7 Start-up Success Stories

COMPANY: Adventure Life
FOUNDER: Brian Morgan, 35
LOCATION: Missoula, Montana
2008 REVENUE: $11 million
EMPLOYEES: 16
START-UP YEAR: 1998
START-UP COSTS: $3,000 for two brochures and a laptop
BREAKEVEN: One year out on sales of $125,000
BIGGEST EXPENSES: $11,500 on advertising in 1999 and $33,500 in 2000. The biggest bite was print ads in magazines such as Outside and National Geographic Adventure.
QUALIFICATIONS: Fluency in Spanish. Relationships with trusted locals and longtime expats on the ground
RED TAPE: Regulatory burdens fall on lodges and providers of transportation and other services in countries visited, rather than on the tour operator.

COMPANY: Johnny Cupcakes
FOUNDER: Johnny Earle, 27
LOCATION: Hull, Massachusetts
2008 REVENUE: $3.8 million
EMPLOYEES: 30
START-UP YEAR: 2001
START-UP COSTS: Roughly $6,700 for T-shirts and printing until 2003, when Earle committed to the business full time.
BREAKEVEN: Five years out on sales of $1.2 million
BIGGEST EXPENSE: $10,000 for a trade show
QUALIFICATIONS: As a kid, Earle was a master out-of-the-backpack retailer, selling candy and practical jokes.
RED TAPE: Piracy is rampant. Once Earle got serious about the business, he trademarked his logo and began copyrighting designs.   

COMPANY: Tokyo Joe’s
FOUNDER: Larry Leith, 49
LOCATION: Denver
2008 REVENUE: $22 million
EMPLOYEES: 350
START-UP YEAR: 1996
START-UP COSTS: $330,000 for the first restaurant; it costs about $600,000 to open a new location today
BREAKEVEN: Two months out on sales of $140,000
BIGGEST EXPENSES: Construction, architecture, and engineering materials and services constitute about 50 percent of total start-up costs.
QUALIFICATIONS: A self-taught knowledge of the cuisine, a flair for innovative store design, and a nose for hot locations
RED TAPE: Liquor licenses, construction and business permits, health inspections

COMPANY: Sweet Leaf Tea
CO-FOUNDERS: Clayton Christopher, 36; David Smith, 36  
LOCATION: Austin
2008 REVENUE: $12 million
EMPLOYEES: 47
START-UP YEAR: 1998
START-UP COSTS: About $3,000 for rudimentary manufacturing equipment; $3,000 for a secondhand van; $1,000 for a computer and printer  
BREAKEVEN: Third year out on revenue of $300,000
BIGGEST EXPENSE: Offering samples at events and stores
QUALIFICATIONS: Grandma’s secret brewing technique
RED TAPE: The Texas Department of State Health Services required $3,000 worth of modifications to Christopher’s site, including construction of a small wooden brewing and bottling facility within the larger warehouse space. The FDA required he submit products to a lab to create nutrition panels.

COMPANY: Paragon Space Development
FOUNDERS: Jane Poynter, 47; Taber MacCallum, 44; Grant Anderson, 46
LOCATION: Tucson
2008 REVENUE: $8 million
EMPLOYEES: 65
START-UP YEAR: 1993 Funding $75,000 in savings, student loans, and credit card debt
START-UP COSTS: A few thousand dollars for glass globes; $30,000 for computers and lab equipment; $600 a month for lab and office space
BREAKEVEN: Five years out on sales of $800,000
BIGGEST EXPENSE: About $20,000 a year for travel
QUALIFICATIONS: Poynter is a biologist, MacCallum a chemist, and Anderson an engineer.
RED TAPE: Each space agency has its own safety requirements.  

COMPANY: Tarte cosmetics
FOUNDER: Maureen Kelly, 36
LOCATION: New York City
2008 REVENUE: $12 million
EMPLOYEES: 34
START-UP YEAR: 1999
START-UP COSTS: $18,000 for 5,000 makeup fills and containers
BREAKEVEN: Five years out, on undisclosed sales
BIGGEST EXPENSE: Cost of product
QUALIFICATIONS: The insights of a lifelong beauty-products junkie
RED TAPE: None

COMPANY: Edible Arrangements
FOUNDER: Tariq Farid, 40
LOCATION: Wallingford, Connecticut
2008 REVENUE: $19.4 million
EMPLOYEES: 66
START-UP YEAR: 1999
START-UP COSTS: $100,000
BREAKEVEN: Within six months, on sales of $80,000
BIGEST EXPENSES: Travel and assisting franchisees with their store openings
QUALIFICATIONS: Experience in the floral and software industries
RED TAPE: Strict health department regulations and regional building permits