BY Dennis Oda, Star-Bulletin
Pat Henrickson, left, and Peter Kay speak today at a
Retail Merchants of Hawaii seminar about what it takes to
be a successful entrepreneur even in the slow isle economy.

Entrepreneurs
bullish on startups

Hawaii's sluggish economy
shouldn't deter new businesses,
seminar speakers say

By Jerry Tune
Star-Bulletin

Peter Kay, president of CyberCom Inc., says that business success is a matter of personal actions and not outside forces.

In other words, success is possible even in Hawaii's sour economy, he says.

Kay, chosen the 1998 "Entrepreneur of the Year" by Ernst & Young Hawaii, was one of about a dozen local business people scheduled to speak today at the "Success 2000" seminar at the Dole Cannery ballroom. Success 2000 was organized by the Retail Merchants of Hawaii to explain how business challenges can be overcome.

Some of the speakers, interviewed earlier this week, said fledgling entrepreneurs shouldn't let economic forces get in the way of initiative and, in fact, Hawaii's poor economy can present opportunities.

"The state of the economy is completely irrelevant to the degree of individual business success," Kay said. "You must take total personal responsibility for where your business is today."

After that first step is taken, he said, the entrepreneur is in a position to examine factors such as quality of product, price advantage, employees, and image in the marketplace.

CyberCom Inc. is a leading Internet business in Hawaii that develops and delivers Web sites for businesses. The company, founded in 1994 with $2,500, has grown from two to 20 employees as revenues increased by 400 percent.

But CyberCom came only after two other failed ventures going back to 1984.

"Be prepared to fail at least twice," Kay said. "Get ready for long hours. I worked from 9 a.m. to 3 a.m. (the next day) for the first two years (of CyberCom)."

Kay also said entrepreneurs must be "scared out of their wits" but -- at the same time -- "have an air of confidence and be bubbling with enthusiasm."

Among Kay's other advice to would-be entrepreneurs are:

Embrace change, rather than reacting to it;

Spend every dollar as if it is your last;

And know that customers only care about getting the best product or service at the best price.

Pat Henrickson, chosen the 1997 "Woman Entrepreneur of the Year," also stresses attention to customers' needs.

"You really have to team up with your customers and figure out what can be most cost effective," said Henrickson, chief executive officer of the Computer Training Co., which she founded in 1990 as the Corporate Training Center. Her niche market is translating businesses' computer needs into custom-designed training programs.

Henrickson said her company lowered prices to customers while also finding out "what else we have that could help our customers."

"The health of my customer is the health of my company," she said.

Business at Computer Training Co. grew by 65 percent during the first quarter this year, and Henrickson forecasts a 60 to 70 percent growth for the year. The company trains about 20,000 people a year for corporations, small businesses, government and independents.

Another Success 2000 speaker, Kent Untermann, said developing the right business plan is essential. Untermann and and his wife Lori started Pictures Plus at a local swap meet with less than $3,000 in 1987 and now have annual sales of $10 million. They were entrepreneur award finalists this year.

"Plan for the future and have back-up plans and more back-up plans," Kent Untermann tells would-be entrepreneurs.

He said Hawaii's poor economy offers "great opportunities" to get the right employees and find lower priced retail and industrial sites.

Untermann yesterday closed escrow on a new warehouse site at $2 million, a location he said would have gone for $5 million a few years ago.

The warehouse at Campbell Industrial Park has more than 40,000 square feet and is the first one purchased by the company, he said.

The picture frame company has locations in Pearl City, Lahaina and Lihue and will open at the Kahala Mall in mid-July, he said. "I've had my most profitable years in the last three years," Untermann said.

Erwin Hudelist, president of Harbor Graphics and Fine Printing Inc. and another entrepreneur award finalist, also believes in seizing opportunities. He heads the largest sheet-fed printing business in the state and in January bought the Island Map Co., which publishes maps.

"We've been doing well since March," he said.

Harbor Graphics has 48 employees and serves 580 customers.

"The most important thing is to listen to your employees and clients," Hudelist said. "You also must learn how to deal with disappointment."

For those considering a new business, Hudelist added: "Start it because you love the business, not for the money."