MANKATO — Every toy maker dreams of hitting the next Beanie Baby.

Now think Beanie Baby meets Mr. Potato Head.

That’s what Jason Johnson and Adam Kittelson think they might have.

The young entrepreneurs’ PlajaPets are catching on with local kids and those from South Korea — and they’re getting interest from the famed F.A.O. Schwarz in New York City.

“Kids love ’em. They say they’re like a cross between Mr. Potato Head and Beanie Babies, only cooler,” said Johnson of Mankato.

The soft, plush toys have interchangeable heads and tails (attached by magnets inside the fabric) that allow kids to create hundreds of variations.

Johnson, 28, and Kittelson, 26, both from the Twin Cities, met in 1998 as freshmen at Minnesota State University. Johnson got a degree in international business while Kittelson graduated with an international relations degree.

Kittelson went to China and taught English classes, while Johnson looked for a job in Mankato.

“I didn’t find anything that I liked,” Johnson said of his job search.

Two years ago, Kittelson came back to Mankato to get his master’s degree and stayed at Johnson’s place.

Johnson, who’d been tossing around an idea for plush toys for a few years, began working on designs with Kittelson, who has an artistic touch.

“Adam would draw them and we kept changing them until we got what we wanted.”

Decision time came. “We’re both optimists and both motivated,” Johnson said.

“Adam dropped out of the (master’s) program and went back to China to find a manufacturer, and I stayed here and got patents and set up the business side.”

They tapped their savings and borrowed from family and from banks to put together a prototype of a set of six PlajaPets.

The men put in an initial order of 1,300 sets, with six toys per set.

“It’s a good thing Adam’s living in China because he goes to the factory two or three times a week and hand tests everything before they come over. The Chinese can have some low-quality products, so this keeps the quality high.”

Meanwhile, Johnson was building a Web site (www.plajapets.com), which features photos of the pets in scenes around the world, including on the beach in China and next to monuments in Seoul. He was also looking for retailers to sell the toys.

“Our first wholesale order was from South Korea. It wasn’t huge, but it gave us enough money to keep going,” Johnson said.

And, thanks to a friend who was dating a Minnesota Twins player and showed the pets to the Twins’ wives, they ended up selling several sets to players, including Johan Santana and Carlos Silva.

Johnson rented a kiosk at River Hills Mall to unveil the toys to local holiday shoppers.

But the biggest lead they’re working on is with F.A.O. Schwarz.

“We’ve met with them twice and we’re getting really good response. We’re working on some packaging with them now. It’s a long game and it’s really tough to get into the toy market,” Johnson said.

With the early success of the toys, Johnson said their biggest regret is not making a bigger initial order.

“We have less than 1,000 sets and I don’t think we’re going to have enough by Christmas. We weren’t trying to create a sense of shortage, but that’s what’s happening.”

A set of six sells for $89.99 with individual pets selling for $19.99.

The business plan for the coming year is to get more kiosks in more malls, pursue the F.A.O. Schwarz contract, expand sales from their Web site, and create new characters to add to the line.

The two have gotten help from the Greater Mankato Business Accelerator program, part of the Greater Mankato Economic Development Corp. The program, headed by Jill Klinger and Jonathan Zierdt, helps entrepreneurs by giving them advice and connecting them with other business people who’ve navigated the dangers of starting a business.

“Jill and Jonathan were great help,” Johnson said. “Bouncing ideas off of them and having people who could give us advice was invaluable.”

He said Kittelson continues to teach some English classes in China and plans on staying there, at least in the near future. Johnson runs their business from his home.

With Kittelson’s experience in China, the men are also soliciting business from companies or start-up businesses that need help in establishing contacts in China.

If the PlajaPets continue to sell well this holiday season, Johnson and Kittelson hope to deliver a Christmas present of their own.

“We’re going to pay back the money our families loaned us. That’ll be their Christmas present.”