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

>> WE HAVEN'T HAD ANY TROUBLE COMING UP WITH MORE IDEAS, PROBABLY MORE IDEAS THAN WE CAN POSSIBLY COME OUT WITH IN A YEAR.

>> WE STARTED NETWORKING AGGRESSIVELY WITH OTHER COMPANIES WE KNEW HAD MOVED INTO THE FIELD TO FIND OUT FROM THEM THE KINDS OF THINGS THEY DID, WHAT TO WATCH OUT FOR, HOW TO GO ABOUT IT.

>> NEW PRODUCTS ITS WHAT IT'S ALL ABOUT.

>> I JUST LOVE COMING UP WITH NEW THINGS TO MAKE.

>> IT'S A REAL AFFIRMATION TO COME WITH A PRODUCT THAT WE HAVE WORKED ON SO LONG AND TO FIND OUT THAT OUR POSITIONING AND OUR SENSES WERE IN FACT RIGHT.

>> GOT TO GO IN AND SAY HERE'S THE BEST WAY TO USE THIS AND THIS IS A WINDOW OF OPPORTUNITY IF YOU DON'T USE IT YOUR COMPETITOR IS GOING TO.

>> WELCOME TO SR-VENTURING.

I'M CAROL DILLON.

SO FAR WE HAVE LEARNED HOW IT START A VENTURE, HOW TO FINANCE THAT START-UP, HOW TO SURVIVE THE CRITICAL FIRST YEAR AND LAST WEEK WE INTRODUCED THE TOPIC OF MARKETING.

WE'RE GOING TO LOOK AT MARKETING AGAIN BUT THIS TIME WE'LL EXPLORE HOW COMPANIES HAVE SUCCESSFULLY EXPANDED THEIR MARKETS BY CREATING NEW PRODUCTS OR FINDING MORE CUSTOMERS.

THIS IS JOHN AND MILLIE.

THEY HAVE GROWN THEIR BUSINESS BY FOCUSING ON THEIR CUSTOMERS.

LISTENING TO THEIR IDEAS AND RESPONDING WITH NEW PRODUCTS.

AT THE CORE OF THEIR MARKETING IS A CONCEPT YOU OFTEN HEAR ASSOCIATED WITH ENTREPRENEURSHIP.

FUN.

>> IT'S IN THE WHOLE NATURE THAT IT'S FUN.

THE WHOLE STORY IS FUN.

THE PRODUCT IS FUN.

>> OF COURSE TURTLE FOR ITSELF IS WAIT A MINUTE, TURTLES DON'T HAVE FUR SO YOU IMMEDIATELY HAVE THIS SENSE OF THERE'S SOMETHING WEIRD HERE.

WHEN YOU EXPLAIN IT AS BEING SPUN BY VIRGIN ACRYLICS TO LINE TURTLE' NESTS ON LAKE CHAMPLAIN, WE SAY THE VIRGIN ACRYLICS SPIN IT FOR THEIR FRIENDS TO KEEP THEM WARM AND PROTECT THEM FROM THE WICKED ITCH OF THE NORTH AND YOU KNOW WE'RE WACKY AND IT'S ALL FUN.

>> THE CATALOG IS OUR PRIMARY MARKET PIECE.

WE PUT A LOT OF TIME AND EXPENSE INTO CREATING IT EVERY YEAR.

IT'S THE WAY WE INTERACT WITH OUR CUSTOMERS WHO ARE THE RETERYLERS.

AT LOVE OF CALENDARS ARE UTILITARIAN, WORKBOOK KIND OF DOCUMENTS.

WE HAVE WORKED HARD AT TRYING TO PUT THE FUN INTO THE CATALOG SO THAT THE RETAILER REALLY ENJOYS GETTNG YOUR AT LOG, ENJOYS WORKING WITH IT.

>> WE COULDN'T BE MORE CONVINCED THAN THAT'S WHAT DRIVES OUR GROWTH IS THAT CONTINUAL FOCUS ON THE CUSTOMER AND WHAT SERVES HIM.

>> CUSTOMER'S NEEDS.

>> HIS NEEDS.

>> I THINK WE BETTER TELL THE MILL TO KEEP AN EYE ON THE QUALITY.

HERE COMES THE RED.

>> ABSOLUTELY CRITICAL FOR US TO PERSONALLY GO TO THE TRADE SHOW EVERY YEAR.

WE HEAR WHAT OUR CUSTOMERS SAY.

THEY MAY NOT TELL US ABOUT A PRODUCT FULL-BLOWN BUT THEY MAY TALK ABOUT NEEDS AN REACTIONS THEY GET FROM THE ACTUAL END USER, AND THAT KIND OF FILTERS THROUGH AND OUT OF IT COMES AN IDEA FOR A NEW PRODUCT.

THAT'S THE WAY OUR LINED KNIT HATS HAPPENED.

PEOPLE COMPLAINED FOR A LONG TIME ABOUT HOW REGULAR WOOL SKI HATS ITCH.

WELL, HERE WAS A WAY TO USE OUR TURTLE FUR PAB RICK IN A WAY THAT BROUGHT TOGETHER A KNIT HAT AND THE SOFTNESS OF FLEECE THAT HADN'T BEEN DONE BEFORE.

>> TRADE SHOWS SERVE IN A WAY AS A WAY FOR US TO DO MARKET RESEARCH.

WE HAVE PRODUCTS THAT DON'T TAKE A WHOLE LOT OF INVESTMENT IN TERMS OF START-UP, SO WE HAVE THE LUXURY OF BEING ABLE TO DESIGN A PRODUCT LINE WITH LOTS OF NEW IDEAS THIS IT, GO TO A SHOW, EXPOSE IT TO OUR RETAILERS AND SEE WHAT THE REACTION IS.

>> WE HAVEN'T REALLY HAD ANY TROUBLE COMING UP WITH MORE IDEAS THAN WE CAN POSSIBLY COME OUT WITH IN A YEAR AND I THINK IT'S THE REST OF THE INNO INVASIVIVENESS IS KEEPING YOUR EYES OPEN, BEING AWARE OF WHAT'S HAPPENING OUT THERE.

>> WE'RE ALWAYS EXPERIMENTING WITH NEW MARKETS.

WE FOR INSTANCE HAVE RECENTLY MADE AN EFFORT TO GET INTO CHILDREN'S CLOTHING IN A MAJOR WAY, AND WE HAVE BEEN GOING TO THE CHILDREN'S SHOWS FOR TWO OR THREE YEARS.

IT'S REALLY A BIT LIKE STARTING OVER AGAIN IN THE SKI BUSINESS.

WE GO AND WE'RE NOT KNOWN IN THAT PARTICULAR INDUSTRY AND SO WE'RE REALLY SNAGGING THEM OFF THE AISLES AND TELLING THEM THE STOY OF TURTLE FUR ALL OVER AGAIN.

OVER TIME THAT REACHES A CRITICAL MASS WHERE THE LINE WILL START TO TAKE OFF AND YOU'LL SEE REAL SUCCESS COMING FROM THAT.

THERE'S NO SUBSTITUTE TO REALLY GOING AND PAYING YOUR DUES AT THE SHOWS.

>> HOW ARE THINGS IN THE ECK?

>> WE HAVE ADDED BRUCE TO HANDLE FOREIGN SALES ABOUT A YEAR AGO.

NINE MONTHS AGO.

OUR FOREIGN BUSINESS WILL BE UP A FACTOR OF 300%.

FOLLOW-UP IS ALWAYS NECESSARY IN ANY SELLING RELATIONSHIP BUT WHEN YOU'RE DEALING WITH SOMEONE OVERSEAS AND YOU HAVE CULTURAL DIFFERENCES APPEARED LANGUAGE DIFFERENCES AND A NEED TO EDUCATE A PERHAPS NEW MARKET ABOUT YOUR PRODUCT, YOU JUST HAVE TO BE IN CONSTANT CONTACT.

>> WHEN YOU GET -- >> WE FOUND IT WAS HELPFUL TO HAVE A PORTFOLIO OF INFORMATION ABOUT US AS A COMPANY THAT KIND OF TOLD THEM HOW LONG WE HAD BEEN IN BUSINESS, THAT PATTED OURSELVES ON THE BACK IN A WAY AND TOLD THEM HOW RAPIDLY WITH WE HAD GROWN IN THE U.S., HOW BIGGARY SALES WERE, HOW MUCH OF A MARKET WE HAD IN THE U.S.

THERE WAS A NEED TO CREATE A COMFORT LEVEL THAT THEY WERE DEALING WITH A SUBSTANTIAL COMPANY THAT HAD A TRACK RECORD AND COULD PERFORM.

IN THE U.S.

YOU CAN SELL TO A STORE BASED ON A FEW SAMPLES AND BEING AT THE SHOW.

OVER THERE YOU REALLY HAVE TO BUILD THAT RAPPORT THROUGH PROVING YOURSELVES AS A SUBSTANTIAL PARTNER.

SURE, WE MAKE A PRODUCT AND WE SELL A PRODUCT, BUT MARKETING IS WHAT WE FUNDAMENTALLY DO.

WE'RE SELLING.

THAT INTERACTION WITH THE CUSTOMER IS WHAT REALLY DRIVES EVERYTHING THAT WE DO.

>> IT'S IMPORTANT, OF COURSE, TO MAKE SURE YOU HAVE THE RESOURCES AND ABILITY TO FOLLOW THROUGH.

DON'T STRAY TOO FAR FROM WHAT YOU KNOW.

SEVERAL YEARS AGO CYNTHIA FI LYNNO OF SOUND EXECUTIVE BOOK SUMMARY FOUND HER MARKET HAD PLATEAUED.

VERY FEW CUSTOMERS WERE SIGNING UP FOR HER SERVICE.

LIKE ANY GOOD ENTREPRENEUR SHE KEPT LOOKING FOR NEW WAYS TO REACH A NEW CUSTOMER BASE UNTIL SHE FOUND ONE, BUT IT WASN'T EXACTLY NEW.

>> IT'S A SERVICE THAT SUMMARIZES BUSINESS BOOKS FOR EXECUTIVES.

EACH BOOK IS DONE IN AN EIGHT-PAGE FORMAT, BASICALLY THE MAIN IDEAS IN THE BOOK, EACH SUMMARY SELF-CONTAINED.

THEY GO TO THE EXECUTIVES ON A MONTHLY BASIS IN A 9 BY 12 ENVELOPE, TWO OR THREE SUMMARIES EACH MONTH.

THE TRADITIONAL METHOD, AND I THINK THE CONTINUING MAJOR METHOD OF BUILDING CIRCULATION IS THROUGH DIRECT MAIL.

WHERE YOU RENT A LIST AND YOU HAVE A MAILING PIECE AND YOU SENDS THAT TO THAT AND OTHER LISTS.

THAT'S HOW WE BUILT OUR CIRCULATION, THE BULK OF OUR CIRCULATION IN THE EARLY YEARS.

WHAT BEGAN TO HAPPEN IS POSTAL COSTS WERE GOING UP, PAPER COSTS WERE GOING UP, WE WERE USING THE SAME LISTS OVER AND OVER AND THEY WEREN'T BUILDING CIRCULATION AND WE WERE PUSHED TO TEST OTHER METHODS OF DIRECT CIRCULATION.

WE HAD TRIED A SPACE AD, A MAGAZINE AD THAT HAD NOT WORKED BUT WE DECIDED TO GO BACK TO THAT METHOD AGAIN AND WE FOUND A CONSULTANT WHO WAS ABLE TO TAKE OUR DIRECT MAIL PIECE AND BASICALLY CREATE A ONE-PAGE AD OUT OF THAT, SHRINKING THAT MESSAGE DOWN INTO A ONE-PAGE MAGAZINE AD AND FOUND WE COULD DO SUCCESSFULLY WITH THAT IN THE AIRLINE MAGAZINES.

THAT OPENED UP A BIG HALF KNEW OF NEW SUBSCRIBERS FOR US.

WHEN YOU TRY TO EXPAND YOUR MARKET IT'S WORTH GOING BACK TO A METHOD THAT YOU'VE RIDE THAT DIDN'T SUCCEED FOR YOU.

THAT'S WHAT WE LEARNED IN SPACE ADVERTISING THAT OUR EARLIEST AD PROBABLY JUST WASN'T A STRONG ENOUGH AD AND THE MAGAZINES WE CHOSE TO TEST IT IN WERE PROBABLY NOT THE RIGHT MAGAZINES.

BY GOING BACK AGAIN, BY MAKING A SECOND EFFORT AT A STRONGER AD THAT SOLD BETTER AND LOOKING AT THE MEDIA AND CHOOSING DIFFERENTLY WE WERE ABLE TO MAKE THAT WORK.

>> BECAUSE PEOPLE ARE A LITTLE BIT DISTRACTED.

THEY ARE JUST NOT THINKING ABOUT BUSINESS.

SO I WOULD CONTINUE TO BE CAUTIOUS AT THAT POINT.

>> THE BEAUTY OF DIRECT MARKETING IS THE TRACKABILITY OF THE RESULTS.

>> I THINK WE SHOULD HOLD OFF AND WAIT UNTIL JANUARY TO DO ANY HEAVY MARKETING.

>> EACH OFFER HAS ITS OWN CODE THAT ALLOWS YOU TO SEE VERY QUICKLY HOW THAT PARTICULAR OFFER IS PERFORMING.

YOU CAN THEN EITHER CHOOSE TO REPEAT THE OFFER IN THAT PARTICULAR MEDIA, MOVE INTO SIMILAR MEDIA OR IF IT'S NOT DOING WELL NOT DO IT AGAIN.

SO IT'S A VERY MEASURED FORM OF MARKETING.

WHEN WE BEGAN TO SERIOUSLY WORK ON NEW PRODUCT DEVELOPMENT WE KNEW THAT WE COULD TAKE EITHER THE HORIZONTAL OR VERTICAL APPROACH.

WE BEGAN WITH THE HORIZONTAL APPROACH.

WE BEGAN BY SAYING THAT WE'RE IN A SUMMARY BUSINESS, IN A BUSINESS WHERE WE'RE PROVIDING INFORMATION IN A TIMELY FASHION IN A QUICK FASHION.

LET'S TAKE THAT CONCEPT AND MOVE IT INTO OTHER SUBJECT AREAS.

THAT'S WHAT WE BEGAN TO DO.

WE LOOKED AT THE INVESTMENT FIELD CAREFULLY.

WE SPENT QUITE A BIT OF TIME AND MONEY LOOKING AT THE EDUCATION FIELD.

THEY DID NOT CHOOSE OR COULD NOT AFFORD TO PAY THE PRICE THAT WE NEEDED TO CHARGE SO THAT ELIMINATED THAT AND WE QUICKLY BEGAN TO SEE THE HORIZONTAL WASN'T WORKING FOR US AT LEAST AT THE RESEARCH LEVEL AND SHIFTED TO THE VERTICAL APPROACH WHICH MEANT STAYING IN THE BUSINESS FIELD, TAKING THE ENACT WE DO BUSINESS SUMMARIES AND LOOKING AT WHAT OTHER PRODUCT COULD WE DEVELOP THAT WOULD STEM FROM THAT, BUILD OFF THAT THAT WOULD CROSS FILL WITH THAT AND THAT'S WHERE WE ARE WITH NEW PRODUCT DEVELOPMENT.

WE REALIZED THAT WE HAD TO EXPAND INTO THE INTERNATIONAL MARKET TO CONTINUE TO BUILD CIRCULATION.

WE HAD PLATEAUED IN THE U.S.

AND CANADIAN MARKETS AS WE APPROACHED THEM AT THAT TIME.

THIS BECAME THEN A WHOLE NEW CHALLENGE QUITE STRESSFUL IN ITS OWN RIGHT.

HOW DO WE DO THIS?

HOW DO WE GO ABOUT IT?

HOW DO WE PROCEED HERE.

WE STARTED NETWORKING AGGRESSIVELY WITH OTHER COMPANIES TO FINDS OUT FROM THEM THE KINDS OF THINGS THEY HAD DONE, WHAT WE SHOULD WATCH OUT FOR, HOW WE GO ABOUT IT.

IF YOU'RE CONSIDERING EXPANDING YOUR BUSINESS INTO A NEW AREA IT'S VERY KEY TO TALK TO PEOPLE WHO HAVE DONE THAT ALREADY.

THERE MAY BE A FEAR YOU'RE DIVULGING THINGS THAT THEY COULD TAKE ADVANTAGE OF.

IT'S A RISK YOU SHOULD TAKE.

>> NETWORKING.

I HATE THAT WORD.

IT'S OVERUSED, BUT THE CONCEPT IS CRITICAL.

WITH THE EMERGENCE OF A GOBLE MARKETPLACE AND RAPIDLY CHANGING TECHNOLOGY THE GATHERING AND SHARING OF INFORMATION IS A NECESSITY IN EXPANDING YOUR BUSINESS.

DAN FORTH STARTED OUT AS CRAFTS PEOPLE.

THEY WERE QUITE SUCCESSFUL TURNING OUT PEWTER HOLLOW WEAR BUT THEIR SALES WERE SEASONAL.

THEY NEEDED SOMETHING TO EVEN OUT THEIR CASH FLOW OVER THE ENTIRE YEAR.

IT'S BEEN SAID THAT NECESSITY IS THE MOTHER OF INVENTION.

LET'S SEE WHAT HAPPENED.

>> WE MANUFACTURE A LINE OF CAST PEWTER JEWELRY AND PINS AND BUTTONS AND WE ALSO MAKE PEWTER HOLLOW WEAR, FINE PEWTER HOLLOW WEAR.

WHEN WE BEGAN OUR PEWTERRING CAREER AS CRAFTS PEOPLE WE WERE FASCINATED BY THE POTENTIAL OF THE METAL WE HAD TAKEN A COURSE WITH A PEWTER SMITH AND WE WERE CONVINCED THAT WE COULD MAKE AMONG THE FINEST PEWTER YOU COULD FIND BASED ON OUR ACQUIRED SKILLS AND OUR ASPIRATIONS.

WHEN WE WERE CRAFTS PEOPLE WE HAD A FAIRLY NARROW VIEW OF THE MARKET.

WE FELT THAT WHAT WE COULD MAKE WE COULD TAKE TO A CRAFT FAIR AND SELL.

CAME TO BELIEVE IF THEY MAKE MONEY IT WILL COMPROMISE THEIR CREATIVE SPIRIT.

I UNDERSTAND THAT FEELING.

I WONDER HOW DEEPLY HELD THE BELIEF IS THAT THERE'S SOMETHING WRONG WITH BEING IN BUSINESS IF YOU ARE OF AN ARTISTIC BENT BECAUSE I THINK THERE'S A LOT OF NEW THINKING GOING ON THESE DAYS IN WHICH PEOPLE ARE DISCOVERING THE CREATIVE POTENTIAL AND THE VALUE OF HAVING A BUSINESS.

>> EARLY ON WHEN WE WERE JUST GETTING STARTED WE HAD KIND OF A PERSONAL MISSION THAT WE WERE GOING TO MAKE THE FINEST PEWTER HOLLOW WEAR THAT COULD BE MADE.

WE WERE THINKING VERY SMALL AT THE TIME.

WE WANTED TO DO IT OURSELVES, HANDS ON START TO FINISH.

AND THEN AS THE HOLLOW WEAR GREW WE DISCOVERED THAT CASTING WAS A POSSIBILITY.

WE HAD CAST THE STEMS TO GOBLETS.

WE DISCOVERED THE CASTING PROCESS AND IT STARTED TWEAKING US.

WHAT ELSE COULD WE DO WITH THIS?

I LEARNED ABOUT WAX CARVING FROM SOMEBODY AND SAT DOWN WITH IT ON MY OWN AND STARTED PLAYING WITH IT AND THAT'S WHEN THE BUTTONS CAME UP.

HOW IS IT GOING WITH THOSE?

>> I MARKED THEM IN THE MOLD.

>> AT THE TIME WHEN WE WERE JUST FOCUSING ON HOLLOW WEAR AND THE BUTTONS WERE BEING DISCOVERED WE WERE DOING CRAFT SHOWS A FEW MONTHS OF THE YEAR, AND IT WAS GO-GO GO, DO ALL THE SHOWS, TRY TO GET EVERYTHING TOGETHER IN A SHORT PERIOD OF TIME THEN JANUARY THROUGH APRIL WERE VERY SLOW TIMES.

IT OCCURRED TO US THAT THIS CAN ANSWER THAT IS RIGHT EPART OF THAT QUESTION.

HELP US EVEN OUT OUR YEAR.

WE CAN HAVE NEW MARKETS THIS THIS PRODUCT.

CREATING NEW PRODUCTS IS WHAT IT'S ALL ABOUT FOR ME.

I JUST LOVE COMING UP WITH NEW THINGS TO MAKE.

WHEN WE STARTED MAKING PINS WE HAD TO COME OUT OF OUR SHELL AND LOOK BEYOND THE WORLD OF CRAFT FAIRS AND MAKE THE BIG LEAP, FIRST SHOW WE WENT TO WAS THE NEW YORK GIFT SHOW SO WE TOOK A LEAP AND DID IT AND FOUND OUT THAT PEOPLE RESPONDED TO IT.

THAT OPENED OUR EYES TO A BIGGER WORLD.

>> ONE DAY IN THE REGULAR COURSE OF THE DAY WE HAD A PHONE CALL FROM THE WALT DISNEY COMPANY AND THEY WERE CALLING TO OFFER US CLASSIC WINNIE THE POOH LICENSE.

OUR INITIAL REACTION WAS THAT IT WAS VERY EXCITING, A WONDERFUL POSSIBILITY, AND WE KEPT I THINK GOING BACK TO THE QUESTION HOW DOES THIS FIT FOR US.

IS THIS SOMETHING THAT WE CAN DO.

UP TO THAT POINT WE HAD NEVER REALLY CONSIDERED DOING SOMETHING THAT COULD BE AS BIG AS THAT.

SO WE PUT A LOT OF THOUGHT BEHIND IT BUT IT WAS VERY EXCITING RIGHT FROM THE START.

A LICENSING AGREEMENT IS WHEN A COMPANY WHO OWNS A PRODUCT WANTS ANOTHER COMPANY TO PRODUCE THAT CHARACTER OR THAT ITEM IN ANY DIFFERENT MEDIA.

THEY OWN THE PROPERTY.

WE PAY ROYALTIES FOR EVERY SALE WE MAKE.

WHOLESALE OR RETAIL.

HAVING THIS LICENSE AGREEMENT WITH THE DISNEY COMPANY HAS PROVEN TO BE VERY SUCCESSFUL THING.

IT IT'S BROADENED THE MARKET FOR US.

WE HAVE HAD OPPORTUNITIES COME OUR WAY BECAUSE OF THIS THAT WE WOULDN'T NECESSARILY HAVE OTHERWISE HAD.

OTHER COMPANIES HAVE OFFERED US LICENSES.

WHEN YOU'RE VISIBLE AND YOU'RE DOING SOMETHING THAT HAS CREDIBILITY AND QUALITY, THEN PEOPLE COME AROUND AND SAY, WHAT ABOUT THIS?

OR STORES COME AROUND AND SAY WE WOULD LIKE TO CARRY YOUR LINE.

SO IT HAS REALLY BROADENED OUR MARKET AND AS THE COUNTRY SLID INTO A RECESSION, IT DIDN'T SEEM TO AFFECT THE DISNEY PRODUCTS THAT WE WERE DOING.

THEY KEPT GROWING AND GROWING SO JUST AS THINGS WERE SLOWING DOWN FOR A LOT OF OUR STORES, THE DISNEY CONNECTION WAS REALLY STRONG.

SO IT'S HELPED OUR COMPANY A LOT.

I THINK AN IMPORTANT WAY OF VIEWING MARKETS AND MARKET EXPANSION IS TO NOT SAY, NO, WE CAN'T DO, THAT OR NO, THAT'S TOO BIG FOR US, OR THAT ISN'T SOMETHING WE HAVE EVER DONE BEFORE SO WE BETTER NOT GET INTO THAT.

I THINK YOU HAVE TO VIEW IT INTELLIGENTLY AND FIND OUT IF IT'S SOMETHING YOU CAN DO.

WE STARTED OUT SO SMALL AND HAD NOT THOUGHT OF LICENSING.

ALONG IT CAME AND IT'S BEEN GREAT.

>> ONE OF THE ADVANTAGES OF A SMALL ENTREPRENEURIAL COMPANY IS THAT QUITE OFTEN THEY ARE ABLE TO RESPOND MORE READILY TO A MARKET OPPORTUNITY THAN THEIR LARGER COMPETITORS.

IT'S TIME FOR OUR WEEKLY CHECK-IN FOR OUR START-UP VENTURE INTRODUCING APPLE CHIP SNACK FOOD.

THEY HAVE CHOSEN THE PACKAGE DESIGN AND ARE READY TO INTRODUCE THEIR PRODUCT TO THE WORLD.

WE HEARD A LOT ABOUT TRADE SHOWS ON VENTURING.

LET'S SEE WHAT ONE IS LIKE.

IT'S THE NATIONAL FOODS EXPO IN BALTIMORE.

>> THERE WAS A LOT OF NERVOUSNESS AS TO WHAT THE SHOW WOULD BE LIKE, ARE WE GOING HOME EMPTY OR FULL.

IT'S A REAL AFFIRMATION TO COME WITH A PRODUCT THAT WE HAVE WORKED ON SO LONG AND TO FIND OUT THAT OUR POSITIONING AND OUR SENSES WERE IN FACT RIGHT.

RIGHT.

>> I THINK THESE TASTE A LOT BETTER.

YOU'RE WELCOME TO TRY A CHIP IF YOU'D LIKE.

>> I'LL TRY ONE.

>> WE USE CORN SYRUP AS A PROCESSING AGENT.

THERE'S NOT A TREMENDOUS AMOUNT IN THE PRODUCT.

WE DON'T HAVE ANY DISTRIBUTORS YET.

WE'RE TALKING TO A NUMBER OF DIFFERENT DISTRIBUTORS, BUT WE'RE A START-UP COMPANY.

THIS IS OUR FIRST SHOW.

>> OKAY.

>> WE'RE DOING SOME DIRECT SHIPMENTS, UPS, STORES THAT ARE INTERESTED.

>> THIS IS MY CARD.

I'M JUST WORKING OUT OF THE NORTHWEST.

>> ARE YOU THE CONTACT PERSON?

>> NO.

I'M THE REGIONAL MANAGER.

>> WE HAVE AN INTERESTING CONCEPT.

INSIDE THAT FREIGHT ARE CORRUGATED BOXES SLIDE RIGHT IN.

>> GREAT IDEA.

45% OFF 34 IS ABOUT 25 CENTS.

WE COULD PROBABLY GET IT DOWN TO ABOUT 20.

>> CRISPY.

>> MM!

>> DELICIOUS.

>> NOW TRY IT THE OTHER WAY.

>> LET ME TRY IT.

>> I LOVE WATCHING PEOPLE PICK UP THE CHIP AND WALK BY, PUT IT IN THEIR MOUTH, DO A CARTWHEEL AND COME BACK WITH A SURPRISED EXPRESSION ON THEIR FACE.

>> THEY ARE GOOD.

>> WONDERFUL.

>> NOT BAD.

NOT BAD.

>> WHAT DO YOU THINK?

[AUDIO NOT UNDERSTANDABLE] >> THE POINT WAS TO FIGURE OUT WHERE WE WERE GOING TO BE IN THE MARKET, WHAT WE WERE GOING TO DO FOR DISTRIBUTION.

SUGGESTED RETAIL, WHOLESALE, AND THEN WE DO HAVE DISTRIBUTOR PRICING AS WELL.

WELL.

WE'RE NOT READY TO TAKE ORDERS, BUT WE ARE TAKING THEM AND TELLING PEOPLE WITHIN TWO WEEKS WE'LL LET THEM KNOW HOW WE'RE GOING TO PROCESS THE ORDER.

THIS IS YOUR MAIL ORDER CATALOG.

WHERE DOES THIS GO?

>> ACROSS THE COUNTRY.

>> IT GOES RIGHT TO A CONSUME CENTER.

>> CONSUMER, A NAME THAT I HAVE.

>> WHAT I WOULD DO WITH THIS IS TO MAKE SURE I TAKE ALL OF THE INFORMATION.

YOU'VE GOT SOMEWHAT OF A FACT SHEET HERE.

WE'LL SEND YOU SAMPLES.

WE DON'T HAVE THE CINNAMON HERE YET.

>> WE WANT SAMPLING TO PUT THEM OUT AT THE STORE.

>> YOU WANT SAMPLES OF BOTH.

>> RIGHT.

>> 49 CENTS AND THE $1.59?

>> IF YOU'RE GETTING RESPONSE BEYOND THE TASTE OF THE PRODUCT, SAY THE TOTAL MESSAGE YOU'RE COMMUNICATING IT TO THE COMPANY.

PLUS PEOPLE LOVE TO SUPPORT ENTREPRENEURIAL EFFORTS.

THERE'S A WHOLE LARGE GROUP OF RETAILERS AND WHOLESALERS FOR THAT MATTER BUT YOU STILL GOT TO DO YOUR HOMEWORK.

THE SWEETENER ISSUE WILL RESTRICT YOUR DISTRIBUTION.

I'M NOT GIVING YOU A CART BLANCHE OPINION ABOUT MY WHOLESALE DISTRIBUTION COMPANY'S OPINION BUT GENERALLY.

>> I THINK THE CORN SYRUP ISSUE IS PERHAPS BIGGER THAN I HAD HOPED IT WOULD BE BUT IT'S NOT UNEXPECTED.

WE'LL FIGURE OUT HOW TO DEAL WITH THAT.

>> IT'S TERRIFIC.

>> NOW THE JOB IS TO FIGURE OUT HOW TO SUPPLY IT.

BUT THAT'S THE KINDS OF PROBLEM WE LIKE TO HAVE.

>> IT LOOKS LIKE A SUCCESS BUT YOU NEVER KNOW UNTIL YOU GET BACK HOME AND WAIT FOR THE ORDERS TO START COMING IN.

WE'LL HAVE A LOOK NEXT WEEK.

OUR FINAL ENTREPRENEURS FOR THIS WEEK ARE AN INDUSTRY THAT IS SYNONYMOUS WITH CHANGING TECHNOLOGY.

VIDEO.

PHIL SHUUH BART, JIM TAYLOR AND MICHAEL COUTURE OF RESOLUTION UNDERSTAND THE NATURE OF THEIR BUSINESS AND HAVE STAYED ONE STEP AHEAD IN THEIR MARKET AND HAVE GROWN THEIR BUSINESS YEAR IN, YEAR OUT.

LET'S FINDS OUT HOW.

>> RESOLUTION IS IN THE INFORMATION BUSINESS.

WE HAVE PRODUCTION, DOWN CASE AND FULFILLMENT SERVICES.

>> THERE USED TO BE A TIME WHEN YOU COULD BE A MANUFACTURING COMPANY AND YOU COULD DESIGN A WIDGET, A THING, AND YOU COULD MANUFACTURE IT FOR 30 YEARS AND YOU COULD LOOK AT SOME KIND OF WINDOW OF TIME THAT YOU COULD FEEL COMFORTABLE BUILDING MARKETS AND MANUFACTURING ESSENTIALLY THE SAME PRODUCT.

I THINK THAT THAT'S REALLY CHANGED.

I THINK THAT NOW WHAT HAPPENS IS THAT PRODUCTS ARE PRODUCTS ONLY FOR SMALL PERIODS OF TIME AND SO YOU HAVE TO THINK ABOUT HOW YOU'RE GOING TO FINANCE EQUIPMENT, HOW YOU'RE GOING TO DEAL WITH MARKETING AND DEAL WITH APPRECIATION FOR ESSENTIALLY MUCH SHORTER PERIODS OF TIME.

AT THE ENDS OF THAT TIME YOU GOT TO FIGURE OUT WHAT YOU'RE GOING TO MOVE INTO NEXT.

SO I THINK THE KEY IS TO REMAIN OPEN TO THOSE CHANGES AND NOT TO SAY THIS IS THE WAY WE DO BUSINESS.

I THINK THE KEY IS TO SAY WHAT HAPPENING, WHAT'S CHANGING, AND FIGURE OUT HOW TO STAY WITH THAT.

>> OKAY.

24.98.

>> WE CAME FROM A PLACE OF WANTING TO GROW AND THERE WERE PUT IN A POSITION OF LISTENING VERY, VERY HARD TO THE EARLY CLIENTS THAT WE HAD.

I THINK OUT OF THAT DERIVED OUR UNDERSTANDING OF THE FACT THAT OUR WHOLE MARKET STRATEGY HAD TO IN FACT BE CUSTOMER SERVICE.

THE KEY TO ALL GROWTH IS BEING ABLE TO LISTEN RATHER THAN TALK TO YOUR CUSTOMERS.

WHAT ARE YOU GOING TO NEED FROM US SIX MONTHS, TWO YEARS FROM NOW?

WHAT DIRECTION DO WE NEED TO BE GOING IN TO SERVICE THIS ACCOUNT BETTER?

CLIENTS WOULD COME TO US AND SAY, WE WANT THIS.

THEN THE TYPICAL THING WOULD BE WE WOULD GET TOGETHER IN A ROOM AND SCRAMBLE AND SAY WE DON'T DO THIS BUT WE NEED TO DO IT TO KEEP THE ACCOUNT.

HOW ARE WE GOING TO REPRESENT HONESTLY THAT WE DO DO IT THEN GET IT UP AND RUNNING WHEN THEY NEED IT?

>> THE MARKETPLACE IS ALWAYS TELLING YOU STUFF YOU DON'T WANT TO HEAR.

ALWAYS.

IT'S SAYING YOU GOT TO BUY THIS, YOU GOTTA DO THIS BETTER, SPEND MORE MONEY HERE AND DO IT FOR LESS.

YOU'VE GOT TO GO TO THE CLINT WITH SPECIFIC APPLICATIONS.

IT GOES FROM MARKETING TO EDUCATION.

YOU HAVE TO USING EVERYBODY IN THE COMPANY, SIT THEM IN A ROOM, SAY, OKAY, THIS MACHINE WILL MAKE 400,000 20-MINUTE TAPES AT A COST OF $1.70.

WHAT'S A GOOD APPLICATION FOR THAT?

THEN YOU GO TO THE CLIENT AND YOU DON'T SAY, HERE WE ARE, USE US, YOU SAY, THIS IS YOUR PROBLEM.

YOU HAVE THIS NORDICTRACK EXERCISE TRAINER, TO USE AN EXAMPLE, AND YOU'RE DOING DIRECT MAIL.

YOU'RE GETTING THE TYPICAL DIRECT MAIL RESPONSE.

WE THINK THERE'S A WINDOW OF OPPORTUNITY TO DUPLICATE 100,000 TAPES, PUT THEM OUT IN PEOPLE'S HANDS AND REALLY SHOW THEM WHAT THIS DOES.

HERE ARE THE COSTS.

HERE'S THE PRO FORMA.

HERE'S THE RETURN THAT WE THINK YOU'LL GET ON IT.

HERE'S ALL THE FINANCIAL INFORMATION.

HERE'S HOW IT'S GOING TO WORK.

ARE YOU INTERESTED?

YOU GET ABOUT HALF A DOZEN NOS THEN SOMEBODY BITES.

SO IT REALLY BECOMES VERY SORT OF EDUCATION ORIENTED, VERY APPLICATION SPECIFIC.

YOU CAN'T JUST GO INTO THE MARKETPLACE AND SAY WE BOUGHT THIS MACHINE, THE PAYMENTS ARE KILLING US, WOULD YOU USE IT?

YOU HAVE TO SAY HERE'S THE BEST WAY TO USE THIS AND THIS IS A WINDOW IF YOU DON'T USE IT YOUR COMPETITOR IS GOING TO.

>> BEING INNOVATIVE IS NOT SO MUCH YOU CHANGE AT THIS POINT THEN WAIT FOR TEN YEARS AND CHANGE AT THIS POINT.

IT'S MORE LIKE JUST SORT OF CONSTANTLY WATCHING WHAT'S HAPPENING AND SLOW CHANGES THEN ALL OF A SUDDEN FIVE YEARS LATER WE SAY WE'RE NOT VIDEOTAPE LUPOLI INDICATORS ANY MORE, EAR INFORMATION MANAGEMENT PEOPLE.

>> FOR THE FIRST TIME IN THIS FISCAL YEAR WE ARE PROCESSING INFORMATION THAT HAS NOTHING TO DO WITH VIDEO.

WE ARE HANDLING ALL THE FULFILLMENT OPERATIONS FOR A BOOK PUBLISHER WHO DOES NOT HAVE VIDEO PRODUCT.

THAT IS MARKET EXPANSION FOR US.

MARKET RESEARCH REALLY IS JUST MAINTAINING A PERSONAL AND DIRECT AND CLEAR LINE OF COMMUNICATION DIRECTLY WITH THE CLIENT WITH NO CONSULTANTS IN BETWEEN, NOBODY TO INTERPRET THE INFORMATION OR PACKAGE IT OR BOX IT.

IT'S HEARING DIRECTLY WHAT THEY NEED.

>> LISTENING TO YOUR CUSTOMERS, ANTICIPATING THEIR NEEDS, THEN RESPONDING TO FILL THOSE NEEDS.

THESE ARE REALLY THE KEYS TO MARKET EXPANSION.

WHETHER YOU'RE IN COMMUNICATIONS, CRAFTS, PUBLISHING OR TURTLE FUR, IT'S KNOWING WHAT YOUR CUSTOMER WANTS AND YOUR ABILITY TO GET IT TO THEM THAT DRIVES YOUR COMPANY'S GROWTH.

IDENTIFYING AND SELLING THROUGH RIGHT DISTRIBUTION CHANNELS IS EXTREMELY IMPORTANT.

NEXT WEEK WE BEGIN TO LOOK AT GROWTH.

HOW DO YOU FINANCE IT AND WHAT ARE THE RISKS?

WEE HEAR FROM ENTREPRENEURS THAT HAVE SUCCESSFULLY RAISED MONEY FOR GROWTH AND FROM SOME THAT PAID A VERY HIGH PRICE FOR THEIR FINANCIAL PACKAGE.

THAT'S VENTURING.

I'M CAROL DILLON.

SEE YOU NEXT WEEK.

S >> 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.