Phyllis Gamble and Mechelle Slaughter are running a struggling theatre, and face the question of whether to make a major investment in converting to digital projection to keep competitive, or not. Drawing from the principles discussed in the E-Myth chapters you’ve read so far, and after having read the case, answer the following questions in a 2-page essay:

1. Are Phyllis and Mechelle mostly working “IN” their business, or “ON” their business. List three activities from the case that would be considered working “IN” their business.
2. What are the major management challenges faced by this entrepreneurial venture?
3. List three “working ON the business” activities Phyllis and Mechelle could engage in that would help address one or more of the management challenges you identified.
4. Finally, do you think CLIFTEX should invest in digital projection, or do you think one of the other options discussed in the case makes more sense? Why?