Part 4 of 4
This is the fourth in a series on how young entrepreneurs and innovation – not massive government spending – will get us out of our economic recession. The young entrepreneurs I’ve interviewed have all started their companies during this recession.
By Katie Kieffer
Anders Pesevanto & Kiel Luse – The Paradigm Group, LLC
The Questions:
1.) When did you start the Paradigm Group? Summarize briefly how the two of you decided to come together to start this company?
Kiel: We opened in May of 2009. Anders and I were colleagues at The Geneva Organization and we kept in touch after we both left earlier this year. I came to Anders and we were discussing what was going on in the market and decided it would be a good time to come together and start our own company.
Anders: We did our background research and spoke with a number of companies in the area and realized that even though things are slow, the workload for a lot of companies is still rather high. We recognized that and said to ourselves, “Why don’t we start a company where we can offer commercial real estate services on a short-term basis – hourly or by project?”
2.) What is unique about The Paradigm Group? How do you set yourself apart from larger corporations?
Anders: Some of what we do is project-based consulting or advisory work. We can come into a situation where a client has a problem on their hands and, not only can we say, “This is what we recommend,” but we can also tell them: “We can get it done for you. We can build it for you. We can execute your ideas for you.” Combined, Kiel and I have close to 10 years of experience in commercial real estate, and this is an asset to our clients. We are also young and open-minded, so we bring fresh ideas to the table.
Kiel: Adding to Anders’ points, we offer to do our projects on a contingent basis. If a client is either unsatisfied or had something completely different in mind after we perform our work, we will re-adjust our analysis to better suit the client, free of charge. Our number one goal is to provide quality work to our clients in order for them to better their business models.
3.) Have either or both of you always had the dream of doing your own thing? Would you consider yourself to be a serial entrepreneur or is this your first independent venture?
Kiel: Both of us had at some point planned to go out on our own. Growing up, my family was very entrepreneurial-oriented. I used to watch and learn how my father ran his company, and it definitely instilled a motivation for me to be running my own company at some point in my life. Because of circumstances, it just so happened to be now versus later on in life.
Anders: I always saw myself as running my own company down the road. We just had the opportunity to open it up sooner than planned, and we took the leap.
4.) In the cover story of the September 21, 2009 issue of TIME Magazine’s “Verbatim” section, they quote Rick Alexander, a FL carpenter who gave up searching for a job after several months as saying: ‘It becomes a “why bother” scenario.’ Do you think that this recession is a perfect time to create your own opportunities versus relying on large corporations to provide them?
Anders: We are more optimistic. We think that this is a great time to start a company. There are a lot of things that take time you are starting up a company, such as building a brand. Over the next 12-18 months we can get our name out there and when things pick up, we’ll be ready to capitalize on our investment.
Kiel: Even though it’s slow and most people in our industry are playing the “wait and see” approach, I still think there’s a tremendous amount of opportunity out there. If you look at past recessions, they have been a catalyst for new and innovative companies.
5.) As young professionals, do you feel like it’s easier to take on the risk of doing your own thing while you’re young?
Kiel: No matter what, when you start a new company there is a risk. However, generally younger individuals have less responsibility in their lives, allowing them more time and effort to make a business successful. For us, companies can get two young, hard-working professionals that can come in and do exceptional work for them, while at the same time focusing their time on bigger tasks and reducing their expenses by not having to hire full-time.
Anders: I feel being young is our biggest asset. Given the fact we are just starting our careers we can take more risks and have the ability to be more flexible in our decision-making. Right now we have both the time and energy it requires to start up a new company.
6.) What are the biggest challenges you face today as a young entrepreneur? What is the most fulfilling?
Challenges:
Anders: Getting enough work load to keep us going in a slow market.
Kiel: Getting companies on-board or being comfortable with bringing in an outside consultant, especially a younger one. At first, they might hesitate due to the perceived time involved in getting us up-to-speed with their work. It’s not as time-consuming as it may sound. We can jump in right away because of our background experience, generally requiring only one meeting to discuss the extent of a project.
Fulfilling:
Anders & Kiel: When we are able to provide exceptional work for a client and they want to work with us again. It is always nice to hear that our work directly benefitted their company as a whole or allowed them to close a deal.
7.) Where do you see your company a year from now?
Anders: We’ll be a more recognizable name in the Twin Cities commercial real estate market. Hopefully by then we can hire a few more people to work under us to help us with the work load
Kiel: We want to expand to our name and reputation within the industry, providing niche services to a number of different clients.
8.) What’s your website? How can people reach you?
Company website:
Email:
Anders Persavanto – anders@theparadigmgroupmn.com
Kiel Luse – kiel@theparadigmgroupmn.com
An excellent capstone on an excellent subject. It is good to know that the spirit of American business remains strong despite economic pressures otherwise.
While your message of independent creation as opposed to government expansion is understood, even these bold people did not take their steps in a vacuum. I’m curious to know what (if any) government programs these entrepreneurs took advantage of to get their start. I’d also like to know if they were effective, and what form those programs took.
I’d also like to know what other resources they relied on. As a person who aims to work with new businesses and start-ups, it’s important to know what (non-governmental) programs and services they need. It can also be valuable advice for those starting up their own business.