Northern Lights - Issue 33 - November 2024
VENTURE NORTH CONSULTANTS HELP BUSINESSES CHART COURSE TO GROW
by AMY LANE
At the Chickadees shop in Kingsley, business owner Stacey Walton has a new game plan and new path to profitability.
It’s come with some help from Venture North Funding & Development’s Deanie Schwannecke, one of many Venture North consultants who assist clients with financial matters that can be fundamental to business sustainability and growth.
“I knew I needed help,” said Walton, who also owns Peaceful Touch Therapy & Massage, housed in the same building as Chickadees. “And right off the beginning, our conversation, I knew that she was 100 percent dedicated to helping me, with whatever I had questions about. She was able to focus her time, on what I needed the most.”
One-On-One Help for Financial Planning and Management
Schwannecke is part of a team of business coaches and consultants and outside experts that Venture North, a federally certified Community Development Financial Institution or CDFI, taps to provide no-cost consulting that can remove business gaps hindering growth. From bookkeeping to business planning and financial projections to managing operations, Venture North, which offers loans and other resources to support small business growth and jobs, has over the last 15 years helped businesses with more than 9,000 hours of a variety of consulting.
Business development coach Schwannecke hails from a CPA background, including nonprofit tax accounting and years as a tax manager at Rehmann in Traverse City. She also brings a first-hand comprehension of small business, owning Traverse City’s Moonlight Bay Resort with husband Tom.
“With experience in being a business owner myself, I’m able to know where people are coming from and their daily struggles, setting up (financial) systems and policies and the importance of that. Having those foundations in place can help a business run smoothly,” Schwannecke said.
She’s helped Venture North clients develop financial systems, move into accounting software to simplify their bookkeeping, and address areas like budgeting and developing profit and loss statements, balance sheets, cash flow projections and quarterly or year-to-date financials – essentials for approaching a lender for growth capital and also good business.
“That’s just part of sound financial practices. And as a lender, you want to know that that’s a priority,” Schwannecke said.
She connected with Walton after Walton received a loan from Venture North to help pay for Chickadees gift shop inventory and launch an ice cream business. Walton said Schwannecke helped her maximize the profitability of Chickadees merchandise, looking at price points and “how to better price it with expenses I was putting out. She really helped me with that margin of profitability.”
Tackling Issues One at a Time
Schwannecke helped Walton separate her Chickadees and massage businesses for bookkeeping purposes and hone in on each, as well as analyze areas like rent and utilities and make adjustments. “I felt like it was an extremely complex situation, and she just patiently tackled it, one important piece at a time,” Walton said. “Which was an answer to my prayer, for sure.”
Also key: Gaining a better understanding of her existing accounting software and terminology. Schwannecke researched the program to learn more about it so she could better-assist Walton.
“For her to take the time to learn the program and then take the time to teach me the program ins and outs, accounting language, the whole picture…she’s super patient, and encouraging,” Walton said. “She always gave me a list of to-dos when we were wrapping up. And always followed up to make sure I was on track…all of the things you would want a good mentor to do.”
It all left Walton able to run her businesses knowing she “had things in place to do it the right way.” And it’s helped her move toward a new business model.
Playing off personal services in the Chickadees building, including Walton’s massage business, a nutritionist, chiropractor and hairstylist, the Chickadees shop is rebranding, changing up merchandise and stocking a smaller collection of products that will focus on self-care --- lotions, soaps, salves, candles and other items that “help bring you peace and healing” and add to the location’s new persona as a “self-care haven,” Walton said.
“I saw that by transitioning and utilizing better options that are there, that I can still have a successful business. It just doesn’t look like the model I started with,” she said.
As for Schwannecke’s and Venture North’s help, Walton said, “there’s no dollar amount” to place on the value.
“In addition to the wonderful terms that my loan is, to know the value of a whole package deal, it’s something special. It’s something you don’t get with other lenders,” Walton said. “The importance that Venture North takes to hold your hand in areas that are not your strengths, is invaluable. They truly do want success for your business.”
Learning How to Grow
Business owner and Venture North client, Stacey Walton with her family.
Small businesses sometimes don’t realize the help that they need, Schwannecke said. “Most small entrepreneurs, they’re focusing on their growth, their product and attracting customers…I think the accounting/bookkeeping is at the bottom. And during the year, they don’t really know where they are financially. It’s just one of those things that people procrastinate about.”
They also may not know where to turn. “So many small business owners…may feel like they’re on their own, who do I go to for that support,” she said. “We partner with them, are deeply invested in their success on an ongoing basis. I think that makes a big difference.”
Sometimes what starts as help with financial matters can lead to other areas of business operations. “We discuss more than just financials,” Schwannecke said. “It’s more than just numbers. You sit down and talk with someone…they’re wearing so many hats. You just never know what you’ll be able to help with.”
Overcoming Complexity
It’s work with rewards to client and consultant. “I love being a business owner myself, and helping others succeed, sharing in their wins,” Schwannecke said. “Being able to help them get comfortable, setting up their systems, teaching and training even if they do have some accounting background. It’s just being able to up their skill level.”
She said being a Venture North consultant has been a good fit. “The clients are great to work with, Venture North is great to work with,” Schwannecke said. “It’s really rewarding, just getting to know the businesses and the people and helping them overcome their challenges.”
Small businesses can be hesitant to seek help, said Betsy Evans, Venture North business development manager and coach. Business owners are independent, “they have their own business for a reason, and they want to do their own thing. So I think it’s hard for them to reach out for help,” she said.
Betsy Evans, Venture North Business Development & Coach
“When it actually comes to making sound decisions about your business, like what product line is providing me the best return on my investment, what service is actually making me money…unless you have the numerical, empirical values in front of you, it’s hard to make a really good decision. Where do you invest your time, and where do you invest your money in your business.”
Tapping into Resources
With Venture North, Evans said, it’s not just help; it’s tapping into resources. And “sometimes what that they think they needed help with, may not be what ends up being their greatest challenge.”
Evans has helped businesses with bookkeeping and financial systems, business plans and other plans for strategic growth or marketing. Also, loan-preparation assistance including business and personal financial statements, cash flow projections, and help with loan applications and documents a loan committee will want to review.
No Eating Elephants: Ordering Priorities and Goals
Another area: Goals or priorities that businesses need to establish. “If it’s an existing business who says ‘I really need to grow my business,’ we can look at the different aspects within their business…set some priorities, goals…and actionable steps to help them reach those priorities. You can’t eat the elephant all in one bite,” Evans said.
She said a clear, sound financial picture is important. “You need to have a good foundation. When it actually comes to making sound decisions about your business, like what product line is providing me the best return on my investment, what service is actually making me money…unless you have the numerical, empirical values in front of you, it’s hard to make a really good decision. Where do you invest your time, and where do you invest your money in your business.”
Essential Consulting for Essential Services
Both existing businesses and startups have benefited from Venture North’s consulting. In Leelanau County, for example, a child care boot camp developed and taught by Venture North brought Evans to work with Betsy Garthe-Shiner, who is starting a child care business in Northport.
Garthe-Shiner, who has been working with the county’s Infant & Toddler Child Care Startup initiative to open her Dandelion Discovery Center, was a participant in the July-September seven-week class that covered business plans and fundamentals including financials, cash flow projections and marketing.
“It was such a gift, to work through all these different pieces of owning a business,” said Garthe-Shiner, founder, director and lead teacher of the Dandelion center. “Although I’m a skilled teacher, I have not run a business on my own. There are just a lot of different pieces of running a business that I don’t understand, or would not have thought of.
“Budgeting and all of the different business things you need to do, don’t necessarily come to mind when you think of child care. It was really helpful for Betsy to share with us…all of these different concepts that are essential to running a business and not necessarily top of mind to someone like me.”
She said payroll taxes, bookkeeping software programs, budgeting and expenses were among topics. And so was striking a balance between her goals for her business – including serving families of all socio-economic status and paying bills, employees and herself – and establishing pricing that provides adequate income.
Creating Sustainable Services for Children
Child care “is such an important line of work,” Garthe-Shiner said. “But we kept coming back to, we have to make a sustainable business.”
She said she feels “a lot more comfortable” going into her business, and the cash flow analysis that was developed is a model she will be able to use over the next few years as she makes business decisions. Garthe-Shiner said she knows she can contact Evans as she moves forward, for help or to “work through any hiccups” she experiences. Enrollment will open soon.
“It’s really nice to have someone on your side who knows what they’re doing,” she said. “I’m so, so grateful. It’s just been really, really helpful.”
Managing Your Home and Life
At another business, Immaculate Home in Traverse City, Evans’ help came both before and after a Venture North loan to the six-year-old luxury home and lifestyle management service. The business, founded by Emily Dodds, offers homeowner clients tailored solutions, from property care to concierge services.
Dodds, who connected with Venture North while exploring growth opportunities and business support resources, said Venture North’s “reputation for providing guidance and resources for small businesses made it an appealing partner for us as we looked to scale Immaculate Home.”
She used the loan to expand services, invest in training and streamline operations amid increasing client demand. Evans’ “guidance before the loan was crucial in helping us prepare, and her continued support afterward has been invaluable in ensuring we stay on track with our financial goals,” Dodds said.
She said financial consulting assistance “covered a range of topics, from cash flow management and budgeting to long-term financial planning and growth strategies. It was instrumental in helping us understand how to manage our finances more efficiently while positioning the company for sustainable growth.”
As a result, the business has become “more strategic” in its approach, “ensuring that every decision is financially sound and aligns with our larger business objectives,” Dodds said.
Emily Dodds, owner of Immaculate Home
Gaining Confidence in Your Plan
Immaculate Home’s growth plans include expanding geographically, adding new services like upholstery cleaning, and continuing to refine its offerings. Dodds said working with Evans “gave us tremendous confidence. It reassured us that we were on the right track and helped us make more informed decisions about our growth. The clarity and focus we gained through her assistance have been pivotal.”
She said Evans is knowledgeable, approachable and provides practical solutions. “Her ability to break down complex financial concepts and help us apply them to our business has been incredibly valuable” -- even more so given that the consulting help came at no cost, Dodds said.
“It allowed us to access top-notch financial advice without adding strain to our resources, especially at a time when we were focused on growth and expansion.”
Venture North President Laura Galbraith says all this expertise and service comes at a cost although the help is often at no charge to the small business client.
“Many existing or future clients of Venture North need help to move their business to the next level, including getting in position for growth capital,” she said. “And we, along with many of our clients, are indebted to partners who financially support this essential strategic work through Venture North.” Galbraith said that organizations like Detroit Edison, the Huntington Bank Foundation, the Boundless Futures Foundation, the Consumers Energy Foundation, ITC, USDA Rural Development, the Manistee County Community Foundation, Grand Traverse Regional Community Foundation, Rotary Charities of Traverse City and Walters Family Foundation have made resources available to support this service to move small businesses forward.
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.
