Richard W. Clark — an attorney from Calgary, Alberta, Canada, and a member the President's Advisory Council for the BYU-Hawaii School of Business — fanned interest in this week's upcoming entrepreneurship conference by sharing lessons he's learned from other entrepreneurs and from starting his own businesses.
Clark, one of approximately 50 entrepreneurs here for the University's annual entrepreneurship conference and business plan competition from February 8-10, said as a corporate finance, mergers and acquisitions attorney, "I've been practicing for about 15 years, and I deal with entrepreneurs every day. Because of that, I tend to get bored with law, so I like to start a new business every six months or so."
He suggested BYU-Hawaii students interested in starting their own businesses, should ask themselves a series of questions, such as, "What kind of a person are you, and do you have the characteristics that would make you a good entrepreneur?"
"Do you like to make decisions and be in charge? If you don't like to make decisions or lead, you're probably not going to be a good entrepreneur," he said. "Eighty percent of people who start businesses do so because they want to be their own boss. That's me. If you like to take initiative and make things happen, you might be a great entrepreneur."
"Can you save money? Do you have the ability to borrow, or someone who is willing to invest in you? If the answer is no, then you need to take care of that first," Clark continued, pointing out that "almost everyone who will invest in you wants some skin in the game — something of yourself."
He also added that those who want income to grow fast in the first year "probably won't make a good entrepreneur. Statistics show most new businesses don't make money their first two years."
"Do you like change? Being an entrepreneur means you need to be willing to adapt quickly. …[But] if you're afraid of change, you should probably work in a bank," Clark said, noting that good entrepreneurs take risks, "when the problem is well thought out."
"You can't be afraid to fail," he said. "Almost every entrepreneur I know has failed at least once, and sometimes repeatedly."
"You have to know your market and recognize opportunities that others have missed," he continued, telling of a boyhood friend who started selling cellphones online in Canada when he found he couldn't place orders with a Canadian postal code. "Today, he's one of the largest telephone distributors in Canada. He started his business when he was 18…and has a very difficult stutter. Sometimes you have hardships you have to overcome to succeed."
"You also have to be passionate about what you do. Then you need to have a vision and stick with it through the ups and downs."
"Being an entrepreneur is not just about making money. If that's all it means to you, you probably won't make a good entrepreneur," Clark said, telling the story of a man he knows who's now worth about $200 million and works seven days a week.
"Why does he keep doing that? It's not about the money," Clark stressed. "He does it because he's passionate about the business and he loves what he's doing."
Clark emphasized there are a lot of challenges: "Retaining ownership, if you have to have an investor, can be a challenge. Borrowing money can be a challenge. Banks aren't very imaginative. If you have a small business, it's not easy to borrow money."
"One of the most common things I see that entrepreneurs fail to do is their homework: They don't understand their market."
Clark also commented on faith and prayers in business. "There's nothing wrong with praying for success in your business. You need the Lord as part of your equation. But just because you're a member of the Church doesn't mean you're going to succeed at business," he said, noting he believes personal worthiness works; "but if you don't work harder than the next guy, you might not succeed."
He added there's also an impact on families that can extend to missing kids' games and working on weekends. "On my typical work-day for the first 10-12 years of my career, I would be in my office at 6 in the morning, work until 6 in the evening, have dinner with my family, then work again until midnight." He stressed he has otherwise been able to keep Saturdays and Sundays for family and Church.
In the area of integrity, Clark was also straightforward with his advice: "When it comes to ethics and honesty, there is no compromise. There will be more focus on you because you're LDS. Period. Nobody will say, wow, I can't believe that Catholic or Lutheran guy did that, but they will say it of Mormons. Your honesty and ethics are key, and they will follow you for the rest of your life."
"Be grateful for your opportunities and the education you've had. Remember to have balance in your life: It's not just about business. There are other things that are more important."