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 period, Nesmith started his multimedia company Pacific Arts, which initially put out audio records, 8-tracks, and cassettes, followed in 1981 with "video records." Nesmith recorded a number of LPs for his label, and had a moderate worldwide hit in 1977 with his song "Rio," the single taken from the album "From a Radio Engine to the Photon Wing". In 1983, Nesmith produced the music video for the Lionel Richie single "All Night Long". In 1987, he produced the music video for the Michael Jackson single "The Way You Make Me Feel". During this time, Nesmith created a video-clip for "Rio"