<< Previous   of   Next >> Enterprise/CHRIS GOODENOW  (click to enlarge) Tarah Navarro, of Everett, shops for jeans at Plato's Closet in Lynnwood. Enterprise/CHRIS GOODENOW  (click to enlarge) Data center company NetRiver is doing well despite a slower economic climate as other companies increasingly choose to outsource their data storage. Vice president and general manager Paul Harris displays one column of a long row of servers at their Lynnwood facility. Enterprise/CHRIS GOODENOW  (click to enlarge) Sales associate Dana Webb sorts through clothes behind the front counter at Plato's Closet in Lynnwood. Enterprise/CHRIS GOODENOW  (click to enlarge) Thea Damson (center), 12, shows her mother Melanie (left) and sister Nena, 15, a shirt as she tries on clothing at Plato's Closet.

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CONTACT THE ENTERPRISE Jocelyn Robinson, News editor jrobinson@heraldnet.com

Are these businesses recession-proof?

By Oscar Halpert
Enterprise editor

The recession may be wreaking havoc on people's incomes and many businesses, but Paul Harris is having one of his best years ever.

Harris, general manager of NetRiver, Lynnwood's largest data storage and Internet hosting company, has seen robust growth since the company opened its doors in 2007 - growth that hasn't stopped.

Last year, the company quadrupled its 2007 revenues. This year, Harris said, "We're on track right now to double again."

Two miles away, in the Target Village center near Alderwood mall, employees with national clothing retailer Plato's Closet are also busy. Another customer just walked in with a box of clothes, handed it to clerks who'll size its contents up for resale potential, then found out how much cash he'll get up front.

The shop's sales have been robust, though Jeff Swanson, who also owns two other stores in the Puget Sound area, won't say by how much.

"We're doing very well and have been all along," Swanson said. "We've been a steadily growing business. The recession helps us out -- because of the value."

Both businesses are thriving in a down economy because they offer customers a way to save money.

NetRiver, which sells Web hosting and data storage for varying monthly fees, has attracted companies interested in dumping their in-house data storage to save money. Plato's Closet does for teen and young adults clothing what Half-Price Books has done for used books: create a place where customers can get cash up front for their possessions.

"We try to offer a great shopping experience and value no matter what the economy," Swanson said. The franchise has 250 stores nationwide and is owned by Winmark Inc., the company that owns Play it Again Sports, Once Upon a Child and Music Go Round.

The company name was inspired by ancient Greek philosopher Plato, who wrote about deforestation and other environmental topics.

"Since we recycle clothing, that seemed like a wise thing to do," he said.

Data storage has boomed as an industry. Harris said his company positioned itself in 2007 to focus on what he called the company's "core" business: co-location.

"When we focused on that business, it put us in a very good position as the economy really softened up," Harris said.

Two years ago, the company focused on being an Internet service provider, providing businesses with Web site hosting. But most of its income came from storing data and maintaining company's computer servers, Harris said.

"We've actually been helped by the downturn in the economy," he said.