SLO teen builds million-dollar company with help from ‘Shark Tank’

For Andrea Cao, 15, inspiration struck two years ago when she grew tired of massaging her mom after she worked long shifts as a nurse. Her idea has now become a million-dollar business, fueled by their success on the national TV show “Shark Tank.”

The San Luis Obispo mother-daughter duo created a self-acupressure device called Q-Flex in 2014. The product has since sold more than 50,000 units and generated annual sales exceeding $1 million.

After Andrea was unable to find a self-massage product for her mom to use that was both inexpensive and effective, she joked that she’d create something. Andrea began to draw up plans when they both realized they could be onto something big.

The San Luis Obispo High School freshman and her mother, Hong Cao — a former software engineer — researched the field, then drew up multiple plans, revising the product’s design and testing materials until they found both the perfect angles and material to make the Q-Flex as effective as possible, Andrea said.

After creating a final prototype, the pair tested it for about a month. Andrea said they tested different models throughout the process but didn’t waste any time bringing it to market once they had their final prototype.

Distinctive device

The result is a purple, hand-held device that’s shaped like a question mark and designed so that users can easily apply acupressure to areas of the body that are difficult to reach, such as the back. The product works by placing the pear-shaped tip of the Q-Flex directly on tensed muscles or acupressure points, pulling and manipulating the handle to apply massaging pressure. The Q-Flex is designed to relieve tension, pain and stress.

Hong Cao invested about $20,000 to start the company. They began manufacturing the product in small batches of about 20 through a business in Lompoc. Andrea, 13 years old at the time, sold the Q-Flex locally door to door. She also approached local stores — New Frontiers and various massage stores carried the Q-Flex.

Andrea sold about 800 units, all locally, before deciding to apply for “Shark Tank,” a reality television series where budding entrepreneurs present their ideas to industry experts in hopes of persuading them to invest in their products.

After Andrea got no response from her initial video application, she begged her mom to attend an open-call live audition in San Diego. The two camped outside the audition site the night before to secure their spot in line — only the first 500 applicants were let in.

Despite Andrea’s initial fears that she had completely “bombed it,” the Caos received a call two weeks later saying they’d moved on to the next round. After multiple auditions, the pair was invited to pitch their product live in front of the “sharks.” Andrea said she was the only kid in the group of entrepreneurs and was freaking out about being on the Sony Pictures Studios set in Los Angeles, describing the experience as both nerve-racking and fun.

Two of the “sharks” — Mark Cuban and Barbara Corcoran — decided to back the product, investing a combined $25,000 in the company in exchange for 12.5 percent of the business each, Andrea said. Andrea and Hong Cao own the remaining 75 percent of the company.

Exposure from “Shark Tank” launched the product, Andrea said. “It turned my little backyard business into an actual company.”

The Q-Flex “Shark Tank” episode aired in 2014 just before Christmas, resulting in about $500,000 in sales for the Caos as they worked to fulfill orders from their garage.

$1.3 million in sales

It’s been a little over a year since the pair’s TV appearance, and the company has now reached about $1.3 million in total sales since they launched. Andrea declined to disclose profits.

In January, Andrea and Hong Cao received a patent for the Q-Flex.

The Q-Flex costs about $7 to produce, Andrea said, and it sells for $24.95 on its website.

The company’s orders are now fulfilled by Amazon, with the exception of retail store orders and online orders from their website. The product is stocked in Brookstone stores nationwide and has 430 Amazon customer reviews, rating it 4.2 out of 5 stars. Hong Cao now works full-time running the business.

The company found local business guidance from the Cal Poly Small Business Development Center, which provides free business assistance for start-ups and established companies. The center offers workshops, training events, consultations and coaching among other resources to the public, said Judy Mahan, director of the Small Business Development Center.

Last year, the Small Business Development Center worked with 123 active clients and provided 1,141 hours of one-on-one consulting, Mahan said.

Andrea and Hong Cao joined the center in May. It has since provided the pair with support in accounting, talking with potential outside investors, marketing, sales and accessing new markets.

Product still evolving

The mother-daughter team intends to keep growing the business — they plan to create additions to the Q-Flex such as a special-edition color or attachments to change the tip, making it less aggressive for sensitive people, Andrea said. She added that they’re enjoying the success of the business and hope to focus more on marketing in the future.

With the help of profits generated by the business, the pair have purchased a horse ranch in Atascadero where Andrea manages the equestrian facility. They also rent out two of the houses on the property.

Andrea said she helps out with the business whenever she finds time in her busy schedule. The young entrepreneur maintains a 4.0 GPA, is active in FFA — she’s on the veterinary science team, novice parliamentary procedure and creed speaking — is on a welding team and participates in agricultural mechanics.

Looking ahead, Andrea hopes to attend Stanford University, possibly to pursue marketing, which she said would help with future businesses. After obtaining a college degree, she looks to attend the Clinton Anderson Clinician Academy to become a certified professional clinician — the highest level of education offered at the horse training academy. Andrea said she aspires to continue as an entrepreneur as well as pursue her passion for training horses.

This story was originally published February 15, 2016 at 2:00 PM with the headline "SLO teen builds million-dollar company with help from ‘Shark Tank’."