Game Theory Pays Off

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Would you rather bite the curb and get kicked in the head while you’re down – or get a paper cut on your eyeball?

That’s the question Randy Horn jokingly asked his UCLA classmates when he was trying to come up with a business plan for a class project.

“My idea was going to be for a board game built around ‘Would you rather’ questions,” Horn said. “I never thought I would start a business like this.”

But he did.

After Horn received his M.B.A. from the Anderson School of Management in 1997, he launched toymaker Zobmondo Entertainment, seeded with $200,000 from three family members and friends.

Zobmondo’s first board game, appropriately titled “Would You Rather …,” asks players to choose between two uncomfortable choices. For example, one question asks players whether for one year they would rather have five bottles stuck on the fingers of one hand or a bucket stuck on one foot. Horn has since published other versions of the game, including one for children and a racy one for adults.

Horn also has branched out with other titles, including its latest game, “Life’s a Pitch,” which requires players to convince others of the best solution to a particular problem.

The games, which sell for $9.95 to $29.95, can be purchased at major retailers such as Target, Barnes & Noble and Amazon.com. While Zobmondo hasn’t had a breakout hit, the company was ranked 25th on the Business Journal’s Fastest Growing Private Companies list last year, posting $6 million in revenue in 2008, a 146 percent growth from 2006.

Jim Silver, editor of online toy industry publication TimetoPlayMag.com, said Zobmondo has done well in an industry in which smaller toy companies with similarly sized ad budgets have to rely on word-of-mouth buzz.

“You’ve seen small companies that have had hits over the past few years. (But) it’s more grassroots with games, and it can often take a few years,” said Silver. “But if it’s a good game, it can generally have a long life.”

Now, Horn is in position to see a big growth spurt: He’s expanding into megaretailer Wal-Mart in February.

However, he plans to keep the company’s operations lean: Zobmondo has just one employee – a jack-of-all trades operations manager. The company’s games are manufactured by contract suppliers in Asia.

“I have done a good job of hoarding my cash over the years and using my profits to grow,” he said.

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