Small Business Today
In the MasterClass
Study Guide
Park City, Utah

In the Trenches
Minutes 1:20-13:38

Key Ideas.

1. Real living is about more than just making money.

a. In the beginning, Cathy and Skip Slusher were both willing to work two jobs to make ends meet. Since then, they've had offers to relocate that include more money, but they've turned them down.

b. Greg Schirf's idea to open a micro brewery was first an avocation, then a vocation. Remember, he located his potentially profitable business in a state where 50% of the people don't drink.

c. Lori Adamski-Peek simply loved photography, she never planned to make a career at it.

d. Rather than leave the mountains, Christine Young said that she would give up her successful business and start another.

Topic for discussion: Let your imagination go. If there were no obstacles (lack of skill, lack of money, etc.) describe what would define "real living" for you?

2. Major life decisions are easy to make when your priorities are clear. Skip and Cathy both admit that there is just as much stress living in the mountains as anywhere, but they stay because they love the beauty and slower-paced lifestyle. Lori loved taking pictures, but was willing to work in other jobs to live in the mountains. Rather than search for a thriving economy in which to locate his then unique idea for a micro brewery, Greg chose Park City, a very unstable economy when he arrived, because it was where he wanted to be.

Topic for discussion: How do you define priorities? (Priorities come from your personal values -- the intangible qualities that make life worth living every day. Take a look at the things in your life you enjoy most, and ask yourself what values they represent. For example, let's say you're like all of these folks and you love to ski. Ask yourself why. You may find that for you, skiing represents a sense of freedom, or a spirit of adventure and pioneering or a closer communion with nature. The point is, you will be happiest with a business that shares these same qualities.)

3. The best business for you is the one that maximizes your strengths. Skip and Cathy brought backgrounds in journalism to their public relations business. Greg grew up around the beer industry. Lori took a photography class in college and discovered a natural talent. Christine knew all about the knitting business because she worked in her mother's knitting company.

Topic for discussion: Why do so many people end up in work that really doesn't suit them? (Many people try to please parents, spouses or teachers. Jack Maxwell from Series 100 was very good in math so his high school counselor suggested he study engineering. Today Jack is a salesman/entrepreneur because his first love and strength is in sales, not engineering.) How does one find their strengths and then match them to work? (Testing and self-evaluation. Jack Maxwell, from Series 100, says study your childhood and it will give you clues to your natural gifts. What did you do in your spare time? What did you have fun doing?)

Quote: Nothing in the world can take the place of persistence. Talent will not; nothing is more common than unsuccessful individuals with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistence and determination alone are omnipotent. -- Calvin Coolidge

LawTalk with John Patrick Dolan Minutes 13:58-16:08

John explains why sending confidential or proprietary information via fax is probably not a good idea.

Business Basic: Going Global

Minutes 16:14-23:17

Big Ideas.

1. If you have a product or service that is selling well here, it will probably sell well in another country. Donald Cassel's little $2 million dollar business sells a special bolt used by skateboarders who like to do tricks. The bolt attaches the skates to the board and is very strong. Donald's product was popular with American kids skateboarders, so he figured, why not expand? He did; and now half of his sales are from Japan and Europe.

Topic for discussion: If you're doing well here, why bother going global? (Statistics: The US market is flat for many products, whereas, developing countries need and want many American products. Going global may be the fastest way to grow your business. Also, look at any Forbes 500 company and you will find a global presence. IBM, AT&T, Coca-Cola, and McDonald's couldn't have become the size they are without going global. Also, they wouldn't invest in international operations if it wasn't profitable.)

2. Collections can be a problem, but there are electronic commerce options within every solution.

a. USPS or your shipper. If you ship products to another country via the postal service, it will assist you in the collection process.

b. Banks. You can work with most US banks to obtain a letter of credit from the bank of your potential customer.

c. Pre-payment. You can require advance payment.

d. Credit cards. Increasingly credit cards are an option even for transactions more than typical credit limits on credit cards.

3. Knowing the language and culture of another country is a great advantage. In the process of building his bagel business Jerry Shapiro made over 50 visits to Japan. He does not know Japanese, however, he has studied the people and has mastered the art of working within their culture. Undoubtedly, the cultural diversity of the United States will allow you to hire someone who has language and cultural ties to any country in which you want to do business. Your liaison would not have to be a full-time employee, he or she could be hired as a consultant. AT&T has a translation service. If you discover potential business in Beijing, you can arrange a conference call with an AT&T translator who will conduct the discussion for you in Mandarin.

4. Research is critical to success. A good place to begin your research is with US government's EXPORT Hotline. This is a free service which provides information about markets and partners in about 80 countries.

Topic for discussion: What other sources of information are available to the small business owner who wants to go global? (The Department of Commerce has a "desk" for each country that already does business with American companies. The books mentioned on the tape are just a few. You can order the Postal Service books by calling 800-THE-USPS and there are many books in the library. The very best source of information may be a person who is already exporting.)

Streetfighter Marketing with Jeff Slutsky Minutes 23:38-25:04

When a customer offers you an objection, there is a four step process to help you close the sale.