Producing fifty fully assembled computers meant that Jobs
and Wozniak not only had to supply the finished boards but
also buy all the components and parts, and put the machines
together. With so many computers to make, it was not practical
to build the boards by hand. The two decided to have them mass-
produced by a manufacturing company. Then, Jobs and Wozniak
would plug in the computer chips and do the wiring themselves.
However, Woz’s graphic representation for the circuit board was
hard for the manufacturer to follow. Jobs hired Ron Wayne, an
Atari engineer, to draw the schematics based on Wozniak’s plans,
and also to design an owner’s manual. Since they had no money
to pay Wayne, they offered him 10 percent of the company.
Wayne did not stay with the company long. He sold back his
shares, which become worth $65 million four years later, for
$300.
Wayne doubted that Jobs and Wozniak could come up with
enough money to pay for all the supplies they needed and the
company would fail. Jobs proved Wayne wrong. He convinced a
local electronics supply company to g ive him parts for thirty days
on credit. At the same time, he worked out a deal with Terrell
to be paid cash upon delivery of the computers. Each machine
cost $220 to make. Terrell paid $500 per unit. When Terrell paid
Jobs, Jobs used half the cash to pay off the electronic company. In
essence, Jobs got Terrell to finance the operation without Terrell
knowing he was doing so. Jobs then plowed their profits back
into the business.
A Family Affair
Jobs also kept the location of the company’s headquarters under
wraps. Unable to afford to rent a space, the boys used the Jobs’s
garage. To make the business seem more professional Jobs got a
post office box and an answering service, which kept potential
customers from knowing just how modest the business actually
was.
The garage was a hub of activity. Wozniak, who was still work-
ing at Hewlett Packard, stayed up nights working on the comput-
44 Steve Jobs