By Chitra Esther Chelladurai & Donna Sweidan
LEE ZALBEN is a peanut butter connoisseur. Zalben, 38, had a dream of opening a restaurant to showcase his unique passion and talent of making outrageous but delicious PB&J concoctions. He began his career at a practical, safe magazine publishing job and then, soon realized that this wasn’t his passion nor his interest. At age 24, he liquidated his savings and took out loans, and at the age of 24 opened sandwich shop Peanut Butter & Co. Though his only restaurant experience was working at a frozen yogurt shop, he faced many obstacles which he overcame one by one. Listening was the key to his breakthrough success. To learn the ropes, he turned to others for input, learned quickly from what they had to say and eventually fueled his enormous creativity. His menu includes exotic sandwiches such as the Pregnant Lady, The Heat is On, and of course, the most famous Elvis. In 2003, Zalben decided to expand and have his homemade peanut butter available for purchase at grocery stores. The company’s products are now available at 15,000 stores around U.S. and Canada, including Whole Foods, Walmart and Target.
KAREN GRANDO FORAY is a wife and mother who was supporting her husband’s 1984’s skydiving accident where he ended up in a full-leg cast and she his chaffeur. While waiting in his office to drive him around Grando noticed that her husband—who owned a duct and pipe insulation firm in Woodside, Queens—was turning down customers requesting asbestos removal. Those frequent calls persuaded Grando to go into the asbestos-removal field herself and thought, “I can do this.” Unfazed by her lack of hands on experience, she believed that her accounting degree from Hofstra University, employment history, and her willingness to learn was enough to have her in good standing. After taking a training program and earning her licenses, her company, International Asbestos Removal Inc, was formed in 1987. IAR growing steadily from the beginning wasn’t enough for Grando, this led her to pursue certifications as a woman business enterprise in the early 1990’s. The firm won contracts from a slew of city and state agencies that still use her services, including the Metropolitan Transportation Authority, the School Construction Authority, and the Dormitory Authority of the state of New York. Thirsting for more work, she deployed WBE certification to bid for pipe and duct insulation, her spouse’s domain. “I wasn’t competing with my husband, since a percentage of a public contract has to be given to women contractors,” she said. True to form, Ms. Grando continues seeking opportunities.
MICHAEL KIRBAN’s most missed novelty of Brazil is coconut water. Mr. Kirban and his friend Mr. Liran decided that they could position coconut water as a new, trendy drink from back home. “We felt that coconut water could be as big a market as orange juice in the United States,” said Mr. Kirban. In 2004, they used $100,000 in savings to set up All Market Inc and developed the worldwide known Vita Coco coconut water beverage. Their big breakthrough was landing a contract with Whole Foods in New York, eventually leading them to start selling nationally. Vita Coco is now stocked at many Walmart and Costco locations. After hearing that Madonna is a Vita Coco, celebrities like Demi Moor and Matthew McConaughey have contributed about $10 million to the firm. The business, which is profitable, brings in $40 million in sales; the figure doubled between 2009 and 2010. Mr. Kirban states that, “We could have grown 300% last year if we had more coconuts.” Vita Coco has made over $200 million worth of donations to charities ranging from the American Heart Association to the Special Olympics.
ANTHONY CASALENA, student of University of Maryland, came to a realization when he was building his own site that integrating all of the disparate components –software of displaying photos, blogging, analytics, etc—was a cumbersome process. Thus, he created his own way of pulling all the pieces together in a seamless and headacheless manner. When friends started asking to use his program for their websites, he realized he had stumbled on a business opportunity: a one stop publishing platform. His program, Squarespace, enables clients to create high-quality websites and integrate other series which now include Flickr and Twitter. Casalena borrowed $30,000 from his father to purchase servers and then came to be the CEO of Squarespace. Clients include both individual bloggers and companies such as fashion firm Mark Ecko Enterprises and cosmetics retailer Kiehl’s. Squarespace has been profitable since 2005, posted 2010 sales of $10.2 million—up 95% from the year before. Squarespace got a big break in July 2010, when it earned one of the year’s largest rounds of venture capital in NY: $38.5 million in funding, led by Accel Partners and Index Ventures.
ROHIT ARORA, a former employee of Deloitte Consulting, discovered that small business loans made up banks’ most profitable portfolios, and that those serving ethnic-owned firms had the fewest defaults. With a long time desire to start a company and readily armed with these pieces of information Rohit and Ramit, his brother, were ready to challenge the financial world. However, the only replies they received were an earful about the lack of understanding immigrants have for the US banking and credit systems. To refute, the brothers developed Biz2Credit an immigrant-friendly online operation that eases access to commercial loans, credit reports and other financial products. Rohit serves as the the firm’s president while Rohit serves as the CEO—their vision has evolved into a 37-employee firm, headquartered in Manhattan. Biz2Credit has facilitated a total of $400 million in loans. Their clients? Medical practices, gas stations, restaurants, and franchises. Last year, as the credit crunch began to ease with the passage of the Small Business Jobs Act, Biz2Credit facilitated about 2,500 loans, 150% jump over in its 2009 figure. Revenues skyrocketed 100% to a profitable $1.8 billion, from $900,000. “Biz2Credit has created a platform that connects small business with lending institutions in a very innovative fashion that I haven’t seen in the market before,” said Dan Csont, chief marketing officer of Equifax Commercial Information Solutions.
MICHAEL DORF is trying to fill the void of winemaking in NYC by arranging for fresh-off-the-vine grapes to be express-shipped to Manhattan from the Finger Lakes, California, Oregon, even Chile. Customers who purchase certain memberships can make an entire barrel of wine under the tutelage of a master vintner. City Winery is also an event space: It both hosts its own concerts and tastings, and rents out the venue for private parties, wedding receptions and the like. After his legendary downtown venue the Knitting Factory went defunct, he spent a few years licking his wounds, hit his 40’s, got married, had kids, and became a wine aficionado. In 2008, he leased a 21,000 sq. ft. space at Hudson Square but his timing was terrible. By Christmas 2008, the company was nonexistent, a victim of the massive economic meltdown. After being forced to reevaluate his plan, City Winery is now selling its memberships to produce barrels of wine, which range from $5,000 to $15,000 per barrel.