Amplifying stories from the Rochester, MN entrepreneurial ecosystem.
Celebrating Emerging Rochester Entrepreneurs
Second Cohort of CO.STARTERS Graduates To Showcase Ideas at the Collider Cup
Rochester 501(c)3 nonprofit Collider Foundation is excited to announce that we are hosting our second Collider Cup pitch event, which was designed to celebrate our CO.STARTERS graduates, give them the opportunity to share their unique business ideas with the Rochester community, and compete for a cash prize, provided by CO.STARTERS sponsor, Minnwest Bank.
Our 13 CO.STARTERS participants have spent the past 10 weeks completing an intensive training program through the CO.STARTERS curriculum, which Collider is proud to have facilitated for a second time this year. This program cost $150 per participant, which included the curriculum, facilitation through Rochester-based certified CO.STARTERS Core facilitators, and access to a community of support. Our CO.STARTERS participants have worked hard within the program to fine tune their business ideas and determine next steps they need to take to move forward.
The Collider Cup will take place on Tuesday, April 18th at Collider’s space in the Minnesota BioBusiness Center from 5:30-7:30pm. A brief press conference will precede the event from 5:00-5:15pm. This event will serve as a business pitch competition as well as a community celebration for these emerging entrepreneurs in Rochester. A panel of judges will determine the winner of the pitch competition and the public will be asked to vote for their favorite idea. All ticket proceeds will be awarded to the “crowd favorite” winner.
Collider Foundation believes that the support, education, and growth of our entrepreneurial ecosystem is a pathway to a more prosperous and inclusive future for the Rochester community. We as an organization aim to identify and assist local innovators in overcoming barriers to success by empowering an impactful, inclusive, and entrepreneur-first ecosystem. We are excited to have had the opportunity to fulfill our mission through CO.STARTERS and offer assistance to 13 entrepreneurs through this cohort.
CO.STARTERS at Collider is supported by Minnwest Bank, Think Mutual Bank, Fredrikson & Byron, Mayo Clinic, the Otto Bremer Trust, the Southeast Minnesota Initiative Foundation, Red Wing Ignite, Atlas Insurance Brokers, and Launch Minnesota.
For additional information contact Amanda Leightner at amanda@collider.mn or call (507) 722-0306
Collider Foundation Quarterly Report
Want to support Collider’s ongoing work with the Rochester entrepreneurial community? Follow this link to donate!
Funding Guidelines for Small Businesses
So, you have an idea for a business. You’ve taken steps to determine your product, who your intended customers are, and how you’re going to sell your product or service to them. Now comes the hard part, or rather, the harder part on a long list of other hard parts. Securing funding to turn your idea into a reality.
There are many different approaches to funding an early stage business, and it’s a crucial step in your entrepreneurial journey deciding which route is right for you and the growth of your idea. Today we’re going to outline several of those options and the pros and cons of each, along with some resources that could assist you in making your decision.
Personal Financing
Personal financing, or bootstrapping, is the most idyllic way to fund your small business, but for our purposes I’m going to assume that if you had all the money you needed to get your idea off the ground sitting in a savings account, you probably wouldn’t be reading this article.
Personal financing can be as simple as using your own money to fund your business, but it can also refer to utilizing your other personal resources, such as asking for the support of family and friends, tapping into your 401k, or using your home as loan collateral.
Many small businesses owners opt into starting their business very small, as a side hustle, and continue working their day job as well as working on their business as a way to make the transition less financially taxing and cutting out some of the risk during the early stage. As the business picks up momentum and becomes more financially stable, options can be reassessed.
Perhaps you have a partner with a stable job who would be willing to take on the brunt of your household finances while you pursue your business idea. Or maybe you have a supportive family member who is willing to loan you the money and arrange a flexible plan for being paid back.
The benefits of these options are keeping complete control over your business, as you aren’t selling shares of control or future profits to investors. You are also minimizing debt and avoiding high interest rates by not taking out loans from banks or loan agencies.
The downfalls of personal financing can include taking on all of the risk; if things don’t work out you could lose your money, your home, or your family or friends’ money. Perhaps a close relationship is soured by the inability to pay back a large sum of money, or pay it back in a timely manner.
As with any of the options we will outline here, we highly recommend working with a financial advisor to assess what options are available to you that involve the least risk and highest chance of success for you and your business.
Bank or Credit Union Loans
Banks and credit unions are trusted and well-established funding resources. With a loan, you can still retain control over your business and over time have the opportunity to establish and grow the lending and banking relationship, which could help you acquire additional funding in the future.
However, banks and credit unions can have rigid requirements and may be unavailable to you if you have a low credit rating, or if they are unsatisfied with your cash flow and income. Securing loans from banks and credit unions can also be a slow process, sometimes taking several weeks. Loans can also come paired with high interest rates which can make it difficult to keep up with payments and means that you pay more over time on the amount borrowed.
If you chose to pursue a loan, we recommend going into the meeting with all of your details in good order. The bank or credit union will likely want to see your work history, a credit report, proof of collateral assets, and a detailed business plan with expense sheets and cash flow projections. We also recommend going to a small bank or credit union, which are more likely to loan the funds and work with you on your options. There are also some financial organizations focused solely on funding small businesses and working with entrepreneurs to help them secure financing.
Local Highlight:
Southern Minnesota Initiative Foundation
Southern Minnesota Initiative Foundation (SMIF) is a regional development and philanthropic organization that fosters economic and community vitality through a culture of collaboration and partnership. SMIF’s Small Enterprise Loan Program supports small business owners and start-up entrepreneurs with investment amounts ranging from $2,000 to $35,000 available to businesses engaged in manufacturing, retail, service, or local food. These funds can be utilized for inventory, supplies, working capital, and equipment.
SMIF works with loan clients to provide them with free technical assistance which includes QuickBooks training, marketing ideas, and scholarships for continuing education.
To learn more about SMIF and how they could assist you on your business journey, take a look at their services, loan terms and criteria at www.smifoundation.org
Selling Equity to Investors
There are a variety of individuals and organizations who may be interested in investing in your company. Angel investors and donors are usually high net worth individuals who have excess funds available and are seeking an investment with a higher rate of return than other, more traditional investment opportunities. The funds provided by angel investors may be a one-time investment to help the business get off the ground or potentially involve ongoing support to carry your business through its challenging early stages. In exchange, angel investors get a share of equity in your business, though usually without infringing on any decision making components.
On the other hand are venture capitalists, who are similar to angel investors in that they are groups or individuals seeking to inject capital into your business, however, venture capitalists are usually focused on high growth companies with big money making potential and to secure their support you will need to forfeit both equity shares and some control of your business.
With both of these options comes large potential for beneficial relationships and the quick growth of your business. However, choosing the wrong investor can leave you paired with a poor fit for yourself and your business, so we recommend taking your time in choosing an individual, company, or group that aligns with your ideals and long term goals for your business if you choose to pursue this route.
Grants
There are many grants available to businesses and are an ideal way to fund your business, if you can get them. Because free money is golden and comes without the laundry list of interest rates, term lengths, refinancing, and APR, one can see why grant funding would appeal to many. Because of this, securing grants can be an arduous and competitive process, requiring much time dedicated to filling out applications, searching for the right fit, and making sure that the funding can be used for what you intend.
If you find a grant that is a good fit for your business, we recommend that you be very specific in your application about what you will use the money for should you secure it. This increases your chances of landing some funds.
Crowdfunding
Many of us are familiar with GoFundMe and other money raising platforms. Crowdfunding has become a much more popular way for businesses, particularly small scale ones, to raise funds to get their ideas off of the ground. All you have to do is sell your idea or story to the masses and hope that it makes enough of an impact to get a donation.
While there are few strings attached to this form of financing, raising the thousands of dollars your business needs may take a long time if donations are rolling in five to twenty dollars at a time, and you run the risk of exhausting your audience with constant calls for support. But this method can also be simple, fun, and effective with the right approach.
Ultimately crowdfunding can’t hurt and there likely will be at least some small return on your efforts, just make sure to choose your website platform wisely and weigh the pros and cons of each option.
At the end of the day, the options for financing your business may seem complicated and overwhelming. Before you take a stab at any of the aforementioned methods, we recommend working with a financial advisor as well as connecting with a local small business resource. Talking through your business idea and the financial hurdles you’re facing with a money and business savvy professional can make all the difference in moving the right direction.
Did you find this information helpful? Give it a like or send us a note at hello@collider.mn to let us know!
Mayo Clinic Awards Grant to Collider Foundation for Ongoing Operational Support
Rochester, Minnesota - Rochester 501(c)3 nonprofit Collider Foundation was recently awarded a grant by Mayo Clinic through their Community Contributions Program. This grant will support Collider’s ongoing work empowering early stage entrepreneurs throughout Rochester, Minnesota. This work will help local “starters”; people who have an idea that they want to move forward with, go from idea to action, operationalize their business plan, feel more connected to and supported by their community, and will help to set them up for long term business success.
Collider Foundation supports its mission through events, education, a coworking space, and storytelling for the community to help foster an inclusive, diverse, and healthy entrepreneurial ecosystem. This grant award will allow programmatic and operational support of the foundation’s ongoing activities throughout 2023.
Collider Foundation believes that the support, education, and growth of our entrepreneurial ecosystem is a pathway to a more prosperous and inclusive future for the Rochester community. As an organization, Collider Foundation aims to identify and assist local innovators in overcoming barriers to success by empowering an impactful, inclusive, and entrepreneur-first ecosystem.
Executive director and entrepreneurial ecosystem builder, Amanda Leightner leads the Collider Foundation. She is supported in her efforts by the director of communications, Corrie Strommen. Juliana Silva, director of navigation, recently joined Collider to lead their work with entrepreneurs through resource navigation. As a solid and passionate team, they work toward building, educating, and substantiating the vibrant community of Rochester entrepreneurs.
“Collider is extremely grateful for Mayo Clinic's continued interest in our work. Their generous support will help us to continue to assist local entrepreneurs bring their business vision to life within the community." says Leightner.
If you have any questions about Collider or our work within the community, please contact Amanda Leightner at amanda@collider.mn or call (507) 722-0306.
Photo by Corrie Strommen.
Q&A with Jennifer Hiscox
Check out this Q & A with one of our coworking members, Jennifer Hiscox!
Q: What brought you to Rochester and what keeps you here?
A: I have been in Rochester for 16 years. I have built strong friendships and have found a home here. I don't know what the future holds and I keep an open way of being toward the vision for my future.
Q: What are some of your hobbies and interests?
A: Hobbies include photography, painting, and having powerful conversations.
Q: What do you do for work?
A: I am an executive coach. I work with clients on vision, strategy and mindset to find out what they are capable of and live their dreams.
Q: Why did you choose Collider for your work needs?
A: I chose Collider at first so that I would have a space to do workshops for groups. After joining, I realized it's so much more than just a space to work and teach. I’m excited to continue to meet more of the Collider members and be a part of this community.