Lawyer Declares War On Termites

Pete Cardillo Story

http://www.cardillolaw.com

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Lawyer Pete Cardillo can still remember the horror of lying in bed one night while termites gnawed his house out from under him. "They were eating into the floorboards and eating toward me," he says. Thankfully, that was just a nightmare. But such scenarios have now entered Cardillo's daily life.



Sixteen months ago Cardillo, 48, left his post as a managing partner in the Tampa office of Pittsburgh-based Buchanan Ingersoll, one of the country's largest law firms, and opened his own practice exclusively dedicated to termite litigation. In 2005, Tampa-based Cardillo Law brought in revenues of about $550,000, with profits of an estimated $400,000. Cardillo goes after large extermination companies that he believes fail to detect or remove termites, and insurers that refuse to pay for damage.

He is busy; subterranean termites cause more than $2 billion in property damage each year in the U.S., and that number is expected to rise, in part because of the growth of an especially aggressive termite species.

A lawyer for 22 years, Cardillo began his "termite odyssey" in 1996 when, on behalf of a real estate developer, he brought a claim against extermination giant Orkin, charging that the company did not deliver on its promises and was unresponsive to his client. Orkin settled. Cardillo currently has 25 active cases--most are multimillion-dollar suits on behalf of developers and condominium associations.

One lawsuit, expected to go to jury trial in July, charges that Orkin falsely advertised a guarantee to prevent and stop termites. (In fact, the bugs in question ate through the outer walls of a condo complex until the stucco fell off in chunks, according to Cardillo.)

Another action accuses Orkin of forgery and racketeering and seeks $60 million in damages. (The balconies were so eaten away that residents had to vacate for emergency repair work--and, evoking images from Cardillo's nightmare, the bugs also built a mound under one apartment dweller's bed.) Orkin spokesperson Martha Craft declined to comment on any of the specific cases.

But she emphasized that "less than 1% of Orkin's termite customers file claims. Of those claims, well over 98% are resolved to the customer's satisfaction without setting foot in a courtroom." Cardillo is also taking on insurance companies for not giving their customers the right coverage on properties that have been ravaged by wood-eating insects.

Cardillo charges $400 an hour, but most often he works on contingency, earning 50% of the final settlement. His niche demands some pricey--and unusual--expenses. An entomologist (who provides expert advice and testimony on insects) costs him $13,000 a year. He pays $35,000 to a structural engineer, who helps "prove the state of collapse" and offers repair estimates. Then there is the $36,000 bill from a contractor who cuts holes in termite-infested buildings to expose the damage. Such expenses will probably be reimbursed by his client.

While most of Cardillo's cases are in Florida--where extermination ranks among the largest industries--he plans to expand farther into the "termite belt," which snakes south from Virginia to Texas. Cardillo pledges to fight the steely-jawed pests--and those who falsely vow to eliminate them--wherever they are. "When you find out how evil and powerful termites are," he says, "they creep into your subconscious."

Helping Yourself By Helping Others Get $750 Million Worth Of New Contracts

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Lost Election Makes Man a Multimillionaire

Laura Ricci Story

http://www.1ricci.com/

At a time when few consultants used the Web, Laura Ricci dared to start a company that required customers to work with her virtually.

After 20 years helping engineers and scientists win government grants, Laura Ricci knew two things. She knew she hated flying all over the country to client sites, where she would spend days or weeks advising technical teams about how to write their funding proposals. And she knew that her customers used the Internet -- and had, in fact, been using it long before the World Wide Web bounded onto center stage.



So in 1996, Ricci decided to launch a grant-writing consulting company from a spare room in her home. She would do practically all her work there, posting customized training manuals on a Web site and FTP-ing proposal drafts for both sides to mark up. Vendors, contract employees, and even customers would be required to work with her virtually. Face-to-face interaction would be almost eliminated. "It was an experiment," says Ricci. "I was designing against being a road warrior."

The first virtual project Ricci managed was the construction of her own Web site by a developer in Albany, N.Y., that she had never met. She also took advantage of her early-mover status by snagging free prime placement in the consultant and marketing categories of Yahoo.

But Ricci's temerity was most evident in what she didn't do. She refused, under any circumstances, to print brochures. "If people ask me what services I offer, I refer them to the Web. If they insist on a brochure, they're not worth pursuing," she says. In fact, in 1999 she broke off talks with a large computer company -- one with a growing E-business specialty, no less -- because it required printed marketing material.

On the other hand, companies like Radian International and Lockheed Martin have been more than happy to play by Ricci's rules. "Lockheed Martin is a big organization with a massive bureaucracy around contracting with new people," says Ricci. "Yet it made a decision to pick me based on the Web site alone. That proves this can be done."

And done it is. Since she started, Ricci helped your clients get $750 million worth of grants and new contracts.

Lost Election Makes Man A Multimillionaire

John Zogby Story

http://www.zogby.com/

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In 1981, John Zogby, a 33-year-old history professor and founder of the Utica Citizen's Lobby, decided to add another credential to his resume: mayor of Utica, N.Y. Then a curious thing happened: He lost, but he knew beforehand how much he would lose by. He and his students had conducted a preelection poll that showed him getting 14% to 15% of the vote. And that, says Zogby, is exactly what he got.



As a smart guy who knows how to capitalize on success, Zogby gave up office-seeking and turned to polling. In the years following, Zogby International grew to an organization with 52 full-time employees, $5 million in annual sales, political and corporate clients of all stripes, offices in Washington, D.C., and Utica, and an international reputation fostered by the founder's knack for spotting opportunities, taking risks, and calling the cards right.

Zogby International is currently polling the 2004 presidential race for NBC News and Reuters and conducting statewide and national polls for the Miami Herald, the Toledo Blade, and the Atlanta Journal-Constitution.

Here is his story:

I truly backed into this business. I was a history professor and a liberal political activist. All that merged when I ran for mayor in the Democratic primary in Utica, where I was born and raised. After my loss there, I went to work for a national Arab American organization with my brother Jim. A number of us had some philosophical differences with the chairman of the board and were fired on September 10, 1984. Two days later, on September 12, I became an independent political and fundraising consultant with one client, a Forbes 400-type character from Boston named Sam Phillips. Ten weeks later, Sam Phillips dropped dead at the age of 54.

These setbacks reinforced what I had learned at home from my father, a Lebanese immigrant who worked with his brothers in their grocery store 7 a.m. to 7 p.m., six days of the week. He taught me that a man can do anything he wants to do. He also taught me that if the customer wants it, find a way to do it.

To survive I had to branch out into retail advertising, public relations, and nonprofit agencies. Then, in 1987, I made a momentous decision, though it may not sound like it. I decided to poll the households of Watertown, N.Y. The Army had decided to expand Fort Drum, moving in the 10th Mountain Division, which meant bringing 10,000 personnel and 20,000 civilians into a declining region. It was the most dramatic story in upstate New York in the 1980s.

The Fort Drum steering council, a public-private consortium, underwrote quarterly household surveys. We wanted to know whether the newcomers were voters, had ever marched in a demonstration. When they shopped, did they look for certain brands of cereal, soft drinks, detergent -- or did they buy on sale? I began doing studies for housing developers, shopping malls. There were plans to build townhouses, but that was a complete bomb. Our surveys showed that when people move to a place where there is a lot of land, they want a house with a yard.

I couldn't compete in Washington in the '80s, so I took the blue highways approach, going into local communities that had never done polling and capturing the imagination of the local media.

The next benchmark came in 1991 when we decided to launch -- out of pocket -- a statewide Zogby poll. Well, I say I funded the poll out of pocket, but I didn't have anything in my pocket. There was only one other statewide poll in the Empire State. The timing was perfect. Our poll in early December showed that President Bush would defeat Mario Cuomo, then governor, even in New York State. The poll came out the day before Cuomo's plane would fly him from Albany to New Hampshire to file. Cuomo decided not to go.

In 1996, after we got all the political primaries right, I got a call from Reuters. We went on to produce the Reuters-Zogby Poll. Now the whole world is watching, and we get the Clinton-Dole race right, with the least margin of error. We said Clinton would win by 8.1%. The actual margin ended up at 8.4.

In polling, you need to ask the kinds of questions that will determine what is important to people. In 2000, we were polling 10 states and the nation as a whole for Reuters and NBC. Whenever Gore would go up in the national, he'd go down in the battleground states. Same with Bush. Tim Russert asked me, "How can this be?" I had headquarters add a new question to the poll: You live in the Land of Oz. There is an election for mayor between the Tin Man, who has all brains and no heart, and the Scarecrow, who is all heart and no brains. The next day, Gore and Bush were almost tied. But, more importantly, the Tin Man and Scarecrow were tied, 46.2 to 46.2. That told me everything.

Most polling is still done by phone, but it's now taking a lot more phone calls to get a sample. The Do Not Call Registry doesn't affect us, but it's indirectly killing us. It emboldens people to hang up. For the presidential race we're going to do all 50 states interactively. By getting e-mail addresses of a representative sample of the electorate, we can invite 50,000 to 100,000 people to participate at once. In seconds, we can have 1,000 responses.

I want to be the Gallup of my generation, the household word, the generic. I have plans to make this a $40 million corporation, partly by pursuing licensing agreements with partners around the world. We're getting ready to poll Swaziland. We've completed Botswana and Malawi. Most of these polls are corporate-sponsored. We want to know the investment climate, the path to reform.

Once I was a very liberal professor activist, and I saw a political career for myself. But I managed to be cured of that disease.

Making Millions Cleaning Other People Garages

Marc Shuman Story

http://www.garagetek.com/

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GarageTek was a no-brainer when Shuman founded it in 2000. He got the idea when he and his father, with whom he outfitted department store interiors, designed and built a set of slotted wall panels with moveable shelves for a retail client. When several of his employees began using the panel systems to organize their own garages and basements, Shuman realized he had a potential hit on his hands. And the timing seemed perfect: The housing market was heating up, garages were getting bigger, and closet organizers were all the rage. Shuman decided to sell the display business and open GarageTek.



Rather than simply selling the panels at home-improvement stores, Shuman decided to build a garage-makeover business. GarageTek would perform in-home consultations, then design and install the systems--complete with shelves, cabinets, bike racks, and work benches. Homeowners, Shuman figured, were likely to pay a premium for the service. The biggest risk was competition. After all, anyone could have the same idea. But if Shuman could establish a foothold in markets around the country, GarageTek had a better chance of survival. Franchising seemed like the best way to pull off such an ambitious expansion.

In early 2001, Shuman placed an ad soliciting franchisees in The Wall Street Journal, and phone calls poured in. His attorney advised him to choose carefully. But Shuman, eager to get started, approved anyone with a business background, a $25,000 franchise fee, and $200,000--which, according to Shuman's calculations, was enough to purchase supplies, buy newspaper ads, and turn a profit within 18 months. Each franchise would pay GarageTek 8 percent of annual sales, a portion of which would help fund national advertising campaigns. In exchange, they received three days of basic training and a manual written by Shuman. "If they had the money and they had a strong sales and marketing background, we felt they were qualified," Shuman says.

At first, everything seemed to go according to plan. In the first half of 2001, GarageTek franchises opened in Connecticut, New Jersey, and New York. By 2003, 57 franchises had sprung up in 33 states, and annual revenue at the corporate office was on track to top $12 million. That summer, however, Shuman began to realize that while many franchises were thriving, 15 were struggling.

He and his team moved quickly to correct their mistakes. The first step was to create more stringent criteria for new franchisees. To pass the initial screening, candidates now need a net worth of $1 million, with at least $250,000 in liquid assets; their proposed territories must boast at least 250,000 single-family homes, occupied by owners. They're also required to run the franchises themselves. GarageTek also decided to administer a 350-question personality test, looking for candidates with traits similar to GarageTek's top performers, who tend to be enterprising and not overly accommodating--a sign of independence. Finally, all candidates fly to New York to meet with Shuman and his corporate team. To identify problems early on, he installed software that enables him to track each franchise's financial performance.

So far, the strategy seems to be working. In 2005, GarageTek's sales jumped 33 percent, to $20 million, even though the company had 21 fewer franchises than in 2004. Now that he has a streamlined system in place, Shuman plans to add 55 new franchises during the next few years, for a total of 100. But he admits that he has more to learn. "We're not, by any stretch, done," he says.

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