>> THIS PROGRAM WAS MADE POSSIBLE BY A GRANT FROM THE UNITED STATES DEPARTMENT OF AGRICULTURE RURAL VERY MANY.

-- RURAL DEVELOPMENT.

>> HERE WE HAVE SPENT THE ENTIRE FINANCIAL PACKAGE THAT WE WERE SO PROUD OF, HERE IT WAS 86,000 OR SOMETHING, WHICH WE THOUGHT WAS, YOU KNOW, HUGE, BIG BUCKS.

AND WE BLEW ALL THE MONEY, AND WE HAD NO -- >> I WENT OUT AND HIRED THREE OR FOUR PEOPLE, AND GOT THEM IN, AND SET UP THIS OPERATION.

WAS CAPABLE OF BUILDING 50 SNOWBOARDS A DAY.

UNFORTUNATELY, THE MARKET WAS ALREADY PURCHASED 50 SNOWBOARDS A DAY.

I LEARNED THAT THE HARD WAY.

>> AFTER YOU OPEN YOUR DOORS, AND YOU START SELLING YOUR PRODUCT, I THINK YOU HAVE THE TENDENCY TO FEEL THAT THE THINGS ARE REALLY GOING TO FLY OUT OF HERE,UCK -- WE ALL WORKED ON THE BOTTLING LINE, AND I WOULD BE THERE, $10, $10, ALL THESE BOTTLES ARE GOING TO SELL THROUGH.

IT REALLY DOESN'T HAPPEN THAT WAY.

>> THE ORIGINAL BUSINESS PLAN THAT WE HAD WRITTEN UP WAS A THREE-YEAR PLAN, AND WE THOUGHT THAT IT WOULD TAKE THAT LONG UNTIL WE COULD MAKE A LIVING ON THE BUSINESS, AND WE, ACTUALLY, GOT TO THAT POINT AND JUST TOOK OUT THREE LOANS THAT WE DID MAKE A LIVING OFF OF IT AND WE WERE UP TO THAT SALES POINT.

>> WELCOME TO VENTURING, I AM KAROL DILLON.

THE EARLY STAGES OF A NEW BUSINESS ARE CRIT CRITICAL.

IT'S NOT ENOUGH TO COME UP WITH A IDEA AND GET FINANCING, NOW YOU NEED TO RUN A BUSINESS DAY IN AND OUT.

YOU HAVE TO MAKE AND SELL YOUR PRODUCT.

YOU HAVE TO DO THE BOOKS, AND YOU MAY HAVE TO MANAGE PEOPLE.

AND IN OTHER WORDS, YOU ARE LIKELY TO BE WEARING MANY HATS.

IT'S ALSO IS A TIME WHEN YOU ARE GOING TO BE MAKING A LOT OF MISTAKES.

BUT YOU HAVE TO HAVE THE CONFIDENCE TO LEARN FROM THOSE MISTAKES AND KEEP MOVING FORWARD.

IT'S CLEAR THAT JAKE HAD A PASSION AND A DESIRE TO TRANSFORM HIS IDEA INTO A BUSINESS.

HOWEVER, IT WAS NOT CLEAR THAT THE MARKETPLACE WAS READY FOR HIS PRODUCTS.

LET'S SEE HOW HE HANDLED THIS.

>> I GUESS I FIRST GOT THE IDEA TO START A SNOWBOARDING COMPANY FROM USING SNERFERS WHICH WAS A TOY VERSION OF A BOARD SOLD IN THE 1960s, REALLY GOT INTO THAT, AND THOUGHT THERE WAS AN OPPORTUNITY TO MAKE SOMETHING A LOT BETTER, AND MAKE IT A SPORT, NOT JUST A TOY, AND THEN SHORTLY AFTER I GOT OUT OF SCHOOL I WENT FOR IT.

>> WHEN I STARTED THE BUSINESS I HAD A LOT OF CONFIDENCE.

I REALLY FELT THAT NOTHING WAS GOING TO STOP ME AND THAT I WAS GOING TO BE SUCCESSFUL AND PROFITABLE VERY QUICKLY.

AND I LEARNED VERY QUICKLY THAT THAT WAS NOT THE CASE.

>> I SPENT THE FIRST WINTER AND SPRING, EARLY SUMMER BUILDING PROTOTYPES, AND THEN WHEN I REALLY KNEW THAT I HAD A PRODUCT THAT WAS VIABLE WAS WHEN I WENT TO EUROPE, AND IN THE MIDSUMMER, AND TESTED ONE OF THE LAST PROTOTYPES OF A LAMINATED HARD WOK CONSTRUCTION.

I CAME BACK FROM EUROPE, AND READY TO GO.

AND I WAS PSYCHED AND I WAS READY TO START PRODUCTION AND GET THE PRODUCT ROLLING, AND I WENT OUT AND HIRED THREE OR FOUR PEOPLE, AND GOT THEM IN, AND SET UP THIS OPERATION.

I WAS CAPABLE OF BUILDING 50 SNOWBOARDS A DAY, AND UNFORTUNATELY, THE MARKET WASN'T READY TO PURCHASE 50 SNOWBOARDS A DAY.

AND I LEARNED THAT THE HARD WAY.

>> I WENT OFF WITH A FRIEND, THE NEW YORK CITY SPORTING GOOD SHOW IN THE FALL OF 1978.

AND WAS VERY, WITH HIGH EXPECTATIONS.

WE DROVE DOWN WITH, I REMEMBER DISTINCTLY, WE WERE TALKING ABOUT SELLING ABOUT, WHETHER WE WERE GOING TO SELL BETWEEN 250 OR 300 OR 500 BOARDS, THAT WAS THE GAME PLAN, AND SOLD SIX BOARDS.

ONCE I REALIZED HAVING FULL PRODUCTION OF THE FACILITY WITH FOUR PEOPLE WORKING THERE WAS FAR MORE THAN WHAT WAS REQUIRED TO MEET THE NEEDS OF THE MARKET AT THE TIME, I HAD TO SORT OF RETREAT AND SCALE BACK AND HAD TO LET THE PEOPLE GO, WHICH WAS A VERY PAINFUL PROCESS, AND HAD TO START ALL OVER AGAIN REALLY ON MY OWN, AND I WAS, AT THAT POINT IN TIME, PROBABLY FOR THE NEXT SEVEN OR EIGHT MONTHS, DID EVERYTHING MYSELF.

>> IT WAS A REAL MISTAKE TO TRY TO PUT THE BUSINESS ON A LEVEL OR A SCALE THAT IT WASN'T READY FOR.

I WOULD HAVE BEEN MUCH BETTER OFF IF I HAD SAID, I AM GOING TO MAKE FIVE BOARDS A DAY.

AND I AM GOING TO LOSE MONEY ON EVERY ONE OF THEM BUT I WILL GET IT OFF THE GROUND.

>> ONE OF THE THINGS THAT I DID IN THE EARLY DAYS, WHICH WAS PROBABLY GOOD BUT OUT OF NECESSITY WAS I DISTRIBUTED A PRODUCT ABSOLUTELY ANY WAY THAT I COULD.

I SOLD OUT OF THE STORE, YOU KNOW, RIGHT OUT OF THE FACTORY AS THE FACTORY SHOWROOM, WHICH WE CONTINUE TO HAVE, SOLD THROUGH RETAIL SHOPS, AND MAIL ORDER, WHICH WE NO LONGER DO BUT WAS VERY HELPFUL IN GETTING THE PRODUCT OFF THE GROUND BECAUSE THAT GIVES YOU INSTANT NATIONAL DISTRIBUTION FOR THE COST OF THE STAMP.

ANY OPPORTUNITY THAT I GOT AND ANY AVENUE OF DISTRIBUTION ARE MY EXERCISE, AND THAT WAS GOOD FOR TWO REASONS, ONE IT ENABLED ME TO GET PRODUCT OUT AND BE AS AGGRESSIVE AS I POSSIBLY COULD, AND IN TERMS OF THE GETTING THE PRODUCT IN PEOPLE'S HANDS, BUT ALSO, IT EXPOSED ME TO EVERY POSSIBLE ALTERNATIVE THAT WE WOULD HAVE FOR DISTRIBUTING THE PRODUCTS.

IN GENERAL, I MEAN, NOT JUST WITH AVENUES OF DISTRIBUTION, BUT ALMOST ANYTHING, WHEN YOU ARE SMALL, YOU CAN EXPERIMENT, AND YOU CAN, WITHOUT THE CONSEQUENCES BEING TOO SEVERE.

AS LONG AS YOU EXPERIMENT ON A LIMITED BASIS.

ONCE AGAIN YOU CANNOT EXPERIMENT BY BUILDING A HUGE FACTORY TO BUILD A PRODUCT THAT YOU DON'T KNOW IF THERE IS ANY DEMAND FOR, BUT IF YOU ARE MAKING THREE OR FOUR OF THEM, YOU CAN MAKE THE MOST EXOTIC DESIGN AND PUT IT OUT IN THE MARKET.

AND THAT WAS ONE THING THAT WE DID WITH THE AVENUES OF DISTRIBUTION, WE DID IT WITH PRODUCTS, YOU KNOW, AND WE CONTINUE TO HAVE THAT APPROACH TO EXPERIMENTING BUT NOT BY PUTTING YOURSELF IN A REAL INSECURE POSITION FINANCIALLY.

>> ONE OF THE THINGS THAT HAPPENS WHEN YOU DO START SHOWING BUSINESSES THAT YOU LEARN A LOT OF THINGS THE HARD WAY.

BUT THAT'S NOT NECESSARILY VERY NEGATIVE BECAUSE WHEN YOU DO LEARN SOMETHING THE HARD WAY, I DON'T THINK YOU REALLY ARE LIKELY TO DO IT AGAIN, AND THAT'S CRITICAL IN KNOWING YOUR COMPANY OR STARTING YOUR OWN COMPANY, IS THAT YOU DON'T MAKE THE SAME MISTAKE TWICE BECAUSE THAT WILL -- THAT WILL VARY QU.

>> THE SECRET IS TO GET IMMERSED IN YOUR BUSINESS, NOT BURIED BY IT.

BOB AND ALLISON OF VERMONT BUTTER AND CHEESE FOUND OUT IT DOES NOT TAKE LONG TO DISCOVER THE IMPORTANCE OF THE RIGHT MIX OF PEOPLE IN RUNNING A BUSINESS.

IT TAKES A CERTAIN KIND OF PERSON TO FACE THE RISKS AND EFFECTIVELY MANAGE DURING THE CHAOS OF A START-UP VENTURE.

>> FOR ME IT BEGAN WHEN WE BROUGHT OUT THE TWO PARTNERS AND BOB AND I DECIDED THAT WE WERE GOING TO DO IT TOGETHER, AND OUR ROLES WERE CLEAR.

I WAS RESPONSIBLE FOR MANUFACTURING, AND HE WAS RESPONSIBLE FOR THE FINANCING AND THE MARKETING.

>> WHEN WE STARTED OUT WITH FOUR PARTNERS FROM, FROM MAY OF 1985 AFTER SELLING OUR FIRST PRODUCT TO DECEMBER OF 1985, THERE IS A PERIOD OF A LOT OF PLANNING AND FRUSTRATION ON THE PART OF THE FOUR OF US, REALIZING TOGETHER THAT THIS COMPANY WAS GOING TO BE A SMALL SPECIALTY COMPANY WITH ITS OWN NICHE IN THE MARKET.

AND BECAUSE WE RECOGNIZED THAT IT WOULD BE A SMALL COMPANY, WE REALIZED THAT IT COULD NOT PROVIDE ENOUGH INCOME FOR ALL FOUR OF US TO MAKE A LIVING.

>> BOB AND I WERE THE ONLY TWO WILLING TO COMMIT, AND SACRIFICE SOMETHING.

THE OTHER TWO WERE NOT ABLE TO LET GO OF THEIR EXISTING JOBS AND THEIR EXISTING PAYCHECK, AND THE JOB SECURITY TO MAKE THIS THING WORK.

YOU REALLY CAN'T, YOU CAN'T MAKE THE SAME WORK IF YOU DON'T PUT YOURSELF UP THERE.

YOU DON'T EXPOSE YOURSELF COMPLETELY TO FAILURE.

>> GOOD AFTERNOON, DALE.

THIS IS BOB AT VERMONT BUTTER AND CHEESE.

>> IN THE FIRST TWO YEARS OF THE BUSINESS, THE OFFICE OF THE BUSINESS WAS IN MY HOUSE.

FROM MY HOUSE I WOULD CALL A RESTAURANT, AND I WOULD MAKE A SERIES OF CALLS.

I WOULD JOG CUSTOMERS JUST ABOUT TWO OR THREE TIMES A WEEK, FINDING OUT WHAT THEY NEEDED FOR ORDERS, AND THEN I WOULD CALL ALLISON AND SAY OKAY, THIS IS HOW MANY TINS WE NEED AND GOAT CHEESES WE NEED AND HOW MUCH CREAM FRESH WE NEED.

IT WAS MORE OF A LEARNING EXPERIENCE FOR ME.

IT WAS VERY PERSONALLY INVOLVEMENT WITH EVERY CUSTOMER, PERSONAL SELLING.

>> WHEN WE STARTED THE BUSINESS WE HAD THE INTENTION OF LEAVING THE FARM.

IT WAS NEVER -- IT WAS ALWAYS JUST A JUMPING OFF PLACE.

WE GOT A LOAN FROM A BANK, AND WE FOUND THE CONTRACTOR, AND WE SET UP THIS PLANT HERE IN WEBSTERVILLE, IN THIS ROOM, ACTUALLY, AND WE DISCOVERED THAT MOST OF THE EQUIPMENT THAT WE HAD BOUGHT AND HAD BEEN ENGINEERED, IT DID NOT WORK.

AND WE HAD ONE THAT WAS NOT INSPECTABLE, AND HERE WE HAD SPENT THE ENTIRE FINANCIAL PACKAGE THAT WE WERE SO PROUD OF.

HERE IT WAS 86,000 OR SOMETHING, WHICH WE THOUGHT WAS, YOU KNOW, HUGE, BIG BUCKS.

AND WE BLEW ALL THE MONEY, AND WE HAD NO PLANT SO WE SAID IT LOOKS LIKE WE HAVE GOT TO SELL STOCKS.

AND AT THAT POINT, WE HAD TO GO OUT AND TO SELL OURSELVES THIS MANAGEMENT TEAM TO FRIENDS AND FAMILY AND PEOPLE THAT, ACTUALLY, WE DID NOT KNOW AT ALL.

THIS WAS, THIS IS A GOOD INVESTMENT.

HERE WE HAD BLOWN THE MONEY, FIRST FINANCIAL PACKAGE, THE BANK SAID, SEE YOU LATER, GUYS.

YOU BLEW IT.

WE DON'T WANT TO HEAR FROM YOU.

AND WE HAD TO TELL THE INVESTORS, YOU KNOW, TO COUGH UP 10,000, 5,000 EACH.

>> THERE IS A LESSON FOR TRYING TO ECONOMIZE TOO MUCH.

YOU CAN MAKE A DECISION THAT YOU CAN PIECEMEAL A FACTORY TOGETHER BUT WHEN YOU HAVE TO LOOK AT 10, 15 YEARS DOWN THE ROAD AND SAY, THIS IS GOING TO BE MY FACTORY, 10 OR 15 YEARS FROM NOW, IT DOES NOT WORK.

SEA CREST, IT'S CLEAN AND MILD.

ONE OF THE FIRST MAJOR STEPS TOWARDS BECOMING A, A REAL COMPANY, WAS GOING TO THE FIRST TRADE SHOW TO SEE ALL THE GENUINE INTEREST IN OUR >> MOST OF THE ENTREPRENEURS THINK ALL THEY NEED TO DO IS MAKE A PRODUCT AND EVERYBODY WILL BEAT THE DOOR DOWN TO BUY THE PRODUCT.

BUT THE REALITY IS THAT YOU HAVE GOT TO GO OUT AND PERSONALLY SELL THAT PRODUCT.

YOU NEED TO TELL THE INHERENT STORY BEHIND YOUR COMPANY.

WHY THAT CUSTOMER SHOULD BUY YOUR PRODUCT IS NOT BECAUSE IT'S A GOOD PRODUCT, BECAUSE IT HAS TO BE GOOD TO BEGIN WITH.

>> THE ABILITY TO EFFECTIVELY SELL YOUR PRODUCT, THAT'S THE REAL KEY TO SUCCESS.

TO KNOW WHO YOUR CUSTOMERS ARE, AND WHAT MOTIVATES THEM TO BUY, BUT THERE IS MORE TO IT THAN THAT, STEVE AND BRIAN FOUNDED, VERMONT DISTILLERS, THE FIRST MICRO-DISTILLERY IN THE UNITED STATES.

THEY LEARNED IT'S NOT ONLY THE CONSUMER YOU HAVE TO SELL.

IN MANY CASES, THE DISTRIBUTION ALSO IS AN IMPORTANT CONSIDERATION.

>> STEVE AND I WERE DRIVING AROUND IN THE PICKUP TRUCK, AND STEVE HAD THIS IDEA TO TAKE A MR.

COFFEE MACHINE AND TURN IT INTO A MR.

STILL, WHERE EVER HOMEOWNER COULD DISTILL FOR THEIR OWN HOME USE, THE PROBLEM IS THAT DISTILLING AT HOME IS ILLEGAL.

SO ONCE WE FOUND IT WAS ILLEGAL, THE SEED CAPTURED OUR ATTENTION, AND WE FOUND THAT IT'S A HUGE INDUSTRY, $25 BILLION INDUSTRY THAT'S JUST LIQUOR THAT DOES NOT INCLUDE BEER AND WINE SALES.

DOMINATED BY SEVEN OR EIGHT PLAYERS, AND WE STARTED THE RESEARCH NECESSARY TO BEGIN TO BUILD AND TO START A MICRO-DISTILLERY.

>> AFTER YOU OPEN YOUR DOORS, YOU START SELLING YOUR PRODUCT, YOU HAVE THE TENDENCY TO FEEL THAT THINGS ARE GOING TO FLY OUT OF HERE.

IN THE BEGINNING, WE ALL WOULD WORK ON THE BOTTLING LINE, AND I WOULD BE THERE, AND $10, $10, AND YOU KNOW, AND ALL THESE BOTTLES WERE GOING TO SELL THROUGH, AND IT DOES NOT HAPPEN THAT WAY.

>> WELL, AFTER WE OPENED THE DOORS, YOU KNOW, FOR ME, IT HAD BEEN THIS LONG, HARD PATH THAT'S REALLY EXCRUCIATING OF A PROCESS OF DEVELOPING THE PRODUCTS AND BUILDING THE PLANT AND FOR ME, I FELT LIKE OKAY, NOW I CAN FINALLY SIT DOWN AND TAKE THIS BIG, LONG, DEEP BREATH.

AND THEN, OF COURSE, ALL OF A SUDDEN WHAT CONFRONTS YOU IS THE REALITY THAT NOW YOU HAVE TO SELL THE PRODUCT.

WE HAD THE WORLD CLASS PLANT AND GREAT PRODUCT THAT EVERYONE IS LOVING THE PACKAGING ON, AND NOW WE HAD TO GET MONEY FOR ALL OF THIS.

>> I THINK THAT ONE OF THE THINGS THAT WE DID LEARN HERE IS THAT WE WERE SO SMALL, THAT WE WERE VERY INSIGNIFICANT TO A LOT OF THE PEOPLE THAT WE WERE DOING BUSINESS WITH, AND WE KIND OF KEPT BEING SHUFFLED ASIDE.

VERMONT DISTRIBUTORS HAS TO TAKE 50 TO 90 DAYS, AND WE CAN GET JERKED AROUND IN TERMS OF THE GETTING THE CHECK.

WHAT STEVE AND I HAD TO DO TO IMPROVE THE CASH FRO AND KEEP THE COMPANY HEALTHY WAS TO GO BACK AND REALLY UNDERSTANDS THE MOTIVATION OF THE DISTRIBUTORS, OF THE PEOPLE THAT WE WERE SELLING OUR PRODUCT TO.

WHAT WE REALIZED IS SINCE WE WERE IN THE PREMIUM END OF THE MARKET, WE HAD MARGINS THAT OTHER PEOPLE DID NOT HAVE, AND IT REALLY BEHOOVED US TO SHARE SOME OF THAT MARGIN WITH OUR DISTRIBUTORS AS AN INCENTIVE FOR THEM TO DEAL WITH OUR PRODUCT IN A TRULY RESPONSIBLE WAY, A WAY THAT MADE US ALL MONEY.

FOR ANY BUSINESS, YOU NEED TO UNDERSTAND THE CHANNELS OF SALES AND DISTRIBUTION AND PEOPLE'S MOTIVATIONS.

>> EARLY ON CASH FLOW IS IMPORTANT TO KEEP A TIGHT FOCUS ON, UNDERSTANDING HOW THE MONEY COMES IN AND HOW IT GOES OUT AND WHEN IT'S SUPPOSED TO BE HERE LOOKING AT ITEN A DAILY BASIS, BECAUSE IT TELLS YOU THAT IT ALLOWS YOU TO PREDICT WHEN YOU ARE GOING TO NEED MORE FINANCING AND I THINK AS AN ENTREPRENEUR, YOU THINK THAT SALES ARE GOING TO INCREASE SIGNIFICANTLY ON A VERY SHORT TIME PERIOD, AND YOU ALSO THINK IF YOU NEED MONEY, IT WILL BE FORTH COMING VERY QUICKLY.

AND GENERALLY, NEITHER OF THOSE TWO THINGS ARE TRUE.

>> IN EVERY BUSINESS, YOU NECESSARILY START WITH A LIMITED AMOUNT OF CAPITAL, AND HOW YOU SPEND THAT IS CRUCIAL TO THE BUSINESS.

AND THE TENDENCY, I THINK, IS GENERALLY TO SPEND IT ON EQUIPMENT AND ON PRODUCTS BECAUSE YOU BECOME VERY PRODUCT FOCUSED, YOU KNOW, YOU THINK THAT YOU HAVE GOT THE GREATEST PRODUCT AND PEOPLE WILL LOVE IT, AND ALMOST LIKE IT'S GOING TO SELL ITSELF.

SO, I THINK, WHERE YOU TEND TO, YOU DON'T HAVE THE MARKETING DOLLARS, YOU DON'T END UP WITH THE MARKETING DOLLARS THAT YOU REALLY NEED AND SHOULD HAVE, AND YOU SHOULD HAVE TWICE AS MUCH AS YOU EVER THINK THAT YOU ARE GOING TO NEED.

>> I AM AMAZED IN VISITING OTHER BUSINESSES WHERE YOU WOULD GO AND OPEN THE CLOSET TO HANG UP YOUR COAT AND THERE WOULD BE THE BROCHURES.

WELL, THEY HAD THE MONEY TO PRINT THE BROCHURES BUT HERE THEY ARE STACKED IN THE CLOSET, AND THEY DID NOT HAVE THE MONEY TO GET THEM OUT.

THEY HAD THE MONEY TO PRODUCE A VERY SPECIFIC PIECE OF ADVERTISING, WHICH MAY BE COST THOUSANDS OF DOLLARS BUT THEY DID NOT HAVE THE MONEY TO GET IT INTO THE PAPERS.

AND I THINK THAT THE FOLLOW-THROUGH WITH YOUR DOLLARS IS VERY, VERY KEY, AND TO PLAN REALLY WHAT IT IS THAT YOU ARE GOING TO NEED AND BE ABLE TO EXECUTE WHAT YOU HAVE PLANNED IS REALLY THE KEY HERE.

>> YOU REALIZE YOU HAVE TO HAVE THIS INCREDIBLE VISION OF WHERE YOU ARE GOING AND WHAT YOU ARE TRYING TO DO IN ORDER TO MAINTAIN YOURSELF THROUGH THIS PROCESS.

BECAUSE WHAT YOU END UP WITH IS ALWAYS SOMETHING LESS THAN WHAT YOU DREAMED IT COULD BE.

>> AND THAT'S THE REALITY.

YOUR BUSINESS NEVER LOOKS THE WAY IT DID WHEN YOU FIRST HAD THE IDEA.

IMAGINE TAKING YOUR DREAM, YOUR VISION OF YOUR COMPANY OR PRODUCT AND ASKING SOMEONE ELSE TO HELP YOU PRESENT IT TO THE PUBLIC.

THAT'S WHAT SMITH AND POST HAVE DONE IN THIS WEEK'S UPDATE ON THEIR APPLE CHIP VENTURE.

THEY HAVE CHOSEN A DESIGN, JOHN ANDERSON, TO COME UP WITH A PACKAGING DESIGN THAT COMMUNICATES THAT ALL-IMPORTANT IMAGE TO THEIR CUSTOMERS.

LET'S JOIN THEM.

>> IT WAS GREAT, IT WAS LIKE CHRISTMAS.

EACH PICTURE WAS LIKE A NEW PIECE OF CANDY THAT YOU COULD PLAY WITH AND LOOK AT.

>> THE PACKAGE, THE GRAPHICS, THE COPY, EVERYTHING THAT GOES INTO THAT PRESENTATION IS REALLY THE PROMISE THAT WE'RE MAKING TO A CONSUMER.

THAT'S WHAT GETS THEM INTERESTED AND READY TO GRAB THAT PACKAGE AND OPEN IT UP.

>> ONE OF THE THINGS THAT REALLY JUMPED OUT IN THE BUSINESS PLAN WAS THIS OBJECTIVE OF GRAPHIC DESIGN.

NUMBER ONE, IDENTIFYING AND COMMUNICATING THE BRAND'S PRIMARY ATTRIBUTES.

OKAY.

AND WHAT I PICKED UP ON THERE WAS APPLE, APPLENESS, SWEET, CRUNCH, AND SNAP, AND AH-HAH LIKE THE IDEA, THIS IS NEW.

SURPRISE.

AH-HAH WHEN THE CHIP SNAPS, IT'S LIKE A BREAKTHROUGH.

IT'S LIKE A KW QUANTUM FLUCTUAT.

>> JOHN HAD ENAT THAT THE IDEAS AND TURNED THEM INTO A LOT OF APPROACHES.

LORI AND I HAD WANTED TO USE OUR PACKAGING TO PROMOTE ENVIRONMENTAL AWARENESS.

IT SEEMED LIKE A SIMPLE IDEA BUT NOW WE HAD TO LOOK AT THE REALITY OF WHAT IT TAKES TO GET A CONSUMER TO PICK THAT BAG UP AND BUY IT.

>> YOU MIGHT CONSIDER A SERIES OF, OF CHAPTERS ABOUT THE EARTH.

AN EDUCATIONAL SERIES.

>> YOU KNOW, I WOULD LIKE TO GET BACK TO THE -- WHAT I SAID LAST TIME ABOUT THE PRODUCT REALLY BEING THE KING, AND IN TERMS OF WHAT IT IS, WHAT IT DELIVERS.

HOW GOOD IT IS.

AND THE PLAYFULNESS COMING OUT.

AND ALSO, WE WANT TO GET OUR, YOU KNOW, OUR OTHER MESSAGES ACROSS, BUT THEY CAN'T BE THE OVERRIDING THING.

>> I AGREE WE DON'T WANT TO BLUDGEON ANYBODY, BUT YOU CAN TACKLE SOME PRETTY POIGNANT ISSUES AND NOT LOSE YOUR CONSUMER.

>> THE DESIGN SHOULD BE SIMPLE, BOLD.

THERE SHOULD BE A COLOR HARMONY, AND THE SIMPLER YOU MAKE IT, AND I THINK THAT THERE IS GOING TO BE A CONFLICT BETWEEN WANTING TO PUT A LOT OF INFORMATION AND STUFF ON THE BAG AND ALSO GETTING IT TO WORK.

>> SNAPPER'S APPLE CHIPS, IN A WAY THIS IS THE VERY BEST.

IT'S THE CHIP, IT'S ACTION, IT'S SNAPPING AND CARTOONY.

THERE IS A LITTLE EARTH IN THE BACKGROUND.

IT'S CLEARLY A SPACE IMAGE.

AND THIS WAS LOOKING AT A SIMILAR IDEA BUT TRYING TO ELIMINATE THE BLACK AND DO EVERYTHING IN GREEN BECAUSE THE GREEN IS ABOUT APPLE AND TARTANS.

AND THEN I INTRODUCED WORDS HERE, WHICH I LIKED A LOT.

IDEA.

CRUNCH.

SNAP, WOW, AND I MEAN, I LIKE THE IDEA OF USING THE WORD, IDEA, BECAUSE AGAIN, WHAT DO YOU MEAN?

IT'S SORT OF LIKE GETS YOU THINKING, AND IRYOU ARE ABOUT THE IDEAS.

>> THERE IS A BALANCE BETWEEN MEETING OUR GOALS AND OUR VISIONS AND SATISFYING THE NEEDS OF THE CUSTOMER.

IF I KNEW THAT 60% OF THE CONSUMER SAID, THAT IS GREAT BAG, I WOULD NEVER PICK IT UP, I LIKE THIS BAG AND I WOULD PICK IT UP IN A MINUTE.

MY GOAL IS TO GET THE CONSUMER TO PICK UP MY BAG AND TASTE MY PRODUCT.

>> OUR FINAL ENTREPRENEUR IS CHRISTINE AND DAVID HUME, GREEN MOUNTAIN GRINGO SALSA, AND THEY ARE DREAM TURNED OUT TO BE MUCH MORE THAN THEY IMAGINED IT COULD.

>> THE NAME OF THE COMPANY IS HUME SPECIALTIES.

IT IS BECAUSE WE ARE HUME, AND GREEN MOUNTAIN GRINGO SALSA IS WHAT WE MAKE, AND THAT'S ALL THAT THERE IS THAT WE MAKE.

THE LINE OF SPECIALTIES HASN'T EXPANDED PAST THAT AT THIS POINT.

>> WHEN WE FIRST STARTED OUT IT WAS VERY MUCH ON AN EXPERIMENTAL BASIS TO SEE IF WE COULD GET A RECIPE TOGETHER THAT WAS SOMETHING THAT SEEMED WORKABLE.

>> THE ORIGINAL BUSINESS PLAN THAT WE HAD WRITTEN UP WAS A THREE-YEAR PLAN.

WE THOUGHT THAT IT WOULD TAKE THAT LONG UNTIL WE COULD MAKE A LIVING ON THE BUSINESS.

AND WE, ACTUALLY, GOT TO THAT POINT IN JUST ABOUT THREE MONTHS THAT WE COULD MAKE A LIVING OFF OF IT, AND WE WERE UP TO THAT PROJECTED SALES POINT.

>> WELL, WE REALIZED THAT WE WERE IN BUSINESS MOSTLY WHEN WE QUIT EVERYTHING ELSE THAT WE WERE DOING AND PUT EVERYTHING IN OUR LIVES ON HOLD IN ORDER TO ACCOMMODATE THIS BUSINESS.

WE HAD BEEN DOING LANDSCAPING, AND THE SEASON WAS COMING UP, AND WE WERE GOING TO TAKE A VACATION BEFORE WE WENT -- WE STARTED BACK IN LANDSCAPING AND DOING SALSA AT THE SAME TIME.

AND WE GOT A CALL FROM BLOOMINGDALE'S AND OTHER THINGS CAME THROUGH THAT WERE REALLY EXCITING SO WE CANCELED OUR VACATION, CALLED THE LANDSCAPED CUSTOMERS AND TOLD THEM THAT WE COULD NOT DO ANYTHING BECAUSE WE WERE WORKING FULL-TIME ON THIS, AND IT WAS LIKE NOW WE'RE IN BUSINES.

WE GOT A TELEPHONE CALL, AND I THOUGHT IT WAS A PRANK CALL THAT MUST BE MY SISTERS, SAYING IT WAS THE BLOOMINGDALE'S FOOD BUYING DEPARTMENT, AND THEY BASICALLY WANTED OUR PRODUCT IN EVERY ONE OF THEIR STORES IN THE COUNTRY THAT HAD A FOOD DEPARTMENT.

IN A WAY, IT MIGHT SEEM LIKE OH, WHAT A LUCKY BREAK, YOU KNOW, SOMEBODY HAVING TO PICK IT UP, BUT THE FACT IS WHEN THE BUYER HAD TRIED IT, IT WAS THE BEST SALSA THAT SHE HAD TASTED, AND SHE HAD TRIED A LOT OF THINGS AND HAD YOU KNOW, WHO KNOWS HUNDREDS OF DIFFERENT LIKE PRODUCTS IN THE STORE.

AND HER OPINION WAS THIS IS THE BEST ONE THAT SHE HAD EVER TRIED.

AND THE REASON FOR THAT IS BECAUSE WE TOOK A GREAT EFFORT TO MAKE SURE THAT WE USED ALL FRESH PRODUCE, TO DO THESE THINGS THE HARD WAY TO MAKE SURE WHAT WAS IN THAT JAR WAS THE BEST THING THAT SOMEBODY COULD GET.

WE KNEW RIGHT FROM BEGINNING THAT WE HAD TO BE A LOT MORE EFFICIENT IN PUTTING THE PRODUCT TOGETHER BECAUSE PEOPLE WANTED THE PRODUCT AND WE HAD TO BE ABLE TO GET IT INTO JARS AND IN MORE VOLUME THAN WE WERE ABLE TO DO BY HAND.

WE WERE TOLD THE DISCOURAGING NEWS ABOUT 100,000 WAS THE LEAST THAT WE COULD POSSIBY GET AWAY WITH TO PACK THIS OURSELVES, AND WE JUST -- WE WALKED AWAY DID HE EVER STATED.

I WAS LIKE HOW COULD THAT BE, YOU KNOW?

WE DON'T HAVE THAT KIND OF MONEY TO INVEST.

>> WE JUST KEPT ON THE PHONE AND CALLED A LOT OF COMPANIES THAT HAD USED EQUIPMENT, AND THE EQUIPMENT THAT WE BOUGHT ULTIMATELY IS VERY, VERY USED EQUIPMENT.

IT'S BEEN AROUND FOR A LONG TIME.

BUT OUR ULTIMATE SETUP COST PROBABLY WAS CLOSER TO 5,000, THAN 100,000.

>> AFTER THE FIRST YEAR WE REALIZED THAT WE WERE GOING TO HAVE TO START DELEGATING OUT THE WORK THAT WE HAD GROWN ACCUSTOMED TO DOING OURSELVES.

AND A LOT OF THE TASKS WERE REALLY VERY SIMPLE TASKS, BUT THERE WAS CERTAIN PARTICULARS ABOUT THEM THAT WE WANTED THEM DONE JUST SO, AND WE WERE VERY PICKY ABOUT HOW EVERYTHING WAS DONE.

SO THERE WERE THINGS LIKE PUTTING THE LABELS ON THE JARS, WHICH WE HAD DONE OURSELVES, AND IT TAKES A HUGE AMOUNT OF TIME, IT'S REPETITIVE BUT THEY HAD TO GO ON STRAIGHT.

THEY HAD TO BE PERFECT.

>> ONCE YOU LEARN HOW TO TEACH PEOPLE HOW TO DO OTHER THINGS FOR YOU, IT MAKES IT A LOT EASIER ON YOU TO THEN MOVE ONTO OTHER THINGS OF IMPORTANCE IN THE BUSINESS.

AND IT'S PROBABLY ONE OF THE HARDER THINGS, PROBABLY ONE OF THE MORE REWARDING THINGS, DEALING WITH PEOPLE, DELEGATING THE RESPONSIBILITY, AND TRYING TO GET THINGS TO WORK EFFICIENTLY AMONGST A FEW PEOPLE INSTEAD OF YOURSELVES.

>> I THINK PEOPLE -- A MAJOR DOWNFALL IS WHEN THEY GO THE KIND OF FEEDBACK THAT WE GOT ORIGINALLY, REAL POSITIVE, AND THEY WOULD GO GUNG-HO AND THEY PUT TOO MUCH IN IT, AND THEY CAN'T SWIM FINANCIALLY, AND THEY SINK.

THEY HAD A GOOD IDEA, A GOOD PRODUCT, AND THEY HAD A GOOD LABEL, IN A GOOD JAR AND LOOKED GOOD AND PEOPLE WOULD BE WILLING TO BUY IT, BUT THEY SANK THEIR SHIP BY BEING OVERLY OPTIMISTIC.

>> GOOD ADVICE.

IN FACT, I SEE THIS AS A TIME WHEN THE BUSINESSES OFTEN ARE MOST VULNERABLE.

RAPID GROWTH, PARTICULARLY IN THE EARLY STAGES, CAN TAKE THE ENTREPRENEUR BY SURPRISE, AND THE BUSINESS CAN FAIL.

TONIGHT WE SEE WHAT IT TAKES TO GET A COMPANY UP AND RUNNING.

THE RIGHT MIX OF PEOPLE, IDENTIFYING AND SELLING TO YOUR CUSTOMER.

COMING UP WITH A SOUND BUSINESS PLAN AND MOST IMPORTANT, YOUR ABILITY TO TAKE THE HITS AND BOUNCE RIGHT BACK.

NEXT TIME WE'LL LOOK AT MARKETING AND SALES.

THIS IS WHAT REALLY MAKES OR BREAKS A BUSINESS, AND NOT EVERYONE IS GOOD AT IT.

WE WILL SEE THE BEST EXAMPLES OF HOW COMPANIES HAVE GOTTEN THE MOST OUT OF THEIR MARKETING DOLLARS.

THAT'S VENTURING.

I'M CAROL DILLON.

SEE YOU NEXT WEEK.

THIS PROGRAM WAS MADE POSSIBLE BY A GRANT FROM THE UNITED STATES DEPARTMENT OF AGRICULTURE RURAL DEVELOPMENT.

FOR MORE CLASSIC PROGRAMS, VISIT VERMONTPBS.ORG/FROMTHEARCHIVES.