This as-told-to essay is based on a conversation with Scott Houdashell and his cofounder, Curtis McGill, co-founders of Hey Buddy Hey Pal. It has been edited for length and clarity.
Back in 2015, I was hanging out at my friend Curtis’s house, dying Easter eggs with his kids. All of a sudden, I looked around and thought, “Where did the kids go?” Curtis told me they were bored with watching hard-boiled eggs slowly turn colors.
I told Curtis to get me a hot glue stick, a drill, and some markers. I had an idea for how to get the kids off their tablets and back to the table. Using those rudimentary items, I created a system to spin the egg, letting the kids decorate it with markers.
Soon, Curtis’ kids — who I consider my nieces and nephews — were mesmerized. They couldn’t wait to have a turn. As I drove home that night, I had a feeling that this was my lightning-in-a-bottle moment: an idea that would change our lives.
I didn’t hesitate to take my friend’s loan
When I told Curtis I was serious about making the egg-decorating toy, he didn’t tell me I was nuts. Instead, he offered to invest. It wasn’t the first time Curtis had invested in a friend. He trades commodities and has more financial wiggle room than I do, since I run my own insurance company.
Curtis borrowed $150,000 against his kids’ college funds and loaned it to me at 10% interest. While Curtis worked on the finances, I spent time in my wood shop, creating a rough prototype and breaking many eggs along the way.
I wasn’t worried about taking a loan from Curtis and his wife. We’d met about 15 years before that, playing music together. We had a deep relationship. We both knew I would work my tail off to make sure he was paid back, even if I had to sell the toys door-to-door.
A viral video helped kick-start our success
In March 2017, a shipping container with 10,000 Eggmazing Egg Decorators arrived at the building that housed my insurance company. Curtis and I stacked the boxes everywhere, leaving only a pathway to my office and one to the bathroom.
We had about 40 days till Easter, and no idea how to sell a toy.
We brought some to local toy shops, where owners agreed they were cool. One shop owner connected us with the toy retail association, which boosted sales. Then, a video featuring the Eggmazing decorator went viral.
That’s when I learned, be careful what you hope and pray for. Within 23 days, we’d sold all 10,000 units, and we were in the toy business.
Our finances have changed, but our relationship hasn’t
That summer, we went to a toy trade show and left with more than $1 million in purchase orders. From there, things moved quickly. We went on “Shark Tank” — a show Curtis and I had been watching together for years — and made a deal with Lori Greiner.
Our company, Hey Buddy Hey Pal, is named for the way Curtis and I have always greeted each other. Today, it does over $8 million in annual revenue.
I paid back Curtis’ loan within seven months, then said to him, “I can’t wait until you become a millionaire.” I’m the majority owner, so that would mean I was a millionaire too, but saying that wasn’t selfish; I was just so grateful to be on this journey with my friend.
The Eggmazing decorator has changed our lives. I lived in a townhouse for most of the time I knew Curtis. Now, I own a house and two planes. Curtis’ three kids — who probably would have gone to college in-state — have had access to an outstanding education.
Through it all, our relationship hasn’t changed. We’re brothers. Even if this all blew up tomorrow, I know I can always call Curtis and say, “Hey buddy,” and he’ll reply, “Hey pal.”
Read the original article on Business Insider
The post My friend lent me $150,000 from his kids’ college fund so I could start my business. We are now both millionaires. appeared first on Business Insider.
