At the heart of every transformative story is a person driven by passion, vision, and an unwavering commitment to make a difference. Scott Stuckey’s journey is no exception. From the creative confines of a photography studio in Miami to the pioneering development of educational and workforce solutions in Appalachia, Scott’s path reflects a deep-seated belief in the power of second chances and the impact of technology for social good.
Watch the video interview on Youtube!
Q&A Session with Scott Stuckey
Founder and CEO of Fair Chance Works
Q: Provide an overview of your background and what inspired you to become an entrepreneur and start your own company.
A: I’ve started a few businesses over the years starting with a commercial photography studio in Miami, which saw a roller coaster of revenue for nearly a decade. After a one-year stint as a construction superintendent on a $3.5M condominium restoration following Hurricane Andrew, I settled into a career in K-12 education where I taught high school science for ten years and then worked with my fellow teachers assisting them with instructional technology for their classrooms. At that time I was also pursuing my doctorate at Appalachian State University and it was the results from my dissertation work in educational assessment that led to the formation of Inquiry Technologies, LLC (InqTech). Shortly after its formation, I received notice from the National Science Foundation (NSF) that my newly formed company was awarded a research and development (R&D) grant to develop an alternative assessment platform for STEM students. With that notice, I used all of my sick leave to qualify for early retirement from the school system where I was employed and began working full-time on the NSF project. InqTech gathered additional financial support from the United States Department of Agriculture (USDA) and matching grants from Kentucky’s Cabinet for Economic Development. We were able to obtain roughly $1.2M in grant funding, and while the software platform that resulted was highly effective and widely accepted by students, as a startup in a very competitive industry, we faced overwhelming barriers to commercialization. So, we asked for and were granted by USDA to pivot to workforce development and as a result, formed Fair Chance Works PBC (FCW) about two and a half years ago. I guess if I were to define why I’ve pursued so many entrepreneurship paths over the years, I’d have to say that I just get pleasure out of turning ideas into reality, especially when it comes to helping others.
Q: What was the initial idea or concept behind your business, and how did it come about?
A: When we were transitioning to workforce development, a colleague that I have known for years suggested that I provide a demo of our technology to someone she knew who was charged with assisting individuals with substance use disorder (SUD). She immediately started making connections and within a few weeks, we were involved in a one-year pilot project training individuals with SUD at four long-term recovery centers in Eastern Kentucky. Shortly thereafter, we introduced our technology and training methods to two cohorts of inmates with SUD at the Boyd County Detention Center and we are soon to begin similar training with at least 60 females in Hardin County. Our existing platform relies heavily on video production, and we rely on that heavily when training for soft skills and interview prep. Initially, most of our clients are somewhat intimidated when performing in front of a camera, but with time and a ton of constructive support provided by our trainers, they often come out of their shells and provide levels of self-evaluation that rarely occur within traditional training sessions. And once they are better able to confront their challenges, developing and pursuing a genuine career pathway becomes much easier.
Q: Can you describe the early days of your startup? What were the biggest challenges you faced during the launch phase?
A: As I mentioned previously, the funding that allowed us to develop the technology we’re still using today, came primarily through government grants, and more specifically through the Small Business Innovation Research (SBIR) program. To qualify for SBIR funds, the business must be for-profit, and whoever serves as the principal investigator has to spend at least 51% of their time with the small business. FCW was formed as a KY public benefit corporation (PBC). For tax purposes, a PBC is treated the same as a traditional C-corp and is more investor-friendly than an LLC. And while for profit, as a PBC we have to both state in our articles of incorporation and follow goals that have a positive impact on society. However, most of the current funding, both private and public, that assists organizations in workforce development and SUD recovery requires that the business entity operates as a non-profit. So while our choice to operate as PBC opens financial opportunities with the SBIR program and venture capitalists, it restricts our ability to solicit other funding sources that are often more tolerable to startup organizations. I’m proud of the fact that FCW is a PBC and wouldn’t change that if I had the opportunity to do it all over again, but in many ways, it does make launching a company more difficult. On the flip side, as a for-profit business, if we’re able to cross what many refer to as “The Valley of Death” by increasing our revenue streams to the point of profitability, then our chances of securing the outside capital necessary to expand FCW well beyond the Commonwealth is far more realistic than if we were a nonprofit.
Q: Were there any key moments or experiences that motivated you to take the leap and start your own business?
A: Looking back, I guess the motivation that caused me to jump in headfirst with each of my business initiatives occurred with the validation from others that those ideas were sound. But you have to be careful here as I’ve found from experience that people often tell you what you want to hear, not what they may be thinking. In Miami for example, I had taken undergraduate photography courses for a year, worked under several businesses as an assistant, was genuinely very good at the craft, and was prompted by others to go out on my own. And while I remained an accomplished photographer, I knew nothing about running a business and was simply horrible trying to sell myself. That experience caused me to learn that you need to have some actual commitment from others, financially or otherwise, before deciding to start a venture.
Q: What were the first steps you took to turn your idea into a reality, and how did you secure funding (if applicable)?
A: Probably my largest risk occurred when I decided to shift my efforts from education to workforce development. I was working at the time with a business consultant who was trying to help me determine the pros and cons of making such a move. It was a very tough decision to make and after a ton of back and forth, we decided to flip a coin. Heads: you remain as an ed-tech company. Tails: you pivot to workforce development. After the coin toss resulted in heads three times in a row, I told him to put the coin back in his pocket as apparently, I had already come to a decision. It was the correct decision as within a few months our traction included our first revenue and our first outside investment.
Q: What has been your most rewarding accomplishment as a founder so far?
A: The last session of our training workshops is billed as ‘Celebration Day’, a forum where those of our clients who want to, share their capstone videos with their peers, prison staff, and members of the community that often include service providers and employers. While almost all the videos are compelling in various ways, one clearly stood out from the others based on her level of sincerity, acknowledgment of mistakes made in the past, and positive outlook for the future. It brought tears to almost everyone in the room including myself. It was that moment when I knew I had made the correct decision moving into this space and realized the true value that our efforts can instill in others.
Q: On the flip side, can you talk about a specific setback or failure you encountered and how you overcame it?
A: As we’re all aware, the pandemic harmed almost every business, big and small, and ours was no exception. We had just made our pivot and had trained staff for a workforce development group charged with training jobseekers for work-from-home positions. We were about to begin training their clients at nine hubs in our region when the pandemic hit. The organization had to close its hubs and we were faced with losing the one client that helped determine our decision to pivot. Fortunately, within a relatively short period, we were granted access to work within long-term recovery centers. Scheduling was a nightmare as most of these facilities were often under quarantine, but we persevered nonetheless. It was tough work, but what we learned from that one-year pilot helped define our efforts as we continue to work with justice-involved individuals with SUD.
Q: Building a business can be mentally and emotionally taxing, how do you manage stress and maintain your motivation during tough times?
A: Stress just comes with the territory. From my experience, it doesn’t matter if they are tough times or not, owning and operating a business is extremely stressful. And while others can turn off the switch at 5 o’clock and leave the business until the next day, I’m not one of them. Even when times are good, there’s still a seemingly constant flow of to-do lists, next steps, and deadlines. So, if anyone is thinking that being your own boss will reduce the stress in your life, think again. Fortunately, I have found ways to deal with stress, but you must have (and maintain) a huge amount of desire for what you are trying to accomplish on a day-to-day basis. Otherwise, the stress can really take its toll on not only your health but that of your family as well.
Q: How did you assemble your initial team, and what qualities do you look for in the people you work with?
A: Our Chief Operating Officer, Christopher Lipscomb, serves as my right-hand man and has been with FCW since before its inception. I met Chris through a capstone course conducted by the University of Kentucky’s MBA program. I was one of several business sponsors, each charged with mentoring a group of graduate students who assumed various mock executive roles within your business. Chris was elected by his peers to serve as CEO and remained with the program for two semesters. Consequently, he got to learn a great deal about my business, and I was able to observe his work effort continually. I hired Chris on a part-time basis shortly after he graduated and was able to bring him on full-time shortly thereafter. While our full-time staff remains small, we have a fantastic team of consultants and business development organizations including UK’s Launch Blue, Invest 606, Awesome Inc., Shaping Our Appalachian Region, Keyhorse Capital, SBA, plus various state-supported agencies. So, if your team is small, there’s still plenty of assistance available, you just need to ask for their help.
Q: As your business grew, what were some critical milestones or turning points that shaped its trajectory?
A: First revenue was a huge step. Having received a fair amount of R&D funding that allowed us to develop our proof-of-concept into marketable technology, the SBIR program expects awardees to grow their business by commercializing the products they’ve helped develop. That was a daunting task with the K-12 business as sales cycles were awful, the competition was steep and dominated by a handful of international companies, plus the fact that school systems operate on very tight budgets and rarely enter into contracts authored by small businesses. So, it was a very big deal to earn first shortly after making the pivot. Once that was in place and combined with FCW’s corporate structure, we were recently able to receive our third outside investment – milestones that also bring a great deal of credibility to our overall mission.
Q: Can you share a few examples of the most valuable lessons you’ve learned as a founder and how they’ve influenced your approach to business?
A: As a founder, I’ve realized that you need a very thick skin to survive in business. It doesn’t matter if it involves fundraising, staffing, sales, or day-to-day operations, you’re bound to run straight into walls that you never expected would be there. And as ludicrous as some of these barriers may seem to be at the time, you need to learn to bounce off them and keep moving forward. For example, because we’re reliant on federal grants to help build the technology that we’re striving for, I’m authoring these on pretty much a continual basis. I fully realize and accept that you’re going to lose far more than you win. It’s been my experience that putting together a decent proposal often takes 400 hours of your time if not more. So when you submit that one that you just know is solidly written, has great support, and aligns closely with the criteria expressed in the RFP, only to have it blown out of the water by the review panel, is frustrating, to say the least. But after a couple of nights of sorrow, you just have to let it go and move on to the next opportunity.
Q: How do you stay innovative and adaptable in an ever-changing business landscape?
A: I take advantage of every pertinent workshop, conference, boot camp, and accelerator that I possibly can. Even when I may have heard the bulk of the material presented several times over, I almost always leave these events with a nugget or two that help propel the business forward. Plus, they provide great networking opportunities that can be difficult to achieve in other forums.
Q: What role has mentorship played in your entrepreneurial journey, and do you have any advice for aspiring founders on seeking mentorship?
A: I have had and continue to rely on some great mentors over the years. As a founder, it’s easy to have your focus narrowed to a point where you often don’t see the larger picture, or in some cases, miss an opportunity altogether. A solid mentor not only provides expert guidance and brings a ton of wisdom and experience to the table, but they often ask probing questions that force you to come out of your confined space and explore around a bit.
Q: Can you talk about your company culture and the values that drive your team’s success?
A: We’re in the business of human resource recovery and as such, our company culture has to convey a strong sense of caring and compassion for the clients we serve including those in recovery and/or others that are justice-involved. But the vast majority of those we work with are not looking for handouts, they simply want a fair chance at obtaining and sustaining a decent job. Yet, between the persistent stigma that remains regarding those with SUD combined with company policies designed to extinguish those chances, many lose faith in the system and often return to unhealthy behaviors. FCW is trying to instill a culture within communities, and especially among employers, where our clients are seen for who they are, not what they’ve done in their past. Breaking down these barriers will require far more transparency in the hiring process than what currently exists.
Q: How do you prioritize work-life balance as a founder and what strategies do you use to maintain it?
A: This is a tough one. I believe that the reason a lot of startups fail is that their founders never realized how much time and effort is required on their part. As I mentioned earlier, I know some can work business hours five days a week and put the business out of their minds until they return. I’m not one of them. A lot of our research and development funding comes from federal grants and as proposal due dates approach, working 18-20 hours per day is more the norm than the exception. Plus, as a founder you have to wear so many hats that it can be overwhelming at times. Finding that happy medium is admittedly tough, but I do try to schedule a couple of vacations per year. I’m often still thinking about work during these times, taking meetings via Zoom, and still answering emails but the change of venue a vacation brings does bring a sense of relaxation.
Q: What do you believe sets your business apart from competitors, and what is your long-term vision for the company?
A: I believe that what sets Fair Chance Works apart from our competition revolves around our capacity to reach our clients where they are, both physically and emotionally. Most of the job seekers we work with, especially those who are incarcerated, have been detached from society for long periods and often lack the communication and soft skills required to thrive in an interview setting. But rather than trying to ‘teach’ our clients these skills, we provide them with the technology, guidance, and encouragement so that they can begin taking ownership of these critical skills. In the early sessions, just getting many of them to talk in a setting that most find uncomfortable is quite a challenge. For many, watching and listening to themselves on camera can be somewhat shocking, especially given the extremely low self-esteem that many of our clients possess. But between the non-threatening nature of our delivery and the support gathered from their peers, most can come out of their shells with responses that improve with every take. Many of our clients begin to reflect internally and confront their pasts in a manner that they’ve been unwilling to approach before. Once they reach that point of self-reflection and begin tackling their own personal barriers, that’s when their true personalities start to emerge, they recognize themselves as who they truly are, and their self-confidence flourishes.
While our approach to training has proven to be highly successful, we realize that our current model would be difficult to scale commercially. To that end, one track we are pursuing through SBIR funding is to secure enough R&D funds so that we can commercialize a non-provisional utility patent that the USPTO issued to me a couple of years ago. The intellectual property described by it would allow FCW to automate much of the feedback we are currently providing to our clients, while still maintaining the highly personalized approach to training that we have found to be so effective. We are also pursuing the means to develop and commercialize a hiring and support platform designed to meet the needs of job seekers with SUD, employers that recognize the benefits associated with hiring from this labor pool, and service providers that have a vested interest in their clients even after they leave their services.
Q: What advice would you give to aspiring entrepreneurs who are just starting their journey?
A: Do your homework. Before you decide to go ‘all in’ on an idea that you think may be earth-shattering or can sustain the lifestyle you’ve been dreaming of, first see if there is a market for it. And don’t heed the advice from family and friends as they’re only going to tell you what you want to hear. You need to be extremely passionate about your pursuits, but don’t let that passion obscure reality. Ultimately, if no one is willing to pay for your product or services, it doesn’t matter how great the idea is or what it’s capable of becoming. I don’t say that lightly as entrepreneurship can be rewarding in so many ways, but it certainly comes at a cost that many don’t fully realize when they are just starting.
Q: Looking back, is there anything you wish you had known when you first started your business?
A: Much of this question pertains to which of my businesses we’re talking about. Way back in the day with the commercial photography business, I felt that my sheer talent would equate to huge profit margins and a comfortable lifestyle. Who knew you had to know something about business to actually run a successful business? Then, even with the financial kickstart that got my instructional technology business up and running, I never fully grasped the absolute need for a buyer. Much of those efforts were driven by the notion that If you build it, they will come. And while that may play well in a Hollywood movie with a baseball theme, the buyers never showed up. Fast forwarding to the present day, I think I have finally found the delicate balance where I can still pursue what I am truly passionate about and hopefully do so in a way that is not only financially sustainable but scalable to the point where we can meet the needs of the masses that warrant our services.
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If you want to learn more about the work our SOAR Innovation team does across the region, contact Sabrina McWhorter, Director of Business and Innovation, at sabrina@soar-ky.org.