After running small business and online operations for Hewlett-Packard and AOL, Dave Deasy wanted to make his own run at being an entrepreneur. He's the founder of MyFavoriteCity.com, a site that sells gift baskets containing food and souvenirs from cities throughout the United States.
In 2003 he used his own funds to finance the venture and started small, initially offering gifts and local foods from San Francisco and Pittsburgh.
Today, the Burlingame, CA company has expanded to 20 of the largest U.S. cities and offers local products from about five more.
The firm is on track to earn $1 million in revenue this year, Deasy said. “It's a huge market for gift baskets, but most companies just offer food.” He also decided to offer local souvenirs and travel guides to stand out from the pack.
The site is promoted through outbound telemarketing to existing customers, e-mail/postcard coupon mailings, and search (he's bought such keywords as “gift baskets,” “gifts” and “souvenirs”). But Deasy conceded that he's nowhere near the top of the rankings, thanks to heated competition in those niches.
Going forward, the company may look into producing a small catalog. And overall, Deasy feels the future is bright. Having experienced 50% year-over-year growth rates recently, he thinks the business possibly could top $2 million in annual revenue by the end of 2007.
