By: Dr. Alvin S. Perry
The
initial investment was $50,000 of my own money and an additional
$600,000 of Angel Investor money. The new venture failed and personal
bankruptcy and foreclosure came along with it.
- Recognizing the opportunity
Keep
your eyes open because opportunity is all around you. The goal was to
become a better golfer. There were many days of struggle with my golf
game and God provided me with a vision that would solve the problem of
keeping my feet from moving in the wrong direction during my golf swing.
Research was conducted and there were no products on the market that
could provide an adequate solution. It was clear to me at that point
that there was an opportunity to design a new golf training aid. The
vision in my mind was to build a product that was inexpensive to
manufacture, portable, and easy to use. It was also apparent as the
process began, that I was no engineer and this was not going to be an
easy task.
- Building the solution
My
mother-in-law was my initial manufacturer because she knew how to sew.
This provided me with a conceptual model, a prototype, to work with.
From here I got a member of my church to develop drawings that I could
use for presenting to a manufacturer and for use when filing for a
patent. A manufacturer in China was sourced to help with finishing the
product development, and once the final design was completed, a patent
was filed. There was excitement as the new product was shown to GolfTec,
the largest golf training company in the United States. This is the
place where I was taking golf lessons. The VP of Training viewed the
product and advised that he thought there was something there. His first
thought was to tell me to combine my product with something else that
was already on the market. I was hearing him however, I was not
listening to him. The advice given was to make some adjustments and
invent something that did not exist in the golf industry. It took
another day for what he was saying to register, but after that the
adjustments were made and a new golf training aid was designed. A new
patent was filed within 5 days of the GolfTec meeting. The new product
was manufactured, http://youtu.be/HWqy7FqjZA0, in China and delivered to the GolfTec VP. He replied that the upgrade was great and I was going to be a Millionaire!
- Pursuit of happiness
If
a credible source told you that becoming a millionaire was in your
grasp, I think you would pay attention too. The process of building the
empire began with finding an expert that the market would believe. The
first hire was a 20-year PGA Teaching professional out of north GA. The
two of us approached and were turned down by so many Angel Investors,
that the average person would have quit. However, our first investor
wrote the company a check for $50,000 from his checkbook. You could
imagine the excitement after that meeting. In addition to seeking
funding, the systems and processes needed to run the business were being
built. We hired nationally recognized golf celebrities (Rick Smith
& Brandel Chamblee), an international shipping company, a
fulfillment center, a call center, a website developer, a commercial
production company, a retail packaging company, and a marketing company.
This outsourcing model was utilized to keep costs down. Because this
business building approach was chosen, there was no need to hire
additional employees. Two people could operate the entire company. Well,
we were able to raise a total of $600,000 of the $1.5 million goal.
Although we were well short of our goal, we launched the company, Quiet
Feet, Inc. Golfsmith, a major golf retailer, placed the product in the
company catalog and three of their stores; GolfTec placed the product in
a couple of training facilities; GSI Commerce placed the product on the
company website; The Herrington Catalog Company placed the product in
the company catalog; and the PGA Superstore placed the product in two of
their stores. Several PGA Teaching Professionals purchased the product
as well. The vision was clear and the million dollars was in site.
- The crash and burn
It
is an awful feeling to watch your dreams go up in smoke. No additional
money was raised; therefore, we could not run enough television
commercials to drive demand. However, a very small amount of product did
sell off of the retail shelves, websites, and catalogs. The major goal
was to become an infomercial product and that never happened. The money
that was raised ran out quickly and before you knew it the company and I
were broke. The bill collectors started calling at 8AM and did not stop until around 9PM,
seven days a week. This continued for about 6 months and as you can
imagine was mentally stressful for my wife and me. I must say my wife
never wavered from my side as everything around her was falling apart. Bankruptcy
became an option that worked out so well that I tried it 4 times.
Ultimately, foreclosure was the only solution and the $500,000 home with
$175,000 in equity was gone, along with many of our possessions that we
sold at several garage sales.
- The lessons learned
It
is tough finding something positive in what on the surface appears to
be a disaster. However, I took a few very important lessons away from
this experience.
1. Developed a clear understanding of how to raise money, $600,000
2. Learned how to complete the Patent process, #7156747
3. Learned how to take a product from conception to the retail shelf
4. Learned to focus on creating the right value proposition and the resources will come
5. Don’t be afraid to go for it, because you only have one life to live
6. Having a support system is more valuable than you realize
7. Developing
the right relationships means all the world to you and your project,
and in many cases they are better than having money in your pocket
8. Failure will not kill you, the experience may grow you well beyond your imagination
9. Things come and go however, the knowledge gained from the experience stays with you a lifetime
10. You have much more substance than Corporate America will lead you to believe
The process of pursuing and receiving a patent and taking that
invention to retail required skills and talents that I did not know I
had. You too are more skilled and knowledgeable than you believe you
are. Remember the one thing that beats a fail, is a try. My life’s
greatest failure and success occurred both at the very same time.