Entrepreneur Q & A: Todd Krutchoff, Sidetrack Products

Todd Krutchoff, a business entrepreneur from Massachusetts, started Sidetrack Products two years ago as a way to produce model trains for kids that live in, or are visiting, the Boston area. The model is based off of the T and the business has now expanded to include other products as well, such as clothing, magnets, and keychains.

KG: What is the main purpose of Sidetrack Products?

Todd Krutchoff: To fulfill my long-time desire to start my own business and work for myself. 

KG: What inspired you to start the business?

TK: My son had been interested in toy trains since he was three years old. He had a Thomas the Tank Engine train set that was his absolute favorite toy, and we accumulated many of the trains that were available at retail. We lived near a MBTA Commuter Rail stop and I used to take him there just to see the train come and go. As the holiday approached, my son asked if he could have a toy MBTA Commuter Rail train for Christmas. I searched high and low for any toy MBTA train anywhere and I was shocked to find that there was none to be found. I immediately saw it as a business opportunity. I thought that a toy vehicle that was unique to Boston would be the souvenir of choice for families visiting Boston, especially those with young boys. As this was going on, I learned that I was getting laid off from my buyer position at a Boston-area retail company. You could say that desperation enhanced my inspiration.

KG: How did you go about starting the business? What steps did you take?

TK: After I received authorization from the MBTA to proceed with the project, I wrote up a business plan. I set up an appointment with SCORE (Service Corps of Retired Executives) to get some objective criticism. The SCORE consultants were skeptical about startup consumer product companies and cautioned me about investing. They did, however, admire my enthusiasm. The next months were spent working on developing the flagship product - a miniature Boston MBTA Green Line trolley.

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That meant finding a manufacturer, getting the product to hit my target price, and gaining the approval of the very meticulous MBTA Product Marketing Team. At the same time, I had to figure out my projected cash flow and I borrowed the necessary funds from my parents.

KG: What has been the most rewarding part of having your own business?

TK: When I got laid off and thought about the next phase of my career, I thought a lot about the fact that I hadn't really made a mark on anything in my career to this point. There was no real legacy that I could hang my hat on. Starting my own business, my own brand, and my own line of products that are making kids happy has given me a sense of accomplishment that I hadn't had in my career to this point.

KG: What has been the most challenging part?

TK: Patience. It takes time to build a business and I have found that every product that I have produced has taken at least 33% longer than I originally anticipated. I was expecting to be able to make an income with this business after two years but that timeline has been pushed out. Every dollar has been put back into the company. Not being able to contribute to the family bottom line has been very trying. There have been times where I thought that maybe I should find a steady job and develop this business on the side but I have held off. I still need the flexibility to be able to meet with customers on their schedule and I need to exhaust every new business option before make that step.

KG: What is the biggest or most important thing you've learned from having your own business?

TK: Things don't just happen. That big break you are looking for is only going to happen if you make it happen. In fact, the big break may never happen. It could be a series of small wins that builds up the business to where you need it to be. You have to continually be thinking about how you can grow the business and then act.

KG: Where do you want the business to go from here?

TK: I would like to be able to build up my business to the point where it I can make a living on it. To do this, I will need to keep adding products and expanding into new markets. I would like to produce non-MBTA branded goods so that I do not have all eggs in one basket. I plan on re-visiting SCORE, or a like consultant to help me with a business expansion plan.

KG: What advice do you have for a young entrepreneur?

TK: Take off your rose-colored glasses. I still have this problem. I think everyone will see the value of my products like I see their value but this has been the case just a portion of the time. The sales projections on which I built my business plan were much higher than the actual sales. I have had to lower my wholesale price in many cases in order to hit the retail threshold that customers have dictated. Be realistic. This comes from consulting with trusted people within your network from all walks of business.