Young Entrepreneurs
Entrepreneurs: Cream of the Young Crop
Meet the young people who have made their own future -- and maybe will change yours as well. Then cast your vote
A generation ago, entrepreneurship was considered a career path for those with no other prospects. Michael Dell's huge success did a lot to change that, and so did the Internet. Today the entrepreneur is the rock star of the business world.
So, last month, BusinessWeek Online set out to find the next generation of Michael Dells. We asked readers to nominate standout young entrepreneurs. Our editors reviewed the nominations and narrowed the field to this group of 20 finalists. Take a look them and their businesses, and at the end of the slide show, we'll ask you to vote for the small-biz whiz you think shows the most promise. Browse through, cast your vote, and BusinessWeek Online will report the results.
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Young Entrepreneurs
Quotable Sophie
Joanna Alberti
philoSophie's MAFounded: 2005Age: 24
With only a small-business loan to help her, Joanna Alberti has taken her folder of doodles and quotable quotes and turned it into a successful greeting-card business revolving around a fictional woman named Sophie. "She's a whimsical character who women can relate to," says Alberti, who left her full-time advertising job in October, 2004, to start the business.
She officially launched her company at the 2005 National Stationery Show in New York City, though she admits feeling intimidated by the likes of Hallmark and other greeting-card heavyweights. Alberti says that, on a good day, she can churn out about 500 cards, which retail in area boutiques for $4.50 to $5.25.
Like most young entrepreneurs, Alberti has plans to expand her operations. She hopes to license Sophie's trademark designs for use in a variety of paper products.
Lesson learned:
"If something doesn't feel right, then I just shouldn't do it. I follow my gut."
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Young Entrepreneurs
From E-mail to Riches
Ryan Pieter Middleton Allis
Broadwick Corp. N.C.Founded: 2003Age: 21
Broadwick is the provider of the e-mail marketing software IntelliContact, which allows companies and nonprofits to create, send, and track permission-based e-mail newsletters and surveys through an on-demand Web-based application.
The company boasts more than 3,000 clients, including Super 8 Motel, International Paper, and Re/Max. Allis has 21 employees and monthly sales of $130,000. The company is adding at least 300 new clients each month. Allis himself has received attention in the press for his work and success at such a young age.
Lesson learned:
"I've learned to have a bias toward action in everything that I do. The second biggest lesson: Always keep your ear to the ground and integrate your customers into your product-development efforts."
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Young Entrepreneurs
Leveraging Young Minds
Anand Chhatpar
BrainReactions Wis.Founded: 2004Age: 24
The raw talent available on a university campus is as plentiful as students who need money. So when Anand Chhatpar, a student at University of Wisconsin-Madison, gathered a group of peers for a casual brainstorming session, a business idea soon hatched.
Chhatpar had recently interned at Pitney Bowes' renowned Advanced Concept Technology Center, where he learned techniques in ethnographic research and prototyping. He recognized that if he could harness the creativity and insight of diverse young minds, he could put them to work solving companies' problems.
The result: BrainReactions, a pool of 200 professional brainstormers who create new product features, crack new market segments, and develop customer-service improvements for clients.
The company's first client, Bank of America, was referred to BrainReactions by Chhatpar's former Pitney boss and mentor, Thomas Foth. Now the fledgling outfit also counts Intuit, the Peace Corps, and Quantum Learning Network as clients.
Though Chhatpar, who graduated in May, is still the company's only full-time employee, a core group of seven part-timers is fast at work developing the capabilities BrainReactions will need in order to grow: IT, video, business development, facilitation, and PR.
Lesson learned:
"Think of scalability in everything you do, and leverage smart work. Innovative ideas come from fresh minds and exploring new perspectives, so don't jump to conventional wisdom. And remember Richard Branson's code: 'Oh screw it, let's do it.'"
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Young Entrepreneurs
Dialing Up Options
David Hauser and Siamak Taghaddos
GotVMail Communications Mass.Founded: 2003Ages: 24 and 23, respectively
Hauser and Taghaddos, already on the fourth startup venture between them, got the idea for GotVMail because they were frustrated with the phone-system options for small businesses.
GotVMail gives mom-and-pops a way to sound just like big corporations. They can get the usual voice-mail boxes and also set up preferences like routing calls to a cell phone or getting messages by e-mail in the form of MP3 files -- all for as little as $10 a month.
The company obtained seed money from friends and began turning a profit in its second month of operation. Now it generates about $5 million in revenue per year.
Lesson learned:
Taghaddos: "For a young entrepreneur, having good personal credit is one of the most important things. We wouldn't have gotten all the help from American Express or Bank of America without it."
Hauser: "To be involved in the entrepreneurial community and give back, talking to students is very important."
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Young Entrepreneurs
Candids Wed to Digital
Ryan Hudson
YouShoot Mass.Founded: 2003Age: 25
When Hudson got married two years ago, he and his bride decided against decking out the tables with disposable cameras. People they knew who had wed recently told the couple the photos never turned out well and guests complained taking pictures was a chore. And of course, there's the cost of all that developing without knowing what you're getting.
But after the wedding, Hudson and his wife felt they had missed out on fun casual shots. So he started YouShoot.com. He sends couples digital cameras, and their guests take pictures and mail the cameras back in prepaid envelopes. Uploaded to a Web site, the photos are available for purchase.
The self-funded company is launching its first national ad campaign in major bridal magazines this year. Hudson wants the company to get big fast -- before a competitor with deep pockets has the same idea.
Lesson learned:
"You just have to do it sometimes, and you'll figure it out later. We have a whole bunch of problems we file under, 'Problems that will be nice to have someday.'"
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Young Entrepreneurs
Software Winners
Rishi Kacker and Matt Pauker
Voltage Security Palo Alto, Calif.Founded: 2002Age: Both 24
Voltage makes security software that can encrypt documents, files, and e-mails at the touch of a button. Kacker and Pauker worked on the technology as a summer research project while attending Stanford. They toiled in a basement office in the engineering building for about a year before entering a business-plan competition.
They won the contest. Along with bragging rights came venture-capital interest and a year's free legal advice from the marquee law firm to Silicon Valley startups, Wilson, Sonsini, Goodrich & Rosati. With the help of some seasoned executives, the two have created a thriving security-software business with more than 130 big-business customers and 75 employees. "It's still amazing to me," says Pauker.
Lesson learned:
"No matter how much you think you have it figured out, there's always a new challenge. But at the end of the day, that's what makes it interesting."
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Young Entrepreneurs
Mentors: The Franchise
Joseph Keeley
College Nannies & Tutors Minn.Founded: 2001Age: 25
As a freshman at the University of St. Thomas, Joseph Keeley connected with an area family and served as a big brother and role model to their two young boys and one girl. He then took his experience and formulated the idea for College Nannies & Tutors, a student- and child-development company designed to provide parents with the child-care and family-support services their kids need.
The idea won Keeley the Global Student Entrepreneur Award and an accompanying $20,000 in cash and prizes. Keeley's success attracted the attention of Peter Lytle, an angel investor who helped the young entrepreneur develop his "business in a box" model. For $52,000 to $115,000, an individual can start his or her own franchise, with all training, support, and marketing materials provided.
Now, College Nannies & Tutors has spread to five franchise locations -- four in the Twin Cities and one in Phoenix -- with many more in the pipeline.
Lesson learned:
"As a young entrepreneur, the risk is relatively low. If you have a well-thought-out plan, don't be afraid to execute it. The risk only gets higher as you get older."
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Young Entrepreneurs
Software Prodigy
Matt Lautz
Brevient Technologies 2001Age: 23
Brevient makes software that manages every point of customer contact -- be it order entry, marketing, or tracking sales leads -- for small businesses. Lautz started the business at the tender age of 18.
It was his second company -- the first time around he couldn't find a good software program to manage his orders and customer-contact information. So he built his own. In just a little over a year, he has some 1,000 small businesses using his software. The milestone was achieved with about $1 million from friends and family.
Lesson learned:
"A business does not grow based on what the CEO does but on what the people you hire do. You need to hire talent who can do everything better than you."
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Young Entrepreneurs
Quick Chemistry
Michael Lefenfeld
SiGNa Chemistry York CityFounded: 2003Age: 25
By taking on certain R&D work, SiGNa Chemistry helps larger chemical and pharmaceutical companies get results faster. Increasingly, big names are taking notice of the startup. SiGNa already boasts clients like Pfizer and Shell, and it's on the cusp of breaking even. More impressive: Lefenfeld funded the company himself from the beginning.
Lesson learned:
"When you're dealing in a business situation, it's helpful not to be the smartest person on your side of the table."
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Young Entrepreneurs
Hungry for Info
Matthew Miller and Jeff Watkins
Informera TXFounded: 2004Ages: 25 and 24, respectively
While on "the blind date from hell," Miller came up with the idea for a video screen that updates restaurant patrons on how long their wait will be.
He and Watkins, classmates at Brigham Young University, founded the company just a year ago and are now operating in 20 restaurants, with trial runs also in Outback Steakhouse and Ruby Tuesday.
Their proprietary software lists wait times on flat-screen TVs and also features news updates, trivia, and sports scores. Informera makes its money from third-party advertising displayed on the screens, while the restaurants get a free service for customers that also helps them drive same-store sales, thanks to assorted menu items spotlighted on the screens.
Lesson learned:
"There's no substitute for determination, hard work, and a good idea."
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Young Entrepreneurs
Converting Waste into Cash
Nancy Montano
Los Angeles PumpingMira Loma, Calif.Founded: 2004Age: 22
Nancy Montano always dreamed of having her own business -- and so did her father, Conrad. When she graduated from University of California, Riverside, she partnered with Dad to launch Los Angeles Pumping, a hazardous-waste transporting company.
Since then, she has returned to school and will get a certificate in hazardous materials and waste management from California State University, Northridge, in December, 2005.
The company's biggest success, says Montano, was climbing out of debt this year. The company expects revenues to reach $150,000 this year. Montano's goal: To grow this family business as big as its million-dollar competitors.
Lesson learned:
"Nothing comes easy. Many times you want to give up because you think it's not going to work and there's so much competition. But eventually you see you're starting to get something out of it, and that motivates you."
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Young Entrepreneurs
Translating into Dollars
Lucas Morea
LatinEdge Monica, Calif.Founded: 2002 (the U.S. company)Age: 24
Twenty-four may seem like a young age to be an entrepreneur, but Morea started his company when he was just a 16-year-old boy in Argentina. Frustrated that he couldn't find online content in Spanish, he started a site called Monografias.com, where anyone could post or share content in Spanish. He started selling advertising so he could afford to add servers as the business grew.
Today, he has translated that success into a U.S.-based business, Latin Edge, which consults with U.S. companies that want to advertise on Spanish sites. His company also makes media purchases on their behalf in Latin countries. Morea is relieved that he's finally old enough to drink at business dinners.
Lesson learned:
"Do what you love to do. We spend the majority of our lifetime just working, so it doesn't make sense to do anything just for the money."
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Young Entrepreneurs
Protecting Phone Calls
Ejovi Nuwere
SecurityLab Technologies York CityFounded: 2004Age: 25
Nuwere's company provides security for the growing voice over Internet protocol (VoIP) phone business. He raised the startup capital by consulting, but now he focuses on developing security products for large companies looking to deploy VoIP calling to save money on telephone service.
SecurityLab's first product will be a box that a company can install on its internal network. Over time, Nuwere hopes to evolve his business into a hosted Web service. The first trial is already underway with a financial services company in New York City.
Lesson learned:
"Opportunity is everywhere, if you're only willing to see it."
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Young Entrepreneurs
Hola, Employment
Eli Portnoy
Buena Chamba York CityFounded: 2005Age: 24
A Mexican native educated at the University of Pennsylvania, Portnoy left a job as a business analyst with Deloitte Consulting to launch BuenaChamba.com, also known as LatinoHire.com. The site aims to advertise jobs in predominantly Hispanic neighborhoods in New York and New Jersey.
The young entrepreneur also publishes a weekly newspaper with the ads and circulates it to churches and community centers. "As with all businesses that cater to a niche demographic, you have to take into account some limitations, and one of the more pronounced ones is a lack of Internet access, so the Web site feeds into the publication," says Portnoy.
Job ads submitted to the site in English can be automatically translated into Spanish. Only four months old, the venture is averaging 500 to 1,500 unique visitors per day, 50 calls per job advertised, and a circulation of 30,000 for the printed version.
Lesson learned:
"If the basic concept of your business is to help people, the business will succeed."
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Young Entrepreneurs
Creative Inventables
Keith Schacht
Startup: Inventables 2002Age: 25
Inventables provides a resource -- a journal subscription and materials -- that help Fortune 500 companies come up with new consumer-product ideas. The biggest indicator that things are going well for this company is the 100-strong client roster that includes Nike, Procter & Gamble, Coca Cola, and Fisher Price.
"There are so many more companies we can help and so many other ways we can help them," says Schacht. For now, nine people work out of the startup's Chicago headquarters and a string of freelancers elsewhere identify new technology that Inventables can provide to its clients. But the company is hiring.
For Schacht, the biggest measure of success is that customers are paying for the product. Officials from Inventables have been asked to speak at many conferences, too.
Lesson learned:
"Do something that you're passionate about. There are a lot of people who start companies about stuff that doesn't personally interest them.... It makes all the difference in the world to be doing something you're passionate about."
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Young Entrepreneurs