A Capital Idea
Joyce Freedman was an architect and design planner who started her own company in 1988, producing and marketing a software package for the apparel and home furnishings industry. The computer program allows designers to turn a two-dimensional drawing or photo into a three-dimensional computer image that can be changed with the click of a mouse button to show it in a fabric of a different color or texture. Her husband, Lee, and daughter, Linda, also work for the company, which went public a year ago in order to accommodate a major new push into the retail consumer market. Freedman was interviewed by Karen E. Klein.
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I started the company out of my home with a lot of good ideas. The first thing we did was try to build a good client base. We attracted customers like JC Penney, Crate & Barrel, Jansen, Bugle Boy and Broyhill. Eventually, we moved into a small office, and now we have three locations, including one on Fifth Avenue in New York City and one in High Point, N.C.
The technology we developed allows a “virtual sample” to be rendered in the computer before manufacturing. Our kiosks in furniture showrooms let customers see how the sofa they have selected will look if it is custom-made in a particular upholstery.
Early on in the company, I enlisted my daughter, who has a background in advertising, and my husband, who is our vice president of finance, to work with me. It has been absolutely terrific to work together as a family. When you respect people, you work well with them.
We set a goal for ourselves about five years ago to be the leading supplier of online digital content and leverage our core patented technology into new areas.
In order to meet that goal, we needed to raise additional capital, and we decided to do that through an initial public offering one year ago. We considered and researched the idea for about six months. Once we decided to go through with it, the process took an additional four months.
We chose accountants and lawyers to represent us and a wonderful underwriter who worked with us to get our business plan together. It was a very exhilarating experience and well worth the effort.
We were able to avoid some of the mistakes other small companies make when they go public. Many small companies get a large infusion of capital and spend it right away. But we followed our operating procedures closely and stuck to the business plan we had set up.
This has allowed us to create incentive programs for our staff and continue to do research and development on an ongoing basis. We are bringing a new product to the market--a software package aimed at the do-it-yourself home designer called 3D Home Interiors--and are getting closer to meeting those strategic goals we set for ourselves.
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Company: ModaCAD Inc.
President and CEO: Joyce Freedman
Nature of business: Designs and supports software for home design and apparel industries
Location: 1954 Cotner Ave., Westwood
Founded: 1988
Employees: 60
Annual revenue: $3.3 million
