When is Your Business Ready for Financing?

Embarking on the journey of building a food business is both exhilarating and challenging. As you nurture your venture, the question of when to seek financing will arise. Financing can be a game-changer for food entrepreneurs looking to scale their businesses but knowing whether you’re ready to apply is just as important as securing the funds.

Michigan Good Food Fund is here to support passionate entrepreneurs like you, offering flexible business financing and tailored business assistance specific to food and farm enterprises. But how do you know when you’re ready to take that step? Let’s dive in!​

1. You’re an established Michigan food or farm business.

Michigan Good Food Fund supports growers, distributors, product makers, retailers, and food service providers across Michigan. While we typically work with businesses that have been operating for at least one year, we also consider earlier-stage ventures led by individuals with industry experience or those who have invested their funds into their startup.

2. You have a clear business plan with a path to profitability.

Before applying for a loan, you should have a business plan that outlines:

• Your mission and vision – What problem does your business solve?
• Your target market – Who are your customers, and how do you reach them?
• Revenue streams – How does your business make money?
• Financial projections – Expected income, expenses, and profitability over the next two years
• Your management team – Who runs the business, and what experience do they bring?

It’s also important to demonstrate that your business has the potential for profitability within the next year. This shows that you’re on a growth trajectory and that the business financing will be a catalyst for further success. ​

If your business is still in the early stages of development or needs support refining these key areas, Michigan Good Food Fund’s Business Assistance Services can help.

3. Your financials are in order.

One of the biggest hurdles for food entrepreneurs applying for business financing is having their financials organized and up to date. Check out our Loan Application Checklist to understand the documentation you will need when applying for financing. If you’re not quite there yet, we can connect you with financial experts to help strengthen your application.

4. You know how much funding you need and how you will use it.

Michigan Good Food Fund offers loans ranging from $2,500 to $6 million. Understanding exactly how much business financing you need and how you will use the funds helps ensure we can find the right financing options for you. Here are some examples of what our flexible funding can be used for:

• Real estate and property improvements – Purchasing or renovating a storefront, kitchen, or production facility
• Equipment and infrastructure – Refrigeration units, commercial ovens, processing equipment, or delivery vehicles
• Working capital and inventory – Covering payroll, buying inventory, launching marketing campaigns, or scaling production
• Business process upgrades – Investing in software, operational improvements, or supply chain enhancements

Our lenders want to see that you have a well-thought-out and realistic plan for using the funds. Your application process will go smoothly if you can offer specific details on how you will use the funding. If you need help understanding your options, our team can help you visualize options and understand your options.

5. Your business has a positive impact on your local community.

As we strive for a more inclusive and sustainable food system in Michigan, we aim to support business entrepreneurs making a significant, positive impact in their communities. This means partnering with businesses that are committed to healthy food access, job creation, racial equity, and/or forwarding resilient innovative practices within Michigan’s food systems. Learn more and start exploring the impact your food and farm business can make in your community and local economy.    

Are You Ready to Apply for Business Financing?

Preparing for financing doesn’t have to be overwhelming. Michigan Good Food Fund can be your trusted partner and offer tailored support at every step of your growth journey.

• If you’re ready to apply for business financing, start an inquiry and share your business aspirations so we can explore how best to support your vision. ​
  
• If you’re not quite ready to apply for financing, check out our Business Assistance Services to help you strengthen your financials, refine your business plan, and improve your loan application.

At Michigan Good Food Fund, we understand that no two entrepreneurs are the same. We hope we can tailor our financing options to ensure they align with your unique needs and goals. We look forward to supporting your journey in any way we can!

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