Education Key to Entrepreneur Reality

Whether you’re headed back to school or not, fall has that feeling of possibility and excitement about learning something new.

I’m lucky to be surrounded by that energy all year long as the economic development officer at the nonprofit Southwest Initiative Foundation (SWIF). My job is helping entrepreneurs launch their businesses or expand what they’ve already started. It’s part of the foundation’s work to support communities, businesses, organizations and families to make sure our region is a great place for all our kids.

I come from entrepreneurial stock. It seems like everyone in my family had a business. As I grew up, I wanted to start a business, too. In fact, I couldn’t stop thinking about it until I did it. After working in the corporate world for many years, I made the leap, quit my full-time job and had my own coffee shop for three years. It taught me a lot. When you’ve walked in the shoes of an entrepreneur and you work with an entrepreneur, it makes all the difference.

Ever thought about starting your own business? It’s kind of like heading back to school in that you need to be prepared, and there’s a whole list of things to do. It’s not as simple as dropping by Target to grab glue sticks and folders, but setting aside time to study and plan will be well worth it. Come prepared, and you’ll be more likely to ace being a business owner.

Your entrepreneur homework starts with planning, planning and more planning. Assessing your personal financial health, including your credit score, is very important. Check your credit report for anything that seems out of place. When you have the numbers in front of you, decide if you can realistically afford to give up the income and benefits from your current job. Also, think about if you’re prepared to commit extra hours to this new venture, sacrificing time with friends, family or enjoying hobbies.

Next, get a feel for the realities of being your own boss. Talk to other small business owners in your area and learn from their experience. Ask them, “What did you do when you were getting started? How did you do it and why?” Find a mentor who can guide you. Resources include the

Small Business Development Center, your county or city economic development organization, your local chamber of commerce, a local lender and the Minnesota Department of Employment and Economic Development.

SWIF is here to help, too. Loans have always been a key function of the foundation in our support of communities and businesses. From entrepreneurs to established companies, we invest in ideas, large and small, that spur economic development. In addition to philanthropy and grant making, our business finance programs are a critical piece of community impact. As we work to close the opportunity gap for children living in poverty, part of the solution is ensuring there are great employers, great jobs and a strong economy for the next generation.

When someone asks me about starting a business, I start by listening to what his or her needs are. Often, they are in the idea stage and need help with business plans and financials before we can support them with financing. I refer them to resources, often the Small Business Development Center, for help and follow up to ensure they’ve made the connection.

You can be on your way to becoming a business owner by visiting mncore.org—the home for the Minnesota Center of Rural Entrepreneurship. There you’ll find 10 Steps to Starting Your Own Business, including a risk assessment quiz, Intro to Starting a Business webcast, business plan outlines and cash flow projection spreadsheets. My best advice for you is to go through every step. If you follow those 10 steps, that’s when you can say, “I can do this,” or you’ll realize you’re not in a place in your life where it makes sense at the moment.

The best part of my job is seeing business owners prepared to succeed because they did their homework. Best of luck to everyone starting something new this fall!