• When your sales go flat, stop and analyze the problem.
• Do something different .
• Nothing stays the same.
• Nothing happens over night.
• Even though the paperwork can be maddening,
  the government does want small businesses to succeed.

Key Idea #1: Lightbulb. When your sales go flat, stop and analyze the problem. Grace was faced with new competition from big companies importing terra cotta pottery and also a slow-down in the construction of commercial space. She hired a ceramics engineer to study her operation and suggest another product she could make with her current staff and equipment. Grace says, "It took me ten years to get to the point that I didn't feel nervous about money. But, I love being in business. I love the process of making something. I got caught up in the potential."

Key Idea #2 : Do something different. When Grace decided to make pots, she looked around and realized that there were lots of pots being made for use in homes. However, to make the type of pot that designers would buy to hold huge palm trees to be placed in a hotel lobby, that would be different.

Topic for discussion: Why is being unique so critical to the success of a small business?

Possible answer: A small business can not compete "toe-to-toe" with a big business because the big company has economy of scale. A big company can buy large amounts of raw materials at a discount, they can afford to have the biggest most efficient equipment for the different manufacturing processes, and they can even ship goods cheaper in large volumn. Being unique is the way a small business is born. Grace figured no one needed another source for small and mid-sized pots. Why should anyone buy from her? She was right because with her big pots she has been able to build a base of customers who know Pyro Media is the only place to get the exact right shape, color and finish.

Key Idea #3: Nothing stays the same. Even though many of Grace's customers are very loyal, eventually big companies started importing large terra cotta pots. At the same time, commercial construction slowed. With these new dynamics in the marketplace, Grace had to do something different to survive.

Topic for discussion: What action did Grace take to insure her continuing profitability?

Possible answer: Grace hired a ceramics engineer to investigate markets she could pursue using her existing equipment and the ceramics expertise of her staff. Together Grace and her consultant came up with an ususual idea. The aerospace industry had been experimenting with high temperature forming of titanium alloys for several decades. Typically these projects only needed a few parts. As an alternate to steel some companies had begun using ceramic tooling and the advantage was an 80% saving in tooling costs. Grace won a government grant from the Small Business Innovation Research program to explore the possibilities of becoming a manufacturer of ceramic tooling. Her success has resulted in a new division for Pyro Media which makes a complete line of ceramic castables, turn-key die production and computerized tool design services.

Key Idea #4: Nothing happens over night.

Grace spent 10 years wondering if she would ever have to stop worrying about money.

Topic for discussion: If a business doesn't take off immediately, why would anyone keep working at it?

Possible answers: Grace said she was caught up in the process and loves making things. She could not see herself going back to a job. She kept her personal expenses low and was able to fill her life with what she enjoyed even though she wasn't making big dollars. Today she is still having fun watching her company change and grow. The addition of ceramic castables has created new challenges and new excitement. Much has been written about entrepreneurs simply loving the "thrill of the chase" and this is probably the case with Grace.

Key Idea #5: Even though the paperwork can be maddening, the government does want small businesses to succeed

. It has a number of programs to help the entrepreneur achieve his or her dream.

Topic for discussion: How did a government program help Grace?

Possible answer: Her first loan was backed by the Small Business Administration. The SBA doesn't loan money, it offers banks an "insurance policy" on loans the banks make to qualified businesses. This means if the business owner defaults, the SBA will pay off the bank. The $25,000 loan Grace received helped her move out of her basement, buy equipment and grow her sales. Grace also received a government grant for research. Most small business owners don't know about all of the government programs. Visit the local Small Business Administration office to learn about what the Federal Government might have to help you. Also, there are 940 Small Business Development Centers in the country which are tied to colleges and universities. Trained professionals at these centers are very familar with all of the government programs

Grace says... "I love being in business. I love the process of making something -- I am caught up in the potential."

Jim Schell answers the question: What do I do when my business is in trouble? Alan Cohen tells how one catalog company is now seeing more sales from its web site than it is from the tradition printed catalog.