Amplifying stories from the Rochester, MN entrepreneurial ecosystem.

Corrie Strommen 7/18/23 Corrie Strommen 7/18/23

Collider Foundation Quarterly Report

Want to support Collider’s ongoing work with the Rochester entrepreneurial community? Follow this link to donate!

Corrie Strommen 6/1/23 Corrie Strommen 6/1/23

Providing Educational Support for Entrepreneurs Through CO.STARTERS and Launch into Prosperity

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 have been excited to have the opportunity to fulfill our mission through facilitating two CO.STARTERS cohorts in the last year, with a third cohort to begin in July of this year. CO.STARTERS is a 10-week long program that equips starters of all kinds with the insights, relationships, and tools needed to turn business ideas into action. All you need to have to join the program is: an idea, openness to question, shape and fine-tune that idea, and willingness to talk about your idea with others.

Starters who participate enter into a local facilitator-led, collaborative process with a small and supportive group of like-minded peers. Working together, they develop and fine-tune their ideas, critically examining every part and determining next steps through real-time feedback from people in the community. This approach enables entrepreneurs to rapidly uncover flaws in their concepts and find viable models more quickly.

Local entrepreneurs gather for a CO.STARTERS learning session.

In our most recent cohort, six starters completed the program, 67% of which were women and 17% of which were BIPOC.

33% of these entrepreneurs used the course to think through their business ideas and did not have a product or service yet. 67% of the companies were more advanced and had a working product or service. They used the course to launch a new product or service or to think more deeply about their marketing and customer base.

The types of businesses included in this cohort covered a range of industries, including construction, manufacturing, and technology development.

Individuals from our first CO.STARTERS cohort last year have reported growth in the sixth months that have elapsed since participating in the program.

From the group, 50% have launched a new product or service or had significantly updated a product or service during those six months. They have an average of one to five employees and have created three new jobs within the last six months. They have also all had financial investments into their businesses in the last six months, mostly self, bank loans, and friends or family ranging in amounts of $10K-250K.

Additionally, all participants volunteered some of their time in the entrepreneurial community over the past six months, mainly through speaking to business classes or cohorts and mentoring other entrepreneurs.

“The Co.Starters program facilitated by Collider was a fantastic experience. It provided valuable insights on how to grow my business, as well as a peer group to discuss ideas and share experiences with. Hearing from previous Co.Starters participants was also incredibly useful. I finished the program with a network of mentors, peers, and resources that will be with me far into the future. I look forward to the chance to help future cohorts in their journeys as well." Levi Sauerbrie (2023 CO.STARTERS participant)

All CO.STARTERS cohorts wrap up the 10-week program with The Collider Cup, which provides an opportunity for them to share their business ideas with the community, participate in a pitch competition for a cash prize, as well as celebrate their accomplishment and growth as entrepreneurs.

2023 Collider Cup winners, Levi Sauerbrie and Chelsi Low.

April 2023 Collider Cup winner, Chelsi Low, reflected on her experience with CO.STARTERS saying,

“Participating in CO.STARTERS was very beneficial and may be the reason I decided to take the direction I have with my business. I’m a person of ideas and always tend to think into the future instead of living in the moment. It was so helpful to be in an atmosphere of structure and support to work through my ideas. I really enjoyed the opportunity to engage with an in-person cohort. Even though we were all working on different things, having other people as a sounding board was incredible. It really forced me to pick something to focus on and choose my direction.”

Following the CO.STARTERS cohort, there are also a variety of supports in place for building upon what the entrepreneurs learned during their time with CO.STARTERS and to continue their business journey within the community. This includes a year of grant and donation supported coworking memberships within our shared office space, so CO.STARTERS graduates can continue to surround themselves and learn from other entrepreneurs in the community. They also continue to gain support from Collider staff to talk through challenges they are facing and to gain access to additional resources, such as pro bono legal services, to accelerate their growth.

In addition, we are excited to enter into a brand new partnership with the Southern Minnesota Initiative Foundation (SMIF), called Launch into Prosperity, to provide an additional next level of support for CO.STARTERS grads. After thinking through key pieces of the business during CO.STARTERS, entrepreneurs who identify as BIPOC or with other underserved groups have the opportunity to apply to continue their support through SMIF’s Prosperity Initiative. During this time, the entrepreneur meets with a business strategist to set individualized goals to help the business grow through high touch, technical support for the next six to nine months. Through this partnership, entrepreneurs are supported for at least the first year of their business growth to really help them start, scale, and maintain their business within our region.

We are so excited to move forward into our next cohort and assist another group of emerging entrepreneurs with their business journeys! If you feel that CO.STARTERS would be a good fit for you or someone you know, please feel free to reach out to our team to learn more, or register at https://www.collider.mn/costarters. Eligible starters can also apply to the program directly through SMIF’s website.

2022 and 2023 CO.STARTERS participants gather for the Collider Cup 2023.

CO.STARTERS at Collider is supported by Think Mutual Bank, Fredrikson & Byron, Mayo Clinic, the Otto Bremer Trust, Minnwest Bank, the Southeast Minnesota Initiative Foundation, Red Wing Ignite, Atlas Insurance Brokers, and Launch Minnesota. Launch into Prosperity is a partnership with the Southern Minnesota Initiative Foundation and the Minnesota Department of Employment and Economic Development.

Corrie Strommen 5/18/23 Corrie Strommen 5/18/23

Tax Tips for Small Businesses

Now that tax season has passed, most of us are probably trying to forget the stress and anxiety often associated with filing taxes. Taxes are complicated, particularly for small businesses, and before you put them out of your mind for the year ahead, take a moment to look over these helpful tips to make the process a bit easier, the information more accurate, and the filing process less stress-inducing moving forward!

Keep accurate records.

We’ve heard it countless times from small business owners; paperwork is the worst. Many individuals have a wide range of skills and strengths that contribute to the business that they’ve started, however, those skills often do not pertain to the somewhat arduous process of record keeping.

Leading up to tax season, maintaining thorough and accurate records of all your business associated financial transactions is crucial. This includes records of sales, expenses, and receipts. Gathering and keeping track of this information will make it infinitely easier to track your deductions and ensure compliance with tax regulations.

Not keeping accurate records leaves you at risk of submitting an inaccurate tax return, being audited, and losing valuable deductions which could save you a lot of money.

Unsure of how to go about tracking your sales and business related expenses? Here are a few ways to get started!

Use accounting software. You can track your business expenses with the help of several accounting software options such as QuickBooks, Freshbooks, or Xero. These programs allow you to categorize expenses, track payments, and generate reports.
Use a dedicated credit card or bank account for your business expenses. This makes it easier to separate personal and business expenses as well as simplify tracking and categorization.
Keep physical copies of your receipts and organize them in a file or folder. This helps to keep track of expenses and provides backup information in case of an audit.
Track your expenses in real-time. Do your best to record expenses as they occur through a mobile app or spreadsheet to avoid losing receipts or getting behind on your record keeping.
Keep a mileage log if your business involves driving. Tracking mileage for all business-related trips can contribute to helpful deductions when filing in the future.
Plan time into your schedule to review your expenses. This can help you catch errors early and assess areas where you can cut costs for your business.

While detailed record keeping can seem tedious, it is a relatively simple way to make filing your taxes much easier in the long run.

Understand your tax obligations.

Tax obligations can vary from business to business and state to state, so it is important to know what is required of you going into tax season. Be aware of the various taxes your business is required to pay, such as income tax, sales tax, and payroll taxes. Make sure that you are collecting and remitting these taxes on time and in accordance with relevant laws and regulations.

Because tax regulations can change from year to year as well, make a point to stay up to date and informed about changes in tax laws and regulations which may affect your business. This can help you avoid penalties and ensure that you’re always in compliance with current regulations.

Minnesota requires businesses to pay state income tax, sales tax, and withholding tax. Make sure you understand your obligations for each and that you submit the necessary forms and payments on time.

Claim all eligible deductions.

Do yourself a favor and be sure to claim all deductions you’re entitled to, such as business related expenses, travel expenses, and home office deductions. This can help lower your tax bill and ultimately improve your bottom line.

Here are some examples of tax deductions for small businesses that could be claimed on your return:

Your car, if you use your personal vehicle for business purposes (mileage rates)
A home office, if you operate out of your home
Insurance premiums 
Business books and educational materials  
Office supplies
Business travel expenses, including meals, entertainment, and tips
An office coffee service
Tax preparation resources 
Office equipment

Consider hiring a tax professional or an accountant.

You can’t be an expert on everything, and chances are that you do not have the time or resources to become well versed in accounting and taxes on top of being a small business owner. You can, however, utilize the help of a tax professional or an accountant to help you navigate the complexities of tax laws and ensure that you're complying with all regulations.

If you already utilize the assistance of an accountant, make sure that you’re working together throughout the year to track your income and expenses, spot potential cash flow issues, as well as monitor your gross and net profits. Good accounting is crucial for the growth and survival of small businesses, and only working with your accountant during tax season is a missed opportunity. Seeking the advice of a good accountant can help you make the wisest financial decisions for yourself and your business.

How do you go about finding a good financial expert or tax professional? First of all, contact them in the off-season; don’t wait until spring to find one. Many tax professionals are overwhelmed with inquiries in the spring and may not be able to take on new clients, or have the time to give you their best service. Getting to them early ensures you get the help you need.

Additionally, go into your first meeting or consultation with some precise questions in mind, such as:

Are you licensed to practice in this state?
How long have you been practicing?
Do you have knowledge of or experience with small businesses in my industry?
What is the cost breakdown for the services you provide?
Do you provide year-round support?
What happens if I am audited?

Once you’ve established an individual or company that will be a good fit for you and they’ve become familiarized with your business, ask some more questions. For example:

What are some achievable business goals I can set?
Should any changes be made to my employee benefits program?
Am I missing any potential tax deductions?
Are there any carryover losses or set-up expenses I can claim?
What kind of structure is best for my business?

It can be tempting to try to manage everything yourself as a small business owner, and hiring an accountant or tax professional can seem like an unnecessary added expense to your business. However, the peace of mind as well as the added expertise and knowledge of a professional can add value to your business that greatly outweighs the cost.

Take advantage of potential tax credits and deductions.

Tax deductions and credits exist for small businesses on both the state and federal level. Be sure to do your research and make sure you aren’t missing out on valuable resources for your business.

If you’re a small business that is investing in capital equipment or making improvements to your property, you may be eligible for the Small Business Investment Credit, which can help reduce your tax liability.

Minnesota offers various deductions that pertain to small businesses, such as expenses relating to research and development, job training, and equipment purchases. Minnesota also offers the Angel Investment Tax Credit to investors who invest in small businesses with high growth potential. This credit can help attract investment and support your growth if your business meets the eligibility criteria.

IRS Credits and Deductions for Businesses

While planning ahead for tax season, working with an accountant or tax professional, researching regulations and tax credits, and keeping meticulous records are not the most glamorous or enjoyable tasks; they can ensure that you go into filing your taxes with less stress and a lot more confidence moving forward.

Corrie Strommen 4/13/23 Corrie Strommen 4/13/23

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.

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