For Jeff Charlson, one of the founders of Bike Rack Brewing Co. in Bentonville, the chance to participate in the first ScaleUp Ozarks program couldn't have come at a better time.
After less than a year in business, the brewery had already outgrown its quarters. Then the chance to open a new location in the 8th Street Market appeared.
The location is anchored by an old Tyson Foods plant being renovated to serve as a culinary school for Northwest Arkansas Community College. It seemed a perfect fit for the new brewery.
"Our biggest constraint was space," Charlson said of the current location.
He said the new spot will be in the heart of a growing food scene in Bentonville and more space for equipment will allow the brewery to produce as much beer in a day as it once took a month to make.
"We needed to act. It helped us finalize the plan how to do this thing," Charlson said of ScaleUp Ozarks.
The ScaleUp Ozarks program, overseen by Fayetteville-based Startup Junkie Consulting, is funded by grants from the United States Small Business Administration's ScaleUp America initiative. The Startup Junkie program receives $200,000 in funding annually for the program, which is offered free to selected businesses. Around the nation, 14 other organizations oversee similar programs.
"Starting a business is tough; growing a business is even tougher," Maria Contreras-Sweet, Small Business Administration administrator, said in a statement last year. "The SBA's ScaleUp America program offers high potential entrepreneurs the training, support and networks they need to get to scale, enabling them to create three out of every four net new jobs. Small business hiring is the backbone of job growth, and ScaleUp is yet one more way the SBA is working to help entrepreneurs propel our economy forward."
ScaleUp Ozarks targets established businesses that are past the risky startup phase, said Haley Cleous, Startup Junkie consulting executive. Small businesses participating in the ScaleUp Ozarks program are required to have between $150,000 and $500,000 in annual revenue, at least two to three years in operation and an established record of success. So far, nearly 30 businesses have participated in the first two classes.
"These companies leave with a plan that will lead them into the future," Cleous said.
Selected participants take part in a no-cost, 16-week program that focuses on assisting businesses to expand and grow quickly by providing mentors, executive education, peer networking, management assistance and access to capital. The second class will host its Demo Day -- a mix of a trade show, networking event and graduation ceremony -- at 5:30 p.m. Thursday at the Pryor Center in Fayetteville.
Lisa Webb, owner of Fayetteville Pilates and Barre, is a graduate of the second class. In response to a series of emailed questions, she said she was surprised at how much she shared with the other participants.
"Our common language was being small business owners and we were able to help each other problem solve much more effectively than I could have ever imagined," Webb said. "I don't know how to make artisanal, small-batch ice-cream, but I do know how to negotiate a commercial lease."
Startup Junkie is already recruiting for its third class which begins in early November. Those interested can apply online at StartUp Junkie's website.
Michael Pakko, chief economist at the Institute for Economic Advancement at the University of Arkansas at Little Rock, said the program's focus on small businesses, which are strong drivers of economic and job growth, seems wise. He said local control of the program and offering advice and support to more established, though still new, small businesses appeared to be a good value for taxpayers.
Charlson from Bike Rack Brewery is a Wal-Mart executive, as are most of his business partners. He said he was concerned at first about the time requirements of the program.
"All of us were slammed. We all have day jobs," he said.
But instead of being a hassle, he said, the program gave him the chance to look at the big picture.
"It gives you a chance to pull out and look at the business objectively," Charlson explained.
He said one of the most valuable and surprising aspects of the program was the relationships he built with other small business owners who were all in the same stage of development and all facing similar challenges.
"I didn't expect it to be as much of a family environment. We were rooting for each other, helping each other." Charlson said.
Startup Junkie's Cleous said after the small business leaders graduate from the program, they can still expect ongoing support and advice from the organization.
"We send them off to execute, but we stay here for them," she said.
SundayMonday Business on 09/25/2016