What does it take to be top dog in a business world driven by electronic commerce?

Two small Fairfield County companies are betting that a new spin on the old "we sell stuff for pets on the Internet" business model will put them in the cat bird's seat.

"We receive dozens of e-mails every week from people who would love to take their pet on vacation, but realize that they would not be able to take them everywhere, and so leave then home," said Christopher Kingsley, president of Petswelcome.com.

Founded in 1997, Petswelcome is finding a niche as an information hub for people who want to travel with their pets.

"The people in a health food store don't necessarily know what is good for you, never mind your pet. To me it's all about understanding anima

ls from the inside out and how you relate to an animal," said Sheryl King, founder of Towne Critters.com.

Her site was launched two years ago as a source for natural, healthy, organic treats and supplements for the family pet.

Although both companies are reaching out to pet owners who surf the Internet neither is competing directly with industry giants such as Pets.com, which sells products typically found in the local pet store.

Revenue streams

"More and more people are using the Internet today. There are 56 million households in the U.S. that own a pet. Sixty-five percent of them say they travel with their pet;' said Fred N. Grayson, chief executive officer of Petswelcome.com.

He co-founded the website with Kingsley and runs the operation out of his home off ice in Ridgefield.

Grayson said he was going to write a book about traveling around New England with a pet but when the book failed to develop, he teamed tip with Kingsley to build the website.

Pets-welcome's business plan produces five individual revenue streams.

Primarily, the company charges hotels and various travel destinations to put a link on the Petswelcome listings.

Currently there are more than 25,000 listings to choose from, including hotels, motels, bed and breakfasts, campgrounds, ski resorts, amusement parks, national parks and beaches. The site also has lists of professional pet sitters and kennels in cities all across North America.

Travel sites sometimes pay a fee to post a Petswelcome Automated Website (PAW). This allows pet-friendly establishments to maintain their own web page on the Petswelcome.com site.

There is also a reservation system where Petswelcome functions as an online travel agent. The company collects a commission on hotels and pet arrangements people book on the site.

The fourth revenue stream is classified advertising posted on the site and, lastly, the company plans to develop an e-commerce portal to sell specialty travel items for pets such as travel bowls and leashes.

"We are growing geometrically because we have tapped into a great market of people who want to travel with their pets, " said Grayson.

Petswelcome.com relies on the people who use the site and travel with their pets to rate the

different hotels, kennels or pet sitters. The site features an information exchange were people can post and review e-mail messages pertaining to their pet travel needs.

"If we get complaints, even about hotels, we take them off our list," Grayson noted.

Petswelcome is in preliminary discussions with venture capitalists to secure as much as $5 million in financing.

Grayson said he and Kingsley have revived the book project and are scheduled to release a pet travel guide based on the website in the tall.

Other plans are to increase their travel reservation business, add eight to ten employees and open an office in northern Fairfield County.

Bricks to clicks

King launched TowneCritters.com as an extension of her retail locations in New Canaan.

At one time, King operated three stores which sold holistic supplies and provided pet grooming services, but last August she closed up shop in order to focus exclusively on the Internet.

King estimated her site attracts a few thousand viewer hits it month from people, not only in America but from places like Japan and Europe, who want to find better products for their pets.

TowneCritters' inventory includes collections of books, unusual toys, treats and supplements for small animals and birds.

The site also offers links to experts who have backgrounds breading pets and caring for their special needs.

King's venture is as much a venue for her to spread the word of' holistic care for pets as it is a business enterprise. She consults people on how her products make their pets more healthy and professes it deep care for animals.

"How do they know that I care about their animals? That's really tough to get across to customers on the Internet," said King of the limitations of electronic commerce.

To address that, she has registered her site to appear when people search under word, like holistic, homeopathic, natural and alternative.

King was once it teacher who worked with different students from special education and elementary students to high school kids. She said her background helps to teach adults about their pets.

People between the ages of 25 to 40 that have a combination of multiple pets and multiple children she says are her typical customers.

King admits that natural pet care products are more expensive, but said customers have to look at it in terms of the health of their pets zinc their families.

She gave an example office collars that ooze chemicals onto the dogs fur and skin.

"If you've got small children, they touch the dog and the next thing you know that stuff is on their hands and in their mouths," exclaimed King.

TowneCritters has three employees.

King said there are no immediate plans for expansion because she is focusing her efforts towards increasing the company name recognition.