Bette Nesmith Graham fluid as "Mistake Out" in 1956. The name was later changed to Liquid Paper when she began her own company. Mistake Out started the 1960s operating at a small loss, with Nesmith's home doubling as company headquarters. As the product became an indispensable tool of the secretarial trade, Nesmith relocated production and shipping from her kitchen to a 10 feet-by-26 feet portable metal structure in her backyard, where packaging, shipping, and production were centered. Bette Nesmith married Robert Graham in 1962; he joined her in running the company. They divorced in 1975. She sold Liquid Paper to the Gillette Corporation
Michael Nesmith and Arsenio Hall all became well-known artists after their appearances on Nesmith's show. The concept of the show was to have comics render their stand-up routines into short comedy films much like the ones in "Elephant Parts". Nesmith assembled writers Jack Handey, William Martin, John Levenstein, and Michael Kaplan, along with directors William Dear (who had directed "Elephant Parts") and Alan Myerson, as well as producer Ward Sylvester to create the show. The half-hour show ran for eight episodes in the summer of 1985 on NBC Thursday nights in prime time. Michael Nesmith formed the Pacific Arts Corporation, Inc. in