Recommendation: Irion can reach new markets by coming up with original furniture designs. A few weeks after the makeover Monn reports that Irion is seriously contemplating such a move. "We contacted some of our best designers and decorators and told them to keep us in mind for original or contemporary design work," he says. "This was very well-received."

Recommendation: The company should aggressively market its extraordinary product quality. Irion is revamping its website and preparing a five-minute video on its craftsmanship.

Recommendation: Give workers a personal stake in Irion's success. While it's unclear who will take over the business after Monn and Herzog retire, the partners did meet with their employees to discuss Irion's new direction. "They agreed that diversifying could be fun and profitable," Monn reports happily. "The whole company is excited." Monn adds that he has discussed succession planning with employees but hasn't yet identified Irion's next owner.