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BUILDING YOUR WINNING BUSINESS IN NORTHEAST ARIZONA
FORWARD
This book was written out of the need for a set of materials for Northland Pioneer Colleges Entrepreneurial Training series. There have been a lot of materials developed for starting a new business, however, this book attempts to bring together all the local resources and integrate them into a traditional textbook. Much of this information is specific to Navajo and Apache counties, for use in classes and counselings for the Small Business Development Center.
The textbook is separated into eleven modules which deal with the primary subjects most needed to build a winning business. At the end of each Module is a worksheet for the reader to use in putting together a winning business plan. Added for the Second Edition is a template to use for the computer in preparing the plan, and a spreadsheet to aid in the preparation of financial projections. These are designed for use with Microsoft Office products, Word and Excel, and should help take some of the drudgery out of both tasks.
In rural Arizona the development of small business enterprise is more important today than ever before. We have realized some success stories in economic development locally in bringing in outside manufacturers or retailers, which has helped many of local towns in realizing an increase in jobs and tax revenues. But there still remains the problems of diversification, full employment with meaningful wages, and a reduction to the outflows of dollars spent in retail and service sectors outside the region. These challenges present great opportunities for entrepreneurs locally to start and successfully operate new small retail, service and specialty businesses. The key is to provide the necessary training and change the historic perceptions of how a small business should be operated. We can no longer “get by” in the small business world with businesses that are not directed to, and driven by the customers needs. This includes being there for the customer when they can make the purchase (not the old 8-5 hours), providing a superior product or service (price is not the key factor, being better or different is), and being a partner to the customer so they will continue to utilize your product or service (how else can we provide service?).
The home office is a reality, and talk is everywhere on the opportunities to create a home-based business using the Internet, the phone and your computer. We have a distinct advantage over most regions in that we have long understood the need for people to relocate here for our “quality of life”. This is another opportunity for our region to grow its economic base by increasing the number of small businesses.
Tourism industries are another area of opportunity for the region. The hospitality industry is rapidly becoming the largest employer in the United States and World, and taken as a whole is the largest private employer currently in Navajo and Apache counties. Ninety-eight percent of the hospitality businesses are small businesses, which meet the criteria for small business development. Our natural resources and cultural diversity are abundant, and the opportunity for growth in this area is limited only by our imaginations and willingness to package and market the experiences.
Our local government intervention is minimal. We have many local partnerships of city, county and economic developers that can be helpful to the process of weeding through the red tape and making things happen. We suffer more from the restricted thinking that all resources must be local or they are inaccessible. Arizona has a unique political situation where the majority of the voters and politicians are located three hours to the southwest, and if we want access to their services and programs we must pursue this with them. Also, Phoenix is a money center for the southwest, with decision makers and account officers for the commercial money sources. A key to our success in small business development must be to learn to access the political and monetary programs at the source. Waiting for them to come to us, or provide these things through their local retail locations has simply not been effective.
On the national scene, the climate for small business development has never been better. Government is working to reduce small business taxes, provide incentives for investment, abolish red tape and assist with start-up and small business loan guarantees. The new pro-business congress has realized that 95% of net job creation from 1989 through 1991 has come from firms with fewer than 5 employees. This represents a sizable voting population with more and more political clout. Look for reform in the areas of health insurance (deductions currently limited for self employed), access to capital (less paperwork, better service), and information (better access to regulations and support programs, including rural areas through the Internet).
To those of you starting your first business, or trying to decide to take the plunge, I want to offer you some words of encouragement. Starting and operating your own business is the greatest challenge you will probably ever undertake, and also the most rewarding event. It is creation from your hands, a direct linkage between your success and efforts. You will work harder to be successful than you probably have ever worked toward any goal. And you must make great sacrifices of time and resources. But in the long-run if you choose the business that’s right for you, right for the market and time, you will be on the most rewarding path of your life. Set lofty goals and make your dreams a reality!
-Mark Engle