Surviving the startup gauntlet requires funding, grit, leadership, and even a bit of luck. Still, the reality for new entrepreneurs is stark, with an estimated 90% of businesses going under before their first decade in operation.
Enter Cleveland Chain Reaction, a pitch competition led by Greater Cleveland Partnership’s (GCP) Council of Smaller Enterprises (COSE). This summer, Season 8 welcomed a record 141 Cleveland-area startups before the group was pared down to 22 semifinalists in July.
Cleveland Chain Reaction Season 8 Semifinalists Inspired by the 2016 Cleveland Hustles, the reality series produced by LeBron James that aired on CNBC, the first Cleveland Chain Reaction competition began in 2017 to provide founders with access to capital and mentorship—a pair of critical components for long-term success, says Megan Kim, executive director of COSE and senior vice president of membership development and marketing at GCP.
Since 2017, Chain Reaction has received 732 applications, coached and prepared 146 small business semifinalists, connected winning businesses to more than $1.8 million in capital and provided over 660 hours of technical assistance.
“We were thrilled to receive so many applications for this year’s program, further reinforcing the strength and growth of our entrepreneurial community,” Kim said in a press release. “We look forward to working with our top 22 semifinalists to provide the education, coaching, and capital they need to take them to the next level.”
This year’s semifinalists represent a wide variety of industries, including permanent makeup, doggy daycare, and specialty food. Owners are vying for cash prizes of $40,000 for first place, $20,000 for second place and $10,000 for third place to fund physical expansion, new hires, and general operations.
The semifinalists spent July and August participating in a bootcamp hosted by JumpStart—where they prepared to pitch to a panel of judges at the upcoming showcase days on Wednesday, Aug. 20, and Thursday, Aug. 21.
Hopefuls like Brensha “Shay” Searcy are combining compelling storytelling with tangible business metrics. Searcy says she has the additional challenge of illuminating the workings of a largely unknown industry.
BeBrowed founder Brensha “Shay” SearcyA permanent solution
Searcy is founder of Be Browed Etcetera, a permanent makeup studio and academy in Northfield Center. Also known as cosmetic tattooing, permanent makeup involves implanting pigment into the skin to replicate the appearance of traditional makeup.
At its best, the technique blends beauty and healthcare, addressing both a client’s aesthetic desire and their specific medical condition, says Searcy.
“My clients have hair loss from cancer, or want to camouflage a scar from surgery,” she says. “These services restore the confidence of something they lost.”
Searcy says she has witnessed people in tears after getting their brows restored. Beyond her direct services, she operates a training school to bring new practitioners into the permanent makeup field.
Chain Reaction winnings would fund regional accreditation, says Searcy, enabling her to offer financial aid to her students.
“My story is about building an industry and creating opportunity,” she explains. “We have permanent makeup artists who are now contributing to Cleveland’s small business community.”
Gone to the dogs
Teressa Johnson's journey into entrepreneurship began when she needed a place to board her Silky Terrier, Alayna.
Paws Play founder Theresa Johnson and her Silky Terrier, Alayna“They gave me the tour [of the boarding facility], and the business model was wild to me,” says Johnson. “I was paying $23 a day and thinking about overhead and all the services.”
The idea of opening a boarding facility resonated with Johnson, who was then working in transportation and maintenance supervision at RTA. By the mid-2010s, she was seeking locations in downtown Cleveland to open a dog daycare, before finally opening Paws Play in 2018, serving the downtown Cleveland area.
Today, the business treats furry friends to overnight stays with bathing and grooming services. Pampered pups can also enjoy a “pawsome” birthday party that includes group play and a cake from custom dog treat creator Luca’s Barkery.
Johnson’s space on East 12th Street, between Lakeside and St. Clair Avenue, has room for up to 14 dogs. With expansion to a second location in Euclid in process, the entrepreneur joined Chain Reaction to establish a training component in addition to her current dog care offerings.
“I want to take on a few entry-level workers, then make them specialists where they can charge more than I’m able to pay them per hour,” Johnson explains. “It’s helping them as individuals, but it’s also helping us grow as a company. Eventually, we’ll scale up to a third location.”
Johnson is refining her pitch to hit a storytelling “sweet spot” of growth and career creation. Franchising Paws Play is the larger goal, one that ideally will begin in earnest later this year.
“When you come in here, you’re part of us,” says Johnson. “It sounds cliché until your clients say it back to you. I’d love to be able to expand that.”
Apples to apples
Creation is a heartfelt endeavor for Debbie Stevens, owner of Candyapple & Co. Launched in 2016, the Medina-based confectioner’s kitchen offers 300 hand-dipped candy and caramel apples in an assortment of flavor combinations.
Debbie Stevens, founder of CandyApple & Co.Stevens started with the classic red candy coating, evolving into more elaborate options—bacon, toasted coconut, gluten-free brownie batter, and more—as Candyapple & Co. took root. The store’s target market is well, everyone, notes the sweet treat proprietor.
“We’re perfect for lovers of those timeless flavors, but we have options for kids like [apples topped with] Fruity Pebbles cereal,” says Stevens. “It’s a labor of love to create something and watch customers’ reaction.”
Candyapple & Co. handles all its production at a two-floor facility in Medina. With 50 employees already on board, Stevens says she wants to grow the team by another five to 10 hires if she receives funding from the pitch competition. On-site development is another aim in the years ahead, she adds.
“We need chocolate and caramel stations and have a sweet treats kitchen on the second floor that we want to expand,” Stevens says. “It’s a good problem, because we can’t make [our products] quick enough.”
While prize money would be nice, Stevens says she also recognizes the benefit of bouncing ideas off mentors and fellow Chain Reaction participants.
“I’m already finding that rewarding,” says Stevens. “Having someone guide us through that next stage of growth is so important.”
The final push
Kenny Crumpton of “Kickin’ it with Kenny” on FOX 8 News in the Morning, will broadcast live from the showcase days on Thursday, Aug. 21. The winners will be revealed at the Chain Reaction finale on Wednesday, Aug. 27 at the Ariel LaSalle Theater in North Collinwood.
Cleveland Chain Reaction is produced by COSE in collaboration with FOX 8 News in the Morning’s “Kickin’ it with Kenny.” This season of Cleveland Chain Reaction is sponsored by Medical Mutual, the COSE Benefit Plan, Minutemen Workforce Solutions and MAGNET. Mimi Magazine is the competition’s print publication partner, and FreshWater Cleveland is the competition’s digital publication partner. Visit ClevelandChainReaction.org for more information.