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When you're hot, you're hot--and we think the young entrepreneurs spotlighted in our first annual Hot List are nothing short of sizzling. That's not to say they're all alike. Some are born entrepreneurs; others got into business almost by accident. Some carefully planned each step; others forged ahead on sheer chutzpah. What they all share (besides being under age 30) is the guts to go after their dreams. We hope their stories inspire you to do the same.

1-800 POSTCARDS

Entrepreneur: James Morel, 28
Company/Description: 1-800 POSTCARDS provides "anybusiness, anywhere" with low-cost, high-qualitypostcard-printing services (even postcard-sized stickers).
Based: New York City
Started: 1995
1998 sales: $3.2 million
1999 projections: $4 million-plus

The evolution of James Morel: The wit-ladenentrepreneurial spirit traces his knack for business back tocollege, when this self-described "freaky dork" partiedin punk rock clubs by night and spouted Zig Ziglar motivationalclichés by day.

The American dream: With degrees in advertising,marketing and psychology, Morel . . . waited tables. But theItalian restaurant gig led to his first business venture: makingand wholesaling ravioli. After two years, he ditched pasta toprovide advertising services for his downtown hipster/entrepreneurfriends.

No thanks: The direct-mail packet Morel createdwasn't taking off. But when he added a full-color postcardinsert, clients asked, "Can we have the postcards . . . butnot in your package?"

The exploding postcard inevitable: Business hit"for-real" status in 1995, the year Morel closed alldeals in one week. Success left him wanting more. In 1998, hepicked a new name: 1-800 POSTCARDS.

Next generation: Morel has lost customers due to hisunconventional business "look" and ethic, but knows thoseremaining truly respect him and his 35-employee company. "Theultimate joy is to hear people say `Wow, there's another way todo this.' " His New York office makes Morel feel all themore legitimate, and opening an office in Los Angeles this springand a new printing and shipping facility in New York this summersure won't hurt.

Trash Bags

Entrepreneur: Anita Ko, 24
Company/Description: Trash Bags makes an affordably pricedline of fabric handbags.
Based: Los Angeles
Started: 1997
1998 sales: $319,000
1999 projections: $1 million-plus

Cops and robbers: Three years ago, Ko's home fellvictim to burglary. The now-well-accessorized thieves took thedesigner handbags Ko had gotten as gifts over the years, sendingher on a mission to replace them. But her budget couldn't swing$1,000 bags.

Everything happens for a reason: Ko was tooling around afabric store when she found great handbag material. She sketchedtwo designs, had samples made and showed them to an L.A. Mart salesrepresentative, who took Ko on and immediately started gettingorders.

In the (hand)bag: With $20,000 in start-up funds fromKo's dad, Trash Bags commenced in October 1996, two weeks afterthose first samples were made. Ko worked out of Pop's pagingservice company warehouse for six months until she found her ownoffice; she now has two employees.

Bag ladies: With the popularity of her $40 to $80 bagsrising, Ko was ready to diversify. In November 1998, she beganworking on a more expensive, designer line; she also plans to do anaround-$20 line for younger girls.

Purse philosophy: "Only 1 percent of the populationcan afford [high-priced bags]," says Ko. "The otherscan't, but put it on credit and hope they can pay it back.That's not how a woman should live." Select Nordstromdepartment stores, as well as Urban Outfitters, Fred Segal in LosAngeles and Anna Sui in New York City, are now helping women livefashionably well by stocking Trash Bags.

Spin Master Toys

Entrepreneurs: Ronnen Harary, 28; Ben Varadi, 29; AntonRabie, 27
Company/Description: Spin Master Toys develops,manufactures, markets and distributes cutting-edge toys.
Based: Toronto
Started: 1994
1998 sales: $20 million
1999 projections: $40 million

Walking past the corporate ladder: In 1991, after Hararyand Rabie created and sold a campus poster at the University ofWestern Ontario in London (where they met Varadi), they knew theironly post-grad option was entrepreneurship.

Buddy system: After their 1994 graduation, Harary andRabie used $10,000 from poster sales to create Earth Buddy--agnome-like figure with grass for hair. Sales of $1 million a monthand the addition of Varadi foreshadowed future victories.

Whirlwind success: "The first year and a half wasjust holding on, trying to keep up with demand that cameovernight," says Rabie. The successful Earth Buddy wasfollowed up by Devil Sticks (a juggling toy) and Grow Things(rubber shapes that grow in water).

Preparing for takeoff: The team'sair-pressure-powered toy planes, Air Hogs, launched in May 1998 andwon hurrahs everywhere from Popular Science to USA Today.

Keeping it real: Despite buyout offers, Spin Master'sownership will stay as is, and "out-of-the-box-thinking"will prevail. Does youth equal success? Says Rabie, "If whatcomes out of your mouth is astute and you're young, you'vegot a double-bingo."

Willowbee & Kent Travel Co.

Entrepreneurs: Julie Poteet, 28;Craig Poteet, 29
Company/Description: Willowbee & Kent Travel Co. is acombination travel agency and travel retail"superstore."
Based: Boston
Started: December 1997
1998 Sales: $1.2 million
1999 Projections: $3.3 million

Uncharted territory: "We're singular in thebreadth of product we provide," says Craig of the couple's"value-added travel resource," which employsstate-of-the-art technology and offers everything from ticketingand travel books to adventure wear and travel accessories under oneroof.

Taking wing: After college, the Poteets spent five yearsresearching their concept and attending travel conventions andluggage trade shows. Finally, Craig left his job as a manager atBoston's Logan International Airport, and he and Julie made theentrepreneurial leap, securing a site in Boston's upscale BackBay.

Success by design: Says Craig, "Our goal was to makea store that was visually exciting and unique"--a task mademuch easier when they hired Retail Design Group (known for helpingto design such retail stores as Eddie Bauer, Limited andVictoria's Secret). The firm, which rarely deals with one-storeentities, was impressed by the Poteets' vision to bring anassortment of travel-related products together in one environment,and created the cutting-edge design that turned an aging buildingthat formerly housed a bank into a one-of-a-kind travel-planningstore.

Virtually unheard of: Willowbee & Kent clients enjoythe romance of travel before they've even finalized theirplans, perusing one of hundreds of travel books over a cup ofespresso or using the interactive kiosks to take a virtual trip toalmost anywhere in the world. The Travel Gateway, a stunningtwo-story multimedia center with a circular screen, sets the mood.Clients can view real-time video of hotels and cruise ships whileconsulting with travel agents to create dream vacations.

Flight plan: Additional locations in the New England areaand New York are in the works. The couple's next goal? Now thattheir business is flying high, they've committed to making timein their busy entrepreneurial schedules for celebrating theirwedding anniversary in a different country every year.

Vervex Technologies

Entrepreneur: Price Givens, 27
Company /Description: Vervex Technologies develops databaseand corporate intranet applications that help project managerstrack off-site workers' projects.
Based: Irvine, California
Started: 1994
1998 sales: $1.2 million
1999 projections: $2.5 million

A giant among giants: Companies like Microsoft andDeloitte & Touche use Vervex's EnGage 2.0 to manage largeprojects that involve employees, subcontractors and consultantsworldwide. The software allows team members to report on theirprogress via the corporate intranet, as well as generate invoicesand timesheets that can be easily accessed by corporateheadquarters.

Reach out: Givens and his team of software developersstarted by producing project management applications foraccountants. But with Givens in Irvine and the company'ssoftware developers in Bellevue, Washington, geographic distanceinterfered with efficient collaboration. Givens knew an intranetcould be the ultimate solution.

Power to the people: Although Vervex's newesttimekeeping software program, FSBTime, was designed specificallyfor accountants, architects and others who bill clients for theirtime, Givens was surprised to find most visitors to Vervex'sWeb site were actually other software companies. "One of ourbiggest customers has all their developers in India and all theirmanagers in [California]," he says. "Given the timedifference, they had no way of communicating on a daily basis[until] we sold them FSBTime."

Chicago Map Corp.

Entrepreneur: Steve Peskaitis, 24
Company /Description: Chicago Map Corp. producescustom-designed mapping software.
Based: Lemont, Illinois
Started: 1990
1998 sales: $1 million-plus
1999 projections: approaching $5 million

Head of the class: In high school, Peskaitis soldshareware CD-ROMs at computer shows and designed one of the firstmapping software programs for DOS that allowed users to search forand print out maps of various geographical areas. "I hadlittle or no experience when I first started," says Peskaitis,"but I saw a demand for mapping products, and there was reallyonly one competitor at the time."

Shifting gears: Chicago Map's first product,Precision Mapping 1.0, was well-received by consumers. But when bigcompanies like Microsoft and RandMcNally started dominating theconsumer mapping software market, Peskaitis changed his focus. Nowhe provides mapping software for other companies' products,from digital campground directories and handheld global positioningsystem (GPS) units to vehicle locator/dispatch systems for utilitybusinesses and police departments.

Global expansion: Chicago Map has just finished the firstcomplete software road atlas for Canada and South Africa, and isworking on a product that will map all the world's roadsystems.

Jeremy's MicroBatch Ice Creams

Entrepreneurs: Samuel Cohen, 21; Jeremy Kraus, 23; ThomasShelton, 22
Company/Description: Jeremy's MicroBatch Ice Creamsmakes superpremium ice cream.
Based: Philadelphia
Year Started: 1997
1998 Sales: $1 million
1999 Projections: $5 million

Purely Gen-X: "[Launching Jeremy's] was based ona deep-seated aversion to getting a real job. I just couldn'tdo it. So I said `I'll do anything--even make ice cream,'" explains Krause, the University of Pennsylvania graduate whostarted Jeremy's in his dorm room during his junior year. Notlong after, college buddies Samuel Cohen and Thomas Shelton joinedin.

Cashing in: Jeremy's attracted venture capital earlyon. "[But to start with,] I sold most of my securities andinvested in myself," says Kraus, who had parlayed money heearned selling water purifiers door-to-door in junior high intomore than $60,000 in investments.

The distinction: "There hasn't been asignificant innovation in the superpremium ice cream category inmore than 20 years," Kraus says. Until his long-held affectionfor beer maker Samuel Adams inspired Kraus to use the customizedtechniques of microbrewing, that is. "We contracted with alocal dairy to make ice cream to our specifications." Theresult? "We view ourselves as an innovative flavor houserather than the producer of any one variety of ice cream inperpetuity," says Kraus of his company's aggressiverotation schedule, which features such flavors as Cinnamon Bun andChocolate Overload.

Marketing 101: "The term `microbatch' conveys apowerful message to our target market very quickly," Kraussays. Look for the MicroBatch Mobile ("basically just awhacked-out, painted RV with the couches ripped out and ice creamfreezers instead") at a campus or mall event near you.Jeremy's is currently sold in more than 3,000 outlets.

The cold, hard facts: Boasting "full-fat,"Kraus says, "We have absolutely no plans for any low-fat orsorbet products. We're witnessing a throwback to indulgence,but people haven't been given a new reason to indulge in icecream. That's where we come in."

Manastash Inc.

Entrepreneur: Robert Jungmann, 29
Company/Description: Manastash Inc. makes hemp clothing andaccessories for outdoor enthusiasts, from rock climbers andkayakers to surfers and snowboarders.
Based: Seattle
Started: 1994
1998 Sales: $1 million
1999 Sales: $3 million

Search party: Jungmann, some friends and fellow hardcorerock climbers from Central Washington University were seekingclothing durable enough to withstand their weekend exploits."Nothing could keep up with us in the mountains. We werewearing out our clothing fast," Jungmann says.

Mrs. McKinney's attic: Enter Lana McKinney, themother of one of Jungmann's buddies, who used her attic sewingroom--and her personal interest in hemp as a functional fiber--tohelp Jungmann develop his initial products.

Road warriors: Armed with an environmentally friendlyfabric so tough it almost sold itself, after graduation, Jungmanand his hemp posse hit the road, attending trade shows,rock-climbing events, mountain bike races and Grateful Deadconcerts, where their fledging product line, led by the"Chenga wallet on a rope," hit it big.

Pay dirt: At a huge, outdoor retailer trade show in Renoin 1995, they met representatives of a Japanese company that laterplaced Manastash's first big order. As sales in Japanmushroomed, Jungmann looked for a way to make his products moreaffordable in the United States, where high hemp importing andmanufacturing costs relegated Manastash to only the most exclusivesportswear shops. Last October, Manastash moved his manufacturingsite from Seattle to China, enabling the business to lower U.S.prices by almost 35 percent.

Rock on: Now sold across the United States, Manatashproducts--from Tough Guy Pants to Boulder Paks--are worn as muchfor comfort and style as for functionality. "Many of our[customers] buy Manastash because it looks and feels good,"Jungmann says. "Then they get home and find out it's hemp.That's our dream: to get hemp [clothing] to themasses."

H3O Inc.

Entrepreneur: Jamison Humphrey, 26
Company/Description: H3O Inc. markets bottled water toGeneration X.
Based: Beckley, West Virginia
Started: 1994
1998 sales: $2 million
1999 projections: $7 million

Fountain of youth: "What makes H3O different is whoit's targeting: Generation X," says Humphrey. "Whenyou look at our competitors' [packaging], it's the same oldmountain, same old stream. We're not just another `me, too'item."

Bottle this: Humphrey differentiates his "ExtremeWater" with a purple, blue and yellow label, a narrow 20-ouncesize that fits in bike bottle holders, and a sports cap.Advertisements tout H3O as "barely legal."

Water works: A manufacturing facility is in the works(the company currently outsources manufacturing), as are moredrinks to round out the line. "We're developing newproducts to diversify into more of a total beverage company,"Humphrey says. Watch for a meal-replacement beverage geared towardbusy Gen Xers.

Under pressure: "My personal philosophy is, if youhit a wall, get back up and hit it again until you breakthrough," says Humphrey. The next walls he plans on breakingthrough? The 17 states left untouched by H3O, internationalmarkets, and an IPO in three to five years.

Palmentere Brothers Distributing

Entrepreneurs: Kevin Pereira, 29; Tom Riccardi, 26; MarkPereira, 28
Company/Description: Palmentere Brothers Distributingdistributes beverages.
Based: Kansas City, Missouri
Started: 1993
1998 Sales: $5 million
1999 Projections: $6 million-plus

Firm foundation: After college, Kevin (l.) and Mark (r.)Pereira, and childhood friend Tom Riccardi, purchased PalmentereBrothers, retaining the well-established company's name. Once ahighly profitable venture, the company had hit a slump. To rev upprofits, the trio set out to take the business back to its roots asa local distributor only.

With two broken-down trucks that had seen better days, a handfulof employees and lots of trial and error, the partners launchedwith a conservative fiscal approach: "We don't overextendourselves," says Mark. "We don't need the plush[offices] and toys. Those all come in time. You've got to crawlbefore you can walk."

The big score: In 1995, when another local distributorwent out of business, Palmentere Brothers acquired thecompany's vendors. Later that year, the trio expanded theirclientele beyond restaurants and convenience stores to add grocerychains to their conquests. Another competitor closed in 1997,clearing the way for Palmentere Brothers to dominate KansasCity's nonalcoholic distributorship scene.

Service calls: "The biggest thing we have [going forus] in competing against the big boys like Coke and Pepsi isservice," says Mark. Instead of the soft drink giants'minimum-order rules, Palmentere Brothers will deliver orders ofjust two cases.

Cheers: Today, "We've got vendors knocking onour doors and asking us to be their distributor, where in the pastwe were begging them," says Mark. "I can't picturemyself in any other business [because] I enjoy this one somuch."

Contact Sources

1-800 POSTCARDS, (212) 271-5505, ext. 600, http://www.1800postcards.com

Chicago Map Corp., (630) 257-7616, fax: (630)257-9678

Jeremy's MicroBatch Ice Creams, (215) 823-6885,http://www.microbatch.com

Manastash Inc., (800) 328-5166, manastash@earthlink.net

Palmentere Brothers Distributing, (816) 421-4486

Spin Master Toys, toys@spinmaster.com, http://www.spinmaster.com

Trash Bags, (213) 622-0718

Vervex Technologies, (800) 841-6621, larryr@vervex.com

Willowbee & Kent Travel Co., (617) 437-6700, http://www.willowbeekent.com

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