Northern Lights - Issue 8 - February 2022

ECLIPSE COMMUNICATIONS ENTREPRENEUR BRINGING BROADBAND TO NW MICHIGAN

By AMY LANE

In 1996, Christopher Varenhorst got his first computer. And it wasn’t long before he was fixing those of others.

“I had a penchant to fix everything,” Varenhorst recalls.

Now, the 40-year-old entrepreneur is running a million-dollar company, applying his technical expertise and knowledge to solutions on a bigger scale: Bringing high-speed Internet service to rural Benzie County and other areas that are lacking.

It’s a mission and commitment to impact the quality of life and economic well-being of communities that have no high-performance broadband service or have few options. And it’s a team effort, said Varenhorst, who started Benzonia’s Eclipse Communications, Inc. in 2016 with one employee – himself – and now employs eight.

“We are all very passionate about what we do. We live in these communities; all of us know to some degree what it’s like not to have Internet service,” said Varenhorst, Eclipse’s president. “It is really rewarding to not only operate a profitable company that’s growing, but also directly impact everyone with the availability of our services.”

“We’re ambassadors of technology. We leverage technology and services in partnership and in true synergy with the needs of our clients.”

A broadband model that’s working

Eclipse’s wireless network spans terrain via communications towers that use microwave radio links to deliver broadband signals. It’s a model that has helped the company expand through areas where the absence of population density or the prominence of hills, trees and other topographical features can create unique challenges and difficulties for other broadband technologies.

In addition though, Eclipse over the last year and a half has been laying miles of fiber-optic cable where it can, to provide fiber connections to businesses and homes. Said Varenhorst: “Multiple forms of infrastructure is the most successful strategy going forward.”

It’s an important step under a memorandum of understanding Eclipse inked in 2019 with the Benzie County Economic Development Committee – a partnership toward expanding high-speed Internet access in the county and designating Eclipse as the independent contractor to help do so.

The addition of fiber at Eclipse is also the latest notch in an entrepreneurial growth trajectory for Varenhorst that was seeded years ago.

Pushing his comfort zone

Growing up in Ludington, Varenhorst graduated from Ludington High School and attended Baker College in Cadillac, at the time also taking on jobs as an information technology (IT) consultant. “Over time, when you do something, become better at it…you push your comfort zone,” Varenhorst said. “Experience is really what gives people their edge…gives people wisdom to make decisions and fix things in a cost-effective manner.

“It’s one thing to be knowledgeable, it’s another thing to be able to apply that knowledge. You have to do the work, to form that fundamental understanding.”

Varenhorst graduated from Baker with a bachelor’s degree in information technology and security and in 2010 he and a friend co-founded SyncWave LLC, a wireless Internet service provider in Scottville. The business venture was the culmination of years of IT consulting and a realization of possibilities to become an entrepreneur – something not an initial goal of Varenhorst’s but an opportunity he seized upon.

SyncWave’s focus was lower Manistee, Mason and Oceana counties and while the company “grew enormously,” Varenhorst also saw untapped opportunities to the north, in Benzie where he and his wife made their home. By 2016, both professional and personal reasons -- including long hours traveling far for SyncWave and a baby daughter on the way -- led Varenhorst to start Eclipse, honing in on a county where he saw much to do.

A call to action

“There is such a dire need for Internet service, and to not do something, is just what I could not abide by over time,” Varenhorst said.

Then in his mid-30s, Varenhorst said he was “100 percent confident” Eclipse would be successful. But it wasn’t without challenge and grind.

“Those days were 100 to 120 hours a week, straight up. There’s always a tremendous amount of work to do. Information technology is not just a job, it’s a lifestyle,” Varenhorst said. “I’m fully invested into my profession. It’s something my life is defined by.”

Three years after starting Eclipse, Varenhorst made another business move, purchasing Arcadia-based M-22 Internet Project. The acquisition of the nearby Internet service provider brought infrastructure and clients that propelled Eclipse’s growth, and it wasn’t a small accomplishment.

“Purchasing M-22 Project was the most complex venture that I’ve ever worked on in my life,” Varenhorst said. “Being risk-averse is something we spent months on. When you’re buying a company, you’re buying a car in a way but you’re disassembling the entire car and putting it back together. You’re really looking under the hood.”

Venture North: a catalyst for growth

Venture North Funding & Development provided an approximately $200,000 loan that paid for a majority of the acquisition, with the remaining financing coming from Eclipse and a private individual. Eclipse also received a grant from Venture North that helped pay for professional services, including an attorney and business consultant.

Varenhorst said Venture North President Laura Galbraith and portfolio manager Sara Christensen were “professional, passionate individuals who were very important for us to fund the type of acquisition that we were trying to fund. They were there every step of the way and were fundamental to the success of the funding aspect of purchasing the company, from start to finish.”

He added that as a service business, a conventional financing path can be difficult. “It’s hard to acquire funding in our type of industry. We don’t have a shop floor full of machinery that can go on the auction block if we don’t meet our debts.”

Venture North – including how it operates and the funding sources to which it has access – was “phenomenal” to work with, Varenhorst said. “We will be working with them on anything that we can possibly work on with them going forward. They are first on our call list.”

In Benzie County, Venture North also manages the Community Development Block Grant Loan Program, a federally authorized program that provides small-business loans for a variety of business purposes, tied to job creation for low-to-moderate income individuals.

Eclipse received an initial $70,000 CDBG loan that enabled it to purchase heavy equipment and build infrastructure, hiring two people, and was recently approved for a second, $50,000 loan. Eclipse will use the money to purchase additional equipment it needs to build out its fiber network, with plans to hire two more employees.

Product, people, progress: prepared for growth

In building his company, Varenhorst said he seeks employees who are looking for opportunity, know they “have something to offer,” and want to do work that gives them personal gain and pleasure, not just financial gain.

He relies more on community networking than posting on job sites like Indeed, and said he’s been fortunate “in that when we’ve needed to hire, the right person has been there.”

Nearly every employee lives in the county, including one who moved from Traverse City and bought a house after getting a job with Eclipse. Varenhorst said his team “is by far the best group of people that I have ever worked with” and as the company’s grown he’s gained support from managers and others who uphold operations, enabling him to divest and delegate.

“Everyone here is the company, as much as I am the company,” he said. “Every person collectively defines what Eclipse is.”

Varenhorst still wears many hats, just a little less prominently from early days that might find him not only running the company and managing major projects and purchasing, but also climbing communication towers, putting in Internet in house crawl spaces, perching in a bucket truck to install equipment, and taking calls for technical support, customer service and billing.

“I’ve delegated a lot now. But I’m not above anything,” he said. “I have one foot in the trenches doing the work, because I enjoy doing it…but I also have one foot on cloud nine as well, as principal of a company responsible for the strategy, tying together big projects.

“I do climb towers, I go out and work in the field. As the company has grown though, I obviously spend more time administratively. When I can get out of the office, I very much do enjoy everything I’ve spent the last 15 years doing. I’ll never be above that.”

Customer service is paramount. Varenhorst said many customers have Eclipse employees’ personal cell phone numbers as well as his own, and he routinely talks with clients late into the evening. He’s installed Internet well after midnight, and on Christmas Eve. “Our customer service is as it should be, not minimalistic,” Varenhorst said.

Along his professional journey he’s had mentoring relationships and friendships that have brought advice and guidance, and Varenhorst said he’s a lifelong learner who “will always seek out knowledge and experience with those that have it.”

Tapping mentors and friends

Talk to those who know him, and Varenhorst’s analytical abilities quickly rise to the top. “I’ve dealt with a lot of technical people throughout my history…Chris is far and away the most technically inclined person I’ve ever met. His ability to trouble-shoot, see through things, diagnose things and see a solution, is just unmatched,” said longtime friend and businessman Bob Boylan, president of Xpert Fulfillment Inc., an order fulfillment and logistics provider.

Adds Glenn Zaring, former director of the office of public affairs for the Little River Band of Ottawa Indians, where Varenhorst was once an IT technician: “He could take a very complex issue, and if we could define it correctly, would work out a solution.” But it might not be a standard solution, Zaring said.

“He was creative; knew the colors of his palette…and could bring it together and make it work.”

Shawn Edie, an adjunct professor of Varenhorst’s in the IT department at Baker College, said he “noticed right off the bat that Chris was very analytical and quick to learn.” And there were instances, after doing something correctly the first time, “he would go back through and do something incorrectly…to break it…to figure out how can I fix this,” Edie said.

He said Varenhorst was a resource for other students, helping them to fix what they did wrong, and “there were times, in some of the concepts and things, that he could almost teach the class. He was a very bright student.”

The two remained in touch over the years -- and each tried to recruit the other to businesses – and Edie said he’s been both a friend and informal consultant on Varenhorst plans. Edie is now director of information technology at Crystal Mountain, which leases mountain space to Eclipse for wireless equipment and is a service client.

Edie said Varenhorst “values input and takes it constructively” and is growth-minded and driven. “He wants that company to succeed,” Edie said. “I never imagined that he would branch out and become such an entrepreneur like he has today. And finding those niches and needs in the community, and just growing. I’m surprised, and also thankful, that he’s seen that vision.”

Zaring, whose relationship with Varenhorst has continued as a friend and advisor, said entrepreneurs can find it difficult to stick with their vision and achieve their goal, particularly while balancing family life. “First he clarified his vision into something that was achievable. And that’s something very few people actually do. And once he had that vision…he took the bit in his teeth, and took off,” said Zaring, now a public affairs consultant and member of the Manistee County planning commission and U.S. Rep. Jack Bergman’s district broadband committee.

A neighborhood connection

Xpert Fulfillment’s Boylan first met Varenhorst when Boylan was looking for home Internet options. “Kind of a techie” himself, Boylan said the two formed a friendship. When Boylan was purchasing his Benzonia building in 2018, Varenhorst was looking for space to expand and moved in alongside Xpert Fulfillment, also gaining strategic access to a water tower on the property to install wireless equipment. Boylan also later introduced Varenhorst to Venture North, which had assisted Xpert with a grant. Boylan said Varenhorst’s work ethic is impressive. “The guy puts in so much time and effort into everything he does. He’s always five steps ahead of where he is currently.”

Varenhorst “always has scalability in mind” and “tries to create solutions that can be expanded on down the road,” Boylan said. “As a friend and mentor, I’m extremely proud of him. He’s done well for himself, he’s done well for the community. He has provided solutions to not only individuals, but businesses, that didn’t exist.”

To others choosing paths – including entrepreneurs, employees and young students – Varenhorst offers this advice: “Whatever you can do, do it. If it’s beneath you, change your mindset, because it’s not beneath you. One thing leads to another. It’s all a bunch of stepping stones.

“I do a lot of fantastic high-end work now, but everything that I’ve done thus far has led up to that.”

In addition to Internet service, Eclipse offers managed IT services, Voice over Internet Protocol phone service, IT consulting and network engineering. The company’s customer mix is 90 percent residential – including about a third that are home-based businesses – 8 percent commercial and 2 percent enterprise clients like larger businesses and government entities.

Eclipse’s current footprint is Benzie County and northern Manistee County, also touching Grand Traverse County, but Varenhorst’s radar includes expansion of all service platforms south towards Manistee and Ludington and east toward Traverse City. And more acquisitions – “bigger and grander” – are planned.

Reflecting on a course where “all pieces on the chess board have been moving to the right spot,” Varenhorst said he sees infinite work and is “thankful for this tremendous opportunity” that continues to gain momentum.

“The snowball, as it was, is now the boulder,” he said. “The company is alive. There is no letting up on any of this stuff. We are unstoppable.”


Amy Lane is a veteran Michigan business reporter whose background includes work with Crain Communications Inc., Crain’s Detroit Business and serving as Capitol correspondent for nearly 25 years. Now a freelance reporter and journalist, Lane’s work has appeared in many publications including Traverse City Business News.