Teaching Notes & Study Guide, Marshall Wright, Decker Wright, Red Bend, New Jersey

Key Idea #1: The Lightbulb What you're thinking about today is what you'll be doing three years from now. As the owner, your thinking is what leads the business. Marshall says technology has a three year product cycle. This has taught him he can't be selling three years from now what he is selling today. This is true for every business and product life span is shortening everyday.

Topic for discussion: Why is a shortened product life span both good and bad for small business?

Possible answer: Small business people are quick to change and responsive to the marketplace; however, they may not have the cash on hand to reinvent products. Big business has the cash to change but they may not be able to move quickly enough to catch a trend.

Topic for discussion: What does Marshall mean when he says he underestimated the length of the sales cycle?

Possible answers: The sales cycle is the length of time it takes to close a sale after you have made your first presentation. In the case of selling a million dollar computer system to a large corporation the sales cycle could be two years.

Knowing how long it will take to sell a product determines how much operating capital you need to keep going until you collect on the sale.

The computer conker, the checkwriting software and the queue-less deli are products Marshall invented because he thought there was a need. He failed with the computer conker and the queue-less deli because he did not know how to sell the product once he had it invented. With the checkwriting software, he thinks because he was working part-time, Quicken beat him to the marketplace.

Inventors need to understand sales and marketing.

Just as Marshall's story illustrates, nothing happens until something is sold. And, the best product does not always win in the marketplace. If you have an idea for a new product or service, it is best to do research among potential customers and identify sales channels.

One might ask, How many times are you willing to fail at something before you quit? Yet, for entrepreneurs, if you learn something every time you fail, you will never stop trying.

Key Idea #2: There are benefits to hiring part time employees. Marshall has discovered that he can hire part time people with very specialized skills.

Topic for discussion: Why are part time employees good for very small and growing businesses?

Possible answers: You may have customers who need a special service but you don't have enough customers to justify a full time employee. Think of some examples other than computer installation and maintenance...a dry cleaner may only need an alterations person part time, an attorney may only need a paralegal part time, an insurance office may only need a data processing person part time, a restaurant may only need a bookkeeper part time. The list goes on and on. A full time employee who is not busy working all day is an extravagance a small business can't afford.

Key Idea #3 Surround yourself with a board of advisors.

Topic for discussion: Does Marshall have a formal board of advisors?

Possible answers: No. In fact, some of the people he considers to be his advisors don't even know it. This is fine. At least he has people he consults with on a regular basis.

Topic for discussion: If you started a business today, who would be on your board of advisors?Possible answers: An older relative who owns a business, a CPA, attorney, banker or a friend of the family. Call the SCORE (Service Corps of Retired Executives) office to set up an appointment for free counseling: 800-634-0245

Case Study Guide Marshall Wright Decker Wright Corp. Red Bend, New Jersey
Key Ideas. What you're thinking about today is what you'll be doing three years from now. There are benefits to hiring part time employees. Surround yourself with a board of advisors.
Key Idea #1: The Lightbulb What you're thinking about today is what you'll be doing three years from now. As the owner, your thinking is what leads the business. Marshall says technology has a three year product cycle. This has taught him he can't be selling three years from now what he is selling today. This is true for every business and product life span is shortening everyday. Topic for discussion: Why is a shortened product life span both good and bad for small business? Possible answer: Small business people are quick to change and responsive to the marketplace; however, they may not have the cash on hand to reinvent products. Big business has the cash to change but they may not be able to move quickly enough to catch a trend. Topic for discussion: What does Marshall mean when he says he underestimated the length of the sales cycle? Possible answers: The sales cycle is the length of time it takes to close a sale after you have made your first presentation. In the case of selling a million dollar computer system to a large corporation the sales cycle could be two years. Knowing how long it will take to sell a product determines how much operating capital you need to keep going until you collect on the sale. The computer conker, the checkwriting software and the queue-less deli are products Marshall invented because he thought there was a need. He failed with the computer conker and the queue-less deli because he did not know how to sell the product once he had it invented. With the checkwriting software, he thinks because he was working part-time, Quicken beat him to the marketplace. Inventors need to understand sales and marketing. Just as Marshall's story illustrates, nothing happens until something is sold. And, the best product does not always win in the marketplace. If you have an idea for a new product or service, it is best to do research among potential customers and identify sales channels. One might ask, How many times are you willing to fail at something before you quit? Yet, for entrepreneurs, if you learn something every time you fail, you will never stop trying. Key Idea #2: There are benefits to hiring part time employees. Marshall has discovered that he can hire part time people with very specialized skills. Topic for discussion: Why are part time employees good for very small and growing businesses? Possible answers: You may have customers who need a special service but you don't have enough customers to justify a full time employee. Think of some examples other than computer installation and maintenance...a dry cleaner may only need an alterations person part time, an attorney may only need a paralegal part time, an insurance office may only need a data processing person part time, a restaurant may only need a bookkeeper part time. The list goes on and on. A full time employee who is not busy working all day is an extravagance a small business can't afford. Key Idea #3 Surround yourself with a board of advisors. Topic for discussion: Does Marshall have a formal board of advisors? Possible answers: No. In fact, some of the people he considers to be his advisors don't even know it. This is fine. At least he has people he consults with on a regular basis. Topic for discussion: If you started a business today, who would be on your board of advisors?Possible answers: An older relative who owns a business, a CPA, attorney, banker or a friend of the family. Call the SCORE (Service Corps of Retired Executives) office to set up an appointment for free counseling: 800-634-0245 Questions? Drop us a note.