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The Detroit Free Press Carol Cain Column

Posted on: Monday, 7 November 2005, 18:00 CST

By Carol Cain, Detroit Free Press

Nov. 7--Americans continue to go crazy over reality TV shows, so it only stands to reason they'd tune in to an Internet series dedicated to the real-life sagas of several start-up businesses.

That's been the case with America Online's reality series, "The Startup." It began its second season Nov. 1 and is a hit with millions who are tuning in.

Frozen Specialty Products LLC, started by Gary Kostlan, 56, of Saline, is one of the three companies starring in the Internet series. The show is updated each Tuesday at 5 a.m. and spotlights one of the firms each week.

Kostlan runs the company from his home. It makes and markets a new frozen treat for dogs called I.C. Spots. Kostlan and business partner Dan Kastor, 43, of Hinkley, Ohio, started the company with a $10,000 investment. Kostlan describes I.C. Spots as a premium frozen food that provides a nutritious human-like treat for dogs. Although it looks like an ice cream sundae, it is vitamin enriched and doesn't have the lactose content that can make dogs sick.

Kostlan focuses on the business side of the firm while Kastor handles sales and marketing. They spent the first 18 months working on the product, and then getting it patented.

The two met while working at Nestle Co. in Salon, Ohio, near Cleveland.

Kostlan decided he was tired of corporate America, wanted to do less traveling and decided entrepreneurship was for him. Kastor came to the same conclusion about a year later.

They set up their firm in 2003.

The Internet show was the brainchild of Joel DiGiacomo, director of AOL's Small Business division. In partnership with AOL, Entrepreneur.com tracks the businesses in online articles.

"It really came out of the idea of, 'What does it take to start a business? How much money? $5,000 or $2 million?' " DiGiacomo says.

Having never been an entrepreneur, DiGiacomo took an extra step and learned how to become a buyer and seller of items on eBay.

Today, DiGiacomo's idea has flourished. Business owners, people thinking about starting businesses and people who are just curious are checking in each week.

Because of the success of last season's series, more than 2,000 firms applied to be in this new season.

DiGiacomo helped whittle through the applications. He says he looked for firms that had a great story, great potential and interesting people whom would-be business owners could learn from.

"You can't just pretend to know what it is like. You have to experience it firsthand," he says.

"Too many times we hear about Michael Dell, who started in his garage and grew it into this huge corporation (Dell Computer). But that is not the way it is for most small businesses."

In addition to the video posted each Tuesday, the series features blogs the three groups of entrepreneurs write. The inaugural series ran from April 2004 to March 2005 and attracted more than 3 million page views.

To get the video for the Internet segment, an AOL crew shows up and tapes about two days worth of interviews that are boiled down to a 3-minute segment. The owners focus on how they are dealing with some issue or problem.

Frozen Specialty Products' inaugural episode featured a screw-up at the facility that makes the frozen dog treat. The manufacturer added the wrong ingredients and the batch was ruined. But the manufacturer made good and redid it, so Kostlan and Kastor did not lose any business.

The next episode about Frozen Specialty will be online Nov. 15 and likely will show something about Kostlan dealing with tax issues. That is what he is focusing on right now, and Kastor will be in Chicago meeting with potential distributors for their doggie treats.

"I love these guys," DiGiacomo says of the duo. "Their passion for the product just shines through."

Plus, their story is a common one. "Seeing two people from corporate backgrounds who are frustrated and want to do something else is a theme a lot of people can relate to."

The frozen dog treats sell from $3.00 to $3.29 and are packaged in four 3-ounce cups.

Woodman's, a grocery chain in Wisconsin and Illinois, is selling I.C. Spots right now. And the duo is talking with other retailers about carrying the treats.

Kastor was the one who discovered the AOL online series and decided to apply.

"It's been a great marketing tool already," Kostlan says of "The Startup.""It gives us a little more credibility to go to the distributors and show them we have some viable products that they could sell to their customers."

After their original investment, the partners put in about $100,000.

"At this point what we want to do is self-finance ourselves. That really is our goal," he adds.

Contact Frozen Specialty Products at: www.icspots.com.

To see "The Startup," go to http://smallbusiness.aol.com/thestartup.

Carol Cain hosts "Michigan Matters" on WWJ-TV (Channel 62) 11:30 a.m. Saturdays and WKBD-TV (Channel 50) 9:30 a.m. Sundays. If you have information about your business, please mail it to Small Business, Detroit Free Press, 600 W. Fort St., Detroit 48226, fax it to 313-222-5992 or e-mail cain@freepress.com.

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Source: Detroit Free Press

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