Vintage

The Huntsville Times      Page A12         October 29, 1998  

MADE IN THE TENNESSEE VALLEY 

Wm Cole Smith:   Born:  March 5, 1962, President, Phoenix Multimedia, Inc; 

Education:       Received a B.S. degree in finance from East Tennessee State University in Johnson City, Tenn., in 1985.

Experience:      Worked with Dunn & Bradstreet in the Knoxville office from 1984 to 1988, most recently as a senior audit business analyst.  He worked in outside sales and marketing with MCI Telecommunications in Nashville from 1988 to 1991 and then in clinical marketing, representing the Southeast region;  with General Electric in Atlanta from 1991 to 1992.  Then he started City Productions in Memphis, producing, marketing and distributing educational programs.

Accolades:

 Phoenix Multimedia’s “Biographies of the United States Presidents” won a 1998 Telly Award, a national competition honoring non-network television commercials and program and nonbroadcast video and film production;  “United States Capitals & State History” video series was a finalist in the 1998 Telly Award competition.

Advice to budding entrepreneurs:  “Believe in yourself and your product and what you’re doing.  Find out how to outsource as much as possible so you can focus on the business.”  

Home Sweet Office - When business owner takes his work home, he doesn’t have to go far

By Marian Accards  

Cole Smith stands in what was once a bedroom, now transformed into an editing suite, its walls padded with foam to absorb sound.  Another bedroom is ued for an office.  The garage is lined with stacks of eduction videos ready to be shipped.  “I don’t have a home,” mutters Smith, who started Phoenix Multimedia Inc. here a year and a half ago.  But he hopes to change that early next year.

That’s when he plans to have office space for his company, which produces educational software and videos for schools, libraries and the public.  The move will allow him to start building a staff and bring together all components of the business – sales and marketing, production and research and development – as well as adding services like Web page design and audio/video capabilities.  "Our goal is to provide schools, libraries, home-schoolers and consumers with visual aids they could receive over the Internet,” said Smith. 

Today, he’s dressed in jeans and athletic shoes, one of the perks of working out of his home.  He’s been able to hold down expenses as he’s built the business – there’s no rent, no full-time office staff to pay and no office to stock with furniture and supplies.

“The business is always on your mind,” said Smith.  “And you can really keep track of what’s going on.”  Smith started the research and development phase of the business in June 1997.  The first product – “Biographies of the United States Presidents,” a five-volume video series – was released in January.  “United States Capitals & State History” followed the next month and “First Ladies of the United States” was released in May.  “American Black History Series,” another five-volume video series, will be available next January. 

Four part-time employees work with Smith. To produce a video series, Smith brings in a writer for the script work, another person to do voice-overs, while a third person is in charge of the music.  Smith who handles graphics and assembles the whole product, shudders as he thinks about all the time he’s spent in the editing room working on video projects.  “It took about 400 hours just in editing” the U.S. Presidents series, he said.  “It was completed within 60 days.  I was sick of this room,” he said with a laugh.  There were times when he was so tired, he would sleep on the floor in the editing room, then get up and go back to work again. Now he’s looking for his efforts to pay off. 

PBS and the shopping network QVC are customers and Smith is talking to Wal-Mart representative about selling his video series.  Products have also been picked up by the Smithsonian and World Almanac.

Phoenix programs have been sold to about 2,000 to 3,000 schools and libraries in all 50 states – and that’s not counting distributors sales.  About 100 to 150 sets a week are shipped out of the Huntsville office and large shipments are handled by an office in Tennessee.  “We should end up the year with about $500,000” in sales, following a year of zero sales, he said.  He’s projecting $3 million in sales next year.  “We’re projecting next year – without any financing – shipping 10,000 sets a month.”  he said. 

Smith wants to be able to license other people’s products under the Phoenix Multimedia name or distribute their products for them to get them on the market.  He also hopes to build a distribution center here to provide products to schools, libraries and consumers. 

“It’s great to see the business flourish.” Said Smith, “but if you haven’t been in business a year, it’s hard to get bank financing even with a financing plan.  History is what (banks) look for.  So you try to be as conservative as you can and try to live lean as your accounts receivable catch up.

“Cash is king,” he said.  “It doesn’t mean anything until it’s on the books.”