Building a Startup Ecosystem: The Sprocket Journey with Monica Bilak

Welcome to the inaugural episode of the Sprocket Podcast, “What’s the Startup?!” Join us as we sit down with Monica Bilak, the visionary behind Sprocket, to uncover the story of how this entrepreneurial hub came to life. From transforming a historic space into a vibrant center for innovation to fostering a thriving ecosystem that supports startups across Western Kentucky, Monica shares the journey, challenges, and successes that have shaped Sprocket into what it is today. Whether you’re an aspiring entrepreneur, a seasoned founder, or just curious about the startup world, this episode is packed with insights on building community, nurturing talent, and driving economic growth in our region. Tune in and discover how Sprocket is empowering the next generation of innovators to turn their ideas into reality.

Thank you for tuning in to this episode of the Sprocket Podcast! If you’re ready to dive into the world of startups and innovation, visit us online at Sprocket Paducah to learn more about our mission and how we support entrepreneurs like you.

Got a business idea? Don’t miss out on our West Kentucky Innovation Challenge, where you can test your concept, build a prototype, and compete for prizes that can launch your startup to new heights.

Stay connected and join our growing community on Instagram for the latest updates, inspiration, and behind-the-scenes looks at what’s happening at Sprocket.

Let’s turn your ideas into reality—together!

Sprocket is proud to be supported by Team Kentucky, the Commonwealth's Cabinet for Economic Development. Learn more about their initiatives and resources at ced.ky.gov.

Transcript

0:47

Monica, welcome to the first episode of the Sprocket Podcast. What's the startup? What is the startup? Well, for our listeners who are not familiar with Sprocket, start by sharing the story of what Sprocket is and what you do here, which is everything. Well, Sprocket is an entrepreneur center. It serves 22 counties in the western part of the state of Kentucky. We have been in operation since 2020. Yes, we did construction and opened in 2020. And through a generous grant from the Cabinet for Economic Development. And local donors, so our McCracken County Fiscal Court and City of Paducah. And actually, the McCracken County Library was a donor in when we first started as well. So, yeah, and we knew that rural communities are far behind in their employment and digital careers and in creating digital companies, which are some of the fastest growing companies on the globe and the highest grossing. So we're really missing out when we're not involved in the digital ecosystem. and being part of that. Of course, starting in 2020 was a really good time because it became painfully clear that the digital economy was going to win in a lot of ways and could supersede geography and time and space. And so we actually won a grant through the department of labor and were able to offer software engineering courses. In addition to hosting a startup competition and a business incubator. So we, we had a lot of things going on that year and that's how we got rolling. What was the original vision for this space? And I know so we're located in the Coke plant and I saw some pictures of what this place looked like before it was even here. And it just blows my mind that anyone could have looked in here and pictured what Sprocket could be. And I know that's just a glimpse of, you know, the coworking space is just a small glimpse of what we actually do here and what we serve. So tell me about that, the vision you casted, how that came about. And how Sprocket came to life in terms of the need and what you saw here and what you pictured could be.. Well, originally I was working in education and I was working on workforce and I was looking to help create more high tech talent. We have a very large technology company based in Paducah, believe it or not, and they do core bank processing and we had had. early conversations with them about how are we going to have talent to do all the work that is coming down the pipe. So that was originally where we were and we were actually in a room behind this wall. It's the boiler room of the building and we were running workshops all kinds of digital workshops anything in, in, in tech. So we were teaching kids how to do 3D printing, and game design, and coding, and we did coding with music, and all these kinds of things, and that's how we got involved with the library, and and then we started adult programming, and lots of people still showed up, and they wanted to know how to do IOT devices, and how to program things, and so we, we knew there was something there, and while we were doing that, The cabinet for economic development came in and said, we'd like you to take this up a notch and start serving entrepreneurs exclusively. And so that was a real big shift for us. Like, okay, how do we, how do we look at that? And we're growing the talent for these companies. So how do we then help people grow those companies? And so that was the shift. I knew there was about 10, 000 square feet of space back here in the warehouse. Thank you And yes, it was full of all kinds of various things that were all like elements and building materials. And we had a really amazing architect and a contractor for the construction of this. And, and I have to give them all credit that this place is amazing because we, we took them all around to see all these different co work spaces in the Southeast. But really they, they really honed in on what is this space and how can this space be utilized in a totally different way and what makes it so interesting by seeing this, all this exposed ceiling and it still has this industrial warehouse space, but it's got this really cool vibe and there's lots of glass and that, that would be because of Ray Black and Son that we have a really amazing space. So we had great partners. They came in, they also knew how to take, have vision for historic spaces. So we're located in this historic Coke plant. And how do you kind of re imagine space? And they were really good at that. And that's really amazing, but a testament to the whole ethos of what we do is we're re imagining workforce and we're re imagining what is it, what is a company, in 2024 really look like what is that? How does that scale? Because, you know, it's really different from a company even in 2010. You know, we've just all become so much more inclined to pick up our phone or do something on our laptop and and expect this really different level of service that comes from automation and and having a digital platform. So yeah, everything changed. But you know, That's how we got this great space. And how have things grown over the past three or so years? What was that transition like going from being a maker space to now serving entrepreneurs? Entrepreneurs come in here every single day. They're working here and they're coming through our competitions, our challenges, coming to coffee hour. How did that progression, what did that look like? That was very hard. I will not lie it was 2021 and most people were still not sure they were going to leave their house. But once we started rolling out programs and having launch parties for those programs, we've got to see where there was some traction and what you have to do is just follow that traction. It's very quiet at first. The reason we have a startup competition in our community is because we literally had maybe three other startups that were even sitting here. And that's really difficult because there's a symbiosis that has to happen where you have companies, you have to have enough of them that investors come looking around and you have to have enough of them because those feed on each other. And then you have to have a network of mentors that are also interested that can help those small companies find customers and really fine tune their processes and fine tune their sales approach and get very savvy on. What's a good investor for you? What's a bad investor or do you need to bootstrap? And so there's a lot of pieces that have to come into play and you can't just have startups and not have investors. You can't just have startups without somebody who can mentor them, that's really difficult too. So getting all those pieces into play was a real trick because you're kind of casting this vision. Our local government and our state stepped up to the plate and allowed us to do that without actually having much going on. But we, we imported startups and that really got us clicking. So we brought in three startups our very first year. And then we had another community, sister community that we were working with that would kind of play, let those startups get to meet their startups. So we had more than just three, we had like seven, you know, and then there's this synergy, but you've got to have some critical mass of people who are excited, who are working on a thing, and then all those mentors and resources, and then you've got to have those investors that come in. So we use the state's venture fund called Keyhorse Capital as kind of our, our initial investors. And that had really exploded those companies got them going and took every one of them to a different level. One sold which is great. We always think an exit is fantastic. One is still here in Paducah, bought a couple of pieces of property. She's still building out hers, developed international clients, which is also fantastic and did that through some incentives from the state of Kentucky. And so everybody is all still working on their projects. They still come back if they're not here. And and then the following year we were, we recruited two more companies. Since we've been doing this, we've had four companies end up in the Kentucky startups to watch, which is really great. And they've gone on to, to keep growing, which is fantastic. And it's really unusual because sometimes they just crash and burn, which is still going to be a thing, you know, not everybody makes it. But we're, we've been pretty fortunate so far. So it sounds like, you know, with the symbiosis of all these different key players, what you're describing is an entrepreneurial ecosystem. Yeah, absolutely. For those for those in our community who are new to that concept, describe what that is and what the benefit of that is for our community. Ecosystem is like anything. It's the food you need to survive, right? And the habitat, the place you need to live. And then that community that kind of helps you grow and nurtures you. So, my role is literally ecosystem builder. That's what I do. So I come in and I go, okay, what here needs to happen for us to begin to develop a young startup community or young small business community. So we needed a place to live. We needed a beacon that said, Hey, this is where these people go to get the,help they need. So, this space was a huge huge initiative and actually came about in the 2019, 2020 as well, where we got funded through the city the county and the library all put in money for this, this space to happen. For And the state put in the operational funds for us to, to then make that go. So the space is important. The startups are important. The resources for startups are important. The investment capital is important. So it's like spinning plates and they all have to be spinning at once and you're just going around saying, which needs more traction. needs more push. And so, you're juggling a lot of things at once. And you're telling a story because it's very difficult if you don't have a community where small businesses are all working together and they're all sharing information and all trying to get smarter, faster. It's very difficult to like help people see that vision. And I think the space really helps define what it looks like. We have co work space here as well. So we have really affordable office space. If you're just getting started, we also keep a board of talent. So people call us, Hey, do you know of any software engineers that we can work with, do you know, marketing, all of those things have to be part of your ecosystem because they're all going to be pieces that that small business is going to need. to actually make a go of it. And tell us more about the co working space. I've been working as a freelancer for the past seven years. So I've been in co working spaces all over the place, especially when we lived in Nashville. But then I come here and realize a lot of people don't know what a co working space is. So introduce us to that concept and what takes place in the co working space. Right? So we have really good high speed internet. Number one. This co work space is a really good example of the difference between when you're growing digital companies, tech based companies, and when you're growing maybe a brick and mortar, which is more traditional economic development, which is a building and I need land. And so we've got a building, but really what makes our building work is the technology inside our building. Because for a small business. A laptop is their office. That's it. And I need high speed internet. And I need a laptop. So I need to get connected that way. So that's a big piece of it. And then just good spaces, we're in a room right now where there's this jumbo screen. And you can basically have hybrid meetings in here. So there's that technology where. If, if a small company is coming and maybe the founder, the person who started the company is in our space, but their co founder is in Louisville or some other country even, they can still have those meetings, right? And they're seamless and it's fast and, it's simple. And so we can bring people together while we're not geographically together, we can be together in a Zoom call or whatever. Okay. And so we have those kinds of capabilities, too. So we've got a number of those rooms. We have small, we call them telephone booths. So there's places to just go have a quick Zoom call and hop on a call with somebody. But really, the big living room is like a big living room. It's a big shared space, comfortable desk. Stand up, sit down desk, whatever you need. There's a kitchen, there's coffee going constantly. There's really healthy drinks in our fridge, and that's all for our members. And we, we operate like a gym, right? This is your work gym, and we have memberships and you have different levels. If you're just in Paducah for the day, you can just pop in, host a meeting, get a day pass, and go on your way. And then we have people who are here and they have office space. So we've got 20 offices in the back as well. So if people need just a place to keep all their stuff, their files and whatnot and need a meeting space. For clients, they can do that without being like a lot of entrepreneurs, which many of ours have been in their garage or, you know, the living room or the dining room table. This just pulls you away from maybe the kids at home, the dishes that are yelling at you to be done or whatever, and gets you out of your home space and gives you a more professional feeling. And I think psychologically, it's really good for entrepreneurs to get out of the house. One, we know that there's just physiological benefits mood uptick energy uptick from just being around other humans. So there's a lot of isolation with being a remote worker. It can get pretty lonely and your motivation can really tank when you're not around other humans. We're also not a coffee shop. There's not a lot of clanking, a lot of noise, a lot of, you know Got to get out of the table, off the table, but yeah. So, you don't have to buy a very expensive drink, but so we're different in that way, like, we're really here to come and Get your work done. Do you come in here and you train your brain that this is where focus work gets done when you leave. It really benefits the work life balance and your home could be your home. It is nice to have a few days at home, but for that to be your go to space could be draining. Yeah, it is. You know, we have cookie hour, so we have cookies in the afternoon. Yay! You know, or something fun, or somebody brings in something to eat, and they've made food, or it's somebody's birthday, you still have that, that work family. And you can have those work friends without yeah, that's huge for freelancers, remote workers. I know when I talk to people about Sprocket, we're still in the stages of where people are learning who we are and what we do, and they hear that we're an innovation hub, and that sounds kind of out of reach. It sounds like something out of Silicon Valley, but really, we have everyday people in here who are just working on ideas and getting their work done on their laptops. How would someone who's listening know that Sprocket? in and engage with Sprocket, whether that's through our mentors or coming to coffee hour, how would they know that they're ready? So I don't know that there's a, you got to be ready, honestly are you an entrepreneur when you're ready, you know, and you're needing some resources, whatever that might may be, we have a long list of workshops that we host you know, just ongoing and some of those are finance for your business there. They could be, just sales customers, just all kinds of things. There's, there's coffee hour. You might bump into somebody who's just in something industry you're in and, and you're just wanting to talk about, you know, that and understand a little bit more. You're just wanting to get out and meet some people or maybe you're a remote worker and you want to get out and meet some people and you just want to come to coffee hour every once a week. That we have on Wednesdays. Then, then this is a great place for you. If you're if you really are trying to scratch out that small business, then you should get in our Innovation Challenge, and take a six week course on how to make sure you've thought about all the elements that go into running your business and starting it. And then get in the pitch competition and see if you can't launch it. If you're already a business and you're looking to accelerate and you need investment capital, we're definitely the people to talk to. So we work with venture funders and even local investors are really interested in getting involved in different companies. Reach out to us that for that. Another thing that I'm really excited about starting as an entrepreneur transfer A group where if you've got a company and you're retiring from that business, are you looking for a young entrepreneur to come in and take over? And maybe that's, that's another way that you could get involved. We've got a lot of people who are just tech workers. they're remote work and they just come in cause they like the community and it's nice to have friends. Yeah. It is nice to have friends. So maybe you're just trying to steer away the isolation. Yeah. Yeah, it was kind of a lot of, a lot of ways to get involved. Yeah. I think at no, no matter what point you are on your journey, you know, even if you are someone who wants to have an idea, come to coffee hour because just being around other people who are further along than you and can provide perspective and advice. It's, it's just It's just energetic and it creates ideas. It just creates sparks. So if you find yourself being the kind of person who has entrepreneurial tendencies, or you're always coming up with ideas, Oh, wouldn't it be nice if we did this? And you just haven't yet, just come to Coffee Hour. It's just a great place to come find community and belonging. Tell us more about the West Kentucky Innovation Challenge. What can people expect to learn and get out of the program? So this is our third year doing this and, it's a place to come test out your idea with some others around and maybe build that little prototype, understand who your customer is going to be go test that and see if it's really going to happen and then get in a pitch competition and see if you can't win some some prizes to get you moving on your way That's a that's a great way to to get started You know you go Listen to the coursework, meet with a coach and then just see if you can launch it. So, there's no better way unless you want to just scratch it on your own, you've already got some mentors, great, go for it. But this is kind of another way to, to see if you can build that company. And, and we do this because we are located in a region called the Delta region, and there was some really good research done on this and believe it or not over 90 percent of net new jobs so that means jobs that did not exist before that are brand new jobs are In the Delta region are from companies that are one to five years of out of age So if you think about it new companies are Literally the way new jobs are getting started old jobs are staying but somebody's going out. Somebody's just replacing it It's just recycle job. So if you're thinking about oh my community needs to grow then your first thought should be How am I supporting those small businesses that are starting that is the way you're going to grow a economic vibrancy In your community in in our region and why is that especially important for Western, Kentucky? Because we're not growing pretty stagnant. And and it is really important. How do we, how are we supporting young people that are coming out of our universities and saying, Hey, here's a whole ecosystem that can support you on that bright idea you've had and this new knowledge you've got gained. And how do you start a company in our, in our region? I think it's really important that we be super supportive of that. And I think we're seeing it now. It's, it really has taken off. So even though we started with three startups, I've got a wall of 15 out here now. So it's dramatically changed. Our board chair always talks about it as being a flywheel, but it is once you get that flywheel going and it's like the plate that you're spending and keep it spinning. It really does, the flywheel will take off and it has its own energy. But you know, what better way to bring our kids who go off to college, live in a larger market. They're ready to come home. What better way to entice them than to say, well, what do you want to do here? You know, how can we start something new or find an existing business and help take it over? There are several people in the space, including me who have gone off to larger cities and come back to Paducah and Sprock is one of the first places they get re engaged Oh, yeah, for sure. So looking to the future, what are some of the big things that Sprocket is looking forward to? Well we are going to launch a platform for the entire region of West Kentucky. should be out like in December, January hopefully. We won a grant from the United States Department of Agriculture, USDA. And so we hope to have courses that people can take. So doesn't matter where you are in the region. This is a free resource to you. You don't have to come into our space in Paducah, which could be two hours away from you. So we want people to have access. And so that is going to be a really great way to find people. We'll have a, an engagement place, kind of like how Facebook does, right? And you have this community, this group of people. So we'll be able to see who the entrepreneurs are in our region and what the resources are, get them connected even faster and hopefully speed up some of that communication that really does facilitate growth. And I think it's important to know that platform will be free, a free resource for all the people in our counties. And the innovation challenge is also free. Yeah, a lot of people don't know that we're a nonprofit. Yeah, yeah, we are. We are 501 C3. We exist because of for public benefit. And Yeah, we will take a donation in our sponsor. So there's a lot of stuff coming up this fall. Yeah. And winter. And winter. Yeah. And spring. Yeah. And summer. Yeah. And we'll do it all again the next year. We will. Spring will be, spring is more for when we recruit companies into our area. We've had people from, we've had people move from Alabama. We're have right now, New Jersey Bangalore, India. We've had as close as St. Louis, Missouri, and as far as Seattle. We've had companies come from all over and it's been great. Yeah, it's so cool. So for those listening who have not engaged at Sprocket yet, have not stepped through our doors, haven't done anything, they're, they're brand new, what would you say to them about getting engaged at Sprocket? So an easy way is just to go to our website at sprocketpaduca. com or follow our really great social media. Come to coffee hour on a Wednesday morning at 8 a. m. is another way yeah, sign up for the Innovation Challenge. If you think you have a business if you need an office, you or you just want to be a general member because there's different levels of, of pricing just book a tour and you can do that online on our website. Yeah, I'd say do any of those things and, and that'll be a great way to get a sense of what, what to do. And book a coaching call. You can do that too. By the way, we have coaches that work with people for free as well. And you can book a coaching call and just talk one on one if you're a little hinky about being in a big group. Yeah, if you're nervous about if you're wondering, is the innovation challenge for me? Am I at the level that is needed to join the challenge? Just book a call with Patrick, our entrepreneur growth coach, and he'll tell you that yes. It is a good fit for you because the challenge, is great for anyone who is, has a new idea or an existing idea that they want to refine and get ready for business. And even for those people who like have lots of ideas and they want to pick one and they just can't do it, which is me. All right. Thanks, Monica. Thank you. This was fantastic. Yay.