Welcome to a new series at 20Fathoms, where we introduce you to startup support organizations around our region.
When you’re launching a new business and looking for funding, the natural first step would be to call your bank. But… what do you do if your bank says you aren’t ready yet?
Enter Venture North, a 501(c)3 nonprofit that offers low-cost funding and no-cost consulting to small businesses across Northwest Michigan. Venture North supports both startups and established businesses in navigating the tricky world of business finance, frequently partnering with the SBDC, SCORE, and 20Fathoms.
“About 30 percent of the businesses we serve are startups,” says Laura Galbraith, President of Venture North. “Many traditional lenders want to see two years of tax returns before they will finance a new startup. “For businesses that aren’t there yet, that’s where we can help,” she explains.
Venture North also supports established businesses, often helping them with a particular project. “Often people think that we only work with startups, but that isn’t the case,” Laura says. “For example, if a business is purchasing a new building, we may help with the down payment or provide some additional working capital if the business does not have a lot of collateral.” By providing gap financing, businesses can invest in the future while not having to dip into savings to keep the lights on or bills paid.
In addition to funding, Venture North provides coaching and introductions to help entrepreneurs learn the skills they need to be successful. “We try to really assess the needs of the business and determine what kind of education, coaching, or professional services they may need,” Laura says. Venture North’s team is spread across the region in Boyne City, Kalkaska, Manistee, Benzie, and Traverse City, and boasts a variety of expertise, from their full time small business support team to retired experts in corporate marketing , accounting, and lending. “We’ve got a diverse team that can really help all different kinds of small businesses and entrepreneurs,” says Laura.
A few examples of her team’s work include providing guidance on financial systems, connecting Quickbooks to a point-of-sale, putting together cash projections, understanding how to read financial statements, marketing plans, and more. Venture North also offers an online portal with resources for business owners including videos, templates, fact sheets on how to start a business, money management, and marketing. Access to coaching and the portal is free.
What does this look like in real life?
Lake Ann Manufacturing and Brinks Family Creamery are two businesses who have recently worked with Venture North.
On the startup support side, Kyle Rahe recently received a capital loan of over $117,000 from Venture North. He used the financing to purchase and install a CNC mill to jump start his new machining business, Lake Ann Manufacturing, in his Lake Ann pole barn following his father’s footsteps.
For established business Brinks Family Creamery, a grant opened the possibility of purchasing a separator, which would allow the family to expand operations and their product line. But there was one hiccup: the money would be provided as a reimbursement, meaning the business had to come up with the initial funds to purchase the equipment. Venture North stepped in, providing a short-term bridge loan to keep things moving. With the separator purchased, Venture North is also now supporting the Creamery with marketing and financial advice.
Interested in how Venture North can help you? Get in touch here.