CHAPTER 3: BEGINNING AT THE BEGINNING

Poster sales sky-rocketed and we were bringing high profit, volume sales on a product that kept Mike and me asking, "How long is this `fad' going to last?"

We would take profits from poster sales and purchase art supplies for the store thinking that the long direction would be in selling art supplies to the art students rather than posters to all the students.

In February of 1968, Mike finally agreed to allow a corporation to be formed IF I could sell 10% of the Stock for $10,000.00!

It seemed like a lot of money at the time since the company had only a $2,000.00 NET WORTH. This would have to be a very good selling job on my part since I had to convince someone to invest $10,000.00 to obtain a $200.00 interest in the company! Yet, it was a goal that was to have many facets to it!

Without delay, the very first night after agreeing to incorporate under the rules set down by Mike, I went to a local bar where my friends would gather after the store would close.

An older student working part time was a bartender at the Ron-De-Vue lounge. His name was Dave Zolna and he had always led me to believe that he was sincerely interested in my business progress. I was to find out differently that evening. As I leaned over the bar sitting between two strangers, I began laying the foundation for a potential investment on Dave's part.

Like any promoter, I sold the idea of a chain of art supply stores catering to art students with discount prices on all art supplies. We had a "captive" customer since as an Art Student myself; I often spent $300.00 or more each quarter for materials that I needed to do school projects.

I stated that the investment would help establish a second store at Akron University and we would use both the Kent store and Akron store to open a third store in Canton, Ohio at Malone College.

Dave was very short and abrupt with me. He made a statement that today I can remember as clearly as if he had said it five minutes ago.

"Ted," Dave, said, "If you were doing the business, you wouldn't need my money."

I sat back in my chair and realized that there was truth in his statement, yet it was a statement from a person with no vision. I do not know where or what Dave is doing today, but I am sure it is a very solid day-to-day job or business in which he is involved. It is thinking such, as Dave's that discourages the entrepreneur since entrepreneurs require investment capital to develop business concepts.

There were however two men sitting next to me at the bar whom I had never met before. Both men did not know each other, but they had overheard my conversation with Dave and they were impressed with my enthusiasm! They were to become my friends and later my own worst enemies.


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