SAROOT
Registered: 10/17/05
Posts: 3
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Reply with quote | #1 |
I was delighted to participate in this discussion. My focus was to expose to participants of the seminar (especially those from other sectors than the private sector) the element of risk, especially the pain associated to the risk of failure. Here were comments made:
"I share the pain of entrepreneurial failure with those who have gone through that… I'm an entrepreneur by nature. I have had two companies:
The first was founded in 1978 off of a patent. It was funded through bank debt. Most of you may not remember 1978, but interest rates were very high, exceeding 22%. I had 15 people and no products. It took 12 months to develop our first product and then competition appeared. Even with 85 hour workweeks, there were market forces outside of my control. The company was forced to close, and I went through personal bankruptcy. I was 24.
I now own the company I started working for at that time. Through investors I completed a leveraged buy-out and retired that debt to the founder. We are nearly debt-free, profitable, and growing.
But we're always seeking to increase our margins. We may accomplish this task through expanding existing products and services, or, through generating new markets. Today my tolerance for risk is lower than it was back then. I no longer have 30-years of opportunity in front of me, as I am now closer to retirement. So I’m more open to funding projects through partnerships. Years ago, the private space was very competitive, and each participant assumed all risk on new projects.
Today, the commercial sector model is changing, and participants are relating to each other differently, and may share risk by assuming smaller roles on project with competitors. Today, we're moving forward together as a commercial entity.
To answer your question, I'd really like to be able to go to the Hill and support the progress. I think we're all getting closer to that. But part of the pain that we're talking about today is exposing to all of those in attendance, is the exposure, the pain, associated with the risk of failure that the private sector experiences in order to survive. Yes, the risk of reward is high, but so is the risk of failure. This is a unique condition applied only to the private sector. It is no different for companies with 2 people or 200 people. Today it's just as hard to have client retention as it is for obtaining new clients. So, we're talking about RISK, a factor only shared by those in the private space."
__________________
Steven Root, CCM
President, CWSA
President & CEO
WeatherBank, Inc.
1015 Waterwood Parkway, Suite J
Edmond, OK 73034
405-359-0773 |
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