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Edge for success -- You need more than just an idea to start a business
The failure rate of small businesses has been estimated at 70 to 80 percent the first year, according to the Bureau of Labor Statistics.
The old adage, "people don't plan to fail, they fail to plan" is exactly why Rex Nelson, director of the McCook Economic Development Corp., is so enthusiastic about the Tri-Edge Coalition, an entrepreneurial program which operates under the statewide EDGE -- Enhancing and Developing Growing Entrepreneurs -- program.
"An idea isn't enough when it comes to starting a business," Nelson said. "You need a plan to see where you're going."
Often, he said, people would come to his office seeking advice about starting a business but due to time constraints he was unable to thoroughly help them.
The Tri-Edge Coalition is designed to walk people through the whole business- planning process. Those who complete the program end up with a complete and in- depth business plan, as well as networking contacts, marketing strategies, sources of capital and more, Nelson said.
Rotating between Mc-Cook, Cambridge and Curtis, the 12-week program is for those who own an existing company and want to expand, or for those who are still in the planning stages of a business. The $350 price tag for attending usually isn't a deterrent, said Sharon Hueftle, Tri-Edge program manager.
"By the time you've finished attending all the sessions," she said, "you think like a businessman." The costs of putting together the program run approximately $10,000, Hueftle said, with one-third funded by the University of Nebraska-Lincoln, one-third by tuition, and sponsors of the program pick up the rest.
Area sponsors include McCook Economic Development Corp., First Central Bank, Curtis State Bank, Consolidated Telephone, and Southwest Nebraska Resource Conservation and Development.
The next 12-week session is scheduled for Cambridge in October, she said, and is open for 10-12 participants, with up to two people per business allowed to attend.
Toni Gerver and her sister-in-law attended the McCook session last spring to find out what marketing strategies they could use to build up their family business, Gerver Metals and More. Before they completed the program, they landed a contract with Paul Schaffert of Indianola, custom making metal pieces Schaffert couldn't find for his planters.
"Exposure was definitely the best part," Gerver said, who also cited the guest speakers as excellent role models. Speakers for the sessions have included patent attorneys, CPA's, loan officers and local business owners.
Each week, participants add to their portfolio, Hueftle said, and by the time they're done, not only will they have a complete business plan, but a plan that has been individually critiqued by the session's instructor.
"There's a lot of one-on-one feedback," she explained, as class instructors meet separately with students, and help pinpoint areas they need to work on in their business plans.
Angela Thomas, owner of Rye Printing, took the program in Curtis last year and still uses the business plan and three-inch thick workbook she compiled during the sessions. She gained the most out of the marketing information, she said, which introduced her to data-based marketing and targeting her customers' preferences, as well as the detailed financial plan.
"Laying out the cash flow, what is or is not an expense ... I would definitely recommend the class," Thomas said, who came from a social work background before buying the printing business,
For her, the registration fee was quickly recouped in the form of confidence, resources and an overall business foundation.
Karen Ackerman, who with partner, Cindy Deuter, owns Midlands Toxology, a company that does drug testing for businesses, took the course in McCook as they were thinking about expanding but weren't sure which direction to go.
They did some searches on the Internet, she said, but were unable to find anything concrete to work from.
Besides finding out how to spend their advertising dollars more efficiently, networking opportunities from the program led them to open three new sites in Hastings, North Platte and Norfolk. Ackerman and Deuter also plan on implementing a wellness program that companies can offer to their employees.
If You Go
Those interested in attending the Cambridge Tri-Edge session in October are encouraged to contact Hueftle at (308) 486-5535 or Nelson at (308) 345-1200.
Information is also available at the Edge Web site at http://www.nebraskaedge.unl.edu