Early in my 30-year commercial banking career, I became fascinated with entrepreneurial business - with what made some entrepreneurs successful and others not. I was curious to know how entrepreneurs got started and what their keys to success were.

Hearing these success stories helped me when I became an entrepreneur myself. This spring, I launched Western Capital Bank, a new commercial bank. Without the lessons learned from other entrepreneurs, I'm not sure I would have had the confidence and knowledge necessary to do this.

Here are the eight lessons I learned from successful entrepreneurs:

1. SEE THE WORLD FROM AN UNLIMITED PERSPECTIVE.

A client needed an irrigation pond on his property, and he called on an excavation company for help. After learning his property contained gravel and the excavation company would actually pay him to dig the pond to acquire the gravel, my client was suddenly on his way to a lucrative new business. He sold gravel for construction use, which resulted in the creation of lakes (ground water replaced gravel), which resulted in valuable lake-front real estate. It all started with a need to irrigate his land. Entrepreneurs will tell you, "Opportunities often present themselves when you least expect it."

2. PURSUE A BUSINESS YOU UNDERSTAND FROM EXPERIENCE.

Just because you love to cook doesn't mean you would be a successful restaurateur. It involves marketing, accounting, employment law, health codes and more. I had a client whose business was to feed cattle that would be sold to processors. Over time, the company used its experience to produce a line of meat products that are used by some of the best chefs in the country. Without knowledge of beef cattle genetics, veterinary pharmaceuticals, animal nutrition, USDA grading and culinary arts, their achievements would not have been possible.

3. SEEK COUNSEL FROM BUSINESS PROFESSIONALS OF ALL KINDS.

Lawyers, accountants, bankers, vendors, employees and customers are valuable resources. Entrepreneurs seek the best professionals in the market.

4. BE WISE RISK MANAGERS.

Contrary to common opinion, entrepreneurs are not wild-eyed risk takers. They are skillful at identifying risks to their business and developing strategies to manage those risks. I recently purchased a lawnmower from a local company that competes with large home improvement retailers by focusing on a specific segment of the home improvement business, the residential and commercial landscaping business. Through focused efforts involving a high level of product knowledge and unique mix of products, it manages the risks associated with competing against larger, price-driven retailers.

5. DON'T BE EASILY DISCOURAGED.

Every successful entrepreneur I know has a story about overcoming adversity and how, in many cases, adversity gave way to a new business breakthrough.

6. KEEP SOME PROFITS IN RESERVE.

I was recently approached by a prospective client for a loan to build a model home to spark presales to would-be homebuyers. The company earned millions of dollars over the last several years and invested all its profits in land. With the difficulties in the residential real estate market, most banks have tightened lending requirements, making loans for unsold homes very limited. Had a small amount of the large historical profits been set aside as cash resources, the business would be in a position to negotiate the bank loan for a smaller amount or not need the loan at all.

7. STRIVE TO BE OBJECTIVE.

Successful entrepreneurs are always asking, "What do you think?" That doesn't mean they use all the input they receive; they just know it is hard to be better if they take the view that the only perspectives that matter are their own.

8. BE WILLING TO SACRIFICE.

Some entrepreneurs may give the illusion that it was easy, but I have yet to see a business become successful without hard work, sacrifice and dedication.

Rob Perez is president and CEO of Western Capital Bank in Boise. He can be reached at rob.perez@westerncapitalbank.com.

Starting Up is a series published on Thursdays. The columns grew from discussions between the Statesman and local tech and entrepreneurial leaders and are coordinated by Julie Howard, a specialist for the Idaho Office of Science and Technology. Reach her at julie.howard@commerce.idaho.gov.

Article written by Rob Perez - Special to the Idaho Statesman

Edition Date: 08/07/08