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Small Business Spotlight: Digitaria Interactive Inc.

Many small-business owners have begrudgingly taken work home with them, but not Daniel Khabie. A founding partner of Digitaria Interactive Inc., Khabie enjoys keeping work on his mind.

“I love taking it home with me every night,” said the 33-year-old. “I think, in general, my personality thrives most in pressure situations.”

Digitaria is a digital marketing and technology firm based in downtown San Diego. Last year, company revenue totaled $4.2 million, double 2004’s revenue.

The company continues to grow this year with the recent acquisition of Console, a Los Angeles-based application management firm. Digitaria paid $3.6 million in stock and cash for Console, which Khabie said is the “best investment ever” because it decreases Digitaria’s need for outsourcing and includes a Los Angeles office.

Acquiring Console also means Digitaria acquires its impressive client list, which includes General Electric, NBC Universal, Bravo and the San Diego Zoo. Digitaria’s existing clients include CBS, Fox, Carlsbad-based Taylor Made, Best Western International, Carlsbad-based Invitrogen Corp. and San Diego-based Qualcomm Inc.

Before launching Digitaria in 1997, Khabie worked in telecom sales and helped clients build network systems. Khabie said the more he learned about telecom technology, the more he began to wonder about what content could be spread across it, and that led him to interactive marketing and Digitaria.

“I think in general you get to create a company that you’d want to be an employee of; I think that’s the biggest thing,” Khabie said, referring to the satisfaction he derives from being the boss.

Growing up in a family of five children, Khabie hadn’t always had the luxury of being boss. But he said he owes his success to a never give up, never settle attitude taught to him by his family at an early age.

“Not achieving your goals was something that didn’t exist in my home,” Khabie said.

With two of his siblings surgeons, one an attorney and the fourth an executive in the fashion industry, Khabie jokes he’s the least successful of the bunch. But he also confesses to having confidence, which can’t be learned in business school. He says he owes it all to his family for their unwavering support.


VITALS

Name: Daniel Khabie.

Title: Chief executive officer.

Company: Digitaria Interactive Inc.

Company address: 533 F St., third floor, San Diego.

Company phone: (619) 237-5552, Ext. 324.

Year founded: 1997.

Prior business experience: Vice president of business development for Digitaria, business development for Inspired Arts, business development for Telco Communication.

Average hours worked weekly: Never stop, at least that is what my wife says.

Source of startup capital: $100,000 loan.

2005 revenue: $4.2 million.

2004 revenue: $2.1 million.

Number of employees: 38.

Web site: www.digitaria.com.


BACKGROUND

Birthplace: Minneapolis.

Education: Bachelor’s degree from the University of Maryland.

Age: 33.

Current residence: Scripps Ranch.

Family: Wife, Melanie Khabie; children, Mara, 5, and Lily, 2.

Hobbies: Basketball, golf and strolling in Balboa Park with the kids.


JUDGMENT CALLS

Reason for getting into business: Have a huge passion for transformation and the Web has transformed the way we do things today.

How I plan to grow the business: Through organic growth and acquisition.

Biggest plus of business ownership: You get a chance to build a great company that you would want to work for.

Biggest drawback: You can never stop thinking about work.

Biggest business strength: Creative and technology service offerings.

Biggest business weakness: Not having access to large talent pools.

Biggest risk: Not evolving.

Smartest business decision: Acquiring Console this year.

Biggest business mistake: Over-complicating the business at times.

Toughest career decision: Getting into interactive marketing when the market was so new.

Biggest ongoing challenge: Balancing work and family.

The most important part of my business: The people.

My business works best when: I delegate.

Best way to stay competitive: Hire the best people and listen to them.

How I measure success: Positive feedback from our clients, our employees and our peers.


GOALS

Goals yet to be achieved: Having an office in New York.

My five-year business plan: To become the leader in digital marketing and technology services.

I would sell my business only if: It made sense.

Guiding principles I will continue to follow: Keep things simple.

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