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Big Plans

Catch up with some of the companies profiled in our Anatomy of a Start-Up series, and here's what you'll discover: Plans are one thing, executing them is another.

THE START-UP ISSUE

Part 2

Catch up with the companies profiled in our Anatomy of a Start-Up Series, and here's what you discover: Plans are one thing, executing them is another

Scanning Anatomy of a Start-Up articles published in Inc. reminds me of watching the University of Notre Dame football movie Rudy. A hardworking, scrappy young man with few football skills and a ton of heart vows to make the team, don the coveted golden helmet, and get onto the field, only to be told he is a dreamer. So be it. Rudy sleeps in the groundskeeper's office and endures countless practice-team beatings but nevertheless wins the hearts of the regular players and the brief attention of his coaches. Sound familiar?

We caught up with many of the Rudys that we had profiled in our anatomies from 1996 through 1998 to see how their original plans had held up. Like Rudy, some of the companies had only brief moments in the sun. Some are still waiting for their big break. A few are very successful.

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In Celebration of Golf

Founder: Roger Maxwell

Date of Inc. anatomy: July 1996

Vital signs then: The Scottsdale, Ariz., specialty golf retailer, in a 12,400-square-foot homage to the game, offered everything from Callaway clubs to a "History of Golf" chess set. Maxwell projected revenues of $3 million and profits of $300,000 for 1996.

What the experts said: Most felt Maxwell needed to fine-tune his concept and wondered how he could expand beyond a single store.

Vital signs now: Maxwell's Scottsdale store pulls in close to $5 million in annual sales. In November 1999 he opened a second store, along the grand canal at the Venetian resort complex in Las Vegas. The new outlet has more sales per square foot than the Scottsdale store and has the potential to do $8 million to $10 million in sales a year. More stores are in the works in Atlanta, Chicago, Dallas, and Houston.

What the experts say today: New York City-based retail consultant Walter F. Loeb, who four years ago suggested that growing beyond one location would be a real challenge, lauds Maxwell's Las Vegas choice. "Location, location, location," he says, "was the key word for any entrepreneurial company." He adds that as long as Maxwell opens stores in affluent areas and hires the right teams to manage the growth, he should do well.

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Slanted Publications

Formerly: Smug Inc.

Founder: Shirley Halperin

Date of Inc. anatomy: May 1996

Vital signs then: The Rutgers University dropout launched her own magazine, called Smug, in February 1995 with the help of her dad. Halperin hoped to make it big with an all-music, no-fuss free magazine for East Coast clubgoers and indie-rock fans alike. With a shoestring budget and an all-volunteer staff, Halperin wanted to double her 1995 ad pages to 300 pages in 1998. And she hoped to increase revenues from $70,000 in 1995 to $900,000 for 1998.

What the experts said: Advertisers and music-industry players lauded Smug's editorial voice and innovative design. However, magazine experts warned that Smug's lack of market research could come back to haunt the fly-by-the-seat-of-its-leather-hip-huggers magazine, especially since the musical tastes of young trendsetters tended to change.

Vital signs now: In 1997, Smug upgraded from newsprint to a slicker, glossy paper and took its regional act on the road toward national distribution. Halperin also experimented with frequency, eventually deciding to publish Smug eight times a year. Her big break came in April 1999, when she set up a partnership with Canadian publisher Influence Marketing. The two companies formed Slanted Publications Inc., and in exchange for a majority stake in the company, Halperin got enough money to hire more staffers, secure a national distribution contract, and increase Smug's page count. And while revenues didn't increase as much as Halperin had predicted, they more than doubled. In 1999 the company posted ad-sales revenues of $170,000. Halperin was optimistic, planning two new publications for 2001. But the Canadian partnership didn't work out, Halperin says, and she is now seeking a buyer. In October the magazine temporarily ceased publication.

What the experts say today: "In 1996, I commented upon Ms. Halperin's passion," says Dennis F. Giza, associate publisher of Columbia Journalism Review, in New York City. "What strikes me now -- even in light of the recent, and I hope temporary, suspension -- is Ms. Halperin's savvy execution. Against great odds -- as most new magazines fail -- Ms. Halperin not only continued publication for over five years, she improved staffing, product, distribution, and revenues. Based on her past I suspect that Ms. Halperin will persevere -- either finding a partner and resuming publication or, with her continued passion and increased publishing savvy, perhaps beginning anew."