Entrepreneurship 2e Video Discussion Guide
CHAPTER 1
Should You Become an Entrepreneur?
Ziba Design
This video features Ziba Design, which, in 2001, became the first firm in the world to
win four Gold Awards in the annual Industrial Design Excellence Awards Competition
run by the Industrial Designers Society of America.
The teamwork environment at Ziba is extraordinary. The team has learned that culture
is not just a nationality. It also is a way of seeing things from a different perspective,
which is the heart of creativity. The team has learned that culture is not just a nationality.
It also is a way of seeing things from a different perspective, which is the heart of
creativity.
To learn more about this episode of Small Business School, go to:
http://smallbusinessschool.org/webapp/sbs/600/613/homepage.jsp
1. In the beginning Sohrab never had limitations in his mind. He was always
wondering “what if,” challenging the norm, and believing that everything can be
improved. Think about an item or product you use every day. Using Sohrab’s
“what if” philosophy, write a brief paragraph on how you would change that
product or item in order to improve its function.
Student answers will vary but should demonstrate creativity and possibility
thinking, as well as be clearly viable.
2. People from all over the world vie for a position at Ziba Design. Write a brief
paragraph explaining why so many people make working at Ziba a career goal.
Student answers will vary but should include: Ziba is a team-oriented company
that attracts people from all over the world and is known internationally for
encouraging employees to be creative. The multinational work environment is
fast-paced on a wide variety of projects, and designers often get to interact with
clients.
3. Ziba operates with two types of client contacts: a program director and a project
manager. At Ziba, what differentiates the program director from the project
manager?
Student answers will vary but should include: At Ziba the program director will
have a strong capability and a deep appreciation for what it takes to do the work
itself. They are not only managing a relationship, but also are responsible for
giving their clients the confidence that Ziba can get the right job done and do it
well.
Entrepreneurship 2e Video Discussion Guide
CHAPTER 2
What Skills do Entrepreneurs Need?
Gadabout Salon
This video features Pam McNair, founder of Gadabout Salon and Spas, who has created
225 jobs and made millions in sales. She did it by building a team. Pam believes in
looking at the big picture and effective delegation. She said, “I’m not the star; I build the
stars.”
To learn more about this episode of Small Business School, go to:
http://smallbusinessschool.org/webapp/sbs/500/504/homepage.jsp
1. What workplace attitudes helped Pam create 225 jobs and a company with more
than $11 million dollars in sales?
Student answers will vary but should include: Pam mastered the art of team
building. When people feel good about where they work, what they do, and who
they are, a company can be successful at anything it does. Pam encourages
employees to have ideas. She knows that her employees will care more for their
clients if they know someone cares about them.
2. What does Pam mean when she says she wants her employees to “feel safe” at the
workplace?
Student answers will vary but should include: People don’t feel safe in an
environment where their voice isn’t heard and they cannot speak their opinion.
Pam also feels that the ability of management to admit making a mistake gives
all the people in the company the freedom to talk about mistakes and work to
correct them. She wants all of her employees to feel safe and calm and
confident both in what they do and who they are because each individual is
important to the company.
3. What qualities does Pam have that makes people love to work for her?
Student answers will vary but should include: Pam’s employees feel that the
salon is like family and they help each other. They like working for Pam and
with other well-trained and knowledgeable co-workers. They feel that they can
count on their employer to care about them. Pam stands behind her employees
and encourages continuing education because she wants them to have the
opportunity to be as successful as possible.
Entrepreneurship 2e Video Discussion Guide
CHAPTER 3
Entrepreneurs in a Market Economy
Nicole Miller
This video features the Nicole Miller Company that was started in 1982 by Bud Konheim
and Nicole Miller. Today the company has 165 employees working in New York at
company headquarters, in the warehouse, or in the retail stores. There are 30 Nicole
Miller Boutiques around the country. Nicole owns 15 of them and the other 15 are owned
by licensees. Department stores such as Neiman Marcus, Saks Fifth Avenue, and
Nordstrom also carry Nicole Miller clothing.
To learn more about this episode of Small Business School, go to:
http://smallbusinessschool.org/webapp/sbs/900/901/homepage.jsp
1. What is the secret to Nicole Miller’s success?
Student answers will vary but should include: The Nicole Miller Company has
achieved success by creating fashions that they love, developing their own sales
channels, and licensing Nicole’s designs to 15 different firms who make
handbags, travel accessories, socks and other items.
2. What are the functions of the different departments at Nicole Miller?
Student answers will vary but should include: The production department
calculates costing based on labor, fabric, and trim. The sales department
decides the best price to be competitive, and the garment is scheduled for
production.
3. Why did Nicole insist on having a runway show? What was Bud’s opposition to
having a runway show, and how did they resolve the conflict?
Student answers will vary but should include: Nicole felt that department-store
customers were only getting to see the pieces that the buyers decided to put in
their store and were not able to see everything she created. Bud argued that a
runway show was a waste of time and money and was all about making nice
pictures of flamboyant clothes that people would never really wear. They
decided that the best way to show Nicole’s entire collection was to open a
boutique, which was successful from the very first day it opened.
Entrepreneurship 2e Video Discussion Guide
CHAPTER 4
Select a Type of Ownership
FASTSIGNS
This video features FASTSIGNS, a company designed on a napkin over breakfast in
1985 by company founders Gary Salomon, Steve Mailman, and Bob Schanbaum. Using
their personal funds and a loan from a bank, they set up their first store. They identified a
niche market that could not be serviced until the technology made it financially feasible.
Now they sell franchises to their company and help others realize their dream of having
their own business. Today there are more than 400 franchise locations worldwide.
To learn more about this episode of Small Business School, go to:
http://smallbusinessschool.org/webapp/sbs/200/215/home.jsp
1. What niche market does FASTSIGNS attract?
Student answers will vary but should include: Temporary signs such as vehicle
graphics, banners, and posters that other companies no longer want to bother
with. They created a niche that was not being serviced properly and one that no
one cared about.
2. How did franchisee Myra Phillips use her product to build her business? What
qualities did consultant Mike Mackey say a business must have in order to be
successful?
Student answers will vary but should include: Myra put up a “Now Hiring”
banner over her store. The business must become part of the community and
establish relationships with customers so customers will keep coming back.
3. When someone is considering purchasing a franchise, what are some of the most
important things that they should know?
Student answers will vary but should include: A franchisee should be willing to
invest in the business from the beginning, follow the system because it has
already been tested, and make a commitment to being trained and retrained in
order to keep up with the newest concepts.
Entrepreneurship 2e Video Discussion Guide
CHAPTER 5
Develop a Business Plan
Renegade Animation
This video features Renegade Animation, a commercial animation company started in
1992 by Ashley Quinn and Darrell van Critters when they left Warner Bros. to strike out
on their own. Although there are only four employees, in its first year Renegade had $1.2
million dollars in sales.
To learn more about this episode of Small Business School, go to:
http://smallbusinessschool.org/webapp/sbs/200/224/home.jsp
1. Why did the Renegade Animation team decide to start its business?
Student answers will vary but should include: They wanted to have more
control over their own lives.
2. What was the first project that Renegade Animation produced, and where did it
appear? How much does a 30-second animated product cost?
Student answers will vary but should include: The first project was a 90-second
ad for Nike which aired during the Super Bowl. A 30-second animated ad costs
between $120,000 and $180,000.
3. How has the use of the computer shortened the time it takes to create an animated
product?
Student answers will vary but should include: Each hand drawing can be
photographed and instantly put into the computer and viewed immediately.
Entrepreneurship 2e Video Discussion Guide
CHAPTER 6
Identify and Meet a Market Need
eHarmony
This video features Dr. Neil Clark Warren who wrote the book Finding the Love of Your
Life in 1993. He believed that if the divorce rate could be lowered from more than 50
percent to 9 percent or less, it would change the country. In August of 2000 Dr. Warren
joined with Greg Forgatch to research how it would be possible to help people make
better choices when selecting a mate. Together they started eHarmony.com.
To learn more about this episode of Small Business School, go to:
http://smallbusinessschool.org/webapp/sbs/700/710/homepage.jsp
1. Finding a mate for life is something that most people desire but don’t know how
to go about doing well. Write a brief paragraph explaining how eHarmony.com
helps clients do a better job of finding a mate for life.
Student answers will vary but should include: Using the two principles that the
Dr. Clark believes are most the important, emotional health and the idea that
most people want to find someone else like them, eHarmony developed a
compatibility model and asked clients to input their answers. The compatibility
models are then compared and any matches are shared with clients who are
then given the opportunity to contact their match.
2. Last year 55 million American singles went to Internet dating sites. How did
eHarmony create a niche in the midst of all that competition?
Student answers will vary but should include: eHarmony understood that while
others were also providing matchmaking services, those companies were not
doing it well. eHarmony knew that the most important key to success is to take a
complex task and do it better. To that end, they created an in-depth
questionnaire for potential clients to fill out so that their personalities could be
assessed. Those questionnaires were compared against others for potential
matches.
3. How did eHarmony.com’s successful marketing campaign attract more
customers?
Student answers will vary but should include: eHarmony’s commercials showed
happy customers, listed Dr. Clark’s credentials, and showed his credibility. The
commercial also repeated the business name several times, and encouraged
potential customers to act immediately in order to find the love of their life.
Entrepreneurship 2e Video Discussion Guide
CHAPTER 7
Finance, Protect, and Insure Your Business
NoUVIR
This video features NoUVIR, a manufacturer specialized lighting products specifically
developed for museums. Founded in 1990 by Jack and Ruth Ellen Miller, father and
daughter, NoUVIR’s specialty lighting emits no damaging ultraviolet rays or infrared
energy. The fiber optic lighting systems allow paintings and documents to be viewed
indoors with a more natural light, which enhances their beauty.
To learn more about this episode of Small Business School, go to:
http://smallbusinessschool.org/webapp/sbs/600/609/homepage.jsp
1. Why does Jack advise all inventors to hold more than one patent on a design?
Student answers will vary but should include: Jack cautions inventors that any
large, aggressive company will, with their attorneys' advice, often intentionally
infringe a patent. The company will do so because it believes that it has a good
chance of beating one patent by getting it declared invalid in court or because
the individual inventor can't afford to fight them in court. Once the inventor
has the second patent, the lawyers will think twice before advising a client to
infringe. To warn potential infringers that an item is patented, Jack makes sure
to put the company’s patent numbers on the items in all of the product
literature so that any potential infringers are fairly warned.
2. How does NuUVIR teach potential clients about its products and how does
educating clients pay off for NuUVIR?
Student answers will vary but should include: NuUVIR gives seminars four or
five times a year for museums or museum associations. Although their travel
expenses are paid, Jack and Ruth Ellen donate their time for free. The
museums or associates usually invite 50 to 100 people and charge them 50 to
100 dollars to attend. The Millers will usually see an increase in orders for their
product within a few months of giving a seminar.
3. Explain why some small business owners might get frustrated with the sales
cycle.
Student answers will vary but should include: Many small business owners get
frustrated with the length of time it takes to close a deal. They get frustrated
because they have spent a lot of money and worked hard to help their business
grow without understanding that the gestation period for new growth, from the
time of first contact to the time of purchase can be as long as a year.
Entrepreneurship 2e Video Discussion Guide
CHAPTER 8
Choose Your Location and Setup for Business
Wahoo’s Fish Taco
This video features Wing Lam, Ed Lee, and Mingo Lee who started Wahoo’s Fish Taco.
Wahoo’s markets fast healthy food to a market the owners know: the beach and surfing
community. Serving good food with generous portions at a low price, their target market
is the 18-to-24-year-old male. This market segment is the biggest consumer of
commercially prepared food in the United States, which, according to the National
Restaurant Association, eats out 5.9 times per week.
To learn more about this episode of Small Business School, go to:
http://smallbusinessschool.org/webapp/sbs/400/411/homepage.jsp
1. What was the motivation behind the décor of Wahoo’s Fish Taco?
Student answers will vary but should include: The Wahoo’s team wanted to
package an experience. They knew the food was going to be good, but they also
wanted their customers to walk in and experience a getaway to the ownership
team’s favorite surfing spots in Baja, California.
2. Why did Ming decide to give away free food at other business and community
events?
Student answers will vary but should include: Ming knew that providing free
food for other business and community events would allow people to sample
Wahoo’s product and make a judgment. He knew that once potential customers
could see, taste, smell, and touch the food, those people would then connect that
positive experience to the company. Ming understands that offering free
samples is a cost effective way to market a company. Ming also knew that when
the local people saw that Wahoo’s supported the community they would want to
support Wahoo’s.
3. Explain Wahoo’s ten-second rule and how it has helped the company become and
remain successful.
Student answers will vary but should include: The ten-second rule is the
maximum amount of time a plate of food will wait in the pass-through, the
maximum amount of time a customer will stand in front of the register before
somebody approaches them, and the maximum amount of time that the cook
will look at a ticket that comes into the line and know exactly what needs to
happen. This rule keep operations running quickly and smoothly and helps
Wahoo’s serve many people in a short amount of time.
Entrepreneurship 2e Video Discussion Guide
CHAPTER 9
Market Your Business
Specialty Cheese
This video features Vickie and Paul Scharfman who in 1991 bought the oldest
continuously running cheese factory in the state of Wisconsin. The plant has been making
cheese continuously for 160 years. Vicki and Paul used marketing research to transform
an old company into a successful business. Based on their marketing research they’ve
carved their niche in the cheese market by making specialty cheeses. Their biggest seller
is Queso Blanco, a Mexican cheese that they ship to Miami, Houston, and other cities
with large Hispanic populations.
To learn more about this episode of Small Business School, go to:
http://smallbusinessschool.org/webapp/sbs/200/235/home.jsp
1. Explain how to use marketing research when creating a product or service?
Student answers will vary but should include: Find out what your customers
are not getting from the current offerings in the marketplace and then tailor
your idea or dream to that product or service.
2. Vicki recommends that before conducting a marketing survey, the business owner
should first do qualitative research. Why?
Student answers will vary but should include: Focus groups, either one-on-one
or groups of 8 to 12 people, will give potential customers the opportunity to
become familiar with the product by seeing, feeling, and tasting it. The
information gathered in the focus groups can help the business owner pinpoint
what the overall issues are, and at that point it is viable to perform a marketing
survey.
Entrepreneurship 2e Video Discussion Guide
CHAPTER 10
Hire and Manage a Staff
Computer Directions
This video features Computer Directions a staffing company based in Dallas, Texas.
Wanda Brice founded this company in 1993 because she saw a need and knew how to fill
it. She and her partners currently provide computer programmers to some of the nation’s
largest companies. Today, Computer Directions has between 50 to 100 programmers
working at any one time for as many as 20 different companies.
To learn more about this episode of Small Business School, go to:
http://sbschool.net/brice.html
1. Wanda has surrounded herself with an excellent staff. What are the three criteria
that Wanda Brice advises people to look for in the interview process that will help
them make best hiring choices?



A quick study—somebody who really gets what you are telling them. If
they understand, you can see it in their eyes and their face.
Energy. Wanda assesses the energy level of a person by their handshake.
She says that people with a high energy level get things done.
A nice person. Wanda wants someone who is a nice person, likes people,
is optimistic, and has a good attitude.
2. What is one common mistake that people make during an interview?
Student answers will vary but should include: People make the mistake of not
listening in an interview. They are thinking about what they want to tell you to
sell themselves when they should be listening and responding to the interviewer.
3. Does Wanda use a trial period for her employees? If so, how long, and what is her
reason?
A 90-day trial period will give both the employer and the employee time to
assess their situation and be certain that the employment is working well for
both sides.
Entrepreneurship 2e Video Discussion Guide
CHAPTER 11
Record Keeping and Accounting
Ping Golf
This video features Karsten Manufacturing, the company that makes Ping golf clubs.
Karsten Manufacturing was started in a garage in 1959 and remained there for seven
years. Today the Phoenix-based company has nearly 900 employees producing some of
the world’s most desired golf clubs. Karsten Solheim, the son of an immigrant
shoemaker, believed he could apply the principles of physics and engineering to the
creation of a better golf club. John Solheim worked beside his father for 40 years and
took over the company when his father passed away.
To learn more about this episode of Small Business School, go to:
http://smallbusinessschool.org/webapp/sbs/700/707/homepage.jsp
1. Write a brief paragraph explaining why employees remain with Karsten
Manufacturing.
Student answers will vary but should include: The Solheim family takes care of
people and recognizes people for their talents. The company allows people to
grow into their skills and develop their skills. The company has a great
reputation for how they treat their employees once they are hired. It’s important
for a company to take care of their people, pay them well, and have good bonus
and retirement plans. It’s also important to challenge people and give them
responsibilities.
2. What is John’s philosophy about leadership?
Student answers will vary but should include: If you build the best that there is,
you will always have people who want your product. If you are just a “me too”
company, then you’re not a leader. If you have the commitment to be in the
lead, you will be successful.
3. According to John, what is the “right reason to be in business”?
Student answers will vary but should include: Going into business to make
money is the wrong reason to be in business. If you build a better product, sell it
at a fair price, and provide good service, the profits will come naturally.
Karsten Manufacturing began not to make a lot of money but to build a better
product and help people play golf better.
Entrepreneurship 2e Video Discussion Guide
CHAPTER 12
Financial Management
Rodgers Chevrolet
This video features Rodgers Chevrolet in Detroit and its owner, Pamela Rodgers. Pam
is one of the few women in the United States who acquired her car dealership on her own,
and she took that failing dealership and made it successful. The company now sells
nearly 200 cars per month and services as many as 1,200 with a team of 85 employees.
To learn more about this episode of Small Business School, go to:
http://smallbusinessschool.org/webapp/sbs/200/239/home.jsp
1. How does a car dealership earn revenue?
New and used car sales represent about 75 percent of the revenue generated,
and service represents the rest. Service is considered the backbone of Rodgers
Chevrolet. Taking care of customers is considered the most important.
2. Explain the bull’s-eye analogy Joe Posby, dealership General Manager, uses to
describe the company’s advertising strategy.
Student answers will vary but should include: Joe looks at marketing like it is a
bull’s eye on a target and Rodgers Chevrolet is the center. Joe knows that
Rodgers Chevrolet will sell nearly all of its new and used cars within a 15-mile
radius of the dealership. Most people will either buy from a dealership in the
town where they live or where they work. Joe puts the bulk of his advertising
effort within that 15 miles. As the dealership grows he may extend the reach of
his advertising campaigns and look further into his marketplace.
3. Explain how being involved in the civic functions in the area in which you own a
business can help your business.
Being involved in the civic functions of your neighborhood is key. You need to
be known in your local area. It’s important to become active and have a say in
your local government. If people know your name they will come to you when
they need the product that you are offering.
Entrepreneurship 2e Video Discussion Guide
CHAPTER 13
Use Technology
EM Rose Builders
This video features Eric Rose, owner and operator of EM Rose Builders since 1992. Eric
believes that it's the architect’s job to interpret what the client wants and create a space
that is functional and beautiful. EM Rose focuses on building high-end homes and has
won numerous awards for the company’s accomplishments.
To learn more about this episode of Small Business School, go to:
http://smallbusinessschool.org/webapp/sbs/500/509/homepage.jsp
1. What goal did Eric Rose have in mind when he started his company?
To be a general contracting firm specializing in high-end architect-designed
homes.
2. How does Eric View his role in the company?
Student answers will vary but should include: Eric considers himself a project
manager, not the CEO or the president. He stops taking on work when he can’t
manage that project effectively. It will take the work of more than 300 people to
complete any one EM Rose project, and the company usually has three to four
projects going at a time.
3. How does an EM Rose project manager in the field use technology to
communicate with the office?
Student answers will vary but should include: The project manager uses a
digital camera to photograph the work, inputs it into a computer, and sends it
digitally to the office where the photos can be examined. Any corrections that
may need to be made can then be communicated directly to the field.
Entrepreneurship 2e Video Discussion Guide
CHAPTER 14
Meet Your Legal, Ethical and Social Obligations
On Target Supplies and Logistics
This video features Albert Black, founder of On Target Supplies and Logistics. In
business since 1982, On Target sells copy and computer paper and warehousing services.
To save his customers time, money, and inventory expense, Albert developed a strategy
to take deliveries that for years had been made to the customer's warehouse, straight to
the desktop of dozens of employees—and all without raising his prices. His customers
include many of the largest companies in Texas, such as EDS, Texas Instruments,
Southwestern Bell, American Airlines, and Verizon Wireless.
To learn more about this episode of Small Business School, go to:
http://smallbusinessschool.org/webapp/sbs/500/507/homepage.jsp
1. Why did Albert Black start his own business?
He wanted to create jobs and to hire people.
2. Albert initially had to work at On Target during the day and another job at night
in order to make ends meet. How did Albert make the time at his night job at
Texas Utilities productive for On Target?
He chose a job where he could learn skills that he could apply in his own
company. He worked in the computer operations center at Texas Utilities
managing information systems, technology development, and customer
satisfaction.
3. What does Albert say that his corporate clients need more now than at any other
time in his company’s history?
They need him to listen, plan, present, perform, review, and adjust.
4. Why does Albert advise other small-business owners to further their education?
Student answers will vary but should include: Albert believes that continued
education for small business owners is necessary because of the contributions a
better-educated manager can make to the company. Albert feels that managers
have to continuously re-sharpen the saw, finding new information, new
strategies, new principles, and new foundations to employ in their businesses.
The cost of not doing so is lost business.
Entrepreneurship 2e Video Discussion Guide
CHAPTER 15
Growth in Today’s Marketplace
Modern Postcard
This video features the founder and CEO of Modern Postcard, Steve Hoffman. Using
Modern Postcard’s web site, customers interact with software to create custom postcards.
The company produces 100 million postcards a year for 150,000 customers. Since its
inception, everything about Modern Postcard has been digitized. What is remarkable
about this is they did it 1993 when the rest of the world was still trying to figure out the
best ways to use the Internet.
To learn more about this episode of Small Business School, go to:
http://smallbusinessschool.org/webapp/sbs/400/403/home.jsp
1. Steve Hoffman got his start in business by photographing real estate. What
spurred him to change markets?
Student answers will vary, but should include: Slow sales got Steve’s attention,
and when the recession hit in 1980, he realized he had outgrown real estate. He
then began to look for another way to stay competitive.
2. Steve and Jim decided to branch out into printing postcards, but the product
quality was inconsistent. How did they solve the quality-control issue?
Student answers will vary but should include: Customers wanted to use their
own artwork, but many times the quality of the photos was not good enough.
Steve built a system around a computer photo program that could take a
customer’s photos and make them better, thus improving the quality of the
postcards.
3. Modern Postcards uses the Theory of Constraints during brainstorming sessions to
facilitate teamwork. Write a brief paragraph explaining how this theory functions.
Answers will vary but students should be able to explain that the theory of
constraints is a type of thinking process that pulls different, complex ideas and
concepts into a single organized concept that everyone understands.