In a paradox of needing money to make money, some turn to a venture capital company for that financial jump-start.

Located in the Dundee neighborhood in Omaha, Neb., Dundee Venture Capital (Dundee VC) works to invest in e-commerce and web service start-ups across the country. Mark Hasebroock started the company in 2011, and uses capital to help these early-stage companies get off the ground.

“We look for innovative ideas and passionate people that challenge the status quo and solve a problem,” Hasebroock said.

By narrowing the prospective investments to e-commerce and Internet service companies, Hasebroock can stay focused on an area that is familiar to him. He has a wide array of business experience under his belt, most recently in co-founding several online companies.

“I think it is a great time to start these types of businesses and don’t see an end to the creativity and demand for new ideas,” Hasebroock said. “Every day there is a new opportunity to create a unique business. I like niches that get ignored by the market.”

To what niches is Dundee VC paying attention? Hasebroock looks for entrepreneurs who believe strongly in their business and “bet it all that this business is the next big thing.” People who are “communicators that can tell the story over and over” and “visionaries that see a problem, recognize they can solve it and lead the market, quickly” are also good fits with Dundee VC.

“We ask four pretty straightforward questions,” Hasebroock said. “What’s the problem you are solving? What is the market opportunity? Why will you and your team win? Will you quit your job to make it happen?

“The good fits stand out. The poor fits as well.”

Dundee VC invests up to $500,000 in a start-up company, but it provides more than just capital to the entrepreneurs taken under its wing. Business owners can tap into valuable resources and knowledge from Hasebroock’s experiences.

Mark Hasebroock, Dundee Venture Capital

“We can help steer and advise to avoid many of the pitfalls they may face. Some may be obvious and others may not,” Hasebroock said. “Establishing solid reporting and analysis, for example, will help build a meaningful dashboard so the founders can really determine if they are succeeding or failing. Sometimes this is ignored in the early days.”

How hands-on Dundee VC is with a company depends greatly on that start-up’s situation. Though Hasebroock prefers not to “invest and then check in each quarter,” his level of involvement with a start-up varies based on what stage the business is in when Dundee VC steps in to help with financing.

This is true with the companies in which Dundee VC is currently investing. With Graphic.ly, a website devoted to authors and fans of comic books and graphic novels, Hasebroock works on the company’s board, but is mostly in the background for the company’s 12-month plan. The entrepreneurs are more experienced, leaving Hasebroock to be in a “what-if, high-level type role.”

A second company, MindMixer, serves as a tool for community participation and communication. The website is often used by town leaders and elected officials.

Hasebroock explained that Dundee VC started helping MindMixer in the beginning stages of the business. He helped with the company’s direction for the first six months, guiding the business owners so they did not take on too much too soon.

“The founders were very energetic, smart and passionate but had not started a business before,” Hasebroock said. “I provide daily involvement with them as it is a high-growth business that can also grow out of control if we all don’t manage the day-to-day expectations with the six- and 12-month plan.”

Dundee VC also invests in Tripleseat, a resource available to managers and owners of restaurants, banquet halls and other places. The website helps manage sales and event information.

Before Dundee VC, Hasebroock worked in a broad range of jobs. While in college at the University of Nebraska-Lincoln, he sold moccasins for spring break money, and later he had a small business selling popcorn to grocery stores. He also worked in commercial and investment banking. Hasebroock has co-founded several online companies, giftcertificates.com and hayneedle.

These years of experience led Hasebroock to the idea of starting Dundee VC.

“I always thought if I could be in a position to help provide the start-up/seed capital and advice to start-ups then I would love to do that. It seems to be a void in this area for this niche,” Hasebroock said. “I was a commercial banker loaning money, investment banker investing and raising money, (and) founder of start-ups. Bringing it full circle felt right.”

Dundee VC holds a unique stance in its focus on e-commerce and Internet service companies, and in its “lack of red tape and bureaucracy,” Hasebroock said. Over the next five years, he has a goal of helping finance 10 companies.

In recent years, Hasebroock has seen certain trends within the realm of Internet companies. The price of the technology needed to start and maintain a business is about one-third less than what it was three years ago. The time it takes for a business owner to get his or her business going has also decreased.

“An idea can be hatched, tested and live in a matter of days. The mobile trend will only continue to grow and any e-commerce merchant that does not have a shoppable mobile site will be lost,” Hasebroock said.

From Hasebroock’s perspective, it is an ideal time and place for entrepreneurs to start their businesses. Often the biggest obstacle they face is fear.

Hasebroock reminds entrepreneurs that they are not alone.

“Odds are there are a few folks that have experienced and gone through what any other start-up is about to go through,” Hasebroock said. “Don’t let fear keep you from your dream. It can actually be a great motivator.”

“While we may invest, we also want to make sure founders know there is also advice and support,” Hasebroock said of Dundee VC. “We’ve been there and know what you are going through. And we think we can help create a road map for you to succeed.”

Cultivation removes weeds between crop rows but not within the rows. He could hire a crew for hand weeding, but that would be prohibitively expensive for row crops such as corn, soybean and sunflower. The weeds keep coming.

But now, three men may have found a solution.

University of Nebraska-Lincoln professor of mechanical and materials engineering George Gogos; professor of agronomy and weed sciences Stevan Knezevic; and graduate student of mechanical and materials engineering Chris Bruening, are the founders of Agricultural Flaming Innovations (AFI). With research on weed flaming since the summer of 2007, AFI is the leading research company in this field.

AFI’s flaming equipment will be used primarily in organic farming, which according to U.S. data increased by 350 percent from 1995 to 2005. In the United States, only 0.6 percent of the farmland is organic, compared to 5 to 6 percent in Europe. However, Gogos believes the U.S. will experience an increase in organic farming in coming years, thus making his work more important.

AFI testing

“You have to design a piece of equipment that treats the weeds but saves your crop,” Gogos said. “In that design, we get a lot of info from agronomists as far as the lifetime of weeds and crops and the size of weeds and crops. All these things we take into consideration as we design the equipment.”

AFI’s systems attack the weeds in either four or eight rows of crops at once. An even distribution of propane gas must be obtained for consistent weed control. Devices also have shields, so they are energy efficient and windy conditions don’t affect the weed control.

While weed flaming sounds like a dangerous procedure, the weeds actually experience a rather gentle death. When machinery passes over weeds, flaming destroys the cell membranes and water leaks out. Eventually, the weeds lose enough water and die over the next few days. In this process, neither weeds nor crops actually ignite.

“For AFI, the big thing it has going for it is it’s backed by a collaboration between engineers and weed scientists,” Bruening said. “Engineers help with the design and scientists help with how to use it correctly.”

The Propane Education and Research Council (PERC) funded the weed flaming research at UNL at approximately $1 million. A $250,000 grant from the U.S. Department of Agriculture (USDA) has also helped with the research. The University of Nebraska Foundation owns a percentage of AFI. The Nebraska Engineering Research Fund (NERF) has invested $50,000 to help the start-up.

Gogos said only one other company does flaming for row crops. However, this company has primitive equipment, according to Gogos. Several businesses make handheld units to eliminate weeds in gardens and driveways.

AFI’s devices are tested in the Haskell Agricultural Laboratory, a UNL Extension lab in Concord. The company also uses a mechanical engineering lab on UNL’s campus.

“Once we build things, we move them to Concord for the summer,” Gogos said. “At this time of year (January), we decide how many plots of corn, soybean and sunflower we will need. During the summer, students spend most of the time up in the fields.”

In October, crops are harvested. The yield of the crop is the main criterion for adjustments at AFI. Gogos said he wants AFI to continue to be a research and development business. He doesn’t want to turn into a manufacturing company.

Dr. Gogos (right) talking to the team during field testing

While researching and designing this major agricultural implement is part of Gogos’ career and Bruening’s schooling, they also have personal connections to what they do. Gogos said his family consumes organic food and he’s glad to be researching something he truly believes in. Bruening grew up on a Nebraska farm and knows the difficulties that come along with the agricultural industry.

“Working with these organic guys, you see them struggling with their weed control,” Bruening said. “We’re developing technology that will definitely help them out.”

Marvin Jaques, senior technology agent at NUtech Ventures, said he is impressed by the extensive work AFI has already completed.

“We enjoy working with Dr. Gogos and Chris and that we’re pleased to see inventions from the UNL College of Engineering help organic farmers with improved and more energy efficient weed control,” Jaques said.

AFI is currently looking for additional investors to commercialize the four-row and eight-row units. In the future, AFI hopes to create 12-row, 16-row and even larger devices. These designs will need additional testing and development to give the many torches uniform flames, Gogos said. The company also hopes to design and manufacture devices to allow weed control on railroad tracks.

Gogos offered valuable advice to new entrepreneurs in any field. He thinks it’s important to have a specialized concept and to avoid striving for perfection.

“Focus to a specific design and move on with commercializing it,” Gogos said. “Don’t wait for the perfect product; you’ll never get it. You have to define a goal, a partial solution.”

Bruening agreed, saying it’s vital to get a product out the door and selling. By adding an extra feature to an already substantial product, many start-ups lose focus, he claimed.

But Liz Renner, owner of Only10Pounds.com, stresses the importance of losing small amounts of weight as well.

“’The Biggest Loser’ is so dramatic and it makes great TV,” Renner said. “I thought maybe a website might be a better platform for a smaller weight loss goal — especially a site that concentrated on local resources.”

Renner launched Only10Pounds.com in June 2011, with the help of web designer and developer Eric Downs and communications strategists Emspace Group. Renner said Emspace Group offered a great deal of advice on communications and public relations strategy, while Downs perfected branding and web development.

“Eric brought an innovative sense about where the brand and the concept could go,” Renner said. “He was able to help visualize something that was fairly unique and still a very raw concept.”

The website is based on a revenue model that Renner described as instinctual. Each player pays a small registration fee and a set amount (for the communal pot) before each round of play. Because players provide the prize money, there is an incentive to have friends and family sign up. The more people playing, the bigger the prize.

“I recognized what a powerful motivator money is, especially when it is your own money on the line,” Renner said. “At that point, the idea transformed from a blog into a 21^st-century version of the office pool.”

Businesses with a focus or interest in weight loss, health and wellness host the weigh-ins and weigh-outs. In exchange for a membership fee, these businesses receive advertising on Only10Pounds.com and the Only 10 Pounds Facebook page. They also get foot traffic in their stores or offices on the days of the weigh-ins.

While Renner is currently refining this revenue model, she is also working on enhancements to the website. In the future, Renner plans to expand the blog portion of Only 10 Pounds. It will become the go-to place for weight loss ideas, she said.

She also hopes to offer in-house competitions for organizations, businesses and groups by enhancing the registration functionality on the website.

Because Renner is from Omaha, the website is currently targeted at Omaha residents and people in the surrounding areas. She hopes to eventually expand to cities across the country.

“Long-term, I see Only 10 Pounds as a very scalable concept ­­– like Groupon or Craig’s List,” Renner said. “I plan to take it national.”

With three important points, Renner described the mission of Only 10 Pounds:

1. The best business deal is one where everyone at the table walks away feeling they’ve won.

2. Nothing motivates more than having “skin in the game.”

3. Whenever possible, I want to support local business.

“There are so many ways to enter or become engaged with a website or product,” Renner said. “You really have to think about how to keep that experience seamless and consistent.”

Renner thinks a project like this was overdue for a lot of dieters. Renner herself has tried every diet, crazy workout, boot camp and Zumba. But through Only 10 Pounds, Renner found something that truly worked.

She has a genuine interest for everyone who signs up to succeed. The weight loss is about more than looking good; it’s a benefit to peoples’ health and quality of life, Renner said.

“I am humbled by people who successfully lose weight,” Renner said, “whether it’s 10 or 100 pounds.”

For starters, customer investors tend to be more engaged, according to Isoft Data Systems CEO and founder Matthew Wegener. Wegener’s company has several customer investors, or “investomers” as they’re sometimes called. According to Wegener, his investomers’ attachment to the company leads to networking and sales opportunities for Isoft.

“It makes it fun for them to talk to other people about your business and your software just because they have a sense of pride in ownership,” Wegener said. “It opened a lot of doors for us.”

In addition to the money and the sales bump that investomers can provide, they offer value to entrepreneurs in other ways as well. For example, the product feedback that investomers give can be one of the most beneficial parts of investomer participation.

“Our investomer brought industry-specific insight to our product that made it extremely effective at serving their business needs,” Lyconic co-founder Aron Filbert said. ”Our combined success eventually brought us relative income stability and huge growth potential through their franchising model.”

Since investomers are actually using the product they’re investing in on a day-to-day basis, their feedback is honest and comes often. Where a dissatisfied customer might just shift products or services, a customer who is invested in the company tends to be more loyal to the brand and would rather see it change to suit their needs. This push toward serving the customer can not only make a business more responsive to its customers’ needs, but can also lead to it being more in touch with its marketplace in general.

But as with any form of investment, using investomers is a thing to be done with care. Because of their stake in the company and their direct relationship with the product, investomers can also be a major headache.

An investomer’s ability to use leverage to influence direction of the company and tailor the product to suit his or her needs as a customer can be a good thing, since what is good for one customer can often be good for another – but only up to a point.  

If an investomer requires exclusivity of a product that is marketable to a broader spectrum of customers, for example, the investomer’s needs can produce a conflict of interest that can poison the investor-entrepreneur relationship and put a company in peril.

One solution to the exclusivity problem is simply to charge for it. If exclusivity is going to load a big opportunity cost onto an entrepreneur, then perhaps the investomer should pay a premium.

“We do not do anything exclusive for customers unless they pay us time and materials, handsomely, for doing something that’s specific to them that we won’t use for the rest of the industry,” Wegener said.

The flip side of this coin is when investomer influence drives a company to find new marketplaces and new applications for its products. This was the case for Isoft when it adapted its data management system for used truck parts to managing truck sales, new parts, re-manufacturing and repair work at the behest of one of its investomers.

“They were a fantastic partner,” Wegener said. “We developed a whole new product with them.”

While exclusivity can be made to pay – and in certain situations, there is no choice but to give up a large stake of the company in order to save or even start the business – these things should generally be avoided unless there is ample justification to the contrary.

Clear right and wrong answers are hard to come by in business, and you won’t find any here as to whether or not you should use investomers. On one hand, the brand loyalty, product feedback and increased customer referrals are attractive benefits to using investomers. But on the other hand, entrepreneurs need to be careful about letting investomers use their leverage to cajole them into putting the needs of the investomer before the needs of the business.

Every entrepreneur’s situation is different, and in the final analysis it comes down to knowing what is right for your business. In the right situation, using investomers can be both rewarding and profitable.

Roundscapes CEO Christopher Kingsley can attest to that. His company’s relationship with its investomer, Landscapes Unlimited, has done everything from improve his company’s workplace culture to providing Roundscapes’ with a much larger and more diverse business pool than it would have ever had without the investomer.

“Without Landscapes Unlimited as both an investor and a client we would have failed years ago,” Kingsley said. “Probably our three biggest clients that we have now ultimately came out of work that we were doing for our investor’s company.”

Watch for additional articles over the next month on our new series about franchising.

When Don and Linda Eckles opened the first Scooter’s Coffeehouse in 1998 in Bellevue, Neb., they weren’t just offering specialty coffee and warm service to their drive-thru customers. They were establishing a brand that the company would later build upon to create a franchise.

Over the next several years, the Eckleses opened additional locations in the Omaha area. In 2001, the company made the move to franchise the business. Scooter’s, owned by Omaha-based Boundless Enterprises, currently has more than 90 stores in seven states and continues to grow.

Before expanding Scooter’s Coffeehouse into a franchise, the Eckleses worked to develop a successful system. They focused on establishing coffeehouses in good locations, creating quality beverages, maintaining fast service and clean facilities and hiring friendly employees.

Scooter’s can attribute much of its success to the company’s structure. Besides striving to make “better drinks than anyone else,” said Todd Graeve, CFO and director of business development for Scooter’s Coffeehouse and Boundless Enterprises, great customer service and speed of service also play key roles.

By first establishing what Scooter’s Coffeehouse stood for and what the company wanted to achieve, the company had set the groundwork for future stores to build upon. The Scooter’s slogan, “Amazing people, serving amazing drinks, amazingly fast,” serves as a reminder of the company’s values for all franchised stores. When it made the move to franchise, various other parameters also had to be in place to ensure consistency between stores.

One such factor is a Franchise Disclosure Document (FDD). The franchisor is required to furnish this to the prospective franchisee. The FDD contains information on the company’s history, past ownership and costs for opening a franchise. It also includes the franchise agreement and other contracts between the franchisor and franchisee. The franchisor should seek legal guidance when preparing a FDD and presenting it to prospective franchisees.

According to Graeve, before moving to franchise, business owners need to ask themselves if they “have something to offer that is proven and offers potential future franchisees opportunity for success.” For Scooter’s, drive-thru specialty coffee was a successful concept in the Omaha area, he explained.

Franchising is one option for businesses looking to expand and develop a company’s brand quickly. A company can also seek out investors and open several corporately owned stores with the capital.

Graeve said that of the 90 Scooter’s locations, Boundless Enterprises corporately owns 30 stores. Although the majority of its stores are run by franchisees, Scooter’s is not “exclusively franchising,” Graeve explained.

“In addition to offering franchise opportunities regionally and nationally, Scooter’s future expansion plans include the development of more corporately owned stores,” Graeve said.

Some positive aspects that Graeve sees in moving Scooter’s to a franchise model were the development of brand equity and establishment of economies of scale. For company owners, expanding the brand concept to other stores makes the company’s core values and product available to a wider audience. Franchising also offers economies of scale, allowing the franchisor to buy products in larger quantities at a better rate.

Though companies like Scooter’s can have a strong structure in place for the business and its brand, some business owners can still make a mistake when moving to franchising.

“Business people seeking to franchise their concept may not completely understand the responsibility (the company) must absorb when supporting future franchisees,” Graeve said.

168th & Dodge in Omaha - Scooter's Drive-Thru Kiosk

“A company may have a quality concept that is intriguing to prospective franchisees, but if the franchisor does not take the time to develop a support model or clearly understand how it will couple its business concept with excellent support systems, he or she reduces greatly the chance of success and sustainability as a franchised company.”

Franchisors are not only responsible for quality control of service and the product, but also for helping the franchisees be successful business people, Graeve explained. In the same way that a company needs strong presence, quality of product and excellence in service to create a successful business, a support system is critical for the success of a franchisee.

Establishing this may involve hiring support staff within the company to assist the franchisees. For Scooter’s, it included figuring out where franchisees would buy coffee and other supplies. The cost of building this support network, in addition to legal fees associated with drafting the FDD, are some costs a business owner may face when looking to franchise his or her business.

Business owners need to take into consideration how to protect their brand when franchising their company. Scooter’s takes this concept seriously when looking to offer someone a franchise store.

“You must carefully consider who you want to represent your brand,” Graeve said. “You need to set parameters and be selective when awarding a franchise.”

Without considering this, a company could run the risk of having poorly run stores. For Scooter’s, a franchisee needs to have business experience or applicable past career experience, financial strength and business compatibility.

“When making a decision to move forward on franchising your business, know that the people who are awarded a future franchise will have great impact on a company’s long-term chances of success,” Graeve said.

The success of an individual franchise store doesn’t just affect the company. For a franchisee, a well-known brand with an established presence in the market may offer a greater chance of success in running a business. Franchisees working under the brand name expect quality franchisees at other store locations who positively influence the brand name.

Scooter’s works to maintain its business concept and franchisor support system while opening stores with five-star franchisees behind the counters. The combination of these efforts increases the possibility that each store is run well, and in a way that positively reflects the brand under which the franchisees are working.

Watch for additional articles over the next month on our new series about franchising.

Ryan Zink and Cory Wiedel of Omaha were operating a GNC franchise when a career-altering revelation changed everything. Success in the nutritional supplement business, they realized, would be achieved by offering much more than just products.

“We had come up with a different mousetrap to success,” Zink said.

Ryan Zink

So Zink and Wiedel parted ways with GNC and started Complete Nutrition in 2005 with six corporately owned stores in Omaha, Lincoln and Council Bluffs. Their “mousetrap” included education about diet, exercise and nutrition in addition to selling the nutritional supplements that would help customers achieve their health and fitness goals. Zink calls adding consulting to nutritional supplement sales the “GNC-Jenny Craig” model, referring to the widely popular diet and health consulting business. Close customer relationships and outstanding customer service add value that other supplement companies don’t offer, Zink said.

Then in 2008, Zink and Wiedel decided that offering Complete Nutrition franchises would be the best route to helping their established business grow.

By January 2010, 15 franchises had opened. Nearly two years later, that number has skyrocketed to 134 stores nationwide. By 2020, Zink and Wiedel plan to have a $1 billion company on their hands.

The franchisees they’ve attracted tend to be personal trainers and those with a background in exercise science who want to translate their passion into a business.

“We carry fewer [products] than GNC, but we provide much more information about how to create solutions so customers can reach their goals,” Zink explained. “We’re successful because people want more than just products; they are looking for answers.”

Services offered include one-on-one diet and exercise consultation, customized personalized solutions and more than 200 exclusive products. Helping customers track progress toward goals is key in the Complete Nutrition business model, Zink said.

“We want to be customers’ consulting partner in ‘life change,’” he said.

Cory Wiedel

Why are entrepreneurs buying Complete Nutrition franchises? Quite simply, the stores are producing good economic results. The growth has been dramatic, but controlled, Zink said.

“We actually froze franchise sales in April this year, which is practically unheard of, so we can digest what we have,” Zink said. “We wanted to ensure we provided adequate support for what we already have.”

The business model has produced happy customers, Zink said. Complete Nutrition’s Net Promoter Score, a popular customer loyalty metric, rates as “best in class.”

Zink said Complete Nutrition’s keys to franchising success can apply to other business models seeking to franchise. Here is his advice:

• Understand your competitive advantage. Quite simply, what does your business offer that your competitors don’t? Build and enhance these advantages to differentiate your company in the marketplace.
• Have enough money! You need great financial forecasting and understanding of your “competitive drivers,” another name for how you make money. This helps you know where to focus to keep your edge over competitors.
• Ensure you have great franchise partners. Don’t just let anyone with a “heartbeat and a checkbook” in the door to buy a franchise. These are “bad profits.” Get with people who have passion, who are good businesspeople and who truly understand the business they want to join.
• Grow at a place you can control. “Don’t grow so fast that you can’t support the system,” Zink said. That’s why Complete Nutrition put the temporary new franchise freeze in place. Company leadership wants to make sure it can adequately support existing franchises before adding more.
• Consult with franchisees when making decisions. “I definitely realized that franchisees are an essential part of the decision-making process,” Zink said. “They are on the front lines, so they know best. If you can’t win their heads and hearts, it eventually kills the relationship.”

Barry Uphoff is Managing Principal at Capricorn Investment Group and has more than two decades of experience managing private equity, credit and hedge funds.  Barry earned a BA from Johns Hopkins University with highest honors and Phi Beta Kappa distinction.  He read for a Diploma in Law and an MSc in Medicine at Oxford University as a Rhodes Scholar and received an MBA from the University of Chicago, Graduate School of Business with highest honors.  Barry Uphoff is a native Nebraskan who now lives in Palo Alto.

The Raikes School of Computer Science and Management is a nationally recognized leader in interdisciplinary computer science and business honors education.  The School recruits high achieving students and provides them with an intense and well-rounded educational experience that results in graduates that are world class innovators and leaders.

Blecha established Sky Prosthetics in Benkelman, Neb., in 2005. While designing prosthetic and orthopedic devices for humans, Blecha realized these devices are important for animals as well. ACE Ortho Solutions was founded in 2009 to give animals the medical attention they deserve.

“It’s a new and upcoming field,” Blecha said. “The textbooks have been written on the human side but they haven’t on the animal side. The sky’s the limit at this point.”

About 200,000 dogs blow their ACL each year, according to Blecha. Many of these dogs however, are too old or weak to go through a painful surgery. With the newly designed stifle brace, similar to a knee brace in humans, these dogs can be given a better quality of life.

Dog Ankle Brace (Hock)

Blecha is also working on designing a hock brace, similar to an ankle brace in humans, and a carpal brace, similar to a wrist brace in humans. These braces are all custom made to fit dogs of all shapes and sizes. Blecha said he is currently working out the kinks and hopes to have these products on the market soon.

With certifications in both prosthetics and ortheopedics and training in biomechanics, Blecha thinks he has something that other companies don’t. He’s designed braces for dogs throughout the United States and globally in the United Kingdon, Canada, Romania, South Africa, Brazil and Australia. He described ACE Ortho Solutions as an innovative company, with cutting-edge ideas.

“We’re always looking for new and better ways to do things,” Blecha said.

On Nov. 18, Blecha participated in the Invest Nebraska East 2 West Competition. The creator of the winning business idea is given a $10,000 cash prize and the potential for an additional $50,000 investment.

Blecha submitted his idea to computerize fabrication techniques to use 3D modeling with a 3D scanner and printer. This helps him to make the creation process of prosthetics quicker and easier and also allows him to make an “off-the-shelf” version of different braces.

“One judge told me it was between me and the golf business to win,” Blecha said. “The golf business took home the hardware apparently (from the judge) because there are more golfers than pets that need braces.”

While Blecha went home empty-handed, he values the experience gained through competition.

“The networking was great for me to be able to meet all these people with young and fresh ideas,” Blecha said. “It energizes you to keep doing what you’re doing; you feed off of other people’s energy.”

Dog Wrist Brace (Carpal)

And that extra energy is exactly what Blecha needs to keep fighting. Facing numerous drawbacks and frustrations, he knows how difficult it can be to start a new business. He said because Benkelman is such a small, rural town most businesses are focused around agriculture. It was tough to get a bank to invest in a new company outside of this industry, Blecha said. It was also challenging to hire the right people and learn how to market to the public, Blecha said.

Despite difficulties, Blecha advises entrepreneurs to follow through on projects, no matter how challenging that may be.

“There’s always other resources out there; someone out there that will believe in you,” Blecha said. “If you fail, it’s because you quit looking for them.”

For more information, contact Ben Blecha, owner of Sky Prostethics and ACE Ortho Solutions at (866) 832-1269.

For more on this great event, you can check out an article written by Patti Vannoy over at Silicon Prairie News:

Capital Insights: From car wash client to company acquisition, Archrival founders reflect on growth

With a combined background in finance and retail, Mike Ewoldt reminisces that even though his brother initially spotted the opportunity for a fitness store in Omaha, both brothers were essentially propelled toward the start-up due to a deep sense of frustration with their current jobs. “I said to Jim, let’s just do it. And on the opposite end of the phone there was dead silence. Now he had to make a commitment,” laughed Ewoldt. He added, “And I remember saying, ‘Jim, are you still there?’ And so he eventually said yes, and basically from the November of 1993 until February 1994, we went from concept to opening and finance in basically four months.”

However, everything was not as effortless as making the decision to be business owners. For a start, there was the fact that even though the Ewodlt brothers were willing to contribute 40 percent by way of their savings toward a business loan, they were rejected by two banks before a third agreed to provide them with the remaining 60 percent via a SBA approved bank loan. When asked whether they did anything differently to garner the loan, Mike Ewoldt said it was the combination of his MBA degree along with a solid background in accounting and finance and his brother’s retail experience that ultimately led to success with the bank.

“You can’t go in and ask a bank for 100 percent financing. Where’s your skin in the game per say? And that’s how people get turned down right away. We kind of operated under the 40-60 rule, if there is such a rule, and sure enough it worked out,” Ewoldt said.

Even then, Ewoldt emphatically argued that opening the doors on the first day was relatively easy compared to the first year of business. Calling it an “eye-opening experience” — and the year that they committed several business gaffes – Ewoldt said there were quite a few challenges in terms of creating a buzz when there was a serious shortage of funds, garnering customer attention and maintaining it, and most of all having faith in the business even as everything was coming apart at the seams.

“Money was coming in but not as fast we needed for it to come in. So, that first year I had stopped taking a paycheck, my wife was supporting us and Jim actually went and worked at a fitness store for the winter. And all we had was that one employee,” Ewoldt said. “On Dec. 23, 1994 — I will never forget this — two days before Christmas, I had watched (our only employee) Jerry make a sale, and I walked out and asked him how much it was and he said $80, and I went back and wrote a check for $75. And so you think, is this really what I want to do?”

Describing this as one of the most critical periods of their business, Mike Ewoldt said it was their sheer belief in the business and continued efforts that eventually paved much of their way to success. “I told the gang in January of 1995 that we needed to do $15,000 of cash. And then I said for February we needed to do like $18,000. Well, when February came around, track season kicked in. And so we got all the coaches and then our business took off. In a matter of two months we were sitting with five bucks in our bank account, and two months later things were rolling finally,” Ewoldt said.

Additionally, the co-founders developed a proven method of improving business by continually organizing races and networking with cross-country coaches, podiatrists and physical therapists. “It’s just not talking about the business, and saying, ‘Hey! Why don’t you try a peak performance shoe?’ You need to extend that to a 15- or 20-minute conversation over dinner sometime. And we have to do a good enough job for customers to act as our marketing team and actually tell others that you gotta go here,” Mike Ewoldt said. He said one of the primary ways Peak Performance retains its edge over competitors is by internalizing the principle of customer relations.

“It doesn’t matter whether we sell shoes, financial tools, or for that matter boats. It doesn’t matter what [the business is about] … at the end of the day, it is about customer relationships,” Ewoldt said.

That — and to keep adapting wherever the track leads.