Meet Kansas City’s ‘data experts in coffee,’ PerfectCube

Editor’s note: This content is sponsored by LaunchKC but independently produced by Startland News.

Kansas City’s flourishing independent coffee roaster market has brewed opportunity for a duo of entrepreneurs.

Mark Calhoun and Jim Starcev co-founded the big data platform PerfectCube in 2015. And although the platform is a viable analytics solution for any retailer, the two have chosen to focus specifically on independently owned businesses — especially those in the coffee industry.

“We will become the data experts in coffee,” Calhoun said. “Coffee shops are really receptive to us, we don’t really know why.”

Thou Mayest, Mildred’s, PT’s coffee, Crows coffee and other coffee shops rank among PerfectCube’s clients, Starcev said. Both with a belief of empowering small businesses, Calhoun and Starcev said they believe their product can elevate Kansas City with more data.

“Starbucks spends millions doing their operational analytics. With thousands of stores, they can afford to do that,” Starcev said. “An individual coffee shop can’t do that and these shops are competing against Starbucks. What we’re trying to do is build a system that leverages these small businesses so that they can afford the same quality of information that Starbucks has available.”

The software-as-a-service is available through a $40 per month subscription, per location. Unlike some data analytics platforms that require tedious amounts of data entry, PerfectCube automatically imports data from a business’s point of sales system. The software is customizable and compatible with an array of POS systems, Calhoun said.

Once a business owner logs into PerfectCube, they are able to view real-time data through a variety of different metrics. Users can select specific time periods and then toggle between metrics to view forecasts, general sales information, top products and hourly distribution.

With recent policy changes in minimum wage and overtime laws, customers have found the hourly distribution interface especially helpful, Starcev said. He added that these laws will have a major effect on their customers and that it is important for business owners to be efficient in creating employee schedules that match up with demand.

Starcev and Calhoun, however, both eventually realized that their target market needs some education before they can approach a sale.

“We are targeting a market who is very busy, stressed and has a lot of pressure on them. So when trying to get their attention and explain what we do, there is a bit of a learning curve.” Starcev said. “Coffee shop owners buy grinders, roasters and coffee beans — but we’re introducing something new into the marketplace, that has got to be explained to them.”

[pullquote]“Kansas City isn’t perfect, but we’re going in the right direction and we are way better than we were.”- Mark Calhoun [/pullquote]

Starcev added that the market for big data is on the rise — it’s expected to reach $48.3 million by 2018. While people are beginning to grasp big data conceptually, they will soon begin to fully understand how it impacts their return on investment.

A $50,000 grant winner through LaunchKC, Calhoun and Starcev said they have already invested more than $500,000 in the company through their own and friends’ financing. While LaunchKC’s added capital makes a difference, the exposure has proven to be even more valuable.

“What we’re doing is fairly ambitious, so it was great to have the opportunity to get exposure to the startup community,” Starcev said. “We were humbled and excited, but also relieved — these competitions are a lot of work, and it is a big deal to actually meet your goal in the end.”

Though founding a startup is a challenge, Calhoun and Starcev have traveled this road before. In 2000, the pair co-founded Etelligent Consulting which was later bought by Charles Schwab in 2008.

“It doesn’t really get any easier,” Starcev said. “You’d think that if you’ve done it once, it would. But even though you may know a lot more, you still self doubt just as much.”

The duo agreed that the culture in Kansas City is more amenable to entrepreneurs this time around, thanks in part to an expanded ecosystem.

“When we started Etellingent in 2000, the startup community just wasn’t there,” Calhoun said. “Now, the tools are better, the community is better and people are more encouraging. Kansas City isn’t perfect, but we’re going in the right direction and we are way better than we were.”

The pair met at church over 20 years ago and have partnered together on several businesses and community projects since. Shared values are what keep the partnership in tact.

“We’re the anomaly,” Calhoun said. “Most partnerships like this don’t work; especially 50-50 partnerships. But because we both value building something bigger than ourselves, it works for us. We wouldn’t have it any other way. ”

Pairing Starcev’s background in financial services and Calhoun’s in technology, the duo was excited to explore the world of analytics in their next venture. Initially eyeing the opportunities for consumer data, the pair quickly realized that focusing on operational data would yield less industry competition.

PerfectCube’s founders have an ambitious goal to go from 50 to 20,000 users in the next year. The software is currently used in 8 states and has a team of six developers and data scientists, with aspirations to hire a full sales team.