Startup costs: $425
Following a stint for a web development company run into the ground
by its founders, Chris Winfield swore he'd never do anything
involving the internet again. But he couldn't help himself
after being hired by a recording studio to handle business
development. He saw their need for a website and soon became
well-versed in search engine optimization (SEO). Winfield, 28, was
so successful in getting the site to the top of search engines that
the company had to remove the studio's phone number from the
site to stop the flood of calls.
Winfield, who was ready for a change, had kept in touch with a
former co-worker, Danielle Lanzillo, 28, the former head of
production for the web development company. In 2002, Lanzillo and
Winfield decided to leave their jobs and go into business together,
co-founding search engine marketing and web development firm 10e20
LLC in New York City. With just $425, the partners paid someone to
handle the LLC filing, and inked an agreement with a hosting
company to host their website and their clients' for a low
rate.
Working from home, Winfield already had high-speed internet
access and unlimited phone minutes on his landline. "We now
have clients in every state and six countries around the world, and
[we've] only met about five to 10 of our 350 clients face to
face," says Winfield. "Because of the nature of the
business, there's no need to have a lavish office." Their
first client was a referral from the recording studio, but
10e20's specialization in SEO helped their site, www.10e20.com, attract
so much business that they never did any cold calling.
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The co-founders cut costs by doing as much work as possible
themselves. They hired freelancers, communicating with some solely
through IM. And by providing their services as bartering chips,
Lanzillo and Winfield received a server from a web host company in
exchange for a complete redesign of the company's website. They
were able to strike up similar deals for accounting and legal
services. Rather than hire a secretary for $28,000 a year, they
used an answering service instead. Winfield even wrote their
script, ensuring 10e20 would sound professional. Even though the
partners added two employees five months into business,
Winfield's apartment accommodated them with the help of
inexpensive dividers purchased on eBay, and a refurbished
small-business phone system to help with the busy phone lines.
Six months into business, Winfield found an office in New York
through Craigslist, an online community. "I worked an unreal
deal on rent by dealing directly with the owner of our
building--rather than a broker--saving us a lot in fees," he
says. Scouring the internet for local deals, Winfield also found a
company that was closing its doors and got a bargain on desks,
chairs and other office items.
10e20 has found success by targeting small to midsize businesses
and extending beyond web development into open-source programming.
A second location opened in downtown West Palm Beach, Florida, this
past September. The company, with 2005 sales projected to reach $6
million, is also looking to expand to the West Coast.
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