Eric Ludwig and his brother, Mike, plan to channel the drive and creativity that built Pulsar Products into investing in small businesses in the lifestyle and wellness industries. In the next two years, they plan to invest between $200,000 and $2 million for an ownership stake in two to four emerging companies.
Brothers Eric Ludwig, left, founder of Cleveland-based Pulsar Products, and Mike Ludwig, president, run and design and manufacturing business that make scrapbooking, photo and craft-related consumer products. Now the brothers are launching a new division with plans to invest or purchase other small businesses. CLEVELAND, Ohio-- Two brothers turned a home-based business into a multimillion-dollar crafts, frame and scrapbooking business. Now, they are trying to use their success to build other companies.
Eric Ludwig and his brother, Mike, plan to channel the drive and creativity that built Pulsar Products into investing in small businesses in the lifestyle and wellness industries.
In the next two years, they plan to invest between $200,000 and $2 million for an ownership stake in two to four emerging companies.
They're launching a new division for a few reasons. They've got the itch to try something new, using relationships they've built from traveling the Far East for the last 15 years.
The economy also is a factor.
"We're seeing retailers buy less and craft customers being more cautious with their spending," Eric, 38, said. "And when we looked into the future in the next five to 10 years, we decided we'd like to participate in an industry that's close to our hearts: the wellness market."
The brothers are in talks with a few businesses, ranging from a clothing line to companies that promote wellness with gadgets and other products.
"We're taking the same approach as we did with Pulsar. We want to identify industries with growing popularity, yet are very fragmented," said Mike, 48, a former investment banker. "Wellness is one of them."
Pulsar exists because Mike followed his big brother's lead in taking time off from corporate America to see some of the world. Eric worked as a children's buyer at Macy's in New York for two years, before he went backpacking in 18 countries, including Thailand. That's where he noticed unusual handcrafted paper products offered to tourists. Back home he loaded up his father's car with the paper and started taking orders from the smallest booth available at a New York stationery show.
Between the two of them, the brothers have traveled to 70 countries. Five years ago, while relaxing on a beach in Playa Del Carmen, Mexico, they noticed several cruise ships. Passengers started looking like dollar signs.
"I said to Mike, 'Hey I bet all of those people would love to make a scrapbook from their trip and savor the memories.' Six months later we had scrapbooks on Royal Carribean," the cruise line, he said. Eight cruise lines now sell Scrapbook at Sea kits on more than 50 ships.
Dave Catan, co-chief executive officer of Strongsville-based Pat Catans Stores and Darice Inc., wasn't surprised to hear that Pulsar Products is launching a new division. He's among the first major retailers to buy the handmade papers, stickers and later scrapbook album kits. Despite tons of competition, he said, he continues to work with Pulsar because he values integrity, attention to detail and passion.
"As a small business, the only way you can compete with large companies is to be more creative and speed to market," Catan said. "You have to be a step ahead or you're on the same level with large competitors that have more money."