\ Teaching Notes & Study Guide for Rita Wain, P & R Precision of Shelbytownship, Michigan
  Teaching Notes & Study Guide

with Rita Wain
P&R Precision
Shellbytown, Michigan
Key Ideas.
Key Idea #1: .Putting all of your eggs in one basket makes you powerful.
Rita started her company with a $65,000 divorce settlement. This decision not only put her cash at risk, but also put her potential to earn a living at risk because her ability to earn a living working for herself was unknown.

You think back:   Many entrepreneurs will tell you they took a risk to start their business. In most cases, however, the risks were minimized with detailed, well thought-out plans. What action can an entrepreneur take to reduce his/her risk?

Answer:  Examples: research, create a savings "safety net," take a partner with expertise, keep his/her regular job until the new venture begins to realize income, keep overhead low, start a business in your present industry, develop "mentor/mentee" relationships with successful entrepreneurs who are where you want to be. Read more about risk-taking at rhur-sg.html.

What do you think?   Does it seem as if Rita took a big gamble to put all of her money in "one basket?"

Answer:  Yes. Considering the fact that she had children to support, no equity in a home and a small income as a dental assistant, it does seem as if she took a big risk. What we don't know is what she knew and felt when she did it. With nearly $1 million in sales and only 8 employees, many would like to be in her shoes today. To put the entire $65,000 into one machine was bold, but it paid off.

Bold steps were taken also by Jerry Shapiro when he bought a million dollar freezer and by Paul and Vickie Scharfman when they bought a failing cheese factory and by Richard Stanley when he bought an old run down building to bring a downtown he loved back to life.

You choose your own tolerance level for risk. And rest assured that your gut and your heart know things your head doesn't always understand.

Key Idea #2: When you must make something
work, you will  .
Her basic fear of failure may be the secret to Rita's success. She had two children to support and no other way to make a living. To survive, she had to go out everyday and look for customers. Because she believed that she could be just as good at mold making as others who had succeeded, their success boosted her confidence.

What do you think?  Many small business owners have known poverty. There are numerous examples of immigrants who came to this country with nothing, and because they could not speak the language, they could not find a job. To survive, they started their own business. Just like Rita, they were motivated mostly by fear. Is this type of motivation good or bad?

Answer:  Some would argue that it is never good. On the other hand, if fear causes a person to produce new inner resources and strengths, perhaps it isn't all bad. 

What do you think?  Is fear of poverty the only fear that motivates entrepreneurs?

Answer:  No. Fear of losing face in front of family and community is a big motivator. When we get an idea, we want to go with it but sometimes the people who are close to us laugh in our faces or snicker behind our backs. We often want to prove ourselves so we think hard and work even harder. The fear of failure is not just the fear of poverty; it is the fear of failure in the eyes of the people close to us.


Key Idea #3: Delivering high quality service wins customers.
Rita decided to distinguish herself by producing a high quality product and then add above industry standard service. She provides the test sight for the hardware and software used in her industry; therefore, she can stay ahead of her competition. Being a woman in a "man's world" is considered a disadvantage, but it motivated Rita to work harder than most. Now her company is known for excellence.

You think back:  What is quality service?

Answer: It is offering your customers what they want, when they want it and being willing to adapt to their needs. Here at SmallBusinessSchool there are many great examples of small and very small companies who deliver amazing customer service.To learn more, study Gemini, Image Communications, All Brand Appliances and Ferrer Brokers.

Key Idea #4: Selling takes in depth product knowledge and attention to detail .
Ron Willingham says a person can succeed in sales if he/she knows his product, has a passion about what that product can do for a customer, and is disciplined enough to handle all of the details associated with the selling process. 

What do you think?   If the typical sales person is the enthusiastic cheerleader type, why is Ron saying that product knowledge and attention to detail is just as important as enthusiasm?

Answer: Enthusiasm wears thin quickly. If the sales person doesn't have a complete understanding of the product, she can't serve the customer properly. And "the devil is always in the detail." Customers need documentation, numbers, justification for their purchase, and follow up on all the promises. Many of us as small business owners serve as the sales force for our companies.As we grow we hire a sales person. The training for sales is life-long. A professional sales person should be an excellent communicator, passionate advocate for the product, and have the ability to focus on a customer's needs through the entire sales/service cycle.

My favorite sales person here at SmallBusinessSchool, other than our teacher, Ron Willingham, is Marc Katz. He started attracting traffic to his Austin deli by visiting all of the doormen at nearby hotels and bringing them samples. Today he worries about a salt shaker that may not be perfectly clean. He's a great example of a person with passion for his product and the discipline to make every customer experience perfect. Also study David Arnold, Wanda Brice, Anne McGilvray and Peter Metcalf.