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Listen, Inc. Celebrates 15 years: A Story of Entrepreneurship and Company Growth

In 1994, Steve Temme had recently returned to the US after living in Denmark for 4 years working for Brüel and Kjær as an applications engineer. Having run businesses restringing tennis rackets and selling stereo equipment during high school and college, after several years of employment by other companies, Steve was determined to start his own business and was evaluating several ideas.

With a strong background in audio test and measurement, having worked with the 2012 Audio Analyzer at Bruel and Kjaer, Steve was seriously considering developing his own audio test system. He realized that the flexibility offered by software and off-the-shelf computers and soundcards could replace conventional hardware based audio analyzers, offering less expensive, faster, more powerful and more flexible audio analysis. Although he had given this much thought, he was still also evaluating other ideas, such as designing an acoustically improved hands-free speakerphone, and distributing high end Danish audio equipment. He was also working several audio consulting jobs in order to make ends meet while developing a business plan.

One of Steve’s consulting clients at the time was Sonetronics, a manufacturer of military headets. Sonetronics had purchased several 2012 analyzers from Bruel and Kjaer for production line testing, and needed assistance programming the tests and getting the systems installed on the production line. The first time that Steve met Sonetronics President Gary Kuskin, Gary asked him if the measurements they were making using hardware could be done with a computer and soundcard, as the hardware systems were expensive, and he would need additional systems to meet his production testing needs. Steve responded that yes, it was definitely possible. Gary quickly agreed to buy several systems at a negotiated price if Steve could deliver them quickly.

Confident that he could build the system and make money from it, Steve set to work to develop the first version of the product that would become SoundCheck. He had already decided that the main weakness of most measurement systems on the market was the necessity for the operator to understand programming in order to configure tests, so he decided to build SoundCheck on the National Instruments LabVIEW platform. This enabled tests to be built by selecting from a range of pre-configured steps using a point and click interface which hugely simplified test setup as no programming knowledge was required

Having decided on a development platform, Steve looked for a programmer to partner with to develop the system. However, LabVIEW consultants were in high demand, and with no money to pay anyone, Steve was looking for someone who would write the code in exchange for a share of the profits when the system was sold. No-one was willing to work on this basis, but a couple of the consultants he spoke to advised that LabVIEW was not difficult to learn, and his best option would be to teach himself. So, armed with a book and some knowledge from a few NI user groups, Steve learned LabVIEW programming and started coding SoundCheck. For 6 months he programmed day and night, upwards of 60 hours a week. In addition to programming LabVIEW, Steve also needed to learn a lot about testing to military specifications, which necessitated weekly 10 hour round trips to work with engineers at Sonetronics. The return trip by car was always done in a day, as hotels and flights were way out of budget!

Version 1 of SoundCheck in use at Sonetronics

6 months after starting the project, Steve had a prototype ready for evaluation. For the most part, the system performed as expected, showing the same results as the more costly hardware system, and the customer was happy. Some minor tweaking and refining ensued, and the customer agreed to purchase the system. The system was named Soundcheck,  Listen was formed, and Steve was in business. The name Listen, Inc. was chosen because of two meanings. One is that the software ‘listens’ to a product to measure the audio, and the other is that listening to customers and what they want has always been a core part of Steve’s business philosophy. 15 years on, many of the additions and refinements to SoundCheck still come from customer suggestions, and Listen always encourages customers to tell the company what they want via an online ‘wish list’ that is reviewed regularly, and annual power user meetings.

The first few SoundCheck systems that were delivered used a $3000 National Instruments data acquisition card, as this was easy to implement because the drivers were included. However, Steve realized that in addition to being a significant part of the system cost, this had some limitations. Steve was already thinking ahead as to the other applications for his software, and one of the main limitations of the NI card he was using was that it could not measure beyond 10kHz in full duplex. This prevented it from being a good option for testing devices such as loudspeakers and microphones, which were prime markets for the new SoundCheck product. Fortunately Windows 95 had just been released, bringing with it the option to use multimedia soundcards. This posed its own programming challenge, and Steve outsourced the task of writing the drivers to communicate with the soundcards. A former colleague based in Denmark developed the drivers, and by mid 1996, Steve had a fully-functioning soundcard based audio test system ready to sell. Initially the tests for military headsets were hard-coded into the system, so he focused on this market. Money was still tight and Steve recalls a trip to visit a potential customer where he drove from Boston to the meeting in Indiana, and slept in his car to avoid having to pay for a hotel.

IEEE Business Plan Competition Award

In 1996, Steve entered his vision for Listen in a local IEEE business plan competition, and won first prize – which he describes as a nice certificate and a bunch of useless consulting services from sponsors. After this he was hounded by venture capitalists eager to find new opportunities to invest in, but once they determined this was a niche market and not heading towards an IPO within 3 years, they rejected it, describing it as a ‘lifestyle’ business. Steve recalls that working 60 hours a week and still not having enough money to pay all the bills didn’t seem like much of a lifestyle choice!

1996 was a slow but steady year. Through other consulting clients, Steve was introduced to a company that made headsets for call centers. Their test requirements were different to military headsets, and Steve implemented his original grand plan of enabling the customer to program their own tests using a point and click interface. This became known as the ‘Sequence Editor’ and is still an integral part of SoundCheck. Adding this feature necessitated hiring a consultant to write the software code, which again created financial issues for a company still in its infancy. Steve recalls that while he managed to pay his consultants from the company’s small revenues, he took care of his modest day to day living expenses spending on credit cards, moving the balance from one to another every time the interest-free period expired (back then most credit cards offered 0% interest for 6 months on balance transfers). He managed to get through approximately 25 credit cards in a 3 year time span, racking up debts of many thousands of dollars, but paying no interest. The investment was worth it. The ability to easily customize tests made SoundCheck appropriate for any audio test application. This opened up many more applications and potential customers, and sales started to grow.

Listen SoundConnect Microphone Power Supply and SCM Measurement Microphone

In 1997, in an effort to make his system more affordable, Steve set out to eliminate the $3000 microphone and power supply manufactured by a 3rd party that he had to sell with each system, as this was a barrier to many customers. First he developed a microphone power supply, SoundConnect, and then later commissioned the production of an alternative measurement microphone (specially designed to have a flat frequency response), the Listen SCM. This halved the hardware cost for his system, making it accessible to more customers. The hardware was an immediate success, and enabled the overall system cost to be reduced.

1998 was a breakthrough year for Listen. By this time, with hardware as well as software, running a business from the corner of a bedroom in a one-bedroom apartment was proving challenging space-wise, as well as because Steve was wearing so many hats – development, sales, marketing, shipping, support, finance, etc. In 1998, he took the plunge and hired his first employee, Mark Dailey, who he had previously worked with at Apogee Acoustics. The business moved to the back of Mark’s recording studio in Quincy, where there was more space for assembling and shipping systems. Mark, who was also living in the studio at the time, recalls how he simply had to roll out of bed and into work in the mornings, and when the work day was over, went straight into recording sessions without having to change location. Mark took care of documentation, building computers and assembling hardware, and later support, which freed up Steve to focus on product development and sales.

1998 was also the year in which Listen made its first overseas sale to Samsung in Korea without even visiting! Using PC Anywhere (software which allows you to control a computer remotely via the internet), the system was demonstrated, sold and the customer trained without leaving the office. Although this involved much working through the night due to the time difference, demonstrating the product this way was a cost-effective way of reaching customers around the world, and is a sales tool that Listen still uses to this day.

Steve Temme Collects the Best New Application Award from National Instruments

Finally, in 1998, Listen’s innovation was recognized, when SoundCheck was awarded the ‘Best New Application’ award from National Instruments.

Both Steve and Mark recall their first trade show in 1999. Someone had suggested that they joined ALMA, the International Loudspeaker Association, and exhibit at one of their symposia. At the time, the almost $1000 to join and exhibit was a huge expense for Steve, and seemed like a huge risk as there was no guarantee as to how many useful contacts he would make. Steve purchased a second-hand booth, loaded it into the back of his trusty 1984 Saab 9000, along with the demo equipment, and he and Mark drove from Boston to Nashville, TN, stopping to visit customers on the way. Mark recalls that despite being probably the smallest company exhibiting (and probably the only one that drove over 1000 miles to get there to avoid paying for flights!) they had the largest, most substantial booth there. The investment paid off – Steve recalls that it was at this event that he met Floyd Toole of Harman, John Crisco of Polk, and other industry leaders (and potential customers) who he would not otherwise have easily made contact with. After the show they walked the NCSA show, where they met even more potential customers and perhaps for the first time realized how big their potential market was, then began the long drive home, again stopping to visit customers along the way.

Early Listen ALMA Booth

Another major event in 1999 was that Bruel and Kjaer began distributing SoundCheck in the US. This helped both with market penetration and brand recognition, and more orders started rolling in. Steve recalls one of the early sales where a large microspeaker manufacturer bought 5 systems, followed by another 25. In this case, Steve had to prove that his system could match the results produced by the company’s existing Audio Precision systems. The sytems were pitted against each other in a range of tests, and when SoundCheck produced different distortion measurements, Steve had to invest in hiring an independent consultant with a Bruel and Kjaer 2012 to prove that SoundCheck was measuring correctly. The consultant actually demonstrated that SoundCheck was measuring more accurately as its algorithms eliminated the background noise from the measurement.

In 1999 Listen exhibited with Bruel and Kjaer at the AES show in New York. Both Steve and Mark recall this being an amazing experience, and being completely overwhelmed with the amount of interest in SoundCheck. They came away with so many business cards that as soon as they got back to the office they had to invest in contact management software! 1998-1999 really was a turning point for Listen. Despite the initial inertia of users reluctant to switch from hardware to software, momentum picked up and the advantages started to be accepted by the marketplace. By the end of 1999, the company was debt-free and profitable.

Listen continued to grow in 2000. Bruel and Kjaer became a global distributor for SoundCheck, and Steve began travelling overseas to promote his products in Europe and Asia. By the end of the year Steve had decided that the company needed (and could afford) proper offices. He found a 750 square foot office space in the South End of Boston, in a converted mill building mostly populated by artists (who made for interesting neighbors!). With this new space, Steve began hiring more staff, including a dedicated salesperson, additional assembly and logistics staff, and a couple of interns from a local university to help with programming.

The space didn’t last long – by the time the 2 year lease was up, Listen had outgrown it, and moved across the hallway to a 2500 square foot space in the same building, where for the first time there were separate areas for assembly, sales and programming. 2000 was an explosive year sales-wise, and by the middle of 2001 Steve had re-invested the profits in the company and hired a dedicated programming team.

With a successful production line test system starting to sell globally, and a programming team in place, Steve focused his attentions on developing the product to meet the needs of customers who loved the product for production, but needed more functionality to also utilize it in the R&D lab. Over the next couple of years, features were rapidly added, a DSP specialist was hired, and new releases came out every year or so, each with more capability than the last. Listen has always been on the cutting edge of test and measurement R&D, and since its inception has regularly presented research papers at AES conferences, before integrating the results of the research into SoundCheck. In recent years, research has covered such areas as loose particle detection, distortion measurement, time-frequency analysis and perceptual Rub & Buzz. Today, Listen’s products are as well known in the R&D laboratory as they are on the production line. In fact, many companies take advantage of the fact that SoundCheck is so flexible that the same tests developed in the R&D lab can be used on the production line, but with a simple pass/fail output rather than a detailed analysis.

Listen also expanded its product offerings beyond SoundCheck with the launch of DC Connect (a product for measuring DC current drain in battery operated devices such as hearing aids) in 2004, The SoundMap Time Frequency Analysis software package in 2007, the AmpConnect integrated hardware box in 2009 and SoundCheck ONE, a low cost production line test system in 2010.

In 2005, Listen terminated its partnership with Bruel and Kjaer global (although the US operation continues to distribute SoundCheck) and began to build its own distributor network, with dedicated reps in key territories. Sales growth again accelerated, and for the first time, international sales superseded US sales. 2006-2007 saw another period of massive growth, and in 2006, Listen again outgrew its offices, and with a desire to move into a more professional building, moved to a custom-designed 4000 square foot space in 580 Harrison Avenue, just a quarter of a mile down the street from its former location.

Listen's New (2009) AmpConnect Hardware Box

As for most companies, the economic climate this past couple of years has been a tough one in which to do business in. Listen survived with its employee base intact, and turned the quiet time to its advantage, developing two new products which were recently launched -  AmpConnect and SoundCheck ONE. AmpConnect is an integrated hardware box which simplifies (and reduces the cost) of an electroacoustic test set-up as it contains all the hardware that you need with your software and soundcard in one boxe, with color coded cables. SoundCheck ONE is a very simple low cost production test system including both hardware and software. It uses the same tried and tested algorithms as the full version of SoundCheck, but can only carry out pre-programmed standards tests rather than being fully user-programmable. The user-interface, together with the hardware, is very simple for quick and easy set up and to minimize operator error in usage.

Although Listen has always used remote software applications such as PC Anywhere and Webex to bridge the distance between its Boston office and global customer base, in 2009 the company took this one step further, launching monthly training sessions via Webex. These sessions, originally instigated because many customers were struggling to find the time and budgets to travel for training, brought the entire content of a 3-day SoundCheck training course to its users in regular bite sized chunks, at no cost. Due to their overwhelming popularity, they are being continued throughout 2010 where they will also cover some applications-based training.

Listen Booth at AES Show 2009

Steve Temme explains that there are two key factors that contribute to Listen’s success and popularity in the marketplace. One is its applications. With many years experience measuring many different types of electroacoustic and audio electronic devices including loudspeakers, cellphones, headphones, microphones, MP3 players, Bluetooth devices and audio electronics, the company really understands the different tests required for each application, and through this broad knowledge is often able to develop new test methods for particular applications. Listen has always invested heavily in R&D, been actively involved in AES, IEEE, AAA, TIA and other standards committees, and  participated in industry organizations such as ALMA.

Also central to the company’s success is its philosophy of listening to what customers want and incorporating their requests into the product development plans. This is achieved through an on-line wish-list accessible via the software and annual ‘power user’ meetings where some of Listen’s most demanding customers are invited to critique the software and discuss future development projects with Listen’s product development team. Software engineers are also regularly involved in customer support, ensuring that they truly understand the challenges that customers are facing. As Steve Temme explains, “By spending time with customers and learning what they need, we make a better product. The concept is simple:  if you build what people need, they will buy it.”

This philosophy has worked well for Listen. 15 years from its inception, the company remains true to its core principle of listening to its customers, and continues to utilize the newest technology across all aspects of its business to create a better experience for users of its products. Its software and hardware is used by both Fortune 500 companies and small businesses all around the world, and the company is poised for consistent growth and continued innovative product development. Today, Listen is a fun, young at heart company with a very diverse staff including at least three overseas nationals and usually one or two co-op students or interns.

All company histories tend to turn from tales of entrepreneurship and rapid company growth to stories of constant and consistent expansion and product development, and Listen is no exception. With dedicated teams for software, sales, marketing, assembly and logistics, finance and administration, a network of distributors worldwide and a diverse customer base spanning over 20 countries, the story of Listen, to outsiders, becomes less interesting, although to Steve Temme and other managers at Listen, it is every bit as challenging with orders to fulfill, product development schedules to be met, technical papers to prepare, customers to support and people to manage.

 

Listen Timeline: The First 15 Years

Company Facts

Year founded: 1995
President: Steve Temme
Employees: approx. 10
Global Headquarters: 580 Harrison Avenue, Suite 2A, Boston, MA 02118
Website: www.listeninc.com
Distributors: China, Taiwan, Japan, Denmark, UK, India, Malaysia, Benelux, Korea. Seeking others.
Revenue: Undisclosed (privately held company)
Applications: loudspeakers, microspeakers, headphones, headsets, microphones, telephones (all types), MP3 players, Bluetooth headsets, audio electronics.
Customers Include: many of the world’s leading designers and manufacturers of loudspeakers, microphones, headphones, telephones, Bluetooth headsets and other devices, and their 3rd party suppliers.