In the life cycle of a new company, there are milestones that are just as important as the first time a baby takes her first steps.
Two of last year's Miami Herald Business Plan Challenge winners recently hit such milestones.
The 2006 winner, DishRags (www.dishrags.us), a company that makes printed satellite TV dish covers, recently received a patent for its product; and third-place finisher ResTrust, a company that planned to certify résumés for accuracy, recently launched the venture and has reeled in its first clients.
For DishRags, the path to a patent took about four years and some $10,000 in legal fees, said Tony Bello, a company co-founder.
The product consists of a fitted cloth cover -- emblazoned with team logos or other designs -- that slides over TV satellite dishes. Since launching in January 2006 the company has sold "tens of thousands" of these "dishrags, " which retail for $19.95 to $24.95, said Bello.
But despite its success, until now the company always operated under a cloud. "There was always the question mark from investors as to what would prevent someone else from coming along and doing this, " he said.
But this month the company received a Notice of Allowance from the U.S. Patent and Trademark Office. It will still be several months before it is issued a patent number and the product appears on the U.S. Patent Office's website.
Meanwhile, ResTrust, which tied for third in last year's contest with a plan to save job recruiters time and money by certifying the accuracy of job seekers' résumés before they're hired, has officially launched ResTrust.net. When it caught Business Plan Challenge judges' attention it was little more than a business plan. The company's strategy is to turn other company's human resources departments into its marketing arm. So far, 17 firms have posted notices on job websites that read: "We strongly suggest applicants submit certified résumés only. You can certify your résumé at www.ResTrust.net."
ResTrust charges job seekers about $15 per verification, and most candidates have two to three items verified -- usually their last two jobs and their most recent college degree. But those who get a job using a ResTrust certified résumé also get a refund.
Speaking from an HR expo in Louisiana, company founder Jared Fletcher said the "response has been phenomenal." He said almost every HR recruiter he has talked to has a horror story about hiring someone only to find out they lied about their education or previous job.
At the current growth rate, Fletcher said the company will probably be seeking a second round of funding in four to six months.
