BUSINESS TIPS: Business mentors good for business

SAN ANGELO, Texas — Starting and growing a new business is a challenge-filled endeavor.

Often these challenges can range from obtaining financing to creating the identity of your business. One of the most daunting hurdles to overcome is the access to relevant experience when establishing your business.

This challenge stems from the fact that many entrepreneurs lack experience within the industry they seek to enter. While this challenge may not derail a successful venture, it does hinder its progress and causes substantial uncertainty throughout the process. In an effort to supplement this lack of experience, entrepreneurs should turn to mentors.

But who exactly would qualify as a mentor? There are various organizations and business owners throughout the Concho Valley that can help aspiring entrepreneurs gain access to the experience necessary to plan out their business. These individuals consist of lenders, accountants, consultants and even small business owners themselves.

For instance, one of the most gratifying developments in the San Angelo downtown revitalization projects is the knowledge that most of those new restaurant and bar owners are willing to help out others entering their field. For the most part, the perception is that what's good for downtown is good for San Angelo, and what's good for San Angelo only helps maintain and grow those established businesses by creating a natural cluster.

This cluster helps increase the overall market for the downtown bars and restaurants. While others may view a new bar downtown as potential competition, the reality is the arrival of new businesses helps expand the market as long as new market segments are targeted.

Since 2005 to 2010 the reported mixed beverage sales taxes have increased from $26,617.64 to $241,210.62 in the downtown, 16-block area. From 2005 to 2010 the increase in percentage of MBST reported were 9 percent (05-06), 123 percent (06-07), 127 percent (07-08), 20 percent (08-09) and 37 percent (09-10) for that area.

In the same time frame, the 16-block area went from representing only 14.5 percent of total MBST sales for San Angelo's Main Street area to 70.2 percent in 2010.

With the knowledge that a stronger downtown helps secure patrons and their chances of success, some downtown restaurant and bar owners are willing to speak with aspiring entrepreneurs about their challenges and the lessons they have learned along the way.

By doing so, they hope new entrants will help draw a new market segment to the area. While not everything is revealed, these mentors can provide relevant knowledge about the process and pitfalls that maybe encountered.

Other such mentors include lenders who have witnessed the success of similar business ventures. These individuals hold substantial knowledge about the industry and the realistic costs associated with establishing and managing a business. They also understand the cycles businesses face, and can provide guidance about sound business practices to help prepare entrepreneurs.

Often new entrepreneurs feel they should not speak about their business venture with other people for fear of someone stealing their idea. While there is some merit to this train of thought, aspiring entrepreneurs need to understand they must seek relevant knowledge if they hope to succeed. Thus identifying and engaging potential mentors can mean the difference between success and failure within a new industry.

This article was written by Pedro Ramirez, former Business Development Specialist and Certified B centers