Key Teaching Point. Judi has four children and three of them work in the business. For the past five years she has been taking seminars, reading, and networking with other business owners to develop her succession plan. Most companies don't survive the transition from the founder to the next generation. Judi says, "My father was an entrepreneur and even though he never considered bringing me into his business, because I was supposed to marry and have children; I learned from him around the kitchen table about business. With me and this company I have always decided, if it's people or profits  --  I choose people."

Key Idea #1: This is just one of the millions of businesses started at a kitchen table with nearly no money.

With four children at home and no business experience, Judi got the idea to replicate her work in the greeting card format. She discovered that she could paint, but, did not see herself painting and selling individual pieces. Early on she thought of turning her love into a business. 

Topic for discussion: What is the difference in an artist making a living selling individual pieces and starting a business? 

Possible answer: Think of the famous artists and you don't think of them as business people, you think of them as creative eccentrics. In fact, the struggling artist is more a part of our collective conscience than is the wealthy artist. An artist selling his or her work is much like a professional practice. The professional gets paid for specific services rendered. This is the case with physicians, dentists, attorneys and anyone who charges for services by the hour. 

The biggest problem with a professional practice is that it is difficult --not impossible-- to leverage time. The surgeon only gets paid when she is standing over a patient. A business owner, on the other hand, can generate profits without being present personally. Judi never tells us if she considered a career as a painter; however, she did say that her father was an entrepreneur. Even though her father expected her brothers -- not Judy -- to go into the family business, she learned much around the dinner table. She was influenced and inspired by her father to be in business; and for her, that meant manufacturing a product. The company manufactured outerwear; it became so valuable, London Fog bought the company. Where a business is not dependent upon the specific delivery of service by a particular individual, a practice is.

Key Idea #2:  The company started by selling Judi's art in the form of greeting cards.

Today there are 12 artists and a photographer producing images which become groups of cards. In this way Madison Park Greeting is not limited to one style of cards.

Topic for discussion: Why is this tactic so important to the growth of the company? 

Possible answer: You heard Mark (Judi's son and president of the company) say that they want to do $10 million in sales. They want to be the card supplier for upscale specialty shops. One person's art could not achieve this goal. This vision is bigger than any one person. By having a number of artists, Madison Park is able to develop a wide range of looks and styles--something for everyone. In fact, Mark is currently recruiting even more artists and writers. 

Key Idea #3:  Madison Park Greeting does not employ a sales force.

. Independent sales representatives handle its product line and the reps are paid a commission for orders placed. Madison Park has 4,000 regular customers and another 4,000 who order occasionally. 

Topic for discussion: Why doesn't Madison Park hire sales people? 

Possible answer: At this time, independent sales representatives are more cost effective. Also, this is a standard practice for many manufacturers. Independent sales representatives specialize in a market niche and will provide to the retail shop owner a variety of the products found on their shelves. It is efficient for both the manufacturer and the retailer. Being an independent sales representative is a viable way to be self employed and not have the head aches of owning a business. 

Key Idea #4:  Judi's work force is not typical.

At Madison Park Greeting you will find a number of deaf employees, several immigrants from the Pacific Rim and also a handful of what Judi calls "displaced homemakers." Judi feels the most rewarding part of running a business is providing jobs for people who would otherwise struggle to find a employment. Topic for discussion: Why would any business owner take time to learn sign language to be able to communicate with the deaf? Why bother hiring people who don't speak English? 

Possible answers: Judi's business is a reflection of her own personality and values, as any business reflects the owner. However, hiring "disadvantaged" people seems to be a very smart business decision. In her case, the deaf workers are excellent at staying "on task." They concentrate and are perhaps more accurate than their hearing colleagues. The immigrants who came to Judi not even knowing English have proven to be devoted and bright. The "displaced homemakers" in general lacked confidence but had excellent communication skills and turned out to be great with customers. By taking a small risk, Judi has proven that when you put people first, the profits will quickly follow. 

Possible answer: Bill is talking about a business idea you have that just doesn't work, it doesn't make money. You created it and it is your baby, but, it turns out to drain you of cash and that means it is ugly. AT&T just pulled the plug on a service they tried to develop which cost them $100 million and was employing 60 people. Today those people are being assigned to other departments and the product is dead. Bill is saying to let go of ideas that don't work. If you aren't supposed to fall in love with your ugly child, but, you are supposed to be tenacious, when is the right time to give up? You have to weigh all of the elements carefully. What if you love cooking and open a restaurant that serves your favorite receipes. If you are able to make one location profitable and create a nice lifestyle for your family you might be completely satisfied. However, if you imagine multiple locations and you see yourself as a major restaurant tycoon you have an entirely new goal. Bill Tobin is saying, it might be a bad idea to try to add locations. If you pour money into buying equipment and leasing space and don't see returns, you should give up or change the strategy. 

Key Idea #5:  Create an environment for other businesses to succeed and you'll reap the benefit.

Judi bought the building which serves as the headquarters for Madison Park Greeting. It is in a neighborhood which needed to be revitalized and it is more square footage than she needed. So, she created space for a number of small business including her primary printer, dye cutter and photographer. In fact, her photographer is an award winning artist whom she could never afford to have on the payroll. She gives him space for his studio, and together they created a line of cards which feature his photos. 

Topic for discussion: What direct benefit does Judi derive from having her principle partners lease space from her and why doesn't she own the printing and dye cutting equipment herself? Possible answer: Madison Park Greeting isn't big enough to keep the presses of a full-service print shop working at maximum capacity. Just as Jake Miles doesn't manufacture his toys, Judi doesn't print her cards. However, being in the same building is very convenient for everyone. 

Key Idea # 6: Most family businesses don't make it through the first succession from founder to the next generation.
Judi has put the plan in place to insure the life of the business. Her son Mark has already been named president and Brian functions as the chief financial officer. Her daughter is one of the artists. 

Topic for discussion: What has Judi done to prepare the business for succession? Possible answers: She has gone to seminars, talked to others in her situation and read everything she could find about family business planning. She also required her children to work for someone else for at least three years before joining Madison Park Greeting. And, she learned from her father how not to pass a business to the next generation. He would turn things over to one of her brothers, then take the task back. 

Key Idea #7  Being a responsible corporate citizen means being part of the solution to a problem.

A near-by high school is filled with students who need jobs. Judi formed Club Studio, a separate greeting card company, to hire students. Actually, it is a business the teenagers run themselves. They design their own line of cards, supervise the process, then sell the cards locally. Her concept is not just to hire students, but, to teach them how to run a business. 

Topic for discussion: Why is helping others a good idea? Possible answer: Running a business is not just about making money; it is about making the world a better place. When we do something good, good does come back to us. Club Studio is a part of the corporate culture of Madison Park and having this program inspires the employees. The greatest reward comes from watching a student learn. Judi says... "II have always decided, if it's people or profits--I choose people." 

Jim Schell answers the question: Do entrepreneurs need to be computer literate? And, Stephen Jackson shows simple spreadsheet software.