Key Idea #1: Even if your first strategy fails, keep trying.
Most businesses do not succeed right "out of the shoot." If you studied the owners of id software, you know their first product hit the big time. But this is the exception. Steve DiAntonio's story is more common. Steve believed that his products and concept were better than those of his competitors, but he needed a new marketing strategy. He needed his suppliers to ship him product, but he owed them money. Instead of giving up, Steve did the "impossible." He convinced his suppliers to ship him product without payment.

You think back: What drove Steve to attempt this strategy?

Answer:He said, "Quitting is not an option." With that attitude, Steve was thinking of all possibilities and was brave enough to try them all. He believes that the principles his marketing is based on are in the best interests of customers, but he just needed more time to get more customers. As a consumer of cosmetics I understand Steve's inner knowing that he is on top of a great idea. His sales people take time to assess me then sell me what is right for me. Other cosmetics lines just sell me what I ask for or sell me the newest fashion. Over time and with this type of service, Color Me Beautiful can win.

Key Idea #2: Invest heavily in the sales force

When sales were down, Steve researched the market to learn why. He discovered that people didn't understand the difference between Color Me Beautiful and all of the other cosmetic products. To reposition the company in the buyer's mind, he decided to recruit quality sales people and pay them more than the industry standard. Color Me Beautiful's sales people are highly trained to educate the customer. A customer who understands, buys more. Tom also installed a sophisticated computer system which simplifies paperwork thereby allowing the sales person more time to spend with customers.

What do you think? It's been said, "Nothing happens until something is sold." In his book, In Search of Excellence, Tom Peters said that the best companies in America pay their sales people well and reward them with many other perks. Why do you think it is important for sales people to be well paid?

Answer: The sales person represents the company to the customer and should be a true professional. The sales person starts the business cycle and is constantly put at risk facing the unknown.

What do you think?Why is paying more than anyone else in the industry so powerful?

Answer: It sounds so good and can help create buzz around your company. Women are used to being underpaid, I think. In fact, every business leader knows that the best man for most jobs is a woman because we will work longer and harder for less than do men. Steve is offering women prestige to sell for the highest paying firm in the industry. Since I know Steve and have met his wife, I feel comfortable telling you that he is one of those men who truly believes that woman deserve to be paid well.

Also by paying the salespeople well, you send a signal to everyone who works for you that you value the men and women who take risks. You want everyone in the organization to be looking for new ideas and to be taking risks within their scope of responsibility.

Key Idea #3: Don't copy the big boys.
If a small business is providing the same product or service to the marketplace as a big business, the small company cannot compete with the advertising and marketing budgets of the larger company. For example, if Color Me Beautiful decided to do a major print advertising campaign, it would go broke trying to keep up with companies like Revlon or Estee Lauder. By focusing on the research provided in the best selling book, Color Me Beautiful, Steve's company is truly unique.

You think back: What does Color Me Beautiful's research reveal?

Answer: That people look better in some colors than others, and, some of us don't have the ability to see what is best for us. The book came out about 25 years ago and was a best seller which showed Steve that people are interested in learning more about looking better. I paid an expert to advise me in 1980 and I have used what she taught me ever since. I still carry color swatches when I am seriously shopping but over the years I have taught myself to resist buying makeup or clothing that doesn't fit my palette. Because Steve owns this research which has been appropriated by most other companies, he can still say he started what has become common practice.

Many other businesses here at SmallBusinessSchool.com depend upon their proprietary knowledge, insight, know-how, or just pure talent. Learn more from Renegade Animation, The Tile Connection, Black Diamond and Solid Gold.

Key Idea #4: Values influence a salesperson's success

Ron Willingham reports that, according to interviews conducted with more than 100,000 car sales persons, values influence a salesperson's success. And customers will pay a higher price for a product if they trust the salesperson.

What do you think? How long can a dishonest or greedy salesperson succeed?

Answer: Forever if they can keep finding new people to abuse. This is the "Death of a Salesman" story. However, the honest, hard-working, dedicated-to-the-customer sales person doesn't have to keep running. He or she keeps serving the same customers over and over because the salesperson is doing what is best for the customer.

Key Idea #5: Avoid attorneys in the collection process

To collect delinquent bills without using an attorney, put a clause in your contracts calling for "alternative dispute resolution" in the event the customer doesn't pay a bill. Read more from John Dolan in this episode of the show.

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