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
Bruce Nesmith Team was later expanded to also include Margaret Weis, Douglas Niles, Bruce Nesmith, Mike Breault, Roger Moore, Laura Hickman, Linda Bakk, Michael Dobson and Garry Spiegle. Nesmith designed "" (1990), which extended the ideas behind the Hickmans' original "Ravenloft" adventure and sought to make "AD&D" competitive with games like "Call of Cthulhu" and "Chill". Nesmith and Andria Hayday designed the "DragonStrike" board game, which was published by TSR, Inc. His other design work for "D&D" includes "The War Rafts of Kron" (1984), "Sabre River" (1984), "Dragons of Desolation" (1984), "Master Player Screen Featuring The Spindle" (1985), "The Book of Lairs