often unintended, repercussions, and we need to change how we work and think to anticipate those as best we can.

 

  • That which makes you unique makes you valuable.   Communities cannot offer everything to everyone, and they shouldn’t try to.  The great challenge of planning and economic development is to uncover, brush off, and illuminate those characteristics that make a place deeply, meaningfully unique.  There is little value in being a commodity, but much opportunity in a well-defined niche.

 

  • We must focus on cultivating our native economic species.  The thing that grows naturally where you are can, with a little help and protection, provide more long-term benefit (and fewer of those unintended repercussions), that the exotics that we try to transplant at great cost.  In this era, the chase after the flashy, the big, the long shot, is too costly and too risky to deserve the lion’s share of our attention.

 

  • Beware the magic pill.  We all want easy answers; we all want there to be a simple solution.  There isn’t one.  Get used to it, and commit yourself to incremental, complex, messy change.

 

  • Crowdsourced wisdom is the best way to find a real solution.  We have tough challenges in front of us, and we need all the bright ideas that we can get.  But just like water needs to be guided into a channel before it can drive a turbine, we have to take the lead in guiding our community’s wisdom into fruitful efforts.  An open mic in the middle of the room ain’t gonna cut it.

 

  • We whose have the job of helping communities work better have to be brave.  We have to reconnect to the reasons why we got into this, before the rules and bureaucracy and politics tried to beat it out of us.   Whether we want to or not, we are going to be on the front line of the fight for new solutions, and we are going to be useless if we are just punching the clock.  We have to critically re-assess our professions and organizations and communities, and find the fortitude to break through the walls that are keeping our communities from being successful.  We cannot be foolhardy, and we must admit that we don’t have all the answers.  But we have to be brave enough to do our job, and lead the expedition.

 

I’d be grateful to know what you think, if I am missing anything, etc.  Thanks.

Annotated presentation, Economic Development /Business Enhancement/Economic Restructuring 101, Heritage Ohio 2012 conference

The file at the link below is an annotated version of a presentation that Craig Gossman of MSI |KKG (newly re-branded as MKSK Studios) and I gave at the Heritage Ohio conference earlier this month in Toledo.  Craig and I were asked to work from a standard presentation prepared by Heritage Ohio staff, but for the sake of presentation clarity we felt that we needed to make some tweaks.  As I usually try to do with presentations, I’ve created an annotated version of what Craig and I said… or should have said, or would have said if we’d been smart enough to think about it at the time.

The element of the Main Street Approach (c) that we were presenting on has been a challenge for Main Streets from the beginning and is currently undergoing a sort of rethinking/rebranding among specialists within and without Main Street nationwide.  For those of you who are not steeped in this strategy for downtown revitalization, the basic premise is to create a volunteer-driven organization, supported by professional staff, that works to revitalize a traditional business district through a comprehensive approach designed to address all of the elements of a healthy downtown.  Typical standing committees include Organization, Promotions, Design and Economic Restructuring.

In the past, Main Street Economic Restructuring committees were typically charged with creating a market analysis (there’s a fun task to try to get your volunteers on board with!) and recruiting new businesses to fill vacancies.  It’s become clear that supporting the economic function of traditional business districts may require a different approach.  What that approach should be, however, is still kind of up in the air.  Some people feel that the focus should be on helping downtown businesses operate more effectively, playing a role similar to what economic developers know as Business Recruitment and Expansion (BRE).  Another group of people feel that strategic recruitment of businesses to fill vacancies should be the primary goal, while others feel that the complexities of urban real estate development are such that the committee should be focused more directly on helping make real estate deals happen.  Heritage Ohio, for the moment, is trying to address all three angles, as you can tell from this presentation.  But you can also tell by the number of slides in each section where the organization is currently putting its emphasis.

My concern in giving this presentation is that I think that addressing all three of these elements well would be beyond the scope of most organizations with a full complement of professional staff, let alone an organization that intends to make extensive use of volunteers.  And I don’t know which of these approaches should be subbed in for the old Economic Restructuring in the official canon, or if any of them should be.  My suspicion at this point is that each of these may be a necessary emphasis in different communities and at different times in their development.  And that implies that this part of the organization would have to have a level of fluidity, an ability to pivot, that we don’t expect from other parts of a Main Street organization –and seldom truly expect from most economic development agencies.

This is why I have placed so much emphasis on developing a plan of action for this part of the organization.  A community that is serious about fostering economic vitality in its downtown is going to have to look very closely and unblinkingly at its challenges and opportunities — both the ones that show up in the convention bureau’s publicity and the developer’s sales pitches, and the ones that take more work to uncover.    The bigger challenge, though, will be the actual planning part — understanding the extent of the organization’s capacity, setting priorities and creating a step-by-step plan of action that gives them a fighting chance to actually make a difference.  That’s not easy, and because it’s not easy, it’s often neglected.  But making a sound and useful plan has never been more important.

As always, if you have questions or comments, please see below.  If it’s something more relevant to Craig than to myself, I’ll pass it along and post his response here as well.

With that loooong preamble, here you go.  Enjoy.

BE 2012 Rucker Gossman version annotated final 05 10 12

 

Training on investment tax credit opportunity

For my Ohio friends — a good training opportunity on one of the very valuable resources available to owners of historic buildings.  One of the single best tools for conserving embodied energy, reinforcing the urban environment and keeping a key raw material needed to build new businesses –> existing, inexpensive business space. 

If you’re not in Ohio, look for a training like this in your state:

http://www.heritageohio.org/wp-content/uploads/2009/09/daytontaxcredits.pdf