Bonus Episode: An Accidental Entrepreneur

Introduction:

It took a series of sad losses to turn banker Channon Kennedy into an entrepreneur. If a friend hadn’t lost his son and if Channon’s mother and sister hadn’t been diagnosed with cancer, she never would have designed, prototyped, manufactured, and started selling the Morgan Square, a tool that can save carpenters time while framing a project. Shannon is just getting started, but we’ll keep in touch as her journey continues.

— Loren Feldman

Guests:

Channon Kennedy is CEO of Kiwi Vision LLC.

Producer:

Jess Thoubboron is founder of Blank Word.

Full Episode Transcript:

Loren Feldman:
Welcome, Channon, it’s great to have you here. You have a very interesting side hustle that seems to hold a great deal of promise. And it starts with a very unusual story. Can you tell us how you got started down this path?

Channon Kennedy:
Yes, I am the inventor behind the Morgan Square, which is a new carpenter’s square. Basically how this all came together is, I have a friend who lives in New Zealand. He had a son who passed away from leukemia at the age of eight some time ago. I never met his son, but you know, you talk to your friends, and you’re just sharing life. And in about 2014 or ‘15, my mother and my sister were both diagnosed with breast cancer, a short amount of time apart.

Loren Feldman:
Oh, gosh.

Channon Kennedy:
While I was talking to my friend in New Zealand, and just sharing my life experiences, he had shared with me that before his son passed away, he had built him a mobile bed so he could take him outside so he could get fresh air, because he could no longer walk. And he told me, he said, “Back then, when I was doing all this, I wish I had a tool where I could build things faster, so I could spend more time with my son.” And the reason why he was sharing the story with me is that he was thinking, “Oh, well, maybe there’s something that I could do with it to help care for my mother and my sister.”

And so after he shared with me more about this tool, I did a patent search. It didn’t exist. And so I ended up developing and designing and bringing to life this product called the Morgan Square. Morgan is the name of his son, so I actually named the square after his son. The name of my company is Kiwi Vision, since my friend is from New Zealand. This is my honor to my friend for being a Kiwi, for sharing the story with me, because he didn’t have to do that.

And so, lo and behold, I have basically designed this thing from concept to fruition with, of course, feedback and input from him and a friend that I have that is an actual carpenter. And ironically, both of their names are Gary. I always say that I have my New Zealand Gary, and I have my U.S. Gary. You can’t make this stuff up.

Loren Feldman:
Channon, do you have any background at all in creating products, using tools, woodwork, anything related to this?

Channon Kennedy:
No. So it gets even better. I am actually a banker by trade. I have been in the commercial banking industry for more than 25 years.

Loren Feldman:
And can you tell us where?

Channon Kennedy:
Yes, I actually work for Silicon Valley Bank. I’ve been there for more than 24 years. And I am currently in their startup banking organization. But I’ve had many, many roles in the organization over that amount of time. But no, I do not do any type of woodworking or—well, I can’t say that now. But that is definitely not my background, by any means.

Loren Feldman:
Are you involved in giving out loans, working with entrepreneurs, that aspect of banking?

Channon Kennedy:
No, I’m more on the support side. So I actually don’t engage with clients directly, but I’m sitting within it.

Loren Feldman:
So you don’t have experience building a business either? That part of this is new to you as well?

Channon Kennedy:
No, I don’t. This is the first business that I have built. I do have a Master’s in Business Management. And with my experience in the banking industry, I’m familiar with some of the things that are important to entrepreneurs while they’re running their business. So this is a first for me.

Loren Feldman:
Tell me more about the Morgan Square. What does it do?

Channon Kennedy:
Absolutely. So the concept of the Morgan Square generated from the framing process. So generally, when you’re laying out your walls for a home, you would take your two-by-four, for example, and you would do your layout by using a square and a tape measure. You’d lay your two-by-four down and basically make your marks. And then you’d pick up your speed square, and then you’d come down and make your lines.

Well, the Morgan square has combined two steps of that framing process by being compatible with tape measures. So it actually cuts the layout process—I won’t say in half, but it’s pretty close, if you have a pretty large two-by-four. We’ve gotten a lot of feedback. It basically allows you to measure and mark at the same time. I’ve also got a couple of patented features on it, where the width of the ruler itself is actually the same width as the studs in the wall that you would use to put your studs. And we’ve got a centerline mark down the middle of our tongue, so you don’t have to do your center on 16 when you’re doing your measurements.

Loren Feldman:
And how did you figure out that this was something that people who do this kind of work would value?

Channon Kennedy:
So my friend, my U.S. Gary, used to be a carpenter or foreman by trade. And when I was going through this, I needed to have someone who I could trust who I could run the concept by—not that I didn’t trust the New Zealand Gary, but just I needed to make sure that I understood what it was. So once I showed this process, and Gary also had some conversations about what this concept was, he was like, “Whoa.”

And then we started showing it to people, and the reactions that we were getting were kind of like, I almost didn’t know what I had. Because I went and did the patent search, and it didn’t exist. And I filed the patent, and it was granted—the design patent. Got it in front of a manufacturer, and they were like, “This hasn’t been done before?” I’m like, “No, it hasn’t.”

Something so simple. I’ve also been told that it can be used for quilting. My husband is a cabinet maker. He actually uses it to layout the fronts of his doors. There are just so many different ways that it can be used that have come out lately. So we’re like, “Wow, we started with one idea. And here we are with all of these various ways to use the Morgan Square.”

Loren Feldman:
So there’s a lot going on there. First of all, you mentioned your mother and your sister. Are they doing okay?

Channon Kennedy:
Actually, my elder sister did pass away in 2020.

Loren Feldman:
Oh, I’m sorry to hear that.

Channon Kennedy:
Mom is okay. But I also care for my mom. Unfortunately, now Mom has dementia. So it’s just been an ongoing thing. But, yes, it’s a rough story of how this all came together in the first place. And it’s just been… I just felt like I couldn’t put it down once it ended up in my hands. I just felt like I had to keep going. And here I am doing trade shows, and I got it out on Amazon.

Loren Feldman:
It is available on Amazon now?

Channon Kennedy:
Yes, it’s available on Amazon, Woodcraft, directly from our website. So slow and steady, but sure progress.

Loren Feldman:
Well, let’s talk about some of these important steps. It sounds like the first thing you did was to go and get a patent. Did you hire a lawyer? What was that process like?

Channon Kennedy:
Yes, actually it wasn’t a lawyer. What I did was more like a paralegal service, if you will, but basically, what they did is they went through and did the search professionally, looked at all of the artwork, and then came back and told me if there were any similarities or anything before actually filing the patent, filing the trademark, establishing an LLC to keep things separate.

Loren Feldman:
How did you start the manufacturing process? How did you find the manufacturer?

Channon Kennedy:
Actually, Gary’s wife was a good friend of mine. I ended up working with him because of her. I asked her, “Can I borrow Gary for a couple hours?” or something. It’s been a few years, and he’s been on my side, kind of helping me, my right hand there. But we ended up going in front of a manufacturer together. And I believe it was a friend of a friend. And we just lucked out. And in Silicon Valley ended up in front of a manufacturer and said, “Hey, is this something that you think that you’d be willing to make for us?” So then we started to identify materials and sizes and what exactly that looks like.

Loren Feldman:
And they were a contract manufacturer that did similar tools?

Channon Kennedy:
They do all kinds of things. Pretty much if you can dream it, they can build it. CNC, it’s everything.

Loren Feldman:
I see. And had you considered other possibilities? I mean, did you think about going to China?

Channon Kennedy:
I mean, of course, but you know, when you’re starting from scratch, outsourcing it—if you can—is going to be cheaper. We do our prototyping here, but for mass quantities, they are being done in Vietnam. But I’m also looking to have them done stateside. So I’m still open.

Loren Feldman:
I see. So you started with a manufacturer right there in Silicon Valley, where you are. And when you needed to produce more, you found a manufacturer in Vietnam, or was that a relationship that the manufacturer already had?

Channon Kennedy:
Yes, it’s a relationship that the manufacturer already had.

Loren Feldman:
So how many of these have you made so far?

Channon Kennedy:
Oh, goodness. Wow. I’d say 5,000. Let’s just say 5,000. At this point, I’m just getting it out there. I was at the AWFS Fair last July, at the end of July. And since the middle of July, I think we’ve sold over 300 units. So getting the recognition and getting it out there is picking up. I’d say there’s probably been about, I don’t know off the top of my head—we only started to get it out there and sell it last August, because I had launched it originally right during the pandemic or in October of 2019. And so all of the trade shows that I had scheduled for 2020—we all know what happened then—everything was canceled. So I went to the International Woodworking Fair last August, and entered the Morgan Square in their Challengers Award. And I was a top 20 finalist for Most Innovative Product. And I’m pretty sure probably one of the only woman-, if not the only, woman-owned tool company on the floor.

Loren Feldman:
You’re right there in Silicon Valley. I’m sure, to some extent, you must have thought about: What do I do with this? I could find investors. I could take it to a big company. Did you consider those kinds of options?

Channon Kennedy:
Yeah, I mean, all of them have been possible. I mean, just for me, it’s more than just putting it out there and having someone…I mean, it would be nice to get it out with distributors and things such as that. But there’s something different when you put in the sweat equity of developing a product from concept to something tangible.

So I could get investors, probably. I’m just not sure that is something that I want to do. Or if I need to do it. I know a lot of people do that, but if I don’t need to do it, and I can get it out there and find the right people, the right distributors, it may not be anything. And who knows? Like I said, maybe somebody will come and say they want to buy the Morgan Square. It’s all possible. But I think we’re just getting our feet wet.

Loren Feldman:
Was it just that you thought you would enjoy the process of actually building a business and running a business?

Channon Kennedy:
It’s kind of like my baby, if you will. And I feel a special connection to the product, just based off of the generation of it, the whole idea of it. I have a personal connection to this story, this product, and how it ended up in my hands. It’s just not an easy thing to want to go give it to anybody.

Loren Feldman:
Good for you. How have you been able to pay for the manufacturing that you’ve done so far? Is that out of your own personal funds? Or did you do friends and family? What were you able to do?

Channon Kennedy:
Bootstrapping so far. It’s been me.

Loren Feldman:
And of the ones that you’ve made, have you been able to sell most or all of them, and put the money back into making more?

Channon Kennedy:
Yes. Now that I’ve had it up there for about a year now, I mean, they’re moving now. Like I said, exposure is picking up. So I have had the ability to buy a few rounds of product, and I’m also preparing to buy another round of units shortly here. So I’m able to keep going.

There are days that it’s just tight. And of course, when you’re doing an entrepreneur thing, it’s always about cash flow and having the operating expenses just to keep going. But yes, I’ve been able to purchase them and have them on hand, keeping up with Amazon demands and things such as that. But there are days that you question yourself as an entrepreneur. But I’m definitely feeling very positive about it, and especially the momentum that we’re getting, as of late.

Loren Feldman:
How did you pick a price for it?

Channon Kennedy:
Oh, actually, the team and I, we literally went into the stores, and we looked at squares. We were in the Home Depots and the Lowe’s and kind of gauging and doing our research. You do your research. You can kind of figure out what’s out there, what attracts people, the high-end ones, the low-end ones. And so, like I said, it’s a regular person’s hand tool. So we didn’t want to overprice anything.

Loren Feldman:
But it’s still true that there aren’t any other squares out there that do what yours does?

Channon Kennedy:
No, there’s nothing out there like that. There’s the speed square. It’s not, I wouldn’t say, a competitor, or anything. They just do different things. There’s not anything, at least that I’m aware of, that has a tape measure attached to it. Ours also has a pencil holder. Squares don’t have those.

Loren Feldman:
So did you price yours to be competitive with the existing squares out there, even though they don’t do what yours does?

Channon Kennedy:
Absolutely. Absolutely. And given that it does do something a little different, I mean, we wanted to keep it sensible. Again, it being a new brand, new product. I don’t think it’s the best decision to go out there—you want it to be attractive. You need to build your brand’s name first. And your product.

Loren Feldman:
You also need to make a little bit of profit so you can keep going and make more.

Channon Kennedy:
Yes, that’s the goal. Yes.

Loren Feldman:
Can you tell us what you’re charging for it?

Channon Kennedy:
Yeah, so I actually have three sizes and two materials. So our UV resistant plastic, eight-inch is $19.99. The eight-inch comes in plastic and aluminum, so that one is $39.99. And then the 12-inch is $49.99, and then our 16 by 24 is $64.99.

Loren Feldman:
And how did you go about spreading the word? What’s your best marketing been?

Channon Kennedy:
Going to trade shows. I’ve been going to trade shows. I think this was just my fifth. I was just at the AWFS, as I mentioned, at the IWF. I will be headed back to IWF in 2024. I’ve done some social media marketing. I’m not the greatest—marketing is a whole different animal.

Loren Feldman:
Have you been doing that yourself? Or did you hire someone to do it for you?

Channon Kennedy:
I do it myself. I post, I run into the Instagram pages, the Facebook pages. I’m just the true entrepreneur, wearing a thousand hats. I know, eventually, I won’t be able to do everything. But again, for me, it’s part of the sweat equity that’s out there. But it’s gaining momentum. And we’ve been featured on Stumpy Nubs’ YouTube video. I didn’t even know who he was. Last month, I was sitting at home and all of a sudden my Amazon just starts on fire. And I’m, “What is going on?”

I started checking myself. Am I running something? Where was all this traffic coming from, but people are hearing about it. And I guess someone told him about it. And he put it out on his YouTube and sold us out on Amazon in less than two hours.

And so other folks are starting to hear about it now. It’s just been crazy. And I don’t know where a lot of folks hear of it. The only way that I find out people are talking about it, outside of my advertising, is I have a question about how did you hear about us? And they’ll let me know.

Loren Feldman:
How has it gone with Amazon?

Channon Kennedy:
Oh, that’s a whole different MBA. [Laughter]

Loren Feldman:
Give us a hint.

Channon Kennedy:
Oh, it’s a lot. I’m actually doing my Fulfill by Amazon as well. So I use the FBA, as they call it. So I’ve actually taught myself how to navigate and use their Seller Central. But I’ve gotten much better. So they have advertising and promotions and things. And so when it comes to shipping the inventory, Gary and myself and his wife, we’re hand-packaging, and we’re boxing these ourselves and sending them over to Amazon.

Just figuring out the whole algorithm and, if you’re advertising, how to read what your return on your advertisement is. They’ve got all kinds of tricks, and I participated in Prime Day. I had heard of it, but now as a business, I needed to get ready for that. So I learned about how to give the coupons or the discounts and be ready for how long and how long you want to run it. So it’s been an interesting journey. You have to put on barcodes that match what Amazon has. And if you sell out, for example, I’ve just learned that your product actually just disappears. You can’t even find it.

Loren Feldman:
It disappears from the site?

Channon Kennedy:
It just disappears on the site. It doesn’t even pop up unless you have a direct link. So just realizing that you need to keep something that’s always inbound, if you will, so that it’s reflective that it’s coming. But I am learning so much about just reading the matrix and the colors and just… it’s a lot. It is a lot.

Loren Feldman:
What have you learned about the advertising process? Have you figured out how much to spend and how productive it is?

Channon Kennedy:
Yes, I’m learning about the bids and how much you want to spend daily. For example, you can say you want to do $25. But then you can also configure it to go up or down on certain days, like, if you think they’re going to sell. There’s all these nuances with each one. So you can run sponsored campaigns or sponsored products. I’m still learning about the Amazon stores. It’s like a hole that you can get lost in, and I actually had to stop looking at it for a while, because it was almost like a new social media. It’s like, I kept looking at it. Well, how many orders are there? What does this mean? And it’s definitely educational.

Loren Feldman:
Did you hire anybody to help you with Amazon? Or take a course or anything?

Channon Kennedy:
I’ve been teaching myself. They do offer a lot of courses and classes. And when I’m not banking, I’m Morgan Squaring. I’ve been teaching myself everything, even from just using QuickBooks for accounting. And now I got some help with that, because I’m a banker, but I’m not an accountant. But it is a feeling that I just love. When I get an order, I do a dance, a backflip—okay, at least in my mind. But it’s just about packaging up something that you have put your heart and soul into that somebody is interested in buying.

Loren Feldman:
It’s easy to imagine that there are some big companies out there, construction companies, that if they see the value in this would place some very large orders. Have you had conversations with anybody like that?

Channon Kennedy:
I’ve been trying. I am out there. You know, you’ve just got to find the right hook. There is interest. But yeah, it’s like I said: constantly out there networking. And one of the challenges is being a woman in this industry. Just when they find out that it’s a woman—not saying it in a bad way, but the videos and things that are out there that you see on our YouTube and things. Sometimes it’s me, but more so it’s Gary. And so there’s the assumption that… you know, I’ve seen comments with people at the shows that are like, “What do you know about woodworking?”

Loren Feldman:
Do they actually say that?

Channon Kennedy:
Oh, yeah. Oh, no, they say it. They say it. Or, “Oh, this is a woman-owned business. Oh, I don’t want anything to do with that.”

Loren Feldman:
You’d think the product speaks for itself. I mean, somebody who knows wood either sees value in it, or they don’t. What difference does it make who owns it?

Channon Kennedy:
Hey, I don’t know. But I agree. And it does sell itself. And you know, when we put it in people’s hands, we know that it’s good. We know that it’s quality. We’re not trying to convince or sell you—it sells itself. But I just go with it. I kind of use it to my advantage. I’m either laughing at it, or I show them. I tell them about it. I let them know.

And then when they see it—I did have one guy do that to me at a networking event. And by time I got him through with my 30-second pitch—I was ready—he bought one. So you know where I’m at, but I’m gonna get there.

Loren Feldman:
What’s the next step that you’re hoping to take?

Channon Kennedy:
I don’t know if it’s next, but the ultimate goal for me would be to get the Morgan Square distributed in New Zealand. For me, that would be the icing on the cake. Just to be able to take Morgan back home. That’s how I see it.

Loren Feldman:
And you’re still in touch with New Zealand Gary?

Channon Kennedy:
Yes.

Loren Feldman:
But he’s not involved in this in any way?

Channon Kennedy:
Nope. And he wants nothing to do with it. Nothing at all. When I finished the product—I had sent him the product probably about, I think, the end of last year or so—and I’ll just never forget. He called me, and he’s like, “That’s my boy. That’s my boy’s name.” That right there was just extra fuel for this jet. Just to be able to do it. But yeah, we talk. We talk every once in a while. It’s not frequent. It’s been quite a long time since I’ve actually seen him, but he’s aware of everything. Morgan’s father is aware of everything.

Loren Feldman:
All right. Well, my thanks to Channon Kennedy and of course to our sponsor, the Great Game of Business which helps businesses use an open book management system to build healthier companies. You can learn more at greatgame.com. Thanks for listening everybody.