CableOrganizer Gets Users Untwisted

In less than five years, Paul Holstein has gone from having a messy work space to heading an $8 million business.

When Holstein — a former consultant at Computer Sciences Corp. — couldn't find products online to help tidy up the tangle of computer cables on his desk, he saw an opportunity for a new business. In early 2002, he bought the domain name CableOrganizer.com and began the business with his wife. Today, it has more than 25 employees.

The site offers several thousand products such as wire looms, cord protectors and braided sleeving. Besides marketing online, the Fort Lauderdale, FL company also mails 24-page catalogs targeting the computer networking, automotive and home theater industries, among others.

Growth was slow at first. “We didn't make a sale until April, then we made eight in May and 20 by June,” Holstein said.

But CableOrganizer got a big break when it was approved to sell products through GSAAdvantage.gov, the General Services Administration's Web site through which all federal agencies — including the military — purchase inexpensive goods.

From that, the company was able to build a sizable following, not only from federal organizations but local and state governments and school districts.

Holstein estimates that 40% of CableOrganizer's business comes from the government sector. “We sell to anybody that's interested in safety,” he said.

Just the same, he admits there's nothing on the site that isn't available everywhere else. So Holstein puts an emphasis on customer service. And he concedes the business conditions right now are rather rigorous.

“It was a lot easier in 2002,” he said, lamenting that Google is quite demanding in how it ranks companies for prominent search placement. “I wouldn't want to be starting out today.”

Going forward, Holstein hopes to clear $12 million by the end of next year and plans to nearly quadruple warehouse space to 50,000 square feet. He's also toying with the idea of actually selling cables, a logical extension of all the accessories the site currently purveys.

“That's the one area we're currently not into,” he said.