Sizable Returns

Huntington Beach, California, is a surfer's paradise--unless, of course, the waves are flat. But what Tom Freas and Paul Keyte did to pass the time between sets became their full-time passion. Though Keyte had been flying gliders for 20 years, Freas started two years ago, interested in gliders made from the high-density foam EPP (expanded polypropylene) that had replaced the fragile bolsa wood the planes had originally been constructed of. "It's such an adrenaline high," he says, "like surfing or skateboarding."

Unlike the quality products the surf and skate industry offered, however, the gliders on the market were terrible, in Freas and Keyte's opinion. Employed at the same computer company, the two started working on and selling built-from-scratch gliders after hours, creating about five a day. But as their scratch builds became popular locally, that number quickly grew to 20.

Freas and Keyte began scaling back their hours at the office and investing more time in their passion. Freas, 31, and Keyte, 46, received a $10,000 business line from Wells Fargo, and with $15,000 from Freas' credit card added to that, Wing Warrior took flight in 2001. The partners bought a computer, an accounting package, a cargo van, raw materials and a machine to cut wings.

To keep overhead low, Freas and Keyte worked in their four-bedroom house in Huntington Beach, where the garage was the manufacturing department, the living room was for packing and distribution, and the bedrooms doubled as offices. They enlisted Bill Stembridge, a surf-industry entrepreneur, as a mentor. "He understands the customer base, their buying patterns," explains Freas. "His input is invaluable, and it's free." Stembridge's friend Patrice Stark, a product marketing strategist, is also helping Wing Warrior with marketing and a formal business plan. And Freas, who majored in accounting and computer information systems, frequently calls former professors for free advice.

Wing Warrior's marketing efforts have also focused on low-cost strategies, marketing mostly through its Web site and a grassroots approach. Freas and Keyte attract new hobbyists with their Wing Warrior Team, which comprises eight guys with superior flying skills who travel to different California locales to, as Freas puts it, "spread the love." Armed with literature, catalogs and kits for sale, they head to popular flying or surf spots and show off their moves, winning over new fans wanting to try it.

Wing Warrior is looking to surfers as a promising demographic, one that competitors haven't targeted. "We understand them better," says Freas. Now that the company has cash flow, they've stepped up the effort by advertising in surfing and hobby magazines.

Retail store Hobby People placed Freas and Keyte's full line of gliders on its shelves in October, extending Wing Warrior's brand recognition beyond the beach and helping push projected 2003 sales to $1 million. The partners are also looking to open their first store. Freas acknowledges that, despite the dangers of starting a business with your credit card, it got them where they are today.

This article was originally published in the February 2003 print edition of Entrepreneur's StartUps with the headline: Sizable Returns.