Overview
This twenty-something entrepreneur strives to build his greatest venture yet with a novel distance detection technology that has applications in multi-hundred million dollar markets.
Inspiration from an Accident
Imagine the notion that a person would spend three years working on the development of a new and potentially revolutionary product, thanks to the carelessness of a friend. Ned Hill can still remember the moment when he conceptualized his wireless distance detection system. His fraternity brother’s interactions with the house mascot led him to conceive a technologically advanced monitoring system that could be applied to a variety of consumer, professional and industrial uses.
Ned Hill is the founder of Secure Technologies, Inc.(ST). ST is a Boston-based company that was founded in 1993, with a mission to develop and market a new wireless technology for distance detection. With a variety of marketplace opportunities for its technology, ST has developed a family of products that will serve to monitor the positions of individuals: between parents and their children, adults and their elderly parents, and dementia patients and their guardians. At the core of these products is a proprietary technology, which when completed, will be patented to protect its novel and sophisticated capabilities.
ST’s goal is to release a finished product for its target markets in 1997. Since the company’s inception, ST has spent countless hours focusing on research development, analyzing and codifying its target markets, mustering funding, and structuring a well-developed and professional management team. In the past three years, the company has successfully completed three rounds of financing, generating $1 million dollars from private and venture capital investors. It has also completed a proof of concept alpha unit, and is in the midst of negotiating a partnership with a large corporation. This partnership will facilitate technology development, product manufacturing and distribution.
These achievements have not come quickly or easily. Ned Hill has worked tirelessly so his company could reach this stage, despite several setbacks and plan alterations. His determination demonstrates that no matter how strong a product concept or a marketplace opportunity may be, the success of an entrepreneurial venture relies on the entrepreneur’s ability to execute.
An Entrepreneurial Background
Ned Hill is no stranger to the building of a company and the development of new products. At twenty-six years old, Ned has a history of profitable, thrifty ventures – proving that age is not an obstacle to success. Ned’s entrepreneurship is not confined to new products or ventures. He often looked for ventures that he could improve upon or at least to do on his own. “My first venture was a residential house painting venture in college. It was real straight-forward. I was a college kid trying to make some money painting houses. I had worked for Student Painters during the previous Summers and learned the tricks of the trade through them. When I went out on my own I was a lousy painter but I hired some good people and most importantly people who could sell door to door. That was how you built your business.” Ned’s painting business became the fourth-largest of its kind in the United States. When Ned graduated from college, he dissolved the painting business to pursue other challenges. This venture reinforced his confidence in his entrepreneurial abilities. “The largest the business grew was grossing $110,000 in the last Summer I did it. I made a lot of money for a college kid, it went pretty well. There was no rocket science just a lot of sweat, a lot of sales, and a lot of hat-holding trying to get a job with ‘Please give me a job…I’m a good guy and I go to college…'”
Ned’s first foray into concept development- from the blackboard to actual production – began after college. The facets of concept development exposed Ned to a range of activities he enjoyed and wished to pursue further. The product was called “The College Board.” It was a flat, notched piece of hard material covered with a Formica, that fit around the waist of a seated person and gave them a steady surface to write or read on. The product’s target market was college students that were accustomed to non -traditional studying methods. “I took an old family design of a lap-resting desktop with a Formica surface to a portable desk for use where-ever. I used manufacturers in the New England area who could build it well and cheap.” Within three months of his graduation from the University of Massachusetts at Amherst, patents were filed and the product was developed and ready for production.
“The College Board” was an excellent exercise in concept development but, this was not Ned’s lifetime career. “I loved the product design aspect of this venture and I learned a lot from the people I got involved with from marketing to manufacturing. Upon reflection I would have gone to a bigger company such as Hasbro to try a joint venture or facilitate the product’s marketing. I also would have re-evaluated my manufacturing resources because at that time I did not know that manufacturing capabilities were available so readily.” Ned also realized that once the product was developed, the marketing and sale of it to a fickle, demanding college market would not justify the costs. Ned decided to license the product, so he could move on to the next venture. “This was my first valuable lesson that you don’t move forward with a product concept without doing your research and blindly licensing it to someone.”
This venture taught Ned about opportunity assessments. “There is a mode you can into to train your mind to look at product opportunities.” This mental focus led Ned to the wireless distance monitoring concept. During this time, Ned acted as a business consultant, providing entrepreneurial advice to his friends and business associates. “I had many friends and acquaintances come up to me with ideas and requests for help to bring them to completion. It got frustrating so I had to control my involvement, but I did work with some people to help them grow their ideas.” Ned’s consulting activities included the establishment of a shoe-cleaning company in Massachusetts and a clothing importer in Thailand. How is it that a twenty-something, college graduate apparently possesses such expansive abilities? Ned does not think he has an “entrepreneurial gene.” He attributes his success to his fundamental skills and strong work ethic. “I was always a hard worker while I was growing up. I even bought my first car before I had my license! I think I have the personality traits of good organization, driving through an idea, and leading.”
Product Concept – Wireless Distance Detection
So where do people get their ideas for the next great consumer product that will sell a million units and make an entrepreneur and a group of investors very happy people? Ned’s idea for a wireless distance monitoring system can from a desire to meet a particular need. “The idea came from a guy I still resent for this in college. This guy wanted to get a puppy in the fraternity of our college to show off to girls. He had it for a year, didn’t take care of it and left it behind when departing school a year later. I took the dog home for a year after college. During the time I wanted to have something that would keep the dog in the yard, and that’s what introduced me to the invisible fence concept.” This concept was a finalist from over one hundred ideas that Ned was evaluating for his next venture. His friends and associates accounted for 25% of the product concepts, while Ned provided the balance.
An invisible dog fence is an electrically-wired system buried around a yard or dog pen. The wire interacts with a receiving unit attached to the dog’s collar. If the dog approaches the wire perimeter, a beep sounds to warn the dog of its proximity. If the dog continues his approach, an electric shock is discharged through the collar to deter any further encroachment. Ned wanted to apply this technology in a more effective manner. “I did a lot of research on the invisible fence companies in the world. I sought answers to what technologies were behind the existing products and how the existing competitors were functioning in this marketplace.” From his analysis, Ned concluded that his competitors’ products were expensive, difficult to install and poorly marketed. This inefficient market allowed Ned to successfully exploit his innovations.
Ned adapted the fencing system so it would monitor the pet’s distance between the central base and invisible boundary, and notify an owner if the pet had crossed the boundary. Market research indicated that consumers wanted a cheaper and more efficient system; consumers did not object to a fencing system maintained by radio waves. Ned began to realize this technology had applications beyond pet control. Using this technology, parents could monitor their children, or hospitals could monitor their dementia patients. “I was very excited at the concept of this core technology. I knew that in my research for a new product concept that the technology would be where the payoff would be. If you get a really good technology you’re set.”