Big Plans for a Small Gadget

Julie Johnson Barkley loved her iPod but was frustrated by its frequently tangled earbud cords.

Determined to invent a solution, she raided her son's toy box and her sewing kit. Wielding a glue gun, the part-time Houston dental hygienist put together a homemade model of what would become the Earbud Yo-Yo.

Covington Creations, named for Barkley's Louisiana birthplace, was incorporated a year ago. By the end of 2009, Barkley expects her business to be in the black.

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The Earbud Yo-Yo is a cable organizer, about 1 square inch in size, that retails from $11 to $17. It works on earbuds for any device -- an iPod, Nintendo DS or smart phone, for example. Barkley knew she was on to something when she took designs to a patent attorney. "Right away, there was a little frenzy in the office," she recalls.

From there it was on to a prototype maker in Austin, Tex., then a manufacturer in Taiwan. In between, Barkley made time for a two-night class on starting your own business. Joining the Consumer Electronics Association gave her the opportunity to show the Yo-Yo at the Consumer Electronics Show, tapping into the event's considerable publicity.

Designing the Yo-Yo, stocking inventory and setting up a Web site cost Barkley about $30,000 of her own savings, plus six figures more from a family friend. The payoff could be coming soon. The Earbud Yo-Yo is sold in 34 Fry's Electronics stores, and Barkley is hiring a national sales force. "I'd like to see it go worldwide. Right now, Best Buy is my goal."

Anne Kates Smith brings Wall Street to Main Street, with decades of experience covering investments and personal finance for real people trying to navigate fast-changing markets, preserve financial security or plan for the future. She oversees the magazine's investing coverage, authors Kiplinger’s biannual stock-market outlooks and writes the "Your Mind and Your Money" column, a take on behavioral finance and how investors can get out of their own way. Smith began her journalism career as a writer and columnist for USA Today. Prior to joining Kiplinger, she was a senior editor at U.S. News & World Report and a contributing columnist for TheStreet. Smith is a graduate of St. John's College in Annapolis, Md., the third-oldest college in America.