I had the chance to interview SunBug Solar, one of their green loan pioneers and see how these loans work in real life and how the green businesses are expanding month by month:

Cristian: Hi Cheney, welcome on www.entrepreneurship-interviews.com. You’re running a green business. What is it about?
Cheney: Solar energy for residents and small business.

Cristian: Where is the business located and what’s the typical customer?
Cheney: The business is Somerville, sunny Somerville that is and our typical customer is a home owner interested in:

a. saving money

b. energy independence or

c. doing the right thing in regards to the environment.

Actually, our customers usually represent a blend of the above ‘typical’ customer profiles, but if I had to describe our customers, id describe them that way. In addition, our typical customer owns their own house or business. The political will and subsequent laws/mechanics are not in place yet to enable non-property owners to take advantage of solar power

Cristian: How did you come up with the idea?
Cheney: Its not an idea so much as an emerging market place. Energy has been a cornerstone of our economy for a long time, and solar power is simply an alternative energy source to oil, but one which is gain traction as the issues around oil get worse and worse.

Cristian: Is it complicated to start a green business nowadays? And are green businesses sure to succeed because of the green movement or the same rules apply as for any other business?
Cheney: It is never easy to start a business. New businesses are stressful, time consuming, and the best thought out business plan is useless and outdated as soon as the business starts. There is nothing about the green movement that makes this business easier or more certain than any other. In fact, similar to the music business, there are more people interested in getting into it because they are passionate about it, so it quickly becomes crowded. So, the same rules apply. New businesses are tough.

Cristian: Why should families and businesses implement solar systems? What are the benefits?
Cheney: there are tons of benefits. There are financial benefits – your energy price is know and stable vs the energy price of most alternatives – your energy source is clean – our home will increase in value etc.

Cristian: Are there any downsides?
Cheney: Sure. Solar systems are expensive. And some people think they are ugly.

Cristian: What is the average cost of implementing a solar energy system for an average US house?
Cheney: Electric systems average 30-40thousand dollars. Much of that money is returned in the form of rebates and tax credits, but the upfront cash outlay is in that neighborhood. Thermal systems are less expensive (and effect a smaller portion of your utility bills), maybe in the neighborhood of 10k

Cristian: And from your estimations, what is the typical amortization timeframe?
Cheney: Good word. Most people ask what the payback is. The lifespan of a solar electric system is north of 30 years so we do our return calculations based on 30 years, and we generally think of it as an investment with a return – and those returns can be anywhere between 8 and 20%. And, ironically, the largest factor affecting those returns isn’t where you are in the country or how much sun you get, the largest factor is the current price of electricity, which is very high in New England, and how much you predict that price to escalate in the coming years.

Cristian: To clearly show the benefits of going green, what would be the average monthly savings on energy for a family house?
Cheney: We target 90% of a customer electric bill. Sometime it’s less because of limited roof space or finances, but usually we can get to 90% of the electric utility bill. Now, the size of that bill varies dramatically based on the house size. The department of energy has good data on average electric utility consumption

Cristian: Is it complicated to install a solar system on an already build house?
Cheney: No. The paperwork is hard – rebate, utility interconnection, permitting – but the actual installation isn’t that hard. It’s specialized, but not that hard.

Cristian: How different is to run a green business from running a typical business?
Cheney: It’s not different, other than customers are typically very excited about their purchase, so customer interaction is generally very satisfying

Cristian: Are there any incentives from the local authorities?
Cheney: There are. And they are constantly changing. I’m not even going to mention them because they will change before I finish this interview. That’s part of the problem. Businesses need stable, predictable incentives to make appropriate investments, without that stability, real business momentum won’t happen. I hope the regulators and lawmakers, who are well meaning, understand this as they continue to develop incentive programs.

Cristian: How did the crisis affect the green businesses? Are people thinking about green as a way to cut costs?
Cheney: Yup. But the sticker price is too big for a knee jerk reaction. It’s a researched purchase and investment in your home, so the crisis doesn’t really affect our business.

Cristian: You have recently taken an inventory loan from ACCION USA – a non-profit microfinance organization that offers a green loan program. How did you find about them?
Cheney: We found Accion through a referral from Dorchester Bay EDC in a SBA (small business association) loan search
We pushed on a bunch of doors and the Accion door opened. They were very helpful, and spent the time necessary to understand our business

Cristian: Is it complicated to apply for a loan as a green business? What was the process in your case?
Cheney: It was less complicated than expected; the process was really about getting the necessary things to Accion so they could understand the nature of the business, and about the personal guarantee.

Cristian: What were the main advantages of ACCION USA green loan program?
Cheney: They were local and responsive!

Cristian: Talking about financing, are there any financing options for families and businesses that want to go green?
Cheney: Very few, unfortunately. Some companies and some banks are trying to figure that out. If they do, everyone will benefit, but there aren’t solutions yet (Back to the stability in the incentive program question – banks REALLY need stability)

Cristian: How do you feel about the future of the green industry? Why it’s not mainstream yet?
Cheney: Change is slow, and there is still a feeling that it’s not cost effective (it is). It takes time to change perceptions. But the cost of alternative energy continues to improve relative to fossils fuels, and the awareness continues to build. I’m looking forward to a mature industry.

Cristian: And your plans for the future?
Cheney: Ski when it snows. Play with my son. Grow this small startup business into a mid-sized stable and profitable business. Then write a symphony.

Cristian: Hi Kevin, welcome on board. Tell us a few words about yourself.

Kevin:  When I was a teenager I took a job working at a hotel owned by a couple who had come to the US from Eastern Europe.  I learned a tremendous amount from them about how to run a successful business.  During the 10 years I worked for them the number of rooms in the hotel increased from just over 100 to more than 400 (including a second property they built next door).  This experience triggered a life-long fascination with entrepreneurship and the factors associated with small business success and failure.  I am trained as a scientist and have managed to combine my interests in science and entrepreneurship in a business that designs and conducts clinical trials to tests food and pharmaceutical products.

Cristian: You recently published a book on entrepreneurship.  I’ve read the book, but for the readers, what is the book about?

Kevin:  I have spent more than 25 years studying entrepreneurs, as well as running my own businesses and business units within larger organizations.  These experiences have led me to the conclusion that there are several reliable predictors of business success and failure.  A majority of new businesses don’t last five years.  My book is about strategies and tactics that the small business owner can use to tip the odds of success in his or her favor.  For that reason I called the book Tipping the Odds for the Entrepreneur:  Big Ideas on Success for the Small Business Owner.

Cristian: Who should read your book? Start-up entrepreneurs? Managers willing to improve their business?

Kevin:  Anyone who owns a business or is considering starting a business would benefit from the information in my book.  Also, those who run a department or a business unit within a larger organization would likely find the information helpful.

Cristian:  I would say that your book it’s mostly about doing the business the right way. Maybe with smaller immediate profits but with great benefits on the long run. Do you think the knowledge shared in the book is also applicable to start-ups (that we all know they focus mostly in making to the end of the month).

Kevin:  In my view, the purpose of a business is to obtain and retain profitable customers.  In general, businesses who market their products or services well and who deliver good value to their customers will thrive.  Value means that the customer will feel that what he or she paid was worth it for the product or service delivered.  Many customers are happy to pay a premium price if the resulting experience meets or exceeds their expectations.  Expectations will be different for customers of a Holiday Inn Express compared to those of a Ritz Carlton hotel, but either can deliver good or poor customer value depending on the price charged and how well they do at setting and then meeting (or exceeding) their customers’ expectations.

Business owners are often faced with decisions that have both short and long-term consequences.  Every interaction a business has with a customer or potential customer will either enhance or detract from the strength of the relationship with that person.  Successful business owners have a long-term perspective.  They will focus on doing what is right for the customer and do so in a manner that will strengthen the relationship.  They will not take advantage of customers for their own short-term gain.  There is an old expression that says a sheep can give you a lot of sweaters, but only one coat.  Successful business owners focus on building the relationships with their customers so they keep coming back and recommending the company to their friends and colleagues.

Cristian:  Are the business principles described in the book only applicable to the US?

Kevin:  I have tried to focus on key concepts (the “big ideas”) that are applicable no matter where the business is located.

Cristian: So what are the traits of a successful entrepreneur? What tips the odds?

Kevin:  Some characteristics of a successful entrepreneur include dogged persistence, a willingness to delay gratification, a bias toward action (rather than analysis paralysis), and a reasonable understanding of one’s personal strengths and weaknesses.  I cover these in detail in the book, which may be helpful to someone who is considering starting a business.

Cristian:  What do you think, entrepreneurs are born or made?

Kevin:  In my opinion, the skills necessary to become a successful small business owner are learnable.  However, some people are more likely to be successful than others.  Those most likely to be successful tend to be optimists who will keep pushing ahead in the face of obstacles and setbacks.  They also tend to be obsessed with providing the best possible experience for their customers.  Owning a business is not a 9 to 5 endeavor, so those who are unwilling to go to extreme lengths should probably not start a business.  One of the entrepreneurs I profile in the book, Seattle Sutton, Founder of Seattle Sutton’s Healthy Eating, would run relatively low-cost commercials on late-night television.  She would set her alarm for 1:30 or 2:00 am so that she could be available to answer the telephone herself when a commercial ran.  That is the kind of dedication that is often required of a successful entrepreneur.

Cristian: From your findings, what are the traits of successful businesses?

Kevin: Successful businesses come in all varieties.  In general, successful businesses deliver a product or service for which there is a demand, they market their product or service effectively (the best product or service offering will be unsuccessful without adequate promotion), they do a good job of setting customer expectations, and they execute in a way that meets or exceeds their customers’ expectations.  The result is what I refer to as a SLEEC business.  SLEEC stands for a business with good Sales and marketing that has Loyal and Engaged Employees and Customers.

Cristian: When you are small and need to hire on a budget, what are the most important things to look at?  Skills, desire to work, price?

Kevin: Price (salary) is an important consideration, but I am much more concerned about value than price.  The Pereto or 80/20 principle applies to employees.  Typically a small percentage of employees (perhaps 20%) will account for a large percentage of productivity and positive outcomes (perhaps 80%).  It is not always possible to tell ahead of time which will be the high producers.  Once a high producer is identified, he or she should be rewarded with money, recognition and extra training to allow them to take on more responsibilities.  It is also important for all employees to truly accept the company’s mission and commitment to customer service.  I like to say that our company has high turnover in the first few months and low turnover thereafter.  The high turnover in the first few months results from weeding out the people who are difficult to work with, have poor customer service skills that do not respond to efforts at correction or who just don’t fit with the mission and values of the company.

Cristian: Controlling how your employees are working with customers is very hard when you have a large business. How can you make sure your customers are getting the right treatment?

Kevin:  It is imperative that everyone in your company is friendly and devoted to providing exceptional customer service.  Rude, apathetic, or condescending interactions will result in lost customers and such behavior cannot be tolerated.  It is up to the owner and his or her managers to ensure that the staff understands what is expected and is held accountable for this level of performance.  Good training and regular feedback will help to ensure that everyone knows what is expected.  It is also a good idea to elicit feedback from customers and even to employ “undercover evaluators” to evaluate the customer experience and provide feedback and suggestions for improvement.  The old saying that the way a manager treats his staff will be reflected in the way the staff treats the customers is absolutely true.  Successful performance and achievements should be acknowledged and celebrated.  Staff should feel challenged and that the management cares about each of them as individuals.  Management should regularly elicit feedback on what can be done to minimize frustrations and provide the tools necessary to get the job done.  Happy staff members will help to generate happy customers and disgruntled staff members will generate disgruntled customers.  It pays to keep your employees “gruntled” (which I presume to be the opposite of disgruntled).

Cristian: On delegation. I know from my own experience that as an entrepreneur is very hard to delegate. What’s your advice? What should be delegated, what should be outsourced?

Kevin:   Many entrepreneurs find delegation difficult.  However, once a company grows beyond a certain (relatively small) size, it becomes impossible to manage it effectively without substantial delegation.  It is impossible to devote adequate time to working “one the business” if one is spending all of his or her time “in the business.”  Delegation is easier if one takes the time to adequately train staff members.  Checklists are an enormous help and have been shown to reduce errors in many settings ranging from auto repairs to hospital emergency rooms.  High performers should be tasked with training and system development to improve the effectiveness of average performers.

Cristian: You say in the book that doing layoffs should be the last resort in saving money. From my experience (unfortunately) sometimes you don’t realize you should downsize until is too late.  So how do you know when it’s the latest moment to let people go?

Kevin:  Some wise person said that good judgment results from experience and experience results from lacking good judgment.  There is no formula that I know of for telling a business owner when it is time to institute layoffs.  Other strategies can be tried first, such as asking for volunteers to reduce hours and take vacation time.  Also, layoffs can sometimes be avoided by not over-hiring in the first place.  Peaks and valleys are inevitable, so staffing for something in between is best with temporary help, “as needed” staff, or outsourcing used to cover peak periods.  If layoffs are inevitable, it is best to err on the side of cutting too many people rather than not enough.  This avoids the need for repeated rounds of layoffs, which can be quite damaging to morale.

Cristian: I must say I enjoyed your view on working on one’s strong points/ weak points. If I understood correctly, you say people should improve their strong points and work and make a passing grade on the weak points?

Kevin:  Peter Drucker, who is often acknowledged as the father of the business management as a social science, emphasized that good managers play to the strengths of their employees and manage around weaknesses to make them irrelevant.  This applies to self-management for the owner.   If one understands his or her personal strengths and weaknesses, strategies can be employed to leverage the strengths and work around the weaknesses through delegation, partnering or outsourcing.  That way the owner can focus more of his or her time on high value activities, particularly new business development.

Cristian: Where could people wanting to become entrepreneurs learn about running a business?

Kevin:  There are many good resources available, including your web site, www.entrepreneurship-interviews.com.  A particularly good resource for those in the US is the Service Corp of Retired Executives, (SCORE) which is a nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow and succeed nationwide. Entrepreneur magazine is a good resource and they have a publishing division that produces useful materials.  Also, there is no substitute for experience in the field.  Unless the business is intended to provide a new type of product or service, I recommend investing the time to work directly in the field as an employee to “learn the ropes” before venturing out on one’s own.

Cristian: What would be your advice for people looking to start a business that are afraid to start or wait for a “better moment?”

Kevin:  While it is certainly prudent to prepare for starting a new venture by saving money and learning everything one can about the field before launch, I have known many people who talked about starting a business for years but never got past the planning stage.  Starting a business is similar to starting a family.  If one waits for all of the stars to align in just the right way, that day may never come.  Many successful businesses have been started as part-time ventures while working at a job.   For anyone interested in starting a company, I recommend taking some action every day toward that goal.  Initial progress may be frustratingly slow, especially if these activities have to be done during evenings and weekends while working full-time.  Nevertheless, no matter how big the tree, a few whacks every day with a sharp axe will eventually bring it down.

Cristian: Hi Thomas, Welcome to Entrepreneurship Interviews. Tell us a bit about yourself.

Tom: I am a senior partner and president of Kuczmarski & Associates, the foremost management consulting firm specializing in accelerating growth through innovation.  I have authored five books and many articles on innovation.  I have also been teaching innovation courses at Northwestern University’s Kellogg Graduate School of Management for 29 years.  Along with Dan Miller, I am the co-founder of the Chicago Innovation Awards, an independent organization that recognizes the most innovative new products, services, business models and processes developed in the Chicago area each year.

Cristian: What are the Chicago Innovation Awards?

Tom:  Established in 2002, the Chicago Innovation Awards shine a bright light on the creative spirit of Chicago by focusing attention on the most significant new products, services, business models and processes developed in the region. The ten winners each year are innovations that uniquely fill unmet needs, spark a competitive response in the marketplace, exceed market expectations, achieve financial success, and improve people’s lives. They emerge from the public, private, and nonprofit sectors. Most importantly, the Chicago Innovation Awards remind us that innovation is thriving in America’s heartland.

Cristian: Any big names that participated in the past?

Tom: Some of are more notable past winners have been Groupon, Feedburner (who was later bought by Google), 37 Signals, Vibes Media, Loggerhead Tools, Abbott, Motorola, Sara Lee, Walgreen’s, First Alert, Orbitz, United Airlines, and Rubbermaid to name a few.  Many key players in the public and private sectors regularly attend our events throughout the year to see what’s new in Chicago innovation.

Cristian: Who can apply and what are the benefits of being nominated or even winning an award?

Tom: In order to qualify for a Chicago Innovation Award, you must have developed your new product or service in the Chicago area and meet some or all of the following criteria:

•    Introduced within the past 3 years
•    Created a whole new category of business (ex: e-trading stocks)
•    Triggered a ‘me-too’ response from competitors (ex: Touch screen cell phones)
•    Changed or elevated consumer expectations (ex: overnight delivery)
•    Solved unmet customer or consumer needs
•    Received market support (users) or Financial success (revenues, although not necessarily profits)

The Top 10 nominees will be honored at the Chicago Innovation Awards ceremony on November 1st at the Goodman Theatre. Each honoree will be profiled in the Chicago Sun-Times, featured in an advertising campaign on CTA trains and buses, invited to a private brunch with Mayor Richard M. Daley to discuss their winning innovation, given a free one-year membership to the Illinois Technology Association, and invited to ring the opening NASDAQ bell in New York City.

Cristian: Most people are postponing starting a business because it looks like they cannot bring any innovation, they do not have that unique idea. Is this a valid reason not to start a business?

Tom:  Yes, I would say this is definitely a valid reason, without a unique value adding differentiation you really risk being in a non-competitive situation.  In order to be successful, a business needs to offer a differentiated product or service that adds value to their customer.  The company needs to identify their key opportunity areas where they can best leverage their expertise, in order to give themselves a strategic advantage over their competition.

Cristian: How does crisis affect innovation? Are companies coming up with ideas to make things more effectively?

Tom: Crisis not only creates opportunities for innovation, they often demand innovation in order to solve the current problem and prevent the crisis from happening again.  Every time there is a crisis, you immediately look to see what went wrong and try to find ways to prevent it from happening again.  These causes can be a stimulus for new products and services depending on the marketplace opportunities.

Cristian: I think there is some sort of cliché that innovation only happens in big companies with big budgets allocated to research.  My view it is a bit different: every business innovates some way or another in the process of doing things better. What do you think?

Tom: There is no secret that big companies with big budgets for R&D, and captive market positions can stamp out and commercialize innovative products fairly efficiently, but many times you will see that the bureaucracy in these companies get in their own way, and can inhibit them from coming out with the next big idea.  In cases like this, many companies will hire outside consultants to help them create a better atmosphere to foster growth from innovation.  I agree it is a cliché to say that innovation only happens in big companies and the Chicago Innovation Awards show this through our very diverse group of past winners, from companies both large and small.

Cristian: Entrepreneurs are sometime afraid of sharing their ideas even with investors. How valid is this fear?

Tom: This is a common concern because innovators fear losing their intellectual property.  It can be expensive to protect your ideas, but if it were an idea that you think has some legs, I would protect it before showing it to investors.  In addition, most investors do not want to invest in a company that can’t protect itself from a fast follower.  If you have no protection, the investment is much riskier.  One of our Chicago Innovation Award partners, Vedder Price, is an expert in this field.

Cristian: Is it expensive for a small business to have patents? When does it becomes important?

Tom: Intellectual property is very important and can be very expensive if you choose to file International Patents.  In the US, a Utility Patent typically costs about 15K to 20K.  Although, you can file a Provisional Patent to act as a preliminary protector of your idea relatively inexpensively while you sort out if your idea has market potential.  The provisional is not an issued patent, but can be the basis for an official patent application if you file for a utility patent within one year of receiving the provisional patent.

Cristian: There is a lot of activity in developing green businesses and greener products. Do you see more innovation in this field?

Tom: Yes, I continuously see more and more innovation in this area.  The unique thing about green products is that there is a large movement in our culture right now towards “living greener lives”.  This creates a situation where a company can seek to create differentiated product appeal to green-minded customers because of the emotional desire to live greener lives.  There are also many new laws and regulations that will continue to drive innovation in this field.

Cristian: I know from my own experience that just having an idea is not enough. Executing the idea the right way is what brings the money on the table. Any words of advice for people looking for investors for their innovations?

Tom: The first thing I would say is to determine if you have a market based business case for your idea.  Second, you must design a value-added differentiation that creates value in the market.  Third, you must be sure that this design can be protected by IP or some other reliable strategy.  Fourth you need to test your product or service on your target customer group to validate the products ability to compete for market share at the price you can supply the product profitably to the market.  Finally, you need a robust business plan that defines the investments and executables necessary to succeed in the marketplace, as well as the organization or team to make it happen.  You must do these things prior to asking investors for money for them to take you seriously.

Cristian: Do you think U.S. has a native advantage in creating and implementing innovations?

Tom:  Innovation can happen anywhere, but there have traditionally been some notable advantages for innovating in the states.  We have traditionally had a well-developed distribution system and system of communications to facilitate commerce.  Culturally we have embraced the spirit of the American Dream and the popular belief that anyone can succeed in the states independent of their social, racial or religious status.  There are also many world-renowned universities in the U.S. that educate students about innovation.  The Kellogg School of Management, where I teach, is just one example.  These factors have combined to systematically and culturally encourage individual innovation and entrepreneurship.  Simply, the ability to enter such a large market without the past restrictions that many other economies have created has allowed US innovators and entrepreneurs substantial opportunity to succeed.

Cristian: What would be your most important advice for people having an idea and not knowing what to do about it?

Tom: First thing you should do is write up a business plan to validate the business case.  A great idea that cannot translate into profitable sales in the marketplace is not sustainable.  If you don’t know how to write one, you can go online or seek experienced help on how to do this.  Next you need to get out their and meet people who have done what you are trying to do or will support your venture.   Get out to networking events and try to befriend people who are in the industry that your new idea relates to.  Ask questions, learn and make friends.  The most basic thing is to do your homework.  There are lots of resources that can give you some advice or background on what you’re about to get yourself into.  It is always easier to learn from other people’s mistakes rather than having to go through them yourself.

Luckily for me, there is now a book called “We are All Born Entrepreneurs” and I got the chance to interview the author, Steve Welch about the book and his discoveries about entrepreneurs:
Cristian: Steve, you wrote a book called “We Are All Born Entrepreneurs”. What is it about?

Steve: The book uses my story and that of other entrepreneurs to help others learn from their successes and failures. At the same time it explains why so many of us have a deep-rooted passion for entrepreneurship.

Cristian: Do you consider yourself a successful entrepreneur?

Steve: I have certainly had some successful ventures, but I have also had some unsuccessful ventures. However like most good entrepreneurs, I think I have consistently learned from my successes and mistakes.

Cristian: How did you come up with the idea to write a book?

Steve: As I started to work with so many young entrepreneurs at DreamIt Ventures I became frustrated with what was clearly being emphasized at the MBA School. Too often I saw entrepreneurs focusing on raising money, as if raising money was the validation of a viable business. I bootstrapped my first business, as did most of the entrepreneurs in this book. I told the many stories in “We are All Born Entrepreneurs” to show that there are many different paths to success. However successful entrepreneurs develop the skills necessary to succeed and then adapt to the individual circumstances of their venture. Sometime this means raising money form outside sources, often it does not.

Cristian: I know from my own experience and from interviewing other entrepreneurs that most people are afraid to start a business on their own. Is fear of entrepreneurship a reason not to start a business?

Steve: Fear is certainly a nature part of starting a business. I have not found a successful entrepreneur who does not remember fear being an emotion that they felt in their early ventures. So much of life and early stage ventures is timing. I was 23 when I started my first big success, Mitos. I had no children, no mortgage and parents that would not let me starve to death if I failed. This is a good time to start a business, because the consequences of failure are not that great. More important the benefits of success out weigh the negatives that come with failure. Whether succeed or fail, entrepreneurs learn the most on their first venture. The earlier this happens, the more they will be able to draw on these experiences throughout their lifetime.

Cristian: From the stories in the book, what is most common amongst people starting a business? Determination? Good planning? Desire to make things work?

Steve: Successful entrepreneurs find purpose in what they do. They use this purpose as a foundation to constantly learn and turn their inherited traits into the skills needed to succeed. They accepted failure as part of their learning process and are adaptable. No one gets an idea right from the start, but successful entrepreneurs build a plan, execute on that plan, but most importantly adapt to that plan as new information became available.

Cristian: Most people think about accomplished entrepreneurs that they got lucky and they on the other hand would never get lucky. Is luck part of the entrepreneurial success?

Steve: There is certainly a randomness to the world and a number of variables that are outside ones control; however that is why self-awareness and adaptability are so important. If you are able to adjust to a constant moving landscape you increase your chance of success dramatically.

Cristian: When talking about the book you say that the paths of the entrepreneurs are different. In the same time, a lot of people are afraid to start a business because they don’t have a unique idea. Should this (not having an innovative idea) be a reason not so start a business?

Steve: Absolutely not. I know a lot of people that have started a business in which there was nothing unique about them at the get go. Many markets are constantly expanding and need increased capacity. I know many people in the distribution business that does not have any unique value add, but they execute efficiently and make a good living. I also have many friends that have used more traditional business as a springboard to other innovative products and services once they had a customer base. Often this is much easier because the customers know you and you know the customers. I think what is key is that entrepreneurs focus on bringing value.

Cristian: What about the crisis? From my own research, people think that the good times to start a business have passed and now is harder to become successful. Is crisis a challenge, an opportunity or both?

Steve: It is both. There certainly are challenges especially for businesses to fund raise. I think these challenges are far out weighed by the opportunities. There is so much working for entrepreneurs.

1) Communities and cultures across the globe are focusing on helping people develop the skills needed to start a business.

2) The costs of starting a business have plummeted. Whether software or physical products partnerships are easier to develop and Alpha and Beta products can get out the door at a fraction of the cost of a decade ago.

3) Perhaps most important the cost of reaching customers across the globe have decreased. This allows products targeted at a very specific niche to achieve profitability in a way they could not have a decade ago.

Cristian: You started your first business quite young. What were the factors that pushed you to start a business instead of a 9 to 5 job?

Steve: One of the most common experiences of the entrepreneurs through out my book was their memory of a supportive friend or family member at a young age. I was no different. I had supportive parents that even at a young age allowed me to succeed and yes fail at my ventures. The lessons I learned as young as 12 years old prepared me for my ventures later in life.

Cristian: You seem to be quite focused on helping other entrepreneurs succeed. Why is that?

Steve: I have always found purpose in entrepreneurship. Helping others succeed is my own selfish way of filling my own need for purpose. To me there is nothing more exciting than seeing a need in the marketplace and working to bring value to society by filling that need. What is exciting about DreamIt is that we are helping 10-15 companies a year go through that process.

Cristian: Founding DreamIT Ventures was a result of this?

Steve: Yes. I was fortunately to meet up with two other successful entrepreneurs, Mike Levinson and David Bookspan whom shared my passion for helping get businesses of the ground.

Cristian: How exactly does DreamIt Ventures help and support entrepreneurs?

Steve: We provide, a small amount of money, mentorship, space, donated legal and accounting and most importantly a community atmosphere in which each year 40-50 entrepreneurs are working in the same space to develop their businesses.
It was created as a pre-seed venture fund that nurtures enthusiastic, bright and motivated people with big ideas who can build a prototype, beta or market-ready product or service within three months. By providing the tools needed to flourish, this new model for funding simultaneously accelerates the development of new businesses and increases their likelihood of success.
In essence, DreamIt allows start-up companies to progress forward by eliminating as many risks as possible. For some participants who enter the program with an idea on a napkin, the three months is used to develop the product and eliminate the risk of building it. For companies with an early-stage product, the time period allows them to test, understand and refine its value to potential customers.

Cristian: How different is entrepreneurship around the World? Do things happen the same?

Steve: Amazing enough the skills developed to succeed are almost universal. What tends to be dramatically different are the cultural norms especially around risk. America for example, admires risk taking and we accept failures as part of the learning process. We celebrate those that are successful based on their own merits. Many other societies punish failure. Meaning that people in society that try and fail are looked down upon, often for life. In America we expect people to try and fail and we really respect those that try again.
What is shocking is how the Asian cultures recognize the importance of this and are working to change these societal norms often through government policies. They are working to bring capital to early stage entrepreneurs and focusing on their own immigration policies to recruit talent to their prospective regions. I would argue that above all else the reason America has been so successful over the last century is that our relatively decentralized society that allowed individuals to be rewarded for successful risk taking resulted in the best and the brightest from around the world coming to America.
Like current, which follows the path of least resistance, Entrepreneurs flow to the areas of the greatest opportunity.

Cristian: Who should read the book? Any specific demographic?

Steve: Certainly aspiring entrepreneurs, however I think there are many lessons that managers within any business can learn for and use to improve their own organizations. Oh yeah and parents, it is clear that successful entrepreneurs all had positive influences early in life the encourage them. Some parents even had extraordinary ways of teaching their children about business as early as 8.

Cristian: Besides the book, how can wanna-be entrepreneurs learn more?
Steve: Most importantly surround yourself with people that have gone through the startup process or are going through the process.

Cristian: Hi Weldon and welcome on Entrepreneurship Interviews. I had the chance to read and review your book The Upside of Fear: How One Man Broke the Cycle of Prison, Poverty, and Addiction. So what is the book about?

Weldon: Well, it’s really a book about how we can all live our dreams if we are deeply committed to achieving them. In a nutshell, I spent 20 years broke, homeless and drunk. I was your garden variety loser who spent 13 years in prison. About halfway through my “prison years” my father died and I decided to change the course of my destiny and that’s what I did. In fact, I walked out of the joint in 2003 without a dime to my name, built an Inc 5000 company with over $20,000,000 in sales and got a home on Maui. The book outlines the journey and the tools I used to transform my life.

Cristian: So you went from the lowest point in the society to becoming a successful entrepreneur. I have to ask, what is your business about?

Weldon:  Ironically, the first company I built was in an industry I knew nothing about. I was trying to sell a sales and marketing system I had developed for heating and air conditioning contractors, but couldn’t give the damn thing away. I had no track record and little practical experience.
After a few months I came home and told my wife, “Honey we are going to open a heating air conditioning company!” She, of course, noted that I knew nothing about the industry. Once I got her on board we opened a little heating and air conditioning company in our living room. We generated $2,000,000 in sales in the first year; $3,500,000 in the second year; and $7,000,000 in the third year. Within 60 months we had generated over $20,000,000 in revenue and were selected by Inc Magazine as one of the fastest growing privately held companies in America. Turns out my little sales and marketing system rocked. Our competitors are still scratching their heads and trying to figure what hit them.
Now I am doing sales training for one of the largest heating and air conditioning manufacturers in the world using the same system I couldn’t give away six years ago. I also do a lot of personal and business coaching, keynotes and motivational speaking. I am trying to help others live their dream just as I am living mine. Bottom line: if I can do this thing… anyone can.

Cristian: Family balance. I know from the book that you started improving your life when you realized your child needs to grow with you as a parent taking part of his life. So how important is family balance for a successful life?

Weldon: I think all the money in the world is useless if we have no one to share our lives with. My relationships with my wife and son have given me immeasurable enjoyment and fulfillment. As I outline in The Upside of Fear, my desire to build a relationship with my son was one of my primary motivators to get my act together, and the payoff in all of this is watching him live the life I never lived. It’s awesome.

Cristian: Can you describe in a few words what was the process to improve your life and live the life you always dreamed of?

Weldon:  Emerson said “We become what we think all day long.” Once I realized my thoughts created the quality of my life I got serious about thinking the right things. To do this I recommend a four step process I call FEAR. Get FOCUSED on what we want in life and what we want to become in life; Get seriously Emotionally committed to those things; Take consistent ACTION towards achieving the things we want; and accept RESPONSIBILITY for how we respond to life’s challenges. I have discovered that success in life is a reflection of how we respond to life’s challenges.

Cristian: I know there are debates over what the prison system does for rehabilitation. Does the system work or you have to have the desire to become better inside?

Weldon: I hear a lot about prison reform and sentencing reform and I believe the prison systems could do more to prepare inmates for real life. Nevertheless, if we fix the individual it doesn’t matter if the system is ineffective. Again, success for ex-cons is a reflection of how they respond to a dysfunctional prison system. At the end of the day we are individually responsible for building productive lives. I can’t imagine a more hopeless situation than counting on the government to help us fix our lives.

Cristian: You’re now a speaker and driven motivator. What could people learn from you?

Weldon: If this knucklehead can do it… anyone can. End of story.

Cristian: From my experience interviewing entrepreneurs and from my own entrepreneurial experience I know it’s very hard stepping outside the comfort zone and taking control of your life and do what you always dreamed. I said in my book review that most people are prison of the society rules, working 9 to 5, never really accomplishing their dreams, some sort of a “mind” prison. How could one escape the “society prison”?

Weldon: To escape from any confinement, mental or physical, we need to understand that our power of creative thought can help us achieve things we never thought possible. Think about it: pretty much every component of our body serves a purpose. Is it unreasonable to think that our ability to dream things that haven’t happened yet or visualize something in our mind serves some purpose? I believe it does. Otherwise we have to assume our mind’s ability to imagine amazing things serves no purpose but to frustrate us with dreams we’ll never reach.

Cristian: OK. I know that when working towards your dream you will also have hard times. You say in the book that the difference between success and failure is not the number or the importance of the problems that come along, nor about luck, but about the way you approach difficulties. Can you explain?

Weldon:  Absolutely.  As I mentioned earlier, I believe our success in life is a reflection of how well we respond to challenges in life. Here is the reality: EVERYONE in life has problems. We’ve all had health problems, money problems, and relationship problems. You name it. But what separates the winners from the losers in life is how they respond to those problems. Successful responses result in successful outcomes. It’s not rocket science.

Cristian: Do you think entrepreneurs have a mission? What does it take to be a successful entrepreneur?

Weldon: Yeah, I think we do. That mission is to create something out of nothing. I can’t think of anything more satisfying than taking an idea and turning it into jobs and revenue. It’s crazy when you thing about it. One day there is nothing but an idea and the next day there are buildings and equipment or whatever. It’s like magic.
I think successful entrepreneurs all have one thing in common: the ability to dream and communicate that dreams to others.

Cristian: What about being a successful person. My view is that you shouldn’t compare with other people “success” but make your own definition. What does it mean for you: being rich, having a great family? Living on the beach?

Weldon: Everyone’s definition of “prosperity” is different. For some it may be money, for others relationships. I certainly don’t think money is the root of all evil. Hell, bill collectors are the root of all evil!
For me it’s about quality of life and the way successful business let me live the way I want to live. I love to work; I just enjoy being able to define how and when I work.

Cristian: With the crisis more and more people think their life is turning for the worse. Any advice?

Weldon: For the person who sees crisis only crisis exists. For the person who sees opportunity, only opportunity exists. We all see what we expect to see, don’t we?

Cristian: What about people in their late 40’s Is it too late for them to start improving their lives?

Weldon:  No way. Hell, I walked out of the joint seven years ago at 39 years old – broke and homeless.
I just got back from an event in San Francisco sponsored by Hay House Publishing. Louise Hay was there and told the story of how she started her company at 50 years old. Today she is in her 80’s and her company is incredibly successful. Tell her 40 is too old.

Cristian: So if you did it, anybody could do it? Or there has to be something special?

Weldon: Two things: desire and a method for your madness. For me I was driven by my desire to be a father to my son and my method was the FEAR thing. Find a system and use it on a daily basis. We don’t have a knowledge problem… we have an implementation problem.

Cristian: After reading the book I said I’m somehow hoping for a sequel to see what the future will bring into your life. So will we have a sequel?

Weldon: I am working now on a new book called Discover the Secret of YOUR Greatness. It’s kind of the “how to” part of my story.  I’ve already begun producing a live weekly show, which we broadcast on Monday nights. It’s amazing technology. It’s basically a television show that’s completely interactive. Folks can check it out on Monday nights at www.WeldonLong.com.

Cristian: One last question. How is weather at your home on the beach in Maui?

Weldon: Just got back to Colorado from Maui a day or two ago… it was a constant 80 degrees. Perfect golf weather, but then again, all weather is perfect golf weather.