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COVER STORY: How Cool's Groovy Guru

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COVER STORY: How Cool's Groovy Guru
By: Matt Munoz, Bakotopia Editor
Description: Dropping out to create a net empire, Bakersfield’s Jim Stidham focused on the unconventional for success

Topics: Stidham, HowCool.com, Bakersfield, Bakotopia, howcool, Magazine, November 2007, Internet Business, Shoppe, blog, music, merchandise, Rockabilly, Tattoos
Posted by matt Tue Nov 27, 2007 16:58:22 PST
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0 responses 1 comment
Location: 1912 Chester Ave., Bakersfield, CA 93301

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How Cool’s Groovy Guru
Dropping out to create a net empire, Bakersfield’s Jim Stidham focused on the unconventional for success

(HowCool Owner - Jim Stidham)

By Matt Muñoz, Bakotopia Editor

Bakersfield's Jim Stidham knew he was gambling with his future when he dropped out of college.

As the owner of Bakersfield’s HowCool.com and storefront that bears the same name, the mild-mannered founder of the hugely successful local independent business was a senior at CSUB when he decided to put the books away and seek his fortune online in ’97.

“The original Web site started as a senior project,” said Stidham, 44, sitting at a conference room table inside HowCool.com - The Web Complex, located near Lake Ming in Bakersfield. “I never graduated from college. Once I got involved with the project, I left.”

“The project” was a small online boutique named www.jeannienitro.com, an early version of the punk/goth/alternative clothing and shoe cyberstore, now familiar to Web shoppers worldwide.


(HowCool Owner - Jim Stidham)

Stidham was friends with clothing designer Jeannie Nitro and offered to help run the site, making commission off sales and learning the ways of Internet commerce - still in its infancy and open to free-thinking ideas.

“I started out selling women’s goth-style shoes,” explained Stidham. “I used to head down to the Garment District in Los Angeles, and buy some of the popular shoes - then we'd turn around and sell them online. After awhile, I decided to start my own site based on Jeannie Nitro.”

After leaving Nitro to venture out on his own, Stidham took what he learned and expanded on the original Nitro business model - trendy clothes for the young, hip crowds flocking to computers.


(Owner Jim Stidham, front, and the staff at HowCool.com - The Web Complex.)

“I started out as a footwear company,” he said. “I needed a name and Web address. Since there wasn't much online, there were also a lot of domain names available.”
The dot com boom was in full swing back in ’98, so Stidham put his plan in motion, but needed a name catchy enough to attract Web surfers. Caught up in the moment, he put together a list of possible names - all with word “cool” in the mix for easy search.

“Cool.com was taken, and TooCool.com, SoCool.com, but HowCool.com was available, so I took it right away,” he said.

Live and ready for business, the original HowCool.com Web site launched in July of ’98 without any local fanfare or eye-catching graphics. Afterall, this was the ’90s, and computer geeks everywhere were just beginning to be churned out of college.

“There was only HTML at the time,” explained Stidham of the available graphic code and process being used at the time. 

The term “HTML” stands for Hypertext Markup Language, and is one of the standard codes still used today.

“There were no Web design courses at the time,” he said on being self-taught. “I just learned on my own and read some books that were available.”

Using his Bakersfield home as an office, Stidham started as a one-man operation, handling all duties.

“Originally, I did everything myself - ordering, purchasing, postage, all of it..,” he said.
In 1999, and with a small return on his investment coming in, Stidham had the idea of bringing HowCool into the community - still operating online, but expanding as a storefront.

Hiring his first employee, he opened his first HowCool.com - The Shoppe on Eye St. in downtown Bakersfield. The venture was shortlived, business went back to the net, and to his home after the store’s doors closed a year later.

The experience didn't deter Stidham from continuing and setting his sites on a bigger future, but the pressure of small business did have its moments - including bankruptcy.

“I try to keep my long-term goals going,” he said. “We would do what we could with our limited resources. There was a time I really wanted to walk away and quit, but I just couldn't.”

Maxing out credit cards to pay the bills like so many other young enterprisers, Stidham was determined to keep HowCool afloat. With a house full of merchandise, and sales streaming in by the hour, his staff grew to eight.


(Jesus Tape: Rebekka Haas of HowCool.com)

This posed a problem for Stidham, as it was impossible to separate work from home life.

“I hired friends of friends, because it was weird to ask strangers who applied for the job to come to your house,” he laughed.

The solution? Move HowCool headquarters to a small shopping center on the corner of River Boulevard and Panorama Drive to get his privacy back in 2004.

With more brisk receipts, another phase of growth was on the horizon, and it was time for Stidham and crew to move to 6200 Lake Ming Road, site of the current Web complex, in 2005.

“We originally had one building here with a limited number of rooms for storage,” he said. “But we grew and grew, and grew again.”

Taking over a majority of the multi-suite building, the HowCool Web Complex at Lake Ming is a series of rooms - each serving its own purpose: shipping/ receiving, inventory, Web population, Web and graphic design, programming, customer service, order processing, and marketing.

The number of employees soon grew to 35.

“The Wweb is growing so fast, but our business is just great,” he said in a noticeably more upbeat tone. “And our international sales have been awesome.”

With the value of the U.S. dollar wavering constantly, international shoppers have found a new home at HowCool.com.

“For European communities like France, Germany, and the UK - we're a bargain,” said Stidham.

Sharing some high profit numbers, Stidham chose not to publicly give too much information on just how well the business is doing.

But judging by the packed complex - with rooms lined with everything from rock T-shirts, novelty items, sexy lingerie, men’s and women’s clothes and shoes heading in and out to customers, there’s no doubt things are much “cooler” than they were in ’98.

Making another go round at the storefront idea, HowCool.com - The Shoppe re-opened its doors, twice, on Eye Street once again - then to their current location at 1912 Chester Ave.


(HowCool.com - The Shoppe, 1912 Chester Ave.)

Unlike the previous two attempts, the current location has been showing signs of profit, even after Halloween - the company’s biggest time of the year.

“The store is not as profitable as online,” explained Stidham. “But it’s a way to learn, as we use it as a model for growth.”


(Inside HowCool.com - The Shoppe, 1912 Chester Ave.)

Yes, Stidham remains intent on spreading the HowCool name to another market - the mall and possibly even a chain of stores.

“I wanna get a really good feel before I go to a mall,” he said. “I've borrowed a little bit from Hot Topic on how to keep the business going.”


(Inside HowCool.com - The Shoppe, 1912 Chester Ave.)

An important facet to the success of HowCool is in the area of health and employee satisfaction. Not only does the company pay 90 percent of health insurance costs, but offers a wellness program that includes yoga, weight training, Tae Kwon Do - even sports like volleyball, kickball, and bike riding.


(Chuck who? - Jonah of HowCool.com)

“I took a class at CSUB called “Economics of the Pacific Rim,” said Stidham. “I was interested in how Japan and Korean businesses focused on the employee/employer relationship. It’s more group oriented than just being an individual.”

Group fitness sessions are offered daily, but not required by Stidham.

“I encourage it, but upon approval I pretty much allow anything that will serve the best interests of my employees,” he said. “If business is doing well, we should share that around the company.”

And don’t forget the pampered company pets - Bettie and Aiko, often seen wandering the halls in search of doggie treats.

Cavin Lyons, 30, a six-year employee at How Cool, has experienced first hand the ups and downs of running a fiercely independent business from the ground up, and is content exactly where he sits.

So what keeps him clocking in?

“It’s been kind of scary,” said Lyons of the perils of keeping a small business afloat. “But lately it’s been great to see how the company’s grown. It beats any other job I’ve had. People who’ve left always end up coming back.”

With more unconventional ideas for success up his sleeve in the future, Stidham often thinks about what other business people may think of him - taking it all in stride.

“People think I'm crazy,” laughed Stidham. “A lot of people thought Bill Gates was, too.”

1912 Chester Avenue. - downtown Bakersfield
661-322-3444

On the web: www.howcool.com

Originally printed in Bakotopia Magazine, Issue 16, 11 - 28 - 07
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Comment From: seafaire

Tue Nov 27, 2007 22:33:19 PST
THIS IS THE WAY IT SHOULD BE! As a ten year veteran of working retail I can tell you that bag searches, "shrink" Nazi enforcers and other anti-employee practices really don't work and create such a hostile environment. Maybe when I grow up I can work at How Cool too. Great story. xxoocf
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