SOLD ON THEMSELVES MANY LAID-OFF OR DISENCHANTED WORKERS PUT PERSONAL ZEAL INTO STARTING THEIR OWN FIRMS.

Byline: Evan Pondel Staff Writer

Mango lime salsa and computer mainframes have something in common to Dennis Duling.

Both seemingly divergent items have kept him employed at some point in his career.

He spent decades doing information-technology work for health plans and other organizations. And now he finds himself peddling gourmet food as the founder of an Internet startup that stocks everything from artichoke-caper spread to raspberry-pineapple jam.

Adaptability is a key characteristic when rolling with the punches of an unforgiving economy. And entrepreneurs throughout Southern California are realizing that their ability to stay afloat depends on stomaching high workers' comp rates and a dearth of tax incentives.

Of course, the notion of working for a large corporation and dealing with possible layoffs and shrinking benefits packages is almost enough incentive to keep entrepreneurs focused on their businesses.

Duling, 50, was working for a health plan in Pasadena when he found himself swept up in a layoff. A decent severance package dulled the pain, but reality soon set in when Duling considered the cost of college tuition for his kids and the lack of retirement savings in his bank account.

``I had to take a step back and reassess my situation,'' said Duling, who knew his zeal for high-quality food would somehow factor into his future. ``I never considered the economic climate when I decided to start my business. I mean, people always have to eat, and there are enough people with discriminating tastes.''

So he started The Artisan Gourmet about six months ago, relying on credit cards and his severance package for financial support. It's too early to tell whether the San Gabriel company will turn a sizable profit this year, but Duling said he has already factored the risks of the business environment into his budget.

That's particularly important for budding entrepreneurs. The second definition of entrepreneur in the ``Merriam-Webster Dictionary'' is ``one who manages and assumes the risk of business.'' Michael Stull, director of the Inland Empire Center for Entrepreneurship, has witnessed myriad startups throughout Southern California that lack such foresight.

``There are always going to be obstacles, but often the personal risk is overlooked,'' he said. ``There is a lot of belt-tightening out there. And people have to be mindful of the environment.''

Financial backing is among the most significant factors to consider when starting a business from scratch. The amount of capital required to set a company's wheels in motion can often drain the savings account. The result: Some entrepreneurs turn to the U.S. Small Business Administration for a loan.

The government-run program guaranteed ``working capital'' loans totaling about $14 billion during fiscal year 2005, a 23 percent increase when compared with the same period a year ago.

While the figure may provide evidence that small businesses are continuing to power the economy and create jobs, it's also telling of some of the less obvious factors at play. Specifically, instability in the work force and dwindling consumer confidence.

The combination of the two is sparking interest among once-loyal employees to start their own businesses. ``When people experience significant change and turmoil, that's when some of the best opportunities surface,'' Stull said.

And that's where Ivan Misner comes in. He's built a networking company on the premise that things sell well when they are commoditized. In other words, the more efficiency employed by an entrepreneur, the more likely they are to yield a bigger bang for their buck.

That being said, Misner also understands the onus of doing business in California. ``It's the worst state to do business in because of all of the regulations. Although one of the advantages is the size of the marketplace,'' said the chief executive officer and founder of Business Networking International, an Upland-based referral organization.

But every marketplace has its pros and cons. And the biggest burden for the entrepreneur is usually deciding what sells and what doesn't. From Misner's perspective, travel agencies are no longer a safe haven for would- be business owners because airlines no longer pay commissions.

Among emerging industries in California is life coaching or business coaching. ``A lot of people who have come from recently downsized companies are moving into the coaching industry and using their personal expertise,'' Misner said.

Personal expertise is how Donald Perchlak got his start in the printing business. After logging long hours in the customer service department at Carnation Diaries, he realized that several of his colleagues were having a difficult time finding a reliable printer for brochures and letterheads. That's when the light went on and Perchlak began researching what it would take to start his own business.

``In the beginning, the business wasn't profitable. I was working off my credit cards. And looking back, owning a franchise would have been an easier way to start,'' said Perchlak, 45, who runs Lion Press Printing of Upland.

The problem with franchises is that entrepreneurs aren't always as passionate about a prefabricated business. In fact, Vincent McCoy, executive director of the Inland Empire Small Business Development Center, recommends that entrepreneurs pursue something they are interested in, regardless of whether or not there is a perceived market.

``It's the personality and dynamics of the entrepreneur that allows them to look at the world, figure out what they want it to be and make it happen,'' said McCoy, who also noted that he disagrees with those who claim California has a poor business environment. ``The climate hasn't changed much in the last five years. And when you are looking at a small business, it all depends on the person and whether they'd consider moving.''

Charlie Mello, chief executive officer of American Custom Coach in Ontario, is certainly considering a move. The soaring cost of workers' comp and taxes are taking a toll on his business.

``And I'm strongly contemplating Idaho, and maybe Nevada. I've even considered Colorado,'' said Mello, who emigrated here from Brazil and landed his first job as a bus mechanic.

The question is, where should an entrepreneur go if he wants to stay in California? Some say Long Beach. The California State University Long Beach Technology Park is a converted Navy housing site that now serves as home to a handful of technology companies. The final phase of the conversion process is slated to wrap up in the next year or so.

``And we'd welcome entrepreneurs,'' said Mo Tidemanis, director of real estate for the project, who noted that the park will have an additional 75,000 square feet for future occupants. ``In general, our space is less expensive, and you gain access to the port and CSULB's faculty.''

That's good news to Denis Duling. In the last week or so, he decided to leave his home base and seek more room elsewhere.

``I suppose that'll be good for business. Get out of the house and all. Let's just hope I have a busy winter,'' said Duling, who's banking on his Web site, theartisangourmet.com, to do the job.

Evan Pondel, [phone]

evan.pondel(at)dailynews.com

CAPTION(S):

3 photos

Photo:

(1 -- color) Dennis Duling shows some of the gift baskets that his company, The Artisan Gourmet, offers for sale. He started the firm with his severance pay after being laid off by a large firm.

John McCoy/Staff Photographer

(2 -- color) Charlie Mello, president of American Custom Coach of Ontario, shows off a customized RV. With the rising cost of taxes and workers' comp, he's considering a move to another state.

(3) Charlie Mello, center, president of American Custom Coach of Ontario, discusses how to build a mobile office in an SUV.

Marc Campos/Staff Photographer