Entrepreneurship is growing across Minnesota, demonstrating an appetite by many to turn their passions into business opportunities.
Over the past two years, new business applications in the state increased by 26%, according to a recent report from the Minnesota Chamber of Commerce. These emerging small businesses help form the backbone of the U.S. economy. Small businesses make up 99.9% of all firms, employ 46.8% of private sector workers and provide $460 billion of known export value, according to the U.S. Small Business Administration. Since 1995, they have accounted for 62% of net new job creation.
We need small businesses not only to create employment opportunities, but also to elevate the vibrancy and health of local economies.
Owning and operating a small business comes with unique challenges and rewards. Below, three entrepreneurs share their experience in turning interests and hobbies into successful small businesses while navigating the unexpected.
Focusing on growth
Randy Baker and Bob Dahm sparked their partnership over a shared interest in permaculture, leading to the creation of a successful organic lawn care business, Organic Bob. The primary challenge they faced (like other entrepreneurs) was supply and demand, which wasn’t helped by long winters and other unpredictable weather patterns. Hiring and training seasonal staff to meet the needs of their customers has been another consistent challenge.
Baker and Dahm still enjoy using what they have learned while running a small business to grow professionally.
“When you enjoy what you’re doing, it doesn’t seem like work,” said Baker, who quit his day job to pursue the successful business full time.
Prioritizing community
Farming in greater Minnesota is crucial to the economy, and healthy produce will always be a necessity. When Jeff and Jane Way, a married couple from Alexandria, started their small business, Ida Valley Farm, they developed a business plan to prioritize contributions to a local farmers market. Their produce is sold at the Alexandria Farmers Market during the summer as well as to an online market and restaurants during the winter. The Ways chalk up their success to being hardworking and open minded about trying new things to generate business.
Navigating online competition
Jodi Berning, owner of Broadway Floral in downtown Alexandria, bought a floral shop to combine her passion and experience to run a floral business. Buying the existing shop made sense; she gained customers and continued relationships with the previous owner, which allowed her to honor the legacy of the shop while innovating in new ways.
Berning has found the biggest challenge to owning a floral business is the online competition, an obstacle encountered by many small businesses. In a world where everything is available online, it is challenging to stand out and encourage shoppers to keep their dollars local.
Bremer Financial Corporation is a privately held, regional financial services company with $16 billion in assets. Founded in 1943 by Otto Bremer, the company is headquartered in St. Paul, Minnesota, and provides a comprehensive range of banking, mortgage, investment, wealth management and insurance products and services.