Harrop is a text book entrepreneurial success story. Since starting Interlog in 1994 he's "done it all". In just four years he has launched a company, grown it successfully, and sold the business to a larger American corporation. Along the road to success, growth management, customer service, and accessing capital have been three recurring themes for Harrop. Here's his story.

The Young Entrepreneur

Harrop laughs at the idea that a book might have helped him start and run his own business.

The young entrepreneur, who dropped out of high school in his late teens, built Interlog using 'hands-on' learning. He has a very supportive family, and at times has turned to colleagues, family, and friends for advice. But most importantly, Harrop believes in basing decisions on gut feelings.

Being a young entrepreneur has been a double-edged sword for Harrop. The negative side has been dealing with banks, and possibly large corporations. On the positive side has been the media's fascination with successful young entrepreneurs, which has resulted in radio, television, and newspaper coverage for Harrop and his company.

Recognizing a Need in the Marketplace

Like many entrepreneurs, Harrop's decision to start his own company was based on personal experience. Four years ago there were just two Internet Service Providers (ISPs) in Toronto. Neither were acceptable to the then 19 year old who wanted to 'get on the Net'. After seeing what was - and wasn't - available he knew he could do it better, and decided to start his own company.

Putting together $15,000 Harrop started Interlog out of his parents' home. One of the first and best decisions he made was to hire his older brother, Lorien Gabel, to help him manage the fledgling company. Four years later Interlog has a staff of 100 people, and is housed in offices on Bay Street in Toronto.

Customer Service: The Key to Success

To differentiate itself in a crowded market, Interlog has focussed on the added value of keeping people happy.

"Our business is customer service, because when it comes down to it an Internet service is a commodity," says Harrop. "Making processes work as simply as possible, and having friendly voices at the end of the phone to answer people's questions is what customer service means to us."

In fact, over 80% of Interlog's staff work on customer service issues, and on the front lines 60% of the staff focus on customer service full-time. The ISP handles over 30,000 calls each month from customers, and the vast majority of those are technical support calls.

This customer-service focus is producing results. With over 50,000 customers, Interlog is one of Toronto's largest ISPs. It is also one of Toronto's most liked ISPs. For two years running Now Magazine readers have chosen Interlog as Toronto's "Favourite ISP".

"The reason that Interlog has been successful is customer service," explains Harrop. "We've focused on delivering customer service and value. There have been times when we've faltered, but we have made it a consistent focus."

Challenges of a High Tech Business: Growth Management

With the Internet growing at a phenomenal rate, managing growth has been one of the biggest challenges for Harrop and his management team. Being an ISP means that the computer technology central to the business is constantly changing, and the rapid growth of the Internet has resulted in a constant influx of new customers.

"From day one growth has been our single biggest challenge," says Harrop. "In one year we grew from 3,000 to 10,000 customers. In the last four years our customer base has grown from zero to 50,000. Our management team has constantly faced the challenge of scaling processes."

Team building, retaining employees, and delegating work have been Harrop's solution to the constant challenge of growth management.

Running the ISP is a team of people who are good at what they do, and have the authority to act. When hiring Harrop looks for enthusiastic young people who have the technical know-how. And at Interlog young employees have the opportunity to work in an environment where their needs are understood.

Equally important, workers at Interlog are encouraged to delegate. Harrop and his core team have worked to build a flat structure where people in the bottom level still have a good deal of authority. And in the end this equates to good customer service. A customer calling in might reach the receptionist, but if that person can competently answer the question at hand, they have the authority to do so.

The result of this approach is that workers tend to stay, and customers are kept happy.

A Canadian Company Goes South

Interlog has been profitable since it's launch, but about a year ago it reached a turning point. Needing an infusion of capital to grow and thrive in the future ISP market, Harrop turned to the banks. Unsuccessfully. He points a finger at the Canadian banks as he explains the sale of his company to US-based PSI Net.

"The banks have not been helpful to companies like Interlog," explains Harrop. "About a year ago we found that we needed a significant infusion of capital to ensure that Interlog would remain competitive three years from now. When we could not get the financing we needed through the banks, we had to look elsewhere."

Elsewhere ended up being US-based PSINet, the largest independent commercial Internet service provider in the world. Purchasing Interlog helps PSINet meet its goal of expanding its Canadian operations. For Harrop, the deal with PSINet will give Interlog the ability to access the capital needed to invest in the ISP's future success.

Harrop explains that PSINet and Interlog are an excellent match. The deal was put together quickly, and took two months in total. "Pulling the deal together involved about two weeks of 'real work'," quips Harrop. The amount of the deal has not been disclosed. But with Interlog projecting sales of $10 million for 1998, it's sure to be worth a substantial amount to the young entrepreneur.

Looking Ahead

Selling Interlog does not mean that Harrop will be moving on, and for now he has no plans to leave the company that he founded. His title has changed from owner to "chief". A fitting title for a young man in a company where the average employee age is 23.6.

Harrop sees high speed access in the future ISP market, and speculates that the method by which value is added to the ISPs services will change in the future. Meanwhile Harrop is going to do what is fun and what he likes doing.