Career Profile Part 4

Name: Chris Cole Position/Title: President Company Name: Computer Friendly Stuff Company's web address: http://www.computerbug.com, Company Description: Computer Friendly Stuff creates toys and software to make computers more fun to use. We have a unique niche in the marketplace in that our products sell equally well in three markets: Toy Stores, Computer Stores, and Gift Stores. Our flagship product is a line of characters called The Original Computer BugsTM. Computer BugsTM are soft squeezeable figures that attach to the side of computer monitors so that they appear to have burst out from inside. Also available are CD-ROM screen savers and animations, which show the Bugs living inside your computer.

Job Description:

As President of a relatively new small company (7 employees), it is safe to say that I still do a little bit of everything. In addition to creating and developing our first product, I also oversee marketing, sales, and pricing. With new products such as The Original Computer BugsTM, pricing is a very important issue. It is a decision that I make along with my partner, Bill Martens. Priced too high, our bugs will just sit on the shelves. Priced too low, they run the risk of putting us out of business. We begin the process by figuring our unit costs and our overhead. Unit costs are pretty straightforward, but overhead for a new company is especially tough to determine because it is constantly growing and changing! The next step is to determine what we need to sell at in order for CFS to maintain a 60% margin. The final step is to look at the marketplace. What is the competition selling at? In our case, we don't have direct competition, so we have some freedom. We also poll customers and retailers to obtain their opinion. Experience tells us that small retailers are a great source. They aren't going to buy at a certain price unless they think it will sell and unless they think they can make a profit. Another issue arises when we start dealing with distributors and large retailers. We are just entering that phase now and we have to be very careful. Many large retailers will try and negotiate an extremely low price. Perhaps so low that we find we can't make a profit! It is enticing to receive a large order from a major chain, but you have to be firm in your negotiation and not allow yourself to be bullied. Keep in mind also that their contracts will state that these large orders can be returned if the product doesn't sell (unlike small mom and pop orders), so you can get stuck with large amounts of inventory. As a general rule, we negotiate these deals on a case by case basis because they are very complicated, often involving co-opting advertising costs, premiums, etc.

Career Path:

I think it is safe to say that all prior experiences play a role in the career path that leads a person toward an entrepreneurial venture. I am no exception. My background is a strange one, but all of my past positions have added skills that I now find very valuable. I graduated from West Point in 1986, served as an officer in the US Army in Europe and the United States for four years, then moved to LA to write comedy screenplays in Hollywood. Following that, I worked as a sales rep in Manhattan for a publishing company and as an Editor of New Media for that same company in Chicago. I began Computer Friendly Stuff in May of 1996 when I decided to leave my New Media position to develop and market the Computer BugsTM concept.

Career Challenge:

I would also like to build the Computer Bugs as a product, first and foremost. Then I would like to expand the franchise into other mediums, such as television or cable cartoons. I like to think that our most valuable asset, besides our employees, is the international trademark that we own (Computer BugsTM). I would like to see our characters become the Muppets of the Information Age! In addition, I would like to expand into other types of businesses and markets. I love the entrepreneurial process! On a personal level, I would like the financial and professional freedom to split my time over several locations in the US and abroad. One of the nice things about the information age is the ability to work from remote locations. I envision having the ability and freedom to monitor my business ventures while simultaneously engaging in philanthropic work.

Educational Background:

I have a Bachelor of Science for West Point.

Favorite Course:

History of Art. It was a little known course at West Point, which was taught in the History department. It covered Art from the beginning of time through modern day. I initially took it because it sounded easy and fun. However, the instructor was a bear and I barely got out with a C! Good thing I didn't go to Art School like I originally planned!

Best Course for your Career:

Write, write, write. It amazes me when I meet a college graduate who can't express him or herself on paper. It is so important. We write every single day in business and it is the first impression I have of most people. Sure, math is important, too. But if you can balance a checkbook, I'll bet you've got most of the math skills you'll ever need.

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