Video Realities, Inc.

This was my first business adventure, started in the early 1970s. I was working for a company in Yakima, Washington, selling, among other things, the first video-taping equipment invented. Around the same time, I got married and shortly thereafter started looking for a home. I thought about the process of riding along with realtors to view properties and realized it was time-consuming and inefficient. The light went on, and I thought showing potential homebuyers’ properties on videotape while sitting in the office would be more efficient. Without much more thought, I came up with what I thought was an appropriate name, quit my job, and started the company. I took on a partner, a college professor who was also a filmmaker, rented a storefront office in Walla Walla, Washington, and began actively marketing the product.

We were underfinanced and soon started to run out of funds to continue. Shortly after we began, I went to a presentation by two local doctors who were trying to find investors to develop a local ski area in the mountains near Walla Walla, WA. The presentation was well attended; however, the presentation was horrible. Afterward, I approached the doctors, handed them my card, and told them by hiring Video Realities (as an advertising agency), we could help them promote their dream and make it happen. They showed interest, and we immediately prepared video and promotional materials and booked another meeting for investors. Within weeks, the required funds were raised, and the Skyline Basin Ski Area was born.

Since the promotion of selling the concept of viewing properties via video wasn’t generating the enthusiasm I expected, and our first advertising promotion was extremely successful, I started promoting Video Realities, Inc. as an advertising agency. I immediately came upon a company that had many retirement facilities, and they engaged our services. They were large, and we were small, and it took 100% of our efforts and resources to accommodate their needs. After several months, with excellent results, they suggested we hire a project manager who could work solely with them to increase our promotional services to many more of their facilities. They were a Seventh-Day Adventist organization and insisted the person be of that denomination. We asked for referrals, interviewed, and hired an individual to take on that position. Things were going extremely well until the client hired our representative. My partner and I developed irreconcilable differences, and Video Realities, Inc. failed.

E & S Enterprises, Inc. AKA Felicity Glycerin Soap

When Video Realities, Inc. failed, I promised my wife I would find a job and work for two years before attempting another business. I took a sales position at Lanier Business Products, a national company with an office in San Francisco. Within the first ninety days, I became one of the top salespeople while counting down the days left in my two-year commitment. As the end of my commitment to my wife approached, I started looking for another business opportunity. One of my Lanier customers asked if I knew anyone who wanted to invest in a glycerin soap company. Since I had spent a short time as an investment advisor, I did some research on this company and discovered it was poorly run. In doing my research, I became familiar with glycerin soap and believed an opportunity to change how it was marketed presented a lucrative potential.

On the last day of my two-year commitment to my wife, I quit my job at Lanier. On the way to my car in San Francisco, I ran into the sales manager of US AUDIO, a Lanier competitor. I told him I had just quit Lanier. He was thrilled and offered to take me out for a drink. I reminded him it was 8 o’clock in the morning and mentioned I was looking for an investor for a new venture. He gave me his card and said US Audio’s owner was an investor and might be interested. This was in the pre-cell phone days, so I walked to the nearest phone booth and called the owner. When I got through, I said, “Mr. Scott, this is Ed Wright. I know you know who I am, and I’ve cost you a lot of money in the last two years – I’ve just quit Lanier – I’m starting a new business and looking for investors.” His reply was, “Young man, come to my office right now!” I drove to Emeryville, had a meeting, and walked out the door with half the money I was attempting to raise. E & S Enterprises, Inc. was born.

I recruited one of my fellow salespeople from Lanier to run the manufacturing end of the business. We rented a facility in San Rafael, CA, developed a lathering scented glycerin soap, and we were off to the races. While conducting my initial research on glycerin soap, I discovered two distinct markets: Neutrogena, sold to the masses as a high-end solution for sensitive skin, and colored scented glycerin soap sold to head shops, made by very small companies. I found that glycerin soap didn’t lather, was expensive, and head shops were typically small with limited customers, resulting in low sales volume per location. My idea was to develop a scented, lathering glycerin soap and approach the mass market.

Product names are important, and my partner came up with “Felicity,” which turned out to be a winner. To generate some initial cash flow, I sold some soap to head shops, which was well received. Next, we designed a 36-bar counter display to give the product more exposure. Breaking into major retailers posed challenges, as shelf space is highly competitive, and a new, unknown product from a small startup with no track record made it even harder. I have always lived by the rule: if you don’t ask, the answer is no, so I made it a habit to ask for what I wanted to achieve.

One day, heading out to lunch, I took a couple of display packs in the car and stopped at the nearest Payless drug store. I hunted down the manager, made a quick presentation, and could tell he was NOT impressed. Sarcastically, he asked, “So, where do you think I should put the display?” I suggested placing it on one of the checkout counters, and he looked at me like I’d just landed from Mars. He then said, “This might be the dumbest thing I’ve ever done, but I’ll buy a box, put it on the counter, and pay you in cash.” A sale, regardless of size, has always made me feel good. After a quick lunch, I returned to the office, where our secretary handed me a phone message slip. “He wants you to call him right away!” she said. It was from the Payless manager. When I called, he said, “Boy, I was wrong. They flew out the door. Bring me another six boxes.” I delivered them immediately, and he gave me the contact for headquarters to get distribution in all the Payless stores.

We were off to the races and soon had distribution in many major chains, including Payless, Safeway, and Fred Meyer. In less than two years, E & S Enterprises, Inc. grew from zero revenue to nearly two million annually. However, the huge influx of orders exposed inefficiencies in manufacturing and highlighted the need for additional financing. I quickly began addressing these issues. Within days, the phone rang—a well-known national manufacturer wanted to buy the company. After a short visit, they made an excellent offer, including lifetime royalties and a promise to take care of our growing team and customers. We accepted the offer, turned over the company, and, within weeks, strange and inexplicable things began happening. Within six months, Felicity Glycerin Soap no longer existed. All signs pointed to a competitor using a business associate to acquire the company with the sole intention of eliminating competition.

US Audio, Inc./Capture Technologies

When E & S Enterprises, Inc. was sold, Bill Scott, the owner of US Audio, Inc. and one of the two investors, received a 500% return on his investment in E & S Enterprises. During his two years of involvement, he became a friend and mentor, sharing invaluable knowledge gained from years of owning and running a small business.

Mr. Scott, who started US Audio, Inc. in 1948, was ready to sell and retire around the time the E & S Enterprises sale closed in 1974. He offered to sell us US Audio, Inc. at an attractive price, agreed to carry the financing, and joined the board of directors to continue mentoring and sharing his expertise.

US Audio, Inc.'s core business was selling dictation equipment as an exclusive dealer for Norelco, a leader in the industry. Norelco approved the sale within 30 days, sending a congratulatory note and a case of fine wine at closing. However, within 90 days, we learned that Norelco was eliminating exclusive territories.

While initially unsettling, this change allowed us to sell competitive products, and I quickly brought in Norcom, a lesser-known brand with better profit margins. This experience taught me a crucial business lesson: don’t put all your eggs in one basket. Representing both manufacturers boosted our revenue and profits significantly.

Once familiar with all aspects of US Audio, Inc., I sought new opportunities to expand revenue streams. I developed a 15-year business plan, identifying complementary products to dictation equipment that would benefit customers and align with our sales and service teams. Over the years, we introduced identification products like employee badge-making equipment and armband systems for hospitals. Between 1974 and 1999, as president, I managed the company while nurturing relationships with major customers and driving growth.

In the early 2000s, we diversified further by adding voice logging sales and services, which, along with identification products, remain a cornerstone of our revenue today. During this period, I also decided to convert the company into an employee-owned business. By 2004, we rebranded as Capture Technologies, Inc., a move inspired by my prior experiences with business sales and the desire to empower our employees.

In 2019, following a poorly executed acquisition, I returned as president to rescue Capture Technologies from the brink of bankruptcy, facing nearly $3 million in debt. After conducting a deep dive into operations, I implemented significant changes, increasing revenue and dramatically reducing expenses. Thanks to the dedication of our loyal employee-owners, we navigated the challenges of COVID-19 and, by early 2024, became debt-free.

With Capture Technologies thriving, we decided it was in the best interest of our employees and customers to sell the company. After months on the market and 90 days of negotiation, the company was sold to a reputable organization. The new owners demonstrated compassion by retaining all employees, ensuring a smooth transition.