As Michigan small businesses and startups navigate the challenges of second-stage growth, they can rely on many incentives, tools and programs offered by the Michigan Economic Development Corporation (MEDC) to help them expand operations and reach new levels of success.
From tax credits and funding opportunities to meetups and mentorships, the MEDC has a wide array of resources to assist companies in this pivotal phase of growth.
“Second stage” traditionally refers to privately owned businesses that have moved beyond the startup space and are looking to expand.
According to Rodney Parkkonen, Senior Business Strategy Manager with the MEDC, this is generally businesses with 10 to 99 employees and $1 million to $50 million in annual revenue. “They have the capacity or desire to grow outside of their local market,” Parkkonen says. “They’ve experienced some form of success and have the ability to pivot.”
To that end, MEDC offers a variety of complimentary services through Pure Michigan Business Connect (PMBC) that are just a phone call away.
FORGING CONNECTIONS
For more than 12 years, PMBC has helped businesses find new suppliers and buyers, gain access to capital, and receive the training, licensing and certifications they need to level up. This program also helps businesses break into new industries. Since its founding in 2011, PMBC has provided business connections across 76 industries, facilitating more than $8 billion in new contracts between local, national and global purchasers.
“We work in agriculture, automotive, aerospace, defense, all across the board,” says Bobby Chasnis, director of the PMBC. “Sometimes we’ll see a supplier doing extremely well in one vertical or industry. We can help them diversify and identify new suppliers that will limit issues if one sector goes under or experiences a really heavy supply chain disruption.”
IN GOOD STANDING
When The Standing Company was faced with delays in procuring chromoly steel from out of state, the standing wheelchair manufacturer turned to PMBC. Within a couple of days, they had a list of more than a dozen potential suppliers in Michigan.
“We picked up the phone and we started calling. Next thing we know we’re in touch with Boyer Steel in Warren,” says Raymond Maczik, president of The Standing Company. “They really saved us.”
Securing a steady, reasonably priced supply of steel from within Michigan’s borders allowed the Saginaw-based company to fulfill its orders and continue to grow.
MAKING MATCHES
Since its inception, the PMBC program has facilitated more than 12,000 meetings between buyers and suppliers.
In addition to one-on-one introductions, PMBC facilitates summits, tours and events. PMBC acted as matchmaker between Michigan-based Meijer and dozens of second-stage food and product suppliers throughout the state. When Meijer began opening small-format neighborhood markets, PMBC hosted a virtual Michigan Food and Agriculture Summit and a Local Vendor Event to connect small businesses with opportunities to sell their products in store. More than 50 small businesses, like High 5 Salts, were able to connect with Meijer through these events.
PMBC not only works to connect Michigan-based companies with each other, but with companies around the world, working with more than 830 corporations globally to help Michigan-based second-stage companies break their way into new international markets.
With help from the MEDC, Houghton-based Great Lakes Sound and Vibration (GLSV) has expanded into several countries overseas and grown its exports to 13% of total sales. Part of this success is due in part to another of MEDC’s unique programs called Second Stage Growth Solutions (SSGS).
FINDING SOLUTIONS
SSGS is a three-stage program designed for CEOs ready to make a long-term commitment to identify key opportunities for continued success. Stage 1 starts with a System for Integrated Growth which has CEOs working with vetted experts for eight weeks, identifying issues that impact business growth. Stage 2 is a Next Steps Retreat three days of brainstorming with other second-stage business leaders to create an action plan that identifies how they can create value for customers in every facet of their business. Stage 3 is the ongoing PeerSpectives CEO roundtable to keep executives in touch, sharing challenges and solutions on an ongoing basis.
GLSV President Steve Mattson participated in SSGS. “The [SSGS] team was phenomenal in being fluid and flexible for our wants and needs during the engagement,” Mattson says.
CONCIERGE SERVICE
The bottom line is that the MEDC tailors its services to the needs of individual second-stage businesses. The team stands ready to hear where companies are at and where they want to go, then pulls from their vast pool of resources to help make it happen.
“Who is ready to make a jump into another industry vertical? Can we identify industry standard certifications that we can help you march down and acquire? Can we introduce you to some demand or some buyers and help you get that next contract or purchase order to help propel you into that new vertical or industry?” Chasnis asks. “How can we help you?”
The Michigan Economic Development Corporation is the state’s marketing arm and lead advocate for business development, job awareness and community development with the focus on growing Michigan’s economy. For more information on the MEDC and our initiatives, visit www.MichiganBusiness.org.
