Back to Basics
Ex-dotcommers create new beginnings through low-tech businesses.
URL:
http://www.entrepreneur.com/magazine/entrepreneur/2003/september/63628.html
When Peter Rinnig was the art director for Lycos, he made a fine
salary, got oodles of stock options and had a great time working on
marketing projects, including designing a Lycos-sponsored NASCAR
race car. After being laid off in 2001, he started QRST's LLC, a
five-person T-shirt company in Somerville, Massachusetts, where he
spends his days silk-screening shirts for clients like college
students and banks.
Yet despite his descent from high-tech aristocracy to a low-tech
garment industry job, Rinnig says he's thrilled with the
switch. "I only have to answer to myself," says Rinnig,
39. "And I'm back to almost my Lycos salary--without stock
options."
Immigrants to America have always opened businesses in search of
a better life. Now, a growing number of ex-dotcommers are starting
businesses in low-tech fields associated with immigrants.
"We're seeing a lot of businesses being started by former
high-tech workers," says Teresa Thomae, director of the
Central
Coast Small Business Development Center in Aptos, California,
near hard-hit Silicon Valley. Instead of flocking to a technology,
today's entrepreneurs are specifically looking for low-tech.
"There's a lot of disillusionment with high-tech and the
corporate world," says Thomae. "We're seeing people
in formerly pretty high positions [choosing] relatively blue-collar
work."
Brian Benavidez, a laid-off director of business development for
online marketer Bolt Media Inc. in New York City, last October used
savings, family and friends' money and credit cards to open
Sparky's American Food, a hot dog restaurant in Brooklyn, New
York. Today Benavidez, 35, employs five people, preparing and
selling hormone- and antibiotic-free hot dogs and organic
ketchup.
Ex-techies come to their low-end enterprises in a variety of
ways. Benavidez saw a video documentary about hot dog vendors.
"Everybody seemed so happy when they talked about hot
dogs," he recalls. "I said, 'That's the type of
excitement I want in my next job.'"
Chuck Zimmer traded developing software for making soup after
dining on packaged vegetarian soup while on assignment in London
for his employer, a large accounting and technology consulting
firm. Zimmer cashed in some real estate investments to open
Heartland Soups--since renamed Heartland
Fresh--in San Francisco in October 2001 and now spends his days
slicing cabbage and driving a delivery truck. "It's been
an unbelievable struggle," says Zimmer, who expects $200,000
in sales this year. "But I love the fact that we have revenue
and it's a real product. I go to a store or deli and drop off
soup, and they pay me."
Like the genuine immigrants whose experiences these tech
refugees are imitating, they work hard and have big plans for
"someday." Benavidez is considering opening a second
location. Rinnig wants to buy a fourth press and hire another
operator. Zimmer is expanding into other prepared foods.
Unlike the Ellis Island-type immigrant, however, the owners of
these start-up enterprises have a career hole card they may be able
to play in case things don't work out as entrepreneurs.
"When the recovery starts," notes Thomae, "they can
always go back."
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