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Riding high: thinkwell's founders left Universal to start their own design shop. After a rough start, they're entering sectors beyond the theme parks.


CRAIG Hanna, Cliff Warner and Francois Bergeron were in Spain four years ago, designing a theme park ride when their bosses at Universal Studios called to tell them their offices were being consolidated to Orlando, Fla.

Instead of moving from Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , the trio left Universal to form their own company, Thinkwell Design & Production. After six months of lining up projects and getting all the paperwork set up, they finally opened their doors.

The date was Monday, Sept. 10, 2001.

The next day, of course, the world turned upside Upside

The potential dollar amount by which the market or a stock could rise.

Notes:
This is basically an educated guess on how high a stock could go in the near future.
See also: Bull, Downside
 down.

"All of the projects that we had lined up to launch our company either disappeared or were put on indefinite hold," said Hanna, the team's creative director.

For months, the partners kept their fledgling company afloat, helped by some residual work from Universal. They delayed plans to lease office space and operated out of a garage; generous severance checks from Universal helped them subsist sub·sist  
v. sub·sist·ed, sub·sist·ing, sub·sists

v.intr.
1.
a. To exist; be.

b. To remain or continue in existence.

2.
 with virtually no other income.

Then in early 2002, they caught a break. A huge project that had been put on the back burner--an educational attraction in Japan based on the "Jurassic Park" films--re-materialized.

The multi-year project promised a secure revenue stream in the hundreds of thousands of dollars per year, and allowed the company to move into its own space in South Pasadena South Pasadena (păs'ədē`nə), city (1990 pop. 23,936), Los Angeles co., S Calif., a residential suburb of Los Angeles; inc. 1888. Medical supplies, clothing, and transportation and electronic equipment are manufactured. .

But the episode also taught the partners a lesson: branch out into other areas so they would not be so reliant on theme parks. They brought a fourth partner on board, former Universal colleague Joe Zenas, and Thinkwell has since begun doing work for museums, casinos and even corporate customers. As a result, the company has grown at a time when others in the industry are shrinking.

"In a paradoxical way, 9/11 actually helped us," Hanna said. "Other companies in our business had huge overheads and had to slash like crazy. Many didn't survive. But for us, there was no place to go but up."

Growth surge

After the shaky start, Thinkwell's revenues rose to $1.8 million in 2003, then to $3 million in 2004. The company is on track to top $6 million this year and has just moved from South Pasadena to larger quarters in Burbank.

Thinkwell specializes in designing entertainment attractions, including rides at studio theme parks like "Earthquake" at Universal Studios Florida and the "Ice Age Adventure" attraction at Movie Park in Germany.

The company also designs traveling and permanent exhibits for museums, other nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive.

Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law.
 institutions and companies. It designs themed backdrops for live extravaganzas, as well.

One of the museum exhibits, a traveling interactive exhibit on the body and health aimed at children and organized by the Sesame Workshop Sesame Workshop: see Cooney, Joan Ganz.  (the non-profit behind "Sesame Street Sesame Street is an American educational children's television series for preschoolers and is a pioneer of the contemporary educational television standard, combining both education and entertainment. "), opens this month at the Arizona Science Center Arizona Science Center is focused on inspiring, educating, and entertaining people about science. The Center is located in Heritage and Science Park in the heart of downtown Phoenix. . It features characters from "Sesame Street" talking about the functions of various organs in the body and dispensing dispensing

provision of drugs or medicines as set out properly on a lawful prescription. A prescription can only be filled, the drugs supplied, by a registered pharmacist, veterinarian, dentist or member of the medical profession.
 health tips for children.

"This is the first time we've ever gone into the museum world in such a comprehensive way, and we were looking for Looking for

In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with.
 a design team that could combine entertainment value with educational value," said Anna Housley Juster, director of content for Sesame Workshop. "We went out and got the education content and they worked it into the design of the exhibit."

Once Thinkwell designers come up with finely tuned concepts, they farm out the actual construction of sets and props to specialty shops. When that work is completed, Thinkwell helps put the entertainment attractions together and often stays on board to make any mid-course improvements.

Some of the live show projects take a couple of months to put together, while more intricate rides and exhibits can take years of work. The Sesame Workshop project in Arizona took more than 18 months to bring to fruition fru·i·tion  
n.
1. Realization of something desired or worked for; accomplishment: labor finally coming to fruition.

2. Enjoyment derived from use or possession.

3.
.

Industry turbulence

Thinkwell's growth came during generally hard times for builders and designers of entertainment attractions. Throughout the 1990s, dozens of design shops sprung up, chasing a seemingly endless stream of work as studios and other companies built entertainment-oriented parks around the world.

"In the late 1990s, it was all about huge projects at theme parks," said Jim Benedick, partner at Tustin-based Management Resources, which does consulting and design work for theme-based entertainment attractions. "Then, after the downturn and the terrorist attacks, that work dried up, especially in the U.S. What little activity was left was overseas."

In this country, Benedick said, the work shifted to the nonprofit world, especially museums that were losing government subsidies and seeing their philanthropic contributions tail off. To compete in an increasingly market-driven environment, many museums and non-profits were forced to turn to jazzed-up exhibits, providing an opportunity for Thinkwell and dozens of other companies like it.

"Those companies that were able to make the shift survived. But many didn't," Benedick said.

Thinkwell made that shift by developing concepts for "edutainment Educational material that is also entertaining.

(application) edutainment - Interactive education and entertainment services or software, usually supplied commercially via a cable network or on CD-ROM.
" exhibits, such as two attractions it is working on at the new Hayden Planetarium The Hayden Planetarium is a public planetarium located on Central Park West, New York City, next to and organizationally part of the American Museum of Natural History.  in New York City New York City: see New York, city.
New York City

City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S.
.

Thinkwell has also branched out into the corporate world, designing "corporate branding Corporate branding is the practice of using a company's name as a product brand name. It is an attempt to leverage corporate brand equity to create product brand recognition. It is a type of family branding or umbrella brand. " exhibits for companies like Nike Corp. and Hitachi Ltd. More recently, Thinkwell ventured into the rapidly growing world of casinos.

Now the challenge is to handle the increased work while remaining a small, tightly controlled company.

"We want to make sure that (the four senior partners) have some direct involvement in the design of each project Thinkwell works on," Hanna said. "If that requires saying 'no' to some projects so that the company doesn't grow too quickly, so be it."

PROFILE

Thinkwell Design & Production

Year Founded: 2001

Core Business: Design of entertainment-based attractions for theme parks, museums and companies

Revenues in 2003:$1.8 million

Revenues in 2004:$3 million

Employees in 2003:9

Employees in 2004:12

Goal: To expand range of clients while still remaining a small company

Driving Force: Need for theme parks, museums and other attractions to stand out
COPYRIGHT 2005 CBJ, L.P.
No portion of this article can be reproduced without the express written permission from the copyright holder.
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Article Details
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Title Annotation:small business
Author:Fine, Howard
Publication:Los Angeles Business Journal
Article Type:Company Profile
Geographic Code:1U9CA
Date:May 9, 2005
Words:975
Previous Article:Mediawatch.
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