FAST-TRACK Challenge works to promote, improve small businesses in Scott County

Prior Lake American

Starting a business is notoriously difficult — in addition to coming up with a unique idea, funding must be secured and a pitch must be developed.

Even if all the right steps are taken, about 50 percent of all businesses don’t survive past five years, according to the U.S. Bureau of Labor Statistics.

The Scott County First Stop Shop, an offshoot of the Community Development Agency, aims to make the process less difficult and the survival rate less dire through the FAST-TRACK Challenge, a competition similar to the TV show “Shark Tank” but solely for small businesses operating in the county.

Five finalists made it through the program this year, including Prior Lake companies offering pistachios, a self-cleaning litter box and a smartphone app for keeping track of gift ideas.

The five will work with mentors throughout this month to develop a pitch before going before a panel of judges Oct. 25 for the top prize: more than $17,600 in cash and services including legal and marketing assistance, web and graphic design and mentoring.

“It helps the little guys,” said Vernes Velagic, one of two Prior Lake residents who started Catboxpro, one of the finalists and a return contender from last year. “It gives the little guys a chance to become something. It’s already tough as it is, and anybody can apply, that’s the great thing.”

The first FAST-TRACK Challenge was held in 2017. First Stop Shop staff reached out to graphic art, accounting, and legal firms that might be interested in offering services as prizes and resources. Local banks offered cash donations.

“It was initially developed as a way to help us identify and assist start-up companies and bring awareness to some of the programs currently available,” First Stop Shop Business Development Specialist Jo Foust said.

Last year brought four finalists. Ion Concert Media took first place, earning the cash prize and donated services. But all finalists walk away with at least some mentoring.

Foust said businesses are chosen based on several criteria, including clearness of the product or service idea and the problem it solves, financial projections and potential for job creation in Scott County.

Ion Concert Media CEO Scott Winters said he and his business partner, J Allen, had made the rounds pitching to investors but hadn’t received much interest on the product — a technology synchronizing film to a live event, much like one would see at a concert or a church.

“We came away from that experience feeling like our pitch was not that effective,” Winters said.

The co-founders applied to enter the FAST-TRACK Challenge as a method to develop the pitch.

“I didn’t anticipate that the services were going to be as helpful as they were,” Winters said. “You have to pitch. You can’t get the company started unless you define what you’re doing. That help was very valuable to us, and I think it would be to any young company.”

This year’s five finalists are Atkinson Artisan Foods, Catboxpro, Gifthorse, Medthera and ugo wear. Medthera’s located in Shakopee; the rest are based in Prior Lake.

Atkinson Artisan Foods makes “Big Mouth Pistachios” in blue cheese, chicken ranch and honey sriracha flavors. The company did not respond to a written request for comment.

Velagic and Toni Wheeler started Catboxpro in September 2017 but began work on the product four and a half years ago.

“Neither one of us liked scooping cat litter,” Wheeler said. “We decided to get an automatic litter box. It worked good, but it had some faults.”

Velagic said the decision to start a small business became even more difficult in an established market.

“They have factories manufacturing in China, and here I am in this little one-car garage, trying to beat them,” he said. So he taught himself to build a smaller, faster version.

Prior Lake resident Jacob Mulholland originally developed the Gifthorse app to keep track of what he and his family wanted for holidays and birthdays.

“It grew from there,” Mulholland said.

Now, anyone can use the Gifthorse app to curate wish lists across retailers. Mulholland found about the FAST-TRACK Challenge through the Technology Village, a business incubator program located in Prior Lake City Hall.

“It’s quite a honor to be selected as a finalist when there’s other great businesses,” he said. “Entrepreneurship is grueling. The small wins — they’re few and far between. It’s a nice win after a lot of hard work.”

Medthera creates “NeuroWalk,” a therapy station for users to restore and maintain health at home with walking-based therapy. The final design is under development. Medthera did not respond to a request for comment.

Ugo wear began in 2012 after co-founder Melanie Cole came up with the idea for a floating dry bag with a waterproof zipper to protect phones and other important items from water. Cole and co-founder Vicky DeRouchey waited more than a year for a zipper manufacturer in Germany that made zippers for items like hazmat suits to manufacture the zippers in a size they needed.

“In the meantime, we kept making our design,” Cole said.

In 2015, Cole and DeRouchey launched a Kickstarter campaign that raised nearly double the original goal of $30,000. The company was one of 90 companies in the MN Cup, a statewide competition for start-ups. Through that experience, they learned about the FAST-TRACK Challenge.

“Honestly, it’s a huge compliment,” Cole said. She and Mulholland of Gifthorse added that a big benefit of the program has been exposure to the public.

“To be recognized for your product, your company, it’s a huge honor. There’s a lot of good products out there, and not everybody can be a finalist.”

Foust said the FAST-TRACK Challenge is one way to meet the goal of having half of Scott County residents working within the county by 2030.

“We want to ensure that those taking the road to starting a business are successful,” Foust said. “If we can have our local entrepreneurs have those jobs in Scott County, we’ll have less commuting out of the county to jobs.”

Foust said the First Stop Shop is hoping to expand the program in 2019.

“We really are here to help those businesses succeed,” Foust said. “If they want to do it formally through the FAST-TRACK Challenge or if they just want assistance one time, or ongoing throughout the year, we are here to help them.”