Making Something From Nothing: Ted Ko of Techko Group On How To Go From Idea To Launch

As a part of our series called “Making Something From Nothing”, we had the pleasure of interviewing Ted Ko.

Ted Ko is the President at Techko Group. With more than forty years experience, the consumer electronics company has designed, manufactured, and sold hundreds of products including solar lights, security alarms and robotic vacuums. Ted is always looking ahead for new trends and industries, to keep designing new products. He is passionate about upholding high quality delivery standards for all of Techko Group’s products.

Thank you so much for joining us! Before diving in, our readers would love to learn more about you. Can you tell us a bit about your “childhood backstory”?

Since I can remember, I’ve always had a fascination with electronics and gadgets. I was the kid who’d always want to take toys apart before actually playing with them. Once, I really aggravated my mother — I had disassembled the Gameboy she got me for Christmas, and we had to wait in line at Toys R Us to activate the warranty because it came “defective.”

It runs in the family. My father, who founded Techko in 1982, is a serial entrepreneur and has developed and manufactured hundreds of electronic products. I recall him always bringing home new products and me trying to figure out how they were built. Here’s a photo of me at ten years old, playing with the electronics at his paper shredder in a factory in Shenzhen, China.

Although my role requires me to be professional, solving various problems from HR to sales, I still feel like my 10-year-old self. My business is the new gadget, and I look at it with fascination and curiosity, always asking infinite questions to understand how to make it better.

Can you please give us your favorite “Life Lesson Quote”? Can you share how that was relevant to you in your life?

“Give me six hours to chop down a tree, and I will spend the first four sharpening the ax.”

— Abraham Lincoln

This quote always reminds me to slow down and work smarter, not harder. Brute force can take you very far, but strategic thinking takes you to the finish line. This quote has applied to me in multiple stages of my life, and it takes on a deeper meaning every time I reflect on it. At this point of my career and life, I’m “sharpening my ax” by thinking through how my personal life evolves and interweaves with my life as an entrepreneur.

I look for moments in the business that can affect my mood and personal relationships and vice versa. By smoothing out those rough edges, I’ll be a more effective entrepreneur, leader, and human being when it really counts. I’m hedging that this behavior will pan out in the long run rather than hacking at my business for hundreds of hours a week with a dull ax.

Is there a particular book, podcast, or film that significantly impacted you? Can you share a story or explain why it resonated?

On the Back of a Napkin by Dan Roam was the most impactful book recommendation that I got from my old boss at the design firm IDEO. It’s a rather unconventional choice for an “inspiration book.” The cover resembles a children’s book and contains stick figures, but the premise is compelling. It teaches drawing techniques to convey complex ideas with shapes — so simple that you can draw them on the back of a napkin.

I can vividly recall the first time I realized this book’s usefulness. I was working on a client project developing early Blockchain technology. He was the senior manager of a major financial institution, and he knew his stuff. He was a Harvard grad. He had a decade of experience and implemented many technical protocols for his bank. But we were caught in a loop trying to explain some decentralized blockchain concepts. This conversational loop went on for 30 minutes. Instead of continuing to go down that rabbit hole, I picked up a pen and paper and drew a simple diagram. His eyes lit up, and I knew that the idea had stuck.

Since then, it’s become second nature to draw out my thoughts. I’ve used this method to pitch new product ideas, secure funds, and lead meetings.

Ok super. Shifting to the central part of our discussion: There is no shortage of good ideas; many people have them all the time, but people need help translating a good idea into an actual business. Can you share a few examples from your experience to overcome this challenge?

Building a business is two-fold. It’s about having a good idea and the tenacity to see it through. This question suggests that everybody has a great idea. But the success lies in the determination.

One method that helps me overcome this challenge is to break down “tenacity” into five pillars. And when you have three of the five, the idea is worth pursuing:

1. Financial: Do I have the funding among myself, investors, and customers to prove this idea in the market?
2. Market: Is the primary market big enough to make this venture financially interesting and viable for me?
3. Passion: Do I have enough drive to show up to work, even on the crappy days? This passion doesn’t have to stem from the business itself but the other benefits the role of a business owner gives you, such as lifestyle, social circle, etc.
4. Personal: Will pursuing this idea negatively affect the personal relationships that matter to me?
5. Luck: It’s impossible to predict chance, but this is most likely the most significant factor in an idea’s success.

For me, I come up with ideas all the time. In fact, I have a Notion list titled “Random Business Ideas”. There are currently 24 ideas that I revisit monthly in addition to an archived folder of at least a hundred even crappier theories and concepts.

However, I have yet to pursue all of them because they don’t fulfill the framework I mentioned above.

Often, when people think of a new idea, they dismiss it, saying someone else must have thought of it before. How would you recommend that someone research whether or not their concept is already out there?

I recommend that you don’t even research it. You’ll most likely be disappointed and then feel so discouraged that you won’t even start.

Most likely, any idea you think of has been thought of before. What’s more important is the timing and execution of your vision. Instead of harping on “what” your idea is, I’d recommend researching “how” your idea has already been implemented. From there, you can analyze whether or not there are new platforms or technological gaps you can leverage to bring your concept to market.

For the benefit of our readers, can you outline the steps one has to go through, from when they think of the idea until it finally lands in a customer’s hands? In particular, we’d love to hear about how to file a patent, source a good manufacturer, and find a retailer to distribute it.

I am an avid believer in IDEO’s human-centered design thinking process. It’s the most straightforward framework to take an idea and make it into something genuinely useful to a customer. However, I’ve also heard the critique that it is conceptual and not practical. It is valuable, but you need to know how to use this framework to develop a product.

Instead of going into detail about the framework itself (it’s super Google-able), I think it’s more beneficial to readers to offer up some pro tips that I’ve gathered over the years:

Pro Tip #1: Talk to a manufacturer before you prototype. Most people prototype based on what they know, but if you’re launching for the first time, you likely need to learn how it’s already done. I would watch some manufacturing videos on YouTube and contact a manufacturer via Alibaba to arrange a factory tour to understand the process better. Once you have a sense of what steps are involved, then your prototype is better informed.

Pro Tip #2: Treat patents like insurance policies, not assets. Most people think that the patent will protect them from everything. Still, they forget about the hefty legal fees associated with not only filing a patent but also defending it. There’s nothing wrong with filing a patent (we have filed hundreds of them), but you must treat them as an insurance policy, not your key differentiator.

Pro Tip #3: Your retail distribution is more important than the product itself. What good is the perfect product if no one can get it? As you build your product, you should spend equal time considering delivery. You’ll have a successful business when your great product finds an excellent distribution channel.

What are your “5 Things I Wish Someone Told Me When I First Started Leading My Company” and why?

1 . “It’s only sexy from the outside.” The current media landscape is full of content that glorifies the life of entrepreneurship. Every day, we’re inundated with content about the rags-to-riches Sharktank entrepreneur, the self-made hustler, or the savant marketer who suddenly made a million dollars in a year.

But the reality is that building a company is only sexy from the outside. Just the other day, we experienced an act of vandalism at our office, and I found myself boarding up my office windows over the Labor Day long weekend.

I wish someone told me that as entrepreneurs, we are granted opportunities that most people don’t get, but it also comes with real responsibility.

2 . “Once you start, you can’t stop.” I’ve spent some time working at an innovation consultancy and a venture capital firm. While I thoroughly enjoyed advising and working with clients in building out their ideas, I always had the itch to jump back in and create new ideas from scratch.

Once you start being an entrepreneur, you cannot stop. You’re always thinking of new ideas and looking for new opportunities. I use my Samsung Galaxy Z Fold as an IdeaPad and jot down new product ideas in my OneNote app every single day.

3 . “People make things great.” As cliche as this sounds, I firmly believe that products don’t build great companies. People do. Anytime I’ve found myself trying to “cheat” the system by looking for one great product, I find myself going nowhere. But when I spend the time to sit down with my team and invest in our skill sets, the natural byproduct is strong business results.

4 . “Fire fast.” This is a bit of tactical business advice. But your company culture is the root of who you are, which extends into your customer-facing brand. If you decide to keep people who negatively affect that culture, it becomes way more expensive to fix those problems than the amount of time and money you spent recruiting them.

5 . “It’s supposed to be hard.” If you feel like you’re coasting through building your business, you’re most likely doing something wrong. Leading a company means facing problems that your employees don’t. And yes, this sounds hard, but I’ve found that I’ve learned the most about myself and those around me whenever my back has been up against the wall.

Let’s imagine that someone reading this interview has a product idea that they would like to invent. What are the first few steps that you would recommend that they take?

As a kid, I always dreamed of getting the magnificent LEGO Star Wars Death Star set. It was my dream to complete the behemoth 4,016 LEGO. And now that I’ve grown up, I realize a business is like that LEGO set. It’s built up brick by brick.

The best way to go about your new idea is to distill it down to the simplest brick. You must assemble various pieces to get your product off the ground, including your product, development, sales, marketing, customer service, accounting, and more. When each building block comes together, you’ll have a full-fledged venture.

Pro Tip: Your first brick is most likely gathering a community of people who feel the same problem your idea is solving in the form of a text group, email chain, or Reddit forum.

There are many invention development consultants. Would you recommend that a person with a new idea hire such a consultant, or should they try to strike out on their own?

Most of the time, the topic of makers vs. consultants is very polarizing. It’s as if they’re on opposite sides of the playing field.

But the reality is that they’re not mutually exclusive. If utilized correctly, consultants can bring a wealth of information and insight that a first-time founder would have to spend years feeling out. The most important thing is knowing when to lean on a consultant vs. developing the insights and products on your own.

That being said, I suggest you strike out on your own first to learn about the areas where your expertise needs to be supplemented. That will likely lead you to finding the right consultant.

What are your thoughts about bootstrapping vs. looking for venture capital? What is the best way to decide if you should do either one?

That’s a great question, and there’s no wrong answer. Each way of funding a business has its own pros and cons. One analogy I’d like to borrow (I forgot where I heard it, sorry!) is that building a company by bootstrapping vs. building it with venture capital is like building your forever home vs. building a multi-family real estate project.

Bootstrapping your business is like building your forever home. To get to your forever home, you slowly acquire investment pieces of furniture to get the home interior that fits your life needs and occasionally invest in that extensive remodel. Your bootstrapped business is built the same way, where you grow your team slowly and periodically go through reorgs to keep the business sustainable.

In a multi-family apartment complex, you invest a great deal in amenities to increase the value of the real estate and attract high-value tenants. A venture-backed business is similar, where you entice various investors who believe in your mission to boost the enterprise’s worth.

Both methods can yield excellent results, so it really matters which style you prefer.

Pro Tip: Bootstrapped businesses can eventually be venture-backed, so remember, it’s not a zero-sum game.

Ok. We are almost there. Here are our final questions. How have you used your success to make the world a better place?

I’ve been very fortunate to have been mentored by several successful people. The most valuable thing they gave me had nothing of material value. They didn’t give me any connections, job offers, or handouts. Instead, they gifted me with their time and patience to share their successes (and failures) in their careers.

To make the world a better place, I try to pay it forward by being transparent with where I found my success and where I failed. Whether it’s a college senior entering the workforce for the first time or an employee of our own team, I always give them the time and patience to share my insights as transparently as possible.

You are an inspiration to a great many people. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger.

I’m focused on constantly building our company and quite frankly, don’t have too much bandwidth to inspire a movement haha. Sometimes, being an entrepreneur is knowing when not to lead and instead take a backseat to follow someone else’s lead:

That being said, I’m a big advocate of Simon Sinek’s vision of creating “A world in which the vast majority of people wake up every single morning inspired, feel safe at work, and return home at the end of the day.”

This is something that I strive to do in my business every day, and if my team members can further do this with their teams, I am confident that we will do good in the world.

We are very blessed that some of the biggest names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or the US, with whom you would love to have a private breakfast or lunch, and why? They might just see this if we tag them.

I would love to get a chance to have a private breakfast with Dave Ramsey. Daily, I listen to The Ramsey Show, Smart Money Happy Hour, and (my recent favorite) the Entreleadership Podcast. What I appreciate about Papa Dave is how he gives tangible, grounded advice backed with compassion and honesty. It’s a powerfully empathetic way to deliver hard truths, and I would love to get his feedback on how I think about multi-general businesses, family, and life.

Thank you for these fantastic insights. We greatly appreciate the time you spent on this.

About the Interviewer: Douglas E. Noll, JD, MA was born nearly blind, crippled with club feet, partially deaf, and left-handed. He overcame all of these obstacles to become a successful civil trial lawyer. In 2000, he abandoned his law practice to become a peacemaker. His calling is to serve humanity, and he executes his calling at many levels. He is an award-winning author, teacher, and trainer. He is a highly experienced mediator. Doug’s work carries him from international work to helping people resolve deep interpersonal and ideological conflicts. Doug teaches his innovative de-escalation skill that calms any angry person in 90 seconds or less. With Laurel Kaufer, Doug founded Prison of Peace in 2009. The Prison of Peace project trains life and long terms incarcerated people to be powerful peacemakers and mediators. He has been deeply moved by inmates who have learned and applied deep, empathic listening skills, leadership skills, and problem-solving skills to reduce violence in their prison communities. Their dedication to learning, improving, and serving their communities motivates him to expand the principles of Prison of Peace so that every human wanting to learn the skills of peace may do so. Doug’s awards include California Lawyer Magazine Lawyer of the Year, Best Lawyers in America Lawyer of the Year, Purpose Prize Fellow, International Academy of Mediators Syd Leezak Award of Excellence, National Academy of Distinguished Neutrals Neutral of the Year. His four books have won a number of awards and commendations. Doug’s podcast, Listen With Leaders, is now accepting guests. Click on this link to learn more and apply.