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When resounding thuds erupted from the Omaha, Nebraska, officesof online gift-certificate business Giftpoint.com Inc., I askedowners (and siblings) Doug Nielsen and Julie Mahloch if amidinterview squabble had ensued. They assured me the ruckus in thebackground was only the construction work being done on their newoffice, but Nielsen, 32, did admit, "If we don't fightonce a day, we know we're not doing much."
Hardly rivaling Jerry Springer dysfunction, thisbrother/sister team's occasional tension stems from too manybrilliant ideas, according to Mahloch, 30. But having been inbusiness together since 1991 with anentertainment-coupon-book-turned-direct-mail venture, they'recertainly tuned in to each other's roles. "He's thebig-thinker, big-picture guy," she says, "and I jump in,start dialing the phone and talk to retailers."
Because the partners use consumer input to decide how toincrease their gift-certificate offerings, from restaurants toapparel stores to airlines, by the time you read this, they willhave transformed this 35-employee start-up into an "absolutelygigantic" enterprise. Among the first to sign on forGiftpoint.com's launch last December were Sharper Image, TheOlive Garden, Barnes & Noble and American Eagle Outfitters.Upwards of 300 retailer partnerships are expected by the new year,with expansion to include malls and large discount chains leadingthe growth.
Described by Nielsen as "the biggest no-brainer of theyear," all it took to think up the concept was a zero-resultssearch when the pair tried to buy a gift certificate online fortheir mother's birthday last summer. By decreasing paperworkfor efficiency-minded retail companies and saving anti-queuecustomers time, the former business students easily filled awide-open niche with the help of angel financing.
Now, in addition to its reminder service and the option forcustomers to send virtual gift certificates with free e-greetingsor deliver the real-life version to the recipient, Giftpoint.comhas added extra gift stock. Providing an end-to-end solution forretailers that want gift certificates sold from Giftpoint.com orwant to do so from their own sites is also helping strengthen thecompany's brand.
Nielsen and Mahloch aren't just proud of their success, butalso their success in Omaha. Says Mahloch, "We're theSilicon Prairie here."
Clothes Call
Laura Eisman isn't one of those people who "justknew" she'd own her own business one day. A graphicdesigner by trade, she was busy as senior designer helping developthe look of Marie Claire magazine during its start-up, andlater serving as creative director for women's online communityiVillage.com. It wasn't until she got a little too comfortablewith the latter job's pay and security that she decided to takea chance with Girlshop Inc. (known to Net shoppers asGirlshop.com), the godsend to girls wanting that New York-hipsterlook.
Although Eisman was armed with press contacts, her designerconnections where nonexistent. To be on the safe side, she designedWeb sites on a freelance basis while developing a demo to win overdesigners like Cynthia Rowley and Pixie Yates, whom she cold-calledto pitch her idea. The pay cut Eisman took to pursue the New YorkCity venture pinched a bit, but "once you do it, you realizehow little you can live on," she says. "I didn't goshopping for at least a year, [so] I [wore] a lot of vintageclothing when I went to see designers."
Eisman launched Girlshop.com last June with just $10,000 of herown money. Immediate hiring wasn't necessary, since she wasskilled in HTML. A month later, The New YorkTimes"Style" section gave Eisman her first write-up, andorders flooded in. Soon she had her boyfriend, Todd Richter, designa database system to assist with order fulfillment. He's nowher partner.
At press time, Girlshop.com's sales were reaching $150,000 amonth, justifying Guyshop.com's launch in July 1999. Comingsoon are shops offering kids' clothing and home decor. Tofurther solidify her name in fashion, Eisman, 34, provideswardrobes for films and hopes to sponsor fashion shows and have afashion-based TV show one day.
As for dismissing a business idea with potential just becauseyou think it'd be silly to dismiss stability along with it,Eisman says, "You can always go and get a job. [Starting abusiness] is a real accomplishment."
