Bette Clair McMurray was born in Dallas, Texas, to Jesse McMurray and Christine Duval. Her early life was marked by the challenges of the Great Depression, instilling in her a strong work ethic and resourcefulness that would later define her entrepreneurial spirit.

During her teenage years, Bette held various jobs to support her family. She married Warren Nesmith in 1941 shortly before he was sent to serve in World War II. This period highlighted her resilience and ability to adapt to changing circumstances.

After the war, Bette and Warren divorced, leaving her a single mother to their son, Michael Nesmith (who would later become famous as a member of The Monkees). This pivotal moment spurred her to seek stable employment and greater financial independence.

Bette secured a position as a secretary at Texas Bank and Trust, a job that required impeccable typing skills. It was here, struggling with the limitations of early typewriters and the lack of effective correction methods, that the seed of an idea was planted.

Frustrated with the inability to easily correct typing errors, Bette drew upon her earlier experience as a commercial artist. Observing painters covering mistakes with a fresh coat of paint, she began experimenting with a white, water-based tempera paint to cover her typing errors. She initially called it 'Mistake Out' and began using it at work and sharing it with other secretaries.

Bette refined her formula and began producing 'Mistake Out' in her kitchen. She marketed her product locally, relying on word-of-mouth and direct sales to other secretaries and businesses. Gradually, demand grew, leading her to improve production methods and branding.

As her business grew, Bette officially renamed her product 'Liquid Paper'. She established the Liquid Paper Corporation and continued to expand her manufacturing and distribution networks. The company moved from her home into a proper headquarters.

After years of building a successful business, Bette sold Liquid Paper to the Gillette Corporation for $47.5 million (equivalent to over $200 million today) plus royalties. This transaction marked the culmination of her entrepreneurial journey and solidified her legacy as a successful inventor and businesswoman.

Bette Nesmith Graham passed away in Richardson, Texas, at the age of 56. She left behind a significant fortune, much of which she had already allocated to charitable and philanthropic endeavors through foundations. Her life story continues to inspire aspiring entrepreneurs and inventors.