About the case study guide of each episode of the show


Donald Cassel (goes to the transcript of this episode)
of Grind King (goes to the overview)

in Venice, California

and a management tip from Hattie
Key Ideas.
Key Idea #1: .Test, test, and re-test your product .
Before you go into mass production, test market your product with small quantities. Give the product to customers to try, and consider their suggestions for improvements. Use the product yourself. Create events to bring customers together and listen to their ideas. As the world changes, needs change, and your product must continuously adapt.

You think back:   Why was it so critical for Donald to do it right the first time he went into large production?

Answer: Because he had no money. He had no line of credit from the bank and no way to qualify for a loan which could finance the product development stage and the first big production run. Donald has used common sense to build a very nice business--so often we forget to do the most obvious things. Customers will tell you exactly what they want. Your task is to engineer a result. For more on perfecting products study Record Technologies, Graber Products, Petrofsky's, and Texas Nameplate. 

Key Idea #2: Develop profitable distribution channels  .
Donald displayed his skateboard bolt at a trade show. There he met some key distributors who took his product to Europe and Japan, something he could never have done on his own. Today, exports represent 50% of his sales. Not only are Europe and Japan excellent markets for The Grind King, but Donald also discovered that the Japanese will pay him before he ships the product.

What do you think?  What are distribution channels and why are they so important?

Answer:   Donald's channels are trading companies who have built a relationship with retailers in Europe and Japan. Avon's distribution channels in this country are nearly 400,000 door-to-door salespeople; IBM's primary distribution channels are business partners all over the world who sell both hardware and software with retail operations and/or strictly business-to-business sales. Every product must have a way to reach its customers. 

What do you think?  Why is choosing your sales channel so important?

Answer:   This decision impacts how you make money and with whom. If you decide to have your own sales operation, you are in the most control of the entire sales process; however, this is slow going for a new business such as The Grind King. To study some companies who developed their own sales people, go to Anne McGilvray and Company, Sundance Catalog, Oregon Log Homes and Color Me Beautiful. 


Key Idea #3: Have fun!
As a skateboarder himself, Donald was constantly wearing out the small bolt which attaches the front wheels to the skateboard. So he invented a special heavy duty bolt to replace the lighter standard one. He is in a business that is fun for him because it's his hobby. His business allows him to hang around skateboarders, spend time outside, dress in shorts and T-shirts, and shave or not shave. Because running a business is so time consuming, you should find one that is fun. According to Donald, even if you don't make a lot of money, you'll still enjoy your life.

What do you think?  Does your business have to stem from your hobby to be fun?

Answer: No. You can find fun in many ways and from many angles. Lorraine Miller fell into her business and she says today that, "fun is fundamental" for the work environment.

Even though small business owners always have a lot of pressure, the best ones find ways to create fun at work. Wanda Brice installed a bell in the hallway for anyone to ring when a sale is made. The whole company runs to the hallway when they hear the bell for the purpose of celebrating the success of another person. This is particularly fun for the person who makes the sale.

Key Idea #4: Stop telling and start asking.
As the leader of your team, you probably have many frustrating moments trying to convince others to do what you want them to do when you want them to do it. And you have many problems to solve everyday. A great way to get the best result is to stop telling people what to do and start asking them how they think a problem could be solved. 

You think back:  What benefits might you enjoy if you try this idea?

Answer:  First, you are showing that you respect the person with whom you are trying to work. Second, you are teaching this person that you value his/her thinking. And third, it frees you to think about something else. This is a habit you can develop. I know some leaders who bark out orders, and my father was certainly that type. No one wanted to work for him. And if you try this idea, the downside is it will feel as if it takes longer. However, instead of getting what you want right now, you'll probably get a more elegant solution while at the same time you're teaching a person to think. Two people who use this technique are Greg Thurman of Hartford Communications and Marty Edelston of Boardroom, Inc.

The Closing of this episode of the Show.

We invite your questions or comments.