How 23 young millionaires built their empires
Amy Katz, 39, & Donna Slavitt, 38
- World Packaging Corp.
- New York City
- Projected 2005 sales: $9 million
- Description: Manufacturer and distributor of promotional, private-label and licensed items--most notably the Clik Clak line of mint- and candy-filled tins
Side project: Donna Slavitt worked in both the hospitality and retail arenas early in her career, but it was a job in Old Navy's prototype coffee and candy division that led her to her passion--creating fun candy and mint tins. Wanting to branch out with her own specialty retail creations full time, she enlisted the help of college friend Amy Katz, who also works as a corporate lawyer.
Explosive growth: The pair's first success came in 1997 with a retail product called WebFuel--a mint tin in the shape of a computer mouse that was designed to market websites. WebFuel attracted the attention of big names like AT&T, IBM and Microsoft at the beginning of the internet boom. Says Slavitt, "We started getting calls [saying], 'What can you make for us?'" That launched the company into the private-label arena, creating promotional tins for other companies. Their pivotal moment, however, came in 1999, when they signed an exclusive agreement to distribute candy- or mint-filled Clik Clak tins in the U.S. (the Clik Clak tins were being manufactured and distributed by a French company primarily to European outlets). Named for the sounds the tins make upon opening and closing, the Clik Clak line became a staple of World Packaging Corp. and quadrupled the company's revenue.
Success on the street: Slavitt and Katz have created specialty candy-filled tins and other items with official Major League Baseball, NBA and NFL licenses, and have worked with clients like Henri Bendel and Kate Spade. Next on the list: an organic confection line to complement their already-yummy candy offerings. The actual "we've arrived" moment for the pair? "I saw one of our Clik Clak tops melted into the tar of a New York City street," says Slavitt. "I thought, 'When you start seeing your own brand as litter, you know you've really made it.'" --Nichole L. Torres
Andrew Fox, 33
- Clubplanet.com
- New York City
- Projected 2005 sales: $22 million, including Fox's other businesses
- Description: Online nightlife destination service
All access: In 1995, this oft-rejected newcomer to New York City's club scene found a way to get past the doorman of every hot club he longed to enter--start a website offering club-goers free club reviews and information. The now-savvy Fox recalls his earlier, awkward days: "I showed up at a club wearing green shorts, and everyone was in black. The bouncer looked at me and said, 'There's no way.'"
A-lister: Working on the website in his off hours at first, Fox chucked his investment banking job in 1997 to give Clubplanet.com (then ClubNYC.com) his all. Volunteers provided early club reviews, until Fox hired a full-time editorial staff in 1999. Then he came up with a new idea: Start a guest list on his site for access to otherwise hard-to-get-into clubs. By offering a discounted cover charge to those who both signed up on the site and arrived at the club before midnight, Fox helped enhance the exclusivity of the clubs as well as increase revenue. Club owners were dubious about Fox's concept at first, but when hundreds of club-goers who signed up showed up at their doors, the owners gladly forged relationships with the innovator and paid him a "bounty" for every head he brought in.
Fight club: Fox installed a management team for Clubplanet.com so he could focus on two other businesses he was involved in, but he admits giving up control was a mistake. Upon learning of Clubplanet.com's mismanagement and financial woes, Fox engaged in a bitter struggle to regain control. He ultimately won, but the battle took its toll on the company. He was forced to lay off employees he had never met. With only two employees, Fox started back at square one, selling his other companies to refocus on his "baby."
The party syndicate: Clubplanet.com has grown to include thousands of club listings around the United States and the United Kingdom, and now syndicates its content to Citysearch, newspapers, Yahoo! and other third-party clients. Fox also recently launched NocheLatino.com, an upscale, urban Latino version of Clubplanet.com, and is working on a version for the gay community. He's since expanded his empire to include a New Year's Eve event ticketing site, NewYears.com; an exclusive club access site, CoolJunkie.com; a ticketing company, WantTickets.com; and an offline event and marketing company, Track Entertainment. --April Y. Pennington
Joe Palko, 33, & Scott Sanfilippo, 34
- Neeps Inc. & Solid Cactus
- Wilkes-Barre, Pennsylvania
- Projected 2005 sales: $7 million
- Description: Pet supply websites, including AnimalCages.com and TheFerretStore.com; website development and internet marketing group
Pet sanctuary: Scott Sanfilippo and Joe Palko became ferret owners in 1994--and soon discovered few pet stores carry ferret food or toys. While ferret supply manufacturers exist, retail stores are reluctant to devote any shelf space to such a small niche market. From their home, the friends decided to start a website, TheFerretStore.com, to serve ferret owners like themselves. Sanfilippo, an ISP sales engineer at the time, and Palko, a UPS manager, spent nights working on their venture until devoting themselves solely to their business in 1999. Today, they offer over 1,500 unique ferret products. Recently, Sanfilippo was thrilled to see another order from their first customer ever: "I found that to be a testament to our company."
Under development: In 1999, when the partners were ready to expand their company, Neeps, beyond ferrets, Yahoo! Merchant Solutions enabled them to create ActiveK9.com, AnimalCages.com, CritterStore.com, PetCareCentral.com, RabbitCentral.com and TheKittyStore.com. It also led them to a group of Kyrgyzstan-based recent college graduates who had responded to TheFerretStore.com's website redesign bid. Though he and Sanfilippo opted to use another developer, Palko developed a strong friendship with the young men. When the partners spun off their website development and internet marketing group to create Solid Cactus in 2000, Palko successfully immigrated two of the Kyrgyzstanis to the U.S. to work for them. Palko and Sanfilippo have since brought over two more Kyrgyzstanis and one Indian, and Solid Cactus has already created 1,700 websites for clients such as the Kennedy Space Center and the National Wildlife Association.
Single-minded approach: Today, Neeps continues to develop the specialty market with more supplies sold online for small and popular pets (three of the online stores also have print catalogs), while Solid Cactus creates and maintains websites for clients. Solid Cactus and Neeps are separate companies that share one philosophy. Says Palko, "It's about servicing our existing customers and making sure we did everything we possibly could." --April Y. Pennington
Chris Griffiths, 32
- Garrison Guitars
- St. John's, Newfoundland
- Projected 2005 sales: Over $7 million
- Description: Manufacturer of acoustic guitars using a patented bracing system
Brace yourself: A Garrison acoustic guitar looks like a regular guitar on the outside, but the inside is a modern marvel. Instead of wood braces, a one-piece injection-molded fiberglass structure called the Active Bracing System is encased in the guitar body. It's a high-tech leap for an instrument that's been around for hundreds of years. Garrison is on track to build 25,000 guitars this year, selling to more than 450 dealers in North America and to distributors in 35 other countries.
The long and winding road: Griffiths likes to mention that it took six minutes to come up with the bracing concept--and six years to build it. He was no stranger to running a business, having started Griffiths Guitar Works, a small custom guitar-building shop and later a retail store, in 1993, when he was only 19. "All the lessons and all the troubles and all the issues were extremely similar between both companies, just on a different scale," he says. With no factory and only five prototypes in hand, Griffiths went to the National Association of Music Merchants trade show--the industry's largest--in 2000 and came away with prospective orders for over 46,000 guitars per year. By February 2001, Griffiths had secured $4 million in funding. "We had no employees, no sandpaper, no wood, and we started to build a company," he says. By September 2001, Garrison was shipping its first batch of guitars.
Canada calling: From one of North America's oldest cities come the newest innovations in acoustic guitars. As Griffiths says, St. John's is "way out there. It's a big deal to have a guitar factory in this town. We've shown that you can be innovative in Newfoundland and still be a global company." The 37 employees at the 20,000-square-foot factory are all locals. "Without good people, it's just a building, a bunch of machines and a pile of wood," says Griffiths. That focus on the community has paid dividends in terms of loyalty and low employee turnover.
Making beautiful music: "I've transitioned from being a fan of the guitar and a guitar builder to being a guitar CEO," Griffiths says. But he still finds time to play the instrument he's loved since he was 12 years old. With Garrison Guitars looking to double in size over the next year and a half, Griffiths has definitely found his groove. --Amanda C. Kooser
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