By John Edison
Herald Staff Writer - 03/31/2007

Ever heard of a seat-of-the-pantser? How about an enlightened entrepreneur?

According to Tom Gegax, the man behind the name Tires Plus, small business owners have a natural inclination to act like the former, while they'd be more successful in the mindset of the latter.

He said entrepreneurs have a tendency to do what's immediately in front of them rather than focus on the bigger picture - it's a process he calls “putting out fires.” Many times, this practice comes from a lack of experience. “Most of the people who start a business have not already had a business,” Gegax said Friday before headlining an entrepreneur forum at UND's Center for Innovation.

Gegax currently is an author and business consultant. After 24 years as Tires Plus president and CEO, he sold the Minneapolis-based company to Bridgestone/Firestone in July 2000.

In addition to speaking to UND entrepreneur students, such as the Dakota Venture Group, Gegax took some time to promote his new book, “The Big Book of Small Business.” The 420-page book outlines lessons Gegax learned while at the helm of Tires Plus, an entity he occasionally will refer to as his laboratory. It's also the product of five years of work with co-writer Phil Bolsta.

The book isn't an attempt to find a quick solution to the small business owner's problems, it's a collection of ideas related to everything from delegating tasks to legal issues. Gegax said it's a step away from the one-size-fits-all business solution.

“There's no answer. Everyone wants the magic pill,” he said. “There is no magic pill.”

Gegax suggests small business owners take steps toward becoming an “enlightened entrepreneur.” His book uses the following definition for an enlightened entrepreneur: “A tough-minded, warm-hearted, systems-disciplined leader who inspires people to embody the organization's mission, vision and values.”

At the same time, he realizes the transition from seat-of-the-pantser to enlightened entrepreneur sometimes takes time, and often, failure.

“It's a gradual process, but it has to be an intentional process,” he added.

Gegax knows the importance of this transition from experience. He said major events about 1989 prompted a major change in his philosophy - both personal and business-wise. It started when a consultant came in to review Tires Plus and did 30 days worth of research at a time when the company was struggling.

In his book, Gegax writes “my CFO told me the company still was a million bucks short and our credit line was dry.”

When it came to problems at Tires Plus, the consultant's report put a lot of the responsibility for the problems on the leadership. “He said, ‘Well, Tom, it's you,'" Gegax said.

To exacerbate the situation, Gegax had some problems in his personal life. He was diagnosed with cancer and went through a divorce at about the same time. However, Gegax went through a personal transformation, changing everything from his diet to the way he interacted with his employees. On the business end, he adopted a “tough-minded, but warm-hearted” approach.

The end result was a turnaround for Tires Plus. The company eventually grew to 150 stores in 10 states with $200 million in revenue. In 1995, Gegax was named Inc. magazine's Midwest Entrepreneur of the Year.

After selling Tires Plus in 2000, Gegax started Gegax Management Systems. He now travels the country consulting, giving seminars and delivering speeches.

This article can be found at http://www.grandforksherald.com/articles/index.cfm?id=32900&section=Business.