To paraphrase an old adage, those that view the glass as hulf full often see opportunity where others

don’t. Pillow Pets founder Jennifer Telfer is one of those people. Telfer’s entrepreneurial sense
spotted an opportunity when she observed her son flattening his favorite stuffed animal so he could
sleep with it. In 2003, Telfer created Pillow Pets, a product line of cute, stuffed animals that unfold
into soft and snuggly pillows. This entrepreneurial spirit allowed Telfer and her husband to transform
an idea into a multimillion-dollar business, growing the product linet o also include blankets,slippers ,
and other items, as well as striking licensing dealswith Major Leauge Baseball, the NCAA, and Disney,
to name a few.

(Clint Telfer ceo of cj products)

Jennifer, my wife, has always been creative, and she’s come up with a lot of great ideas. She’s
always said to me, if you can take something that’s good and make it better,well, then that’s—
instead of reinventing the whell, that’s probably the best way to go. My son always had a stuffed
animal that he would play with, and he would try and sleep on it, use it as a pillow.

(Jennifer telfer president of cj products)

that we can combine a plush animal with a pillow. Parents thought they were a stuffed animal,but
when we showed them that they actually had a function,their eyes lit up, and at that moment, I
knew I was onto something. I always wanted my own product to develop, and we took a chance.

(clint telfer)
Sos he created the line of the Pillow Pets from that.

Entrepreneurship has always been the diriving force behind America’s success. We often associate
entrepreneurs with small businesses, but did you know that many very big companies, like DuPont,
Avon, Walmart,Kodak,Proctor&Gamble,Ford Motor Company, and Amazon.com were all started by
entrepreneurs? They may have started out small, but their companies grew into giants,creatig
countless jobs and making a huge impact on our economy.

(larry boisjolie coo of cj products)

We had just come off a year where we had a sum total of $7 ½ million of sales.
(clint telfer)
As it turned out, Pillow Pets ended up, being way bigger than any of us anticipated.
We sold over 15 million units las year. This year, we’re on track to beat that number.
- Entrepreneursip may not be for everyone , but those who decide to start their own business often
feel the potential rewards far outweigh the risk. There are many reasons people become
entrepreneurs, including the opportunity to live the American dream, doing something they’re
passionate about, the potential reward of profit that their business may bring them,the
independence of being their own boss, and the challange of turning an idea into reality. These same
reasons were the catalyst to Telfer’S success with Pillow Pets.

(Jennifer telfer)
we took a lot of risks starting Pillow Pets business.
(clint telfer)
If you want your busines to grow,you have to take the chances. Sometimes it Works. Sometimes it
doesn’t.
(Jennifer telfer)
We knew, because of our background being salesmen,that we could sell the product.So for us, that
was a minimal, measured risk.
-So what does it take to be entrepreneur? Would you make a succesful one?
entrepreneurs definitely have certain personality traits that aren’t learned or acquired. Some of
those traits include being self-directed or self-disciplined enough to be your own boss, self-nurturing
enough to believe in your idea when many others won’t action-oriented to see your idea through to
fruition, a high energy level to work long and hard, and a tolerance of uncertainty fort he many times
when the future may not seem so clear.

(Jennifer telfer)
If you liked algebra in high school, those long equations,then you’ll probably like being an
entrepreneur.
(clint telfer)
Some people will tell you that it’s not about the money. Well, with success will come Money.People
that I know who have regular paychecks, they know exactly how much they’re gonna make. At the ne
of the year,they know how much they’re gonna make. At the end of their retirement, they know
when they’re gonna retire. We don’t know any of those things. And we’ve never know that, and
that’s what brings soe excitement to life. So, you know, is it about the money? Sure. But what you
can do, what you can echieve in business is very exciting.
(Jennifer telfer)
I would say one of the best steps I ever did was put our website on the tag of the animal,and we
developed a website.
The internet part of our business is one of the actually – the more profitable parts of the business.
It’s very important that that website runs properly and increases, just because of the margin
available and the profit that can be earned from it.
So let’s take a moment to talk about the importance of small businesses.You probably didn’t know
that there are over 20 million small businesses in the united states. 750.000 new ones are started
every year. These small businesses create 75% of all new jobs and account for over 50% of our
country’s GDP. Plus, 80% of all Americans find their first jobs in small business. Doesn’t seem so small
after all, does it ?
(Clint telfer)
being an entrepreneur and being a business owner creates a lot of opportunity not just for yourself,
but for everybody around you.
(Jennifer telfer)
- ‘Cause you’re not just helping yourself, but you’re helping society. You’re helping kids, creating jobs
fort he parents. It’s a win-win-win
-By expanding into different markets, allowed us to hire tons of people.
(Jennifer telfer)
We started off with one factory in China, and we’re using six right now. You figüre each factory has
300 to 600 people each.

(clint telfer)
-You know, some people say to us, ’You sell something taht’s made in China.’ We do sell something
that’s made in China. Absolutely. And we’re an American company selling it, and we employ many
americans, whether it’s a small store owner or a warehouse guy at Pillow headquarters.
(Jennifer telfer)
It’s definetely an honor to sit here anda say, ‘My creation is helping thousands of people with new
jobs.’

-If you’re ready to take the entrepereneurial plunge, there are some things you can do to prepare
yourself that can greatly help your chance of success. Learning about entrepereneurship form others
through boks,classes, or internet resources is a must. If you can,get at least three years’s experience
working for onether small business, preferably one that is comparable to the business you want to
start. Another optio is to work for another small business wtih the intent of eventually sharing profit
or taking over ownership from the current owner.

(Jennifer telfer)
-My father was an etnrepreneur.My sister is an entrepreneur.My older brother is an entrepreneur.
The talk about Money,profit, and loss, pay this much for a product, you retail it fort his much. That’s
how you make Money. I learned that when I was ten. Before Pillow Pets, my husband and Istarted
our company. We did trade Show and fairs, so we would always be on the lookout for newe
products.
(clint telfer)
-It allowed me to take a new product,something that somebody hadn’t seen before,and try tı make it
so exciting that they had to have it no matter what ğrice it was.
(Jennifer telfer)
-All those experiences definitely helped get me to where I am today.

The small business administration reports that 90% of small business failures are a result of poor
management.let’s talk about some of the aspects of managing a small business, such as
planning,getting funds,knowing your customers,managing employees keeping records,and looking
for help.

(clint telfer)
What made Pillow pets a success, one is desing.Two is quality. And three is how we marketed it.

We did not compromise on the quality of the merchandise. We did not compromise on desing.
(jennifer)
there’s other folding pillows out there, but we’ve got the absolutely—the best one.Best
quality,safery testted, and I think the cutest.
(clint)
one of the failures we had in business was a new desing in lighting. Christmas lighting.
(jennifer)
I made two mistakes. I tried to grow the company too fast,too quick, and number two--

(clint)
we invested with the wrong manufacturer,so we enden up getting product that came in that wasn’t
UL-approved, fort he most part, didn’t even work. That was a tough year and a half to get back on
our feel after that.
-It’s often said if you fail to plan, you plan to fail. Writing a business plan before you start your
business may not always predict how everything’s going to happen, but it’s an exercise in making
you think through every aspect of your business and truly increases the chances of your success.
-When I came in, we developed a business plan.that business plan has altered and changed 40
different times. If something else comes into your business, a different branch, a different idea, you
have to be able to accommoadte that and grow with it and understand thats parts of your business
that you had planned out t ogo in this direction might have to change a little bit. Your directions have
to change to accommodate new directions.

-Getting Money to fund your business is essential. Without proper funds,your business won’t even
get off the ground. Entrepreneurs get Money to start their businesses from sources such as their own
personal savings, borrowing from friends or relatives,bank loans,venture capitalists,or goverment
agencies such as the SBA.

(JENNİFER)
When we launched Pillow Pets, we strictly were comfortable with just taking the $50.000 we had left
on credit cards and used that alone to fund our business.
(clint)
and every time we would roll that capital,we would go months,weeks,sometimes years without
taking a paycheck,taking the profit out of the company,and elaving it in the company.
(Jennifer)
A true entrepereneur doesn’t really look at, ‘Oh, what can I pay myself?’ A true entreperenur is
gonna make sure that that company has the Money to run itself.