What does it take to start a solution provider business in this economy? Courage? Ambition? Capital? Sometimes, it simply takes a desire to invest in yourself, according to Andy Ernst.
Last summer, Ernst co-founded AdviStor, a storage-focused solution provider based in Fairport, N.Y. He and two other co-founders left their jobs at another storage company after deciding it was going in the wrong direction. Ernst and his colleagues decided they wanted a greater return on their work and effort. "We decided to invest in ourselves instead of working for another company and perhaps relocating," Ernst says. "We wanted to try starting our own business."
Thus, AdviStor, which is derived from "advice on storage," was born. The company, which now has half a dozen employees, offers integration and consulting services around NAS, SAN, backup and storage resource management technology to small and medium business as well as enterprises and government clients. With no venture capital, Ernst and his fellow founders scraped together enough personal wealth to get off the ground.
"It was twice as hard as I first expected to start a business, but it was worth it," Ernst says. "We've come a long way. We didn't pay ourselves for the first five months, but now we have 401(k) and benefits plans.
AdviStor's co-founders used their existing relationships with such vendors as Hitachi Data Systems, Veritas, StorageTek, EMC and Legato to offer a broad array of storage products at the new company. Ernst says along with taking a strong consulting service approach to storage, AdviStor is also working to differentiate itself through its customer relationships. "We felt like our former employer lost all feeling for customer service," Ernst says. "We think we're offering more of a personal touch with our clients."
Despite being small and young, Ernst believes AdviStor has a number of advantages. For one, starting the business in a recession has allowed Ernst and his fellow founders to get bargain basement prices on everything from office space, phone service and equipment. In addition, AdviStor has carved out a sweet spot for itself. "Storage is a growing market. Plus, there isn't a lot of storage coverage in our area [Western New York State]," Ernst says. "We figure if we can establish a foothold here, develop some good accounts and really watch the operational dollars, we'll be that much stronger when the economy turns around."
Curious about those entrepreneurs taking the plunge? Coming May 26 in VARBusiness Magazine: "A VAR Is Born."
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