Key Idea #1: Make shopping an experience.

For years customers have found Jackalope in the same place on the highway going into Santa Fe. Now Jackalope is more than "folkart by the truckload," it is a natural entertainment center. Though there is still plenty to buy, there is also plenty to see . . .. working artists creating the products and singing their music, a prairie-dog enclave, restaurant, chilies roasting, animals roaming, birds in an aviary, music in the air, and so much more.

You think back: What is the shopping philosophy of Jackalope?

Possible answer: Give customers room to discover something to buy. They want the customer to be engaged, creative, spontaneous. They hope their guests put together items they will enjoy using and looking at in their homes. The discovery process is the fun. This is not the place to run in and pick up a pair of candle holders. This is the place is relax, be stimulated by sights and sounds, think about what you want to take home, then leave feeling as if you have been around the world.

With products on the property from exotic places like Bali, and Tahiti, the imagination takes the shopper away from the mundane. Therefore, the experience is so positive, the shopper returns for more.

Database answers: What is your business philosophy? What do you always find yourself saying when people ask you, "Why did you start this business?" This is often called your "elevator speech" because you have such a short time to convey your vision of your business.

Key Idea #2: To be a business, you have to sell something.

For nearly 20 years, Darby has been selling folkart from the side of the road. He started with a pickup truck full of pots he purchased in Mexico which he brought into Santa Fe. He had no trouble selling the pots because they were interesting, handmade and cheap. Most items people could buy back then for $5 were plastic or made on an assembly line with little style. Darby brought art to the person on a budget.

You think back: What kind of business did Darby start? And, why was he able to make profits immediately?

Possible answers: A simple "Mom-and-Pop" retail operation. Darby made profits because he had very low overhead. He was the only employee and he worked out of his truck from the side of the road. This early success encouraged him and he has grown steadily ever since. What he didn't do is rent a space and fill it with a complicated mix of products hoping he could attract enough customers to generate cash flow to cover large monthly bills. .

Database answers: What type of business have you started? Why do you have the right product at the right time?

Key Idea #3: Know what will sell.

Darby has a good eye for merchandise and seems to know what people will buy. This is the key to his success as a merchant.

What do you think? Here's the nature versus nurture question again. Can someone learn how to be a buyer for a retail store or is one born with the talent to select merchandise?

Possible answer: When asked if he buys thinking of the customer, or, is he thinking about what he likes personally, Darby says he buys to please himself. This technique has served Darby well and he has built a business that has had staying power*. However, he did tell me that Cheryl does sales reports which clearly reveal what is selling and at what pace and this does guide his re-order process. So, Jackalope benefits from Darby's innate talent and Cheryl's formal training which is helping them grow beyond where Darby could if he didn't have Cheryl. This means any business needs people with natural talent and it needs people with learned skills.

Database answers: What is your expertise, professional training, and experience in this businessa area? Who are some of the others in your business with special epxertise (employees, partners, associates)?

* This concept has been analyzed in a special show; you can study more about it by clicking on Staying Power.

Most small business owners are like Darby, they have great difficulty duplicating themselves. Darby has always known that to expand, he needs employees. However, you heard him say in the beginning, he hired people then did not hold them accountable. Darby had to hire a consultant to clean up the messes he had made with his laissez faire leadership style. Darby had to fire people who had cheated the company; he had to put systems and processes in place to measure performance; and he had to hire some new managers.

What do you think? Is it always best to have clearly defined job descriptions with expectations put in writing?

Possible Answers: Yes. Every employee performs best when they know what you the owner expects of them. The relationship can not be too informal at the beginning. In fact, a perfect mix is a formal, written job description/working contract including details about compensation, benefits, corporate culture expectations, etc. and a warm informal personal relationship. Darby started out hiring his friends then they all just hung around. This did not work for anyone.

Database answers: How many employees do you have? How are many are projected for next year? What is your best story about employees, subcontractors, or outsourcing?

What do you think? Could Darby open a second store without Cheryl and Bruce?

Possible answers: Probably not. For 18 years he had worked to build Jackalope into what we see today and it is a "Darby-centric" place. Darby had never worked in a retail chain, never had formal retail training, didn't think about the power of duplication, and was too busy just handling the one location. Both Cheryl and Bruce had big chain experience and they knew that certain characteristics of the Santa Fe Jackalope store can be duplicated. The Albuquerque store does feel different from the Santa Fe store, however, you know when you go it that it is part of the Jackalope family.

To grow, a small business owner must find people who have talents and skills and the owner must give the employees the freedom to act on ideas.

Darby says, "The most important moment in my life was when I decided what I wanted to do; and this is it. Oh, and don't ever work in a place you can't take your dog."

Database answers: What are your plans for expansion? . . . growth? What other physical locations do you have? Addresses.

For more about The People Part, click on that title and it will take you to an entire show where you'll can get more insights from many other small business owners.

Key Idea #5 & 6: You can not compromise your soul and Love what you do

Darby has an MBA and spent time on Wall Street. He was working in a coat-and-tie in a job that was highly government regulated . After two years, he bought a motorcycle, a pair of boots and left Wall Street in search of a lifestyle he could love. Born and reared in West Virginia with a father who worked as the CEO of an energy company, as a child he sold worms from the side of the road to make spending money.

What do you think? Why is Darby so happy as a merchant in Santa Fe?

Possible answers: Lifestyle is more important to Darby than money and prestige. Had he stayed on Wall Street, with his education and hard work he could be at the top of a well-known organization making millions in bonuses. Darby remembered how much fun he had selling worms from the side of a country road in West Virginia. Also, as a kid he was always hitchhiking somewhere because he was looking for a new adventure.

Today, Jackalope fills his need to travel and he still loves selling from the side of the road. Most small business owners are extremely interested in building a lifestyle not just a business.

Database answers: What about your business excites you? Why are you doing this business?

Key Idea #7: The web changes the meaning of location!

Cyberspace has changed the meaning of "location, location, location." Instead of being just a physical location, there is also a location that encompasses the relations that you want to nurture. And, there is a virtual location that dynamically opens you up to the entire world 24x7-global. Darby's location is obviously very important, yet he has also opened a virtual store on the Internet.

What do you think? Which kind of location do feel is most important for Darby? Do you think Darby's virtual store could ever outsell his physical locations? Why?

Possible Answer: For all small retail companies, the web presence is first a way to serve its current customers. But, with a web presence, potential customers might see this show, hear a comment from one of his visitors or customers, and follow-up via the web. The type of merchanise carried by Jackalope has broad appeal, however, the furniture and food items will have shipping obstacles when purchased online. We predict the online store will do well but may never surpass the brick and mortar operation.

Database answers: What is your URL? What is your web strategy?

Key Idea #8: Create anticipation for your product(s)

John Wargo talks about how Jackalope uses multi-stage mailings to build excitement about an upcoming event.

What do you think? Why does muti-stage mailing work?

Answer: Big companies spend millions of dollars every year simply putting their brand in front of us. A small company can do this with a multi-stage mailing and do it very inexpensively. The first time a person sees a logo or a product, they probably won't react. With multiple exposures, the person will eventually be convinced to be open, and then possibly to come in, explore, then hopefully buy.