Get All Access for $5/mo

After Serving Time, This Entrepreneur Came up With a Better Way for Inmates to Stay in Touch With Family and Friends Frederick Hutson saw an opportunity in the slow and expensive prisoner communications system and analyzed the market during his time in prison.

By Gary Bredow

Opinions expressed by Entrepreneur contributors are their own.

Frederick Hutson created and sold his first company while serving in the Air Force as an F-16 Fighter Jet engineer. After leaving the military with an honorable discharge, he turned his skills and innovation toward shipping. The only problem was the product. Hutson was busted for moving 8,000 pounds of marijuana across the border, arrested, tried and imprisoned.

Hutson saw an opportunity in the slow and expensive prisoner communications system and analyzed the market during his time in prison. After serving his 51-month sentence, he pitched the business plan to his friend Alfonzo Brooks and the two of them scraped together about $5,000 to launch a website and print postcards to market the business. A couple of years later, he closed a $5-million round of funding. Watch this video to learn how Hutson turned a broken system into a multimillion-dollar-a-year business, all while reducing recidivism and providing employment for reformed felons.

Related: How These 2 Entrepreneurs Turned Their Minimum Wage Jobs Into a Multimillion-Dollar Brand

Join host Gary Bredow as he travels around the country interviewing over 26 small business owners to hear their personal stories and find out what it really takes to start a successful business from the ground up. Energetic, inspirational and educational, Start Up is a fast paced new series sure to capture the imagination and hearts of the nearly 50 percent of Americans who dream of starting their own business.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Starting a Business

How to Find the Right Programmers: A Brief Guideline for Startup Founders

For startup founders under a plethora of challenges like timing, investors and changing market demand, it is extremely hard to hire programmers who can deliver.

Fundraising

Working Remote? These Are the Biggest Dos and Don'ts of Video Conferencing

As more and more businesses go remote, these are ways to be more effective and efficient on conference calls.

Growing a Business

You Need an Advisory Team More Than Ever. Here's Why — and How to Run One Effectively.

The right advice, particularly in a company's early stages, can be an existential matter: how to surround yourself with the right minds.

Growing a Business

The Best Way to Run a Business Meeting

All too often, meetings run longer than they should and fail to keep attendees engaged. Here's how to run a meeting the right way.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Growing a Business

4 Financial Blind Spots That Could Be Preventing You From Making More Money

If you're ready to grow but feel stagnated and not sure why, check out these common money secrets where revenue is hiding.