In challenging market, Waukesha-based Comstar shining for national, local clients
In 1991, Jeffery Kirk hardly had a vision for a budding technology firm. The former software engineer for GE Medical systems was more interested in leaving his job and exploring the fledging field of technology on his own terms.
Enlisting the help of a few college friends, Kirk launched Comstar LLC, a growing firm that has managed to dodge the dollar doldrums faced by many e.business companies in the 21st century. Now Kirk, along with partners Joseph Como Jr. and Robert Knecht, are operating one of the most cutting-edge tech firms in the state.
What’s the secret? Kirk, 37, calls his company of nine employees "a marriage of technology and tradition." While Comstar started as a straight tech firm in 1991 and began its Internet service provider service in 1995, Comstar now offers the integrated services of marketing, public relations and graphic design to its clients.
"For one thing, we do things right the first time," said Traci Huntemann-Piat, manager of public relations and marketing. "We’ve made it a business to clean up other people’s work."
While many traditional consulting firms tacked on tech services and Web development to their office operations, Comstar has worked in the opposite direction. The firm has always specialized in technical advancement, but added on the basic elements of marketing strategies to its service list in 2000.
Since then, the company has seen as much as a 130% increase in its annual profits.
"When it comes down to it, the primary reason for our growth and success is customer satisfaction," Kirk said. "Customers not only continue to come back to Comstar with additional projects, but they send other businesses to us because we provide them with everything they need."
Smooth currents
H2 Cool, a bottled water distributor based in Atlanta, Chicago and Cleveland, is interested in turning the water industry right side up. The company has designed a breakthrough water cooler that places the bottle below, instead of above, the spigots.
H2 Cool’s innovated engineering meant providing innovative intranet Web services to its internal administrative network. That’s why it scouted out Comstar to provide reliable, custom Web service to its employees.
"We formerly worked with Oracle on developing our internal administrative Web site," said Tim Morris, sales director for H2 Cool. Morris said the large size of Oracle’s staff made it impossible for the company to receive the individual, personalized attention it desired for its intricate interface network. And adding any modifications to the site also required a lot of paperwork, he said.
"We had the Titanic and what we needed was a sailboat," Morris said of contracting the large tech firm.
By hiring Comstar, H2 Cool found a lot more than smooth sailing. Morris said the company offered competitive pricing, prompt customer service, and "flawless" Web hosting capabilities.
But Greg Eggold, Comstar’s director of Web technologies, said good e.business strategies must look beyond creating and administering Web sites. At the onslaught of the technology boom, Eggold said many firms were either failing to look beyond Web development, or investing too much money on new technology trends before looking at their cost-effectiveness.
"At the start, people were thinking, ‘If I build a Web site, I’m going to be rich’," Eggold said. With many tech firms limiting their service capabilities, Comstar knew it was time to take the lead. "It became painfully obvious to us that we have to offer these other, traditional services," he said.
Money matters
Balancing investments in new technology also plays a factor in a firm’s success, Eggold said. DSL Internet service, for example, caused local tech firms like Covad and Wisconsin DSL to lose their financial shirts when they attempted to cash in on the latest trends.
"We backed off the whole DSL surge, and most of the companies that didn’t are now bankrupt" said Eggold. He cited the success of Time Warner Cable’s Roadrunner as tough competition for small business markets.
"The amount of money you have to sink in to get into that game is just incredible," Eggold said.
Kirk said he is more interested in developing his firm at a steady growth rate. The company recently added an employee to its sales and marketing, and plans to add two more tech support employees before the end of the year.
"Tech firms are really going to have to adapt," Kirk said of the future of his company. The quick changes in new information calls for firms to make wise choices on when and when not to invest.
Comstar touted its calculated entry into the satellite technology before it launched StarBand, its latest ISP service. As an alternative to dial-up and DSL service, StarBand is powered by use of a two-way satellite.
"Companies will have to look at when they will embrace technology and when they’re going to run away," Kirk said.
Regardless of how companies invest, Eggold said it’s important for shareholders to keep reinvesting money into their businesses rather than relying on venture capital. He said Comstar is unique in the way it operates on no outside venture capital.
"Our goal is not to grow," Kirk said his firm. "Our goal is to do business right, and then we’ll naturally grow."
In-house bond
Comstar’s Waukesha office is growing right along with its success. The company recently expanded its quarters, as the cubicles overflow with an air of creative excitement. Even the righthanded graphic designers work their mouses with their left hands to boost creative energy.
Amid the progress, mothers and fathers stay busy balancing the needs of their clients with the needs of their kids. Most staff members have children who are under 10 years old, and schedule their work time accordingly.
"The dynamics of our group is exceptional," Huntemann-Piatt said on success. By understanding the needs of their co-workers, she said the staff is able to keep working together to provide innovative, and friendly, services to all of their clients.
Despite the friendly nature, Comstar remains serious about providing exceptional service. Dubbing themselves "customer-centric," the staff relies on much of its business from referrals and word of mouth. Its reputation has earned the company and its employees respect among the local community. Como was recently elected as a member of the Waukesha School Board, and Eggold plays in a rock band with one his clients.
"That’s how we hired them," said Scott Scheu, systems coordinator for Delzer Lithograph and a Comstar client. Comstar has designed the company’s Web sites and supports its operation.
"Knowing Greg on a personal level, Comstar already had an idea of what we wanted to do," Scheu said.
Comstar recently engaged its first major sports sponsorship when it signed on as a sponsor for WTMJ/Brewers Radio "Question of the Game" promotion.
"We’ve seen a lot of companies grow faster than we have," Kirk said of the company’s growing presence in the technology field. "Most of them are the ones who are now out of the game."
May 24, 2002 Small Business Times, Milwaukee
