Quint and Rishy Studer announced this afternoon the kickoff of the Pensacola Business Challenge, a contest for entrepreneurs and business owners to win a business startup package valued at over $50,000. The winning contestant will be offered a three-year, reduced-rent lease at the newly-redeveloped retail space at the Studers’ new downtown retail development at the corner of Main Street and Palafox Place, as well as a startup capital fund of up to $25,000 to pay for furniture, accessories, and equipment at the space. In addition, the winning business will receive ongoing business training and consulting to assist with accounting, marketing, and financial decisions that are unfamiliar to many first-time entrepreneurs.
Based on a for-profit venture in Asheville, North Carolina, with a similar plan and incentive model, the Studers came up with the idea to make the Challenge a non-profit venture, with the goal of helping a local business or entrepreneur start and sustain a new business for the critical first three years, when many new companies fail due to capital costs or overhead.
Rishy Studer said the Challenge came up as the Studers were redeveloping a historic property on the corner of Palafox and Main Streets. “We were in the process of planning out the retail space in the Palafox and Main building, and we had this great storefront between the two other planned retail stores,” she said. “At the same time, we kept hearing about people who were interested in moving or starting a business downtown, so we thought, ‘Why not have a contest for the space, and let’s put together a package to help the winner?’ And that’s what we’re doing,” continued Studer.
Studer said the idea was inspired by a recent visit to Asheville, North Carolina, and the rising popularity of challenge-type television shows, such as “The X Factor” or “The Shark Tank,” where contestants compete to win a contract, a job, or investment in their business idea.
“There are so many great business ideas out there these days,” said Rishy, “that we wanted to help someone start – and keep – a business. By doing a challenge-type contest, we can help the new business get some attention, and we can also make sure that the winning contestant has ‘what it takes’ to be a successful business.”
Andrew Rothfeder, a partner with Levin Rinke Realty, is volunteering as the Project Coordinator for the Challenge. Rothfeder said the interest and support for the project has been impressive.
“As we’ve been working to put this plan together, to establish the rules and criteria for winning, and in reaching out to business professionals to assist the program and the contestants as mentors, we’ve been amazed at the excitement and support for the Pensacola Business Challenge,” said Rothfeder. “A lot of investors are still wary of putting their money into real estate right now, but the Studers aren’t only investing, they’re helping others invest too, and I think that’s what is getting people excited. For the first time, we’ve got a confluence of resources and of market demand – downtown Pensacola is really booming – and I think this contest is really going to create some opportunity for small businesses, and also be a great story for Pensacola as a whole. I’m honored that Quint and Rishy asked me to be a part of it.”
Rothfeder said that contestants will have to register as part of the competition, as well as pay a registration fee of $40 to cover the cost of a business-planning software package that is a required for consistency of plan submissions. Each applicant will be paired with a business consultant from the University of West Florida’s Small Business Development Center at no cost. The business consultants will assist each contestant in the process of defining and developing his/her business plan.
A panel of five local business experts will score the submitted plans, and the finalists from that first round will be given an opportunity for an in-person interview to “pitch” their idea to the judges. Following the interview round, the winning contestant will be presented with the startup package, which includes a three-year lease, with the first year being rent-free, and the next two years being at a discount from market rates. In addition, the winning business will have access to a fund of up to $25,000 for startup capital – including furniture, equipment, or fixtures, for the space. Finally, the Challenge winner will be part of a business mentorship program, which will help guide the new business through the critical first years of accounting, overhead, marketing, and business strategy.
Rothfeder said that all of the applicants’ and contestants’ information, including contact information and business plans, would be kept confidential. “We understand that a lot of would-be entrepreneurs are either working at other jobs or have a privacy concern for their business idea, and we are going to honor that,” said Rothfeder. “Every member of the Pensacola Business Challenge team will sign non-disclosure agreement, as will our judging panel members. Again, the goal that Quint and Rishy have for this project isn’t to make money for themselves, it’s to help someone else. So we’ve tried, at every step of the way, to make this process as comfortable for the applicants and contestants as possible, while still making sure that we’re doing our due diligence in selecting a winner, and helping them be successful.”
More information can be found at the website, www.PensacolaBusinessChallenge.com. There, you can read about the contest in detail, signup for email alerts, download an application, and learn more about the property and the Challenge process. For anyone interested in the contest, there will be an informational meeting held Thursday, December 15, at 5:30pm at the the Studer Properties Office in the Rhodes Building, 41 North Jefferson, in downtown Pensacola.