29 October 2007 5 Comments Print This Post  Email This Post

When I received a couple of advance copies of The Engine Of America, by Hector Barreto, I put it on my “to-read” pile. Unfortunately that pile grows by the weeks and I have yet to make any significant dents on it with my chronically busy schedule. However, last week I happened to have a lot of spare time just sitting in my car downtown. I happened to have one of the books in my car, so I gladly picked it up and started reading it. To be perfectly honest I wasn’t expecting the book to be a triumph, but after reading the first few pages, I was hooked. I ended up finishing the entire book, which is over 200 pages long, in one sitting.

The difference between this book and most books on business and entrepreneurship, is the perspective from which the words were written. Most authors in this genre are successful entrepreneurs themselves, who write about their own journey and opinions. Hector Barreto, on the other hand, is writing from outside the box. He was the former administrator of the US small business administration. Playing such a significant role in the SBA allowed Hector to meet thousands of successful entrepreneurs as well as those who did not do quite as well. He has literally seen it all when it comes to small business. Because of this extensive network, the book not only tells Hector’s story, but its nicely illustrated with real life examples, quotes and situations from entrepreneurs from all walks of life. Many of these examples are motivational and inspirational while others teach valuable lessons. This is a book that any entrepreneur at any stage can appreciate.

Here are some highlights from my favorite chapters.

Chapter Two: Plan-Don’t Just Wing It. If you’re an entrepreneurial person, how many times have you had a bulb lighting moment in your head? I don’t blame you for wanting to charge out the gates at the very moment you think your idea is bulletproof. However, strategic planning is the difference between success and failure. It is the difference between risk and calculated risk. Many think that a business plan is just something you have to cook up for banks and potential investors to see. The truth is building any business without a business plan is like building a house without a blueprint. Your business plan lays out all the obstacles you plan to encounter, the capital needed, your course of action among other things. Hector explains the importance of planning when it comes to building a business you plan to keep alive. This chapter is filled with many great examples from real life companies and the people behind them.

Chapter Four: Challenge Conventional Wisdom. Do something different. Change the way we do things. Just because things have been done a certain way for a long time doesn’t mean its right. Imagine at one time slavery was widely accepted until a group of people decided to challenge conventional wisdom. In this chapter, Hector provides many inspiring stories and quotes from successful entrepreneurs who took a risk and succeeded. I particularly loved the story about Linda Alvarado, who as a young woman founded Alvarado Construction Inc, a field typically dominated by males. After clearing many hurdles, she went on to become wildly successful, eventually owning part of the Colorado Rookies. Hows that for inspiration?

Chapter Six: Seek an Edge by Finding Your Niche. If you’re going to open up a pizza place that is within a mile of one or two other pizza places, you better make sure you’re doing something different. This applies to all small businesses, particularly e-commerce businesses. It’s important to corner a smaller market and dominate it rather than trying to wage war against big companies while trying to capture the business of a larger market. I am proof of this myself in my experience in e-commerce. I tried to sell high end jewelry online at one time. The market was extremely saturated and I only made about $200 every two months. It was not even worth the time to run it anymore, so I sold the site and moved on. However, now I have two online businesses which caters to a smaller but untapped market, and I’m experiencing good growth and decent revenue. The bottom line is you want to make money. A larger market has bigger potential, but if it’s saturated, your chances of capturing market share decreases and so does your profit.

The end of the book provides a great deal of resources for entrepreneurs. There are tons or URLs and contacts that may come in handy. Overall, I think this is a must read for entrepreneurs of all stages. I wasn’t expecting a triumph when I got the book, but it proved to be a valuable collection of experience and expertise. Grab this book at Amazon.com