By Kelly Patrick Slone

We’re taught from a young age that failure — that huge red “F” marked on our school papers, not being cast for a starring role in the school play or not qualifying for the starting lineup — should be avoided at all costs.

Yet many successful entrepreneurs see experiencing failure — and learning lessons from it — as a critical and inevitable step in the journey to success.

In fact, one Indiana entrepreneur thinks so highly of failure that he created an annual event to celebrate it and the role it can play in innovation and eventual success.

John Wechsler, founder and CEO of Launch Fishers, hosted his third annual FailFest in July, and an offshoot — Failfest Wabash Valley — came to Terre Haute in September.

IMBM talked with three Indiana entrepreneurs who have been invited to speak at FailFest, to learn their insights on failure: Oscar Moralez, managing director of VisionTech Partners & VisionTech Angels; Polina Osherov, editor-in-chief of Pattern Magazine; and Cassie Stockamp, president of The Athenaeum Foundation.

Here are the key takeaways:

Learn the lessons

Since failure is inevitable, why not look for the silver lining?

“Recognize that, many times, you’re going to fail, and don’t let that knock you down,” Moralez said. “Use that to learn from. Risk is OK. Failure is OK, too, as long as you learn from it and apply those learnings to your next investment or venture.”

Osherov said many of her moments of failure stemmed from simply trying to take on too much.

“You have something, and it starts growing, and people get excited, and all of a sudden there’s all of these opportunities that open up,” she said.

The need to feel liked and tell everyone what they want to hear compounds the issue, she said.

For one, Osherov said, her failures have helped her learn to say “no.”

“Most people will understand if you explain, ‘We just literally can’t right now,’” she said.

Choose the right people

Moralez said any success he’s had can be attributed to the people he’s worked with, and he sees the same story play out with other successful organizations. But surrounding yourself with the right folks is as important to navigating failure as it is to having success.

When Stockamp’s construction company went under, the support of her friends and family kept her from collapsing in on herself.

“I had surrounded myself with some really good people, from a friend perspective … you do want to turn inward, but you also need to look outward and have other people help you through the process,” she said.

Osherov said she knows the people she works with are all-in with the magazine’s mission, and that keeps her going.

“I get feedback on a regular basis from folks who see this as something incredibly important and progressive,” she said. “So from that standpoint, I’m like, I can’t quit.”

Keep it in perspective

Osherov said failure has a tendency to shake someone to the core, but keeping a positive outlook is imperative.

“They will turn on themselves and have incredibly negative conversations with themselves … I don’t go there. I find it incredibly counterproductive and not true,” she said. “As long as you’re breathing and you can have conversations and meet with people and explore new ideas, there’s no reason why you shouldn’t keep trying.”

And though it sounds trite, Stockamp said maybe everything really does happen for a reason. After her company went under and she made it through the initial shock, she discovered she was ready to go in a new direction anyway.

“It was very, very clear that I did not have the fire in my belly anymore,” she said, so she sought a new path. With her current position, she’s found a renewed sense of purpose.

“People think I’m crazy, but I’m so grateful that happened. I’m in such a better place.”

Put your business’s future in good hands

By Keshia McEntire

Hanna Cho has accomplished a lot in her life. In addition to serving at the Indiana Assembly of God Korean Church that her husband pastored for more than 30 years and raising four successful children, she is the owner and professional seamstress at Joy Alterations on East Washington Street in Indianapolis. She has owned and managed her alterations shop for the past seven years. Prior to this, she worked in alterations for more than 13 years. Now Cho is looking to retire and wants to find the right person to pass her business on to.

“My sister-in-law started and operated this business before me. I don’t have a retirement plan, and my kids and family will not take over the shop, because they all have jobs,” said Cho.

Cho’s situation is not unique. According to the U.S. Small Business Administration, many small business owners have no exit strategy for their businesses, because their time and energy is focused on business survival and future growth. Succession planning is the process of creating an exit plan for whenever a business owner is ready to step down. Though Cho does not currently have a succession plan, she says she will likely stick around for the next two years until she finds and trains the right person to take over her shop.

Two succession-planning experts offer IMBM readers their input on this important but overlooked topic.

Stacey Poynter is the U.S. Small Business Administration Indiana District Director. The Small Business Administration is a United States government agency that provides support to entrepreneurs and small businesses. Bill Petrovic is the Indianapolis SCORE Chapter Chair. SCORE is a volunteer organization that offers free business mentoring services.

IMBM: What is succession planning, and how would you describe this concept to a business owner who had never heard this term before?

Poynter: I would describe it as your written game plan in the event that you are unable to run the business. A lot of people think retirement, but it could be an unknown health situation or an accident. It’s fluid and can be added to or changed anytime. You can plan for the future, but that future can change. After you write it, you will need to update it periodically.

What types of organizations benefit from succession planning?

Poynter: I think all types of organizations benefit from succession planning, whether it’s a family-owned business, a church, a not-for-profit or a large corporation. Some of the bigger corporations already have that in place in the form of (continued) vice presidents. Smaller family-owned businesses don’t always have that. If the owner is not there for any reason, who is going to keep the lights on or pay the vendors? Part of succession planning is making sure someone else is trained for that.

Why is it important that my business has a succession plan?

Petrovic: You don’t want to run a business your whole life and in the end you just shut the door and turn off the lights. You want to be able to sell it or keep it running. To keep a business in top shape, it needs to have consistent good leadership. A lot of times a business might make a reasonable amount when it’s running, but the big payoff comes in the end for the owners when they sell. Instead of saving up during their life, they are investing everything in the business, so it’s important that the business can be sold at some point. As far as keeping it running, it’s not just about naming the next person, but really a big part of the plan is figuring out how to transfer the knowledge to whoever is taking over. If you have a person in mind, you have to figure out how that person stays sharp so that, at the right time, they can step in. A succession plan is protecting your business against having one person who is so critical that if they leave, nobody else knows anything and everything falls apart.

How do I create a succession plan?

Poynter: The first step is to get the plan down in writing. Verbal agreements don’t hold weight at the end of the day. If the owner sits down with a paper and writes it down first, when they go to seek more council, they already have it written. The next step would be to go seek mentorship. The SBA has resource partners who provide free one-on-one counseling and mentorship, such as SCORE. I would highly recommend that you seek out these free resources first for any small business needs, such as succession planning.

So I have this plan down in writing, what is the next step to implementing it successfully?

Petrovic: After you get it in writing I believe having a formal review of it once a year is very important. A succession plan generally does not happen as originally planned, so I am an advocate of constantly updating a plan; people are not as predictable as a plan may say they are. You may think this person’s going to do one thing, but that person may have other ideas. They may even leave the company. Things get written down and put on the shelf. Three years later, you take a look at the succession plan and realize the situation has changed dramatically. A succession plan is not something that should be locked in. It should be worked on every year.

Churches, not-for-profits, small family-run businesses and large firms all can benefit from having a succession plan. How might these unique types of organizations need to think about succession planning differently?

Petrovic: The simple answer is that every organization needs a succession plan. Large organizations recognize that people retire and they bring in new people all the time. They have more options. The smaller the organization the more difficult it can be, because there are not as many options.

Poynter: Small or family-run businesses sometimes don’t plan because they are too busy focusing on the day-to-day functions of the business. It is very important to plan, because you never know what will happen when you walk out the door. Poor succession planning can have extreme effects on relationships in a company, or, if it’s a family business, a family. If employers think the owner is going to retire soon, they will want to know what will happen. They want to know if they are selling the business and if they will still have a job. It can change their attitude at work. The other factor is maybe the employee thinks they have a shot at buying or taking over the business, and they want to be considered for that. Those are discussions that should be taking place.

Do you think companies should hire experts to help them write a succession plan?

Petrovic: My personal opinion is it’s not so complicated that smart people who are already running a business can’t figure out. Succession plans aren’t legal promises. I would be surprised if anyone tried to take someone to court because they were next in line in a succession plan and it didn’t happen. It’s not intended to work that way.

How can companies ensure smooth transitions as leadership roles change?

Poynter: Communication is everything. It’s a good idea for businesses to announce a time period of transition. The sooner, the better to give people time to be more comfortable with changes.

Petrovic: If you are considering the view from the outside of the business from customers or clients, it’s important that the future flow is made obvious rather than a secret. Your transparency is important. From the inside of the company, let the people who are the future leaders get in the limelight as they develop their skills and things move forward, so it will not be a big surprise to anyone

How the NGLCC is helping diverse firms find success

By Keshia McEntire

Starting a business is a daunting task for most people, but some face additional obstacles when navigating the corporate world. The United States government has initiatives in place to help minority, women and veteran-owned businesses get supplier contracts with big companies and local, state and federal government agencies. As the number of business owners who openly identify as members of the lesbian, gay, bisexual and transgender (LGBT) community grows, more and more companies are also seeking out LGBT-owned businesses to source products and services from.

If a business is 51 percent LGBT owned and operated, the owners may be eligible to apply for certification by the National Gay and Lesbian Chamber of Commerce (NGLCC). Getting registered as a Certified LGBT Business Enterprise (LGBTBE) allows LGBT business owners the opportunity to compete for contracts in corporate supply chains in the same way as other minority groups.

Jonathan Lovitz, vice president of external affairs at the NGLCC, feels not getting registered is comparable to ignoring free money.

“If you’re an LGBT business owner and not certified, you’re leaving money on the table that could help your business grow and allow you to give back to our community as a role model, job creator and valued success story of an LGBT person achieving the American dream,” Lovitz said.

The NGLCC currently has more than 900 certified LGBTBEs in its database. Over one-third of Fortune 500 companies actively seek out and include NGLCC-certified businesses alongside other minority groups when looking to source contracts. Despite this, many LGBT business owners still do not know the certification exists or how to obtain it.

Two such business owners were Audi Culver and Ivy Siosi, two entrepreneurs who design and craft custom furniture for a variety of clients in Indiana and across the United States. Though they have been business partners for more than four years, they have been partners in life even longer.

“It’s kind of a honed skill for the person you love to be the person you work with, but there is no one I would rather collaborate with. There is no one’s opinion I respect more, even though every date we try to have turns into a business meeting,” Culver said.

The two live and work in Bloomington, Indiana. Their handcrafted creations adorn many local businesses, including Bloomington’s Upland Brewing Co.

“Bloomington is a very accepting community, and we would not be here if we did not feel safe. No matter what, it’s always on our radar to make sure we are in a safe and supportive community and that we can have a business that we don’t feel scared to show who we really are. It’s not only that we are gay, but we are also in an older-male-dominated business. We get old guys that are like, ‘Wow, you made that? That saw is bigger than you are!’ It’s just a little patronizing,” Siosi said.

The couple was unfamiliar with the LGBT business certification, but they both feel it can be beneficial.

“I am not very familiar with it. This is really the first time I’ve looked into or given any thought to that type of certification, but it sounds like obtaining it might be a great networking opportunity,” Culver said.

And the networking opportunities are endless, especially considering that, though NGLCC certification is on a national level, membership is on a local level, and the NGLCC works closely with local chambers, such as The Indianapolis Rainbow Chamber of Commerce. The NGLCC will waive the $400 certification fee for business owners who have joined their local affiliate chamber. The local chambers give entrepreneurs a myriad of opportunities to connect with like-minded business owners.

Lovitz said in addition to the networking possibilities, becoming certified promotes a more inclusive form of diversity.

“In no other community can mentioning that your business partner may also be your spouse cost you your livelihood. Too many of our business owners who are intersectional minorities, for example, gay and Hispanic or trans and African-American, are told to hide their sexual orientation and lead with their visible minority. That is why so much of our advocacy work is done in tandem with our partners in other diverse communities, because when we all do better, we all do better,” Lovitz said.

Noell and Crystal Allen agree that diverse communities need to work together. The couple is passionate about the economic empowerment of all minorities and have dedicated their lives to encouraging others to follow their entrepreneurial dreams. Noell is an attorney with a background in business, while Crystal is a certified public accountant. Driven by a desire to assist small business and entrepreneurs with reaching their goals, the couple founded A Total Solution CPA & Consulting Services in 2005. The company provides services including tax and accounting services, legal advice and business development.

“It was really out of a desire to assist small businesses and entrepreneurs with establishing success. Our intent was to serve our community at large. What our clients appreciate about our team is that we are professionals and knowledgeable. We just happen to be in a lesbian relationship,” Crystal said.

The couple is currently in the process of obtaining LGBT Business Certification from the NGLCC.

“You have to provide documentation showing you are a legit business, but you also have to prove your ‘gayness,’ so to speak. You can do this by showing a marriage certificate or your affiliation with a local gay chamber of commerce,” Noell said.

Noell thinks minority-owned businesses supporting each other is beneficial for all and has advice for corporations considering getting certified.

“The benefits of the certification outweigh any reason not to. Do not let fear of being discriminated against stop you, because corporations understand the importance of empowering LGBT business, hence the growing desire to partner with the LGBT community,” she said. “It’s important that minority-owned businesses support one another. When we pour our money into our community, we build wealth that can transcend generations.”

For more information on how to obtain LGBTBE certification, visit nglcc.org.

NGLCC’s four easy steps to LGBTBE certification

1. Visit my.nglcc.org to complete the online application process. You will need to build your business profile and submit supporting documentation to verify your eligibility for certification.
2. Once your application is complete, your regional manager will schedule a site visit to verify the information submitted and to learn more about your long-term business goals.
3. Your application will be reviewed by the National Certification Committee.
4. After receiving confirmation on the approval of your application, participate in an LGBTBE orientation webinar.

If at any time you need help during this process, contact the NGLCC SDI Team at (202) 234-9181.

Combining family with business can be dicey, but it doesn’t have to be. A few ground rules can help make the workplace a positive environment for everyone:

1.  Start with a job description. Whether you’re hiring for a new position or already have your relative onboard, you’re best served to create a job description that includes tasks, performance expectations, and how that person’s progress will be measured. There should be no surprises.
2. Address concerns. That means voicing them without bringing the family connection and baggage into it. This could mean actually saying, “I’m speaking to you as your boss now and not your brother,” for example.
3. Fire when necessary. Sometimes, family employees just don’t work out. If you’ve tried to address the situation to no avail, don’t keep holding on just because the person is blood. Have the much needed talk.

Foreign language skills in high demand

By Victoria T. Davis

Communication, teamwork and problem solving skills make the list of the top 10 skills employers seek in prospective employees according to Forbes. While these skills may be typical, another skill set is in high demand and reports find most job seekers who possess this skill can trade in their talents for higher salaries. Knowledge of any foreign language can help boost your value as a professional and help companies reach an audience they may not have previously had access to.

Indiana Minority Business Magazine spoke with Rebecca Buchan, director of ASL and education at Luna Language Services to obtain advice for those looking to learn a new language to further their career or personal connections.

Tip 1: Revisit your first language

“Make sure you’re strong in your first language. If you have a weak foundation in your native language, then your ability to learn other languages can be difficult. Those who strive to become interpreters forget that native language component. We all want to know ‘What’s the word for this or the sign for that’ but we’re forgetting we work in English just as much as we do other languages.”

Tip 2: Learn the culture along

with the language

“Language is not void of culture because they cannot be separated. You should learn and honor that culture.”

Tip 3: Find a language mentor

“Find somebody who is fluent, preferably someone who is native to the language you are learning and sit down with them one on one. Conversations just aren’t about linguistics or dialogue because there is a cultural component. The more you understand the entire context, the easier and more authentic acquisition will be.”

Tip 4: Be a learner of the language then share it

I’m a big advocate for learning a language and then finding someone you can teach it to. It can be a child or a coworker, just anyone you can share that information with. It reinforces our adult learning. You learn it, you process it and then you process it again but not as the learner but as the teacher.”

Tip 5: Show passion and emotion

behind language

“Make sure there is passion and emotion behind your language. If you don’t have any, it just becomes words on a paper. With sign language, the signer’s sign space becomes really big and they sign larger when they are provoking heavy emotion.” I

For more information on learning a new language, visit luna360.com.

These Indiana cities are creating vibrant cultural communities

By Benjamin Cooley

Over the past two decades, Indiana has evolved into a multicultural haven for immigrants and refugees. More recently, the American Community Survey reported a 61.6 percent increase in foreign-born residents from 2000 to 2013, with Mexican nationals making up an approximate 36.6 percent of the total foreign-born population. Many immigrants see a new life in Indiana as their best hope for a successful future. And while the final destinations of these people vary, a few Indiana areas stand out for their response to new populations.

Marion County & the Northwest side

There are over 86,000 Latinos in Marion County, according to the most recent U.S. census data. Of the total population in Marion County, about 8.5 percent are immigrants, compared to just 4.8 percent for the state of Indiana. In particular, the Northwest side of Indianapolis seems to have been particularly affected by this influx of immigrants. In 1997, resident Mary Clark started to notice a change in her neighborhood.

“I was used to a black and white Indianapolis. But then I saw this big influx of the Hispanic community coming in.” She says at first she didn’t know what to think, but after interacting with her new neighbors at her previous job with National City Bank, Clark had a change of heart, along with an added burst of inspiration.

Almost two decades later, Clark has excelled as the executive director and founder of the International Marketplace Coalition, a not-for-profit organization devoted to the economic development and diversity of the Northwest side of Indianapolis. Through her organization she has helped dozens of business owners from Latin America, Africa, India and East Asian countries build successful businesses in the community. The International Marketplace Coalition area now contains over 70 ethnic restaurants, 40 specialty markets and over 700 total ethnic businesses serving the neighborhood.

“Our goal is to take what’s happening on the inside of businesses and take it to the outside,” said Clark. “Most are immigrants to Indiana wanting a better life for their families, just like the rest of us. I think we’ve done a good job of embracing our immigrant brothers and sisters here.”

South Bend

Outside of Indy, similar trends emerge. South Bend contains over double the percentage of Latino residents than the state average at 13 percent of the city population. In addition, the rate of foreign-born residents beats the state average by nearly three percent. The first major wave of Latino immigrants arrived in the 1940s, around the time when many of the original Polish immigrants to the city began moving out to the suburbs. Due to the solid infrastructure left by the Poles in the early 1900s, Latino immigrants began moving into built-up neighborhoods and forming new ethnic enclaves, or geographic cultural communities, on the west side.

Over the years, the community has welcomed many new businesses to serve this ethnic enclave and its Latino residents. La Rosita Paleteria y Neveria, a homemade popsicle and ice cream shop on Western Avenue, serves iced treats inspired by the owner’s old family restaurant in her hometown of Durango, Mexico. Another shop called El Paraiso provides specialty groceries directly from Mexico to residents looking for ingredients needed for traditional Latino dishes.

Terre Haute

Similarly to South Bend, Terre Haute also contains a noticeable community of Latino immigrants. The biggest increase in the immigrant population occurred more recently between 2000 and 2010. According to Jeff Lorrick, a director of human relations for the Terre Haute Mayor’s Office, the transition has been a smooth one.

“Our community is making the necessary adjustments to welcome and embrace our Hispanic population,” said Lorrick. “We want to be welcoming and inclusive to whoever comes to our city.”

Many of the recent immigrants have found jobs with private construction contractors or manufacturing plants. In addition, some churches and other religious organizations have begun offering services specific to the Latino community. Grace Community Church of Terre Haute has even introduced a dual service for English and Spanish speakers to be able to worship together while each hearing the sermon in their own language.