Ka Wai Ola - Office of Hawaiian Affairs, Volume 31, Number 3, 1 March 2014 — Emerging Leaders course boosts small businesses primed for growth [ARTICLE+ILLUSTRATION]

Emerging Leaders course boosts small businesses primed for growth

By Lisa Asato Ayear after becoming president and CEO of Ali'i Kula Lavender, Koa Chang has learned to embrace a golden rule of proprietorship: that is, to run a successful business, you have to let go of the day-to-day minuhae. Recognizing the talent of his staff, he promoted three longtime employees, including elevating operations manager Christie Fernandez to general manager. The promotions, Chang said, have allowed him to focus on "bigger issues" for growing the Kula, Maui-based company that bears his late father's name, including exploring exporting, developing new products and improving his company's online commerce system. Letting go of managing day-to-day operations is one of the lessons driven home through the U.S. Small Business Administration's Emerging Leaders Initiative, formerly called the e200 Initiative, an intensive seven-month executive-level training course that helps small businesses grow, both in revenues andjob creation. In November, the program graduated its third class in Hawai'i. The cohort has ranked in the top three classes nationally eaeh year and this year was the only class in the nation to have all 15 students graduate. Seven of the graduates were Native Hawaiian, including Chang. The program receives funds from the federal Office of Native American Affairs, and targets Hawaiian and underserved communities in Hawai'i. Instructor Julie Percell said the Hawai'i class collectively created 30 jobs the first year and 34 the next. "This year's group exceeded that by nearly double," Percell said. "They created 67 new jobs in a year. That just blew me away." This year's class also boasts $10.3 million in new revenue, a record in Hawai'i, whieh includes contracts into the future, she said. Percell considers herself a eoaeh who provides guidance but never tells students what to do. "I never say, sell your business or double your business

or hire 10 more people. I say: 'I want you to imagine a strategic plan three years out that will give you the best of all possible worlds. What is it that you want? What could you possibly achieve? Is there something out there that you're not doing?' " One former graduate decided to sell an underperforming, labor-intensive part of his business. "Now what he has left is the part of the business that makes money and he's so happy. He wouldn't have done that before he eame to the class," Percell said. The course covers four modules: leadership and management, hnaneial, sales and marketing, and resources needed to achieve goals. Students also say guest speakers specializing in areas including human resources, investment, lending and programs, including representatives from OHA's Native Hawaiian Revolving Loan Fund, are a highlight. Percell, who has been teaching in the field for more than two decades, said one of the "most validating" experiences students will have is meeting like-minded people who ean share their experiences and challenges and how they dealt with them. "One of the things we know about entrepreneurs is it ean be very lonely," she said. "You don't necessarily have anybody else to bounce SEE LEADERS ON PAGE 14

EC0N0MIG SELFSUFFIGIENCY

The most recent Emerging Leaders lnitiative course graduated seven Native Hawaiian smallbusiness owners, including, from left: ūanene Lunn, Kenny Chang, Koa Chang, Scott Gardner, Wilhelm Cordes and Trisha Kehaulani Watson. Missing is Miehael Ching. - Photo: LisaAsato

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Continued from page 7 ideas off of. Within the first eouple weeks of the class, (participants say), boy, it's sure a relief to find people who have the same problems I do." That was the case for Chang, 31, who said meeting other business owners helped him realize that "everybody has challenges" and faces cycles of growth and stabilization. "Knowing that it was a natural part of business was a big thing for me," he said. (I realized) we're not doing so bad . . . We're actually doing well." Chang, who flew to O'ahu from Maui to attend classes, says he would recommend the course to anyone. The Native Hawaiian business owners in the class gravitated toward one another and partnered together on projects, he said, and meeting Percell and his classmates validated for him a crucial value:

that success and aloha ean go hand in hand. It's a value taught to him by his father, Ali'i, and his father's business partner, Lani Medina Weigert, whom Koa Chang credits with grooming him to take over. Jane Sawyer, director of the SBA's Hawai'i and Paeihe Affiliated Islands District Office, said the course requires about 100 hours of time for classes every other week, meetings with smaller groups, research and homework. The course, estimated to cost $10,000 per student, is free. "We want the class to spur them to growth be something they ean get their arms around and really be engaged in developing the vision and plan for their business," she said. "It is not for the weak of heart." To be eligible for the course, a business has to be at least three years old, have $350,000 or more in annual revenue and have at minimum one employee. Deadline to apply for the upcoming session was March 2. ■