Unlocking the Secrets of Successful Food Entrepreneurs: Navigating the Funding LandscapeEven with a compelling product to offer, it can be tough for food businesses to find investors to help them reach new markets. That was the message from four Wisconsin entrepreneurs, presenting on a panel at the 2024 Food Finance Forum & Expo. The expo was hosted by the Food Finance Institute, a Universities of Wisconsin outfit that helps food-related businesses "raise the money they need to grow." Each panelist received training through the institute.

Empowering Allergen-Free Baking with Passion and Persistence

Nurturing a Niche: The Pink Bakery's Allergen-Free Journey

Nubian Simmons, the owner of The Pink Bakery in Milwaukee, has dedicated her career to creating baking mixes that cater to individuals with severe food allergies. As an engineer by training, Simmons started the company a decade ago to address her own needs and those of people like her. Her journey has been marked by both challenges and triumphs, as she navigated the complexities of building a successful food business.Simmons initially tried her hand at baking and selling her own treats, but quickly realized that her true passion lay in the science behind her products. She shifted her focus to developing high-quality, allergen-free mixes that caught the attention of colleges and dining hall operators, who began placing larger orders. Recognizing the growing demand for allergen-free foods, Simmons set her sights on securing deals with major food service companies, but quickly realized that she lacked the "big money plan" required to make that leap.Undeterred, Simmons sought out financial assistance, securing a loan through WWBIC and working with an advisor to hone her finances and brand. Her perseverance paid off when she finally found her first investor, a Black woman like herself. Simmons believes that her investor was drawn not only to the strength of her brand, but also to her tenacity, desire, and passion for the business.

Expanding Horizons: From Farmers' Markets to National Prominence

David Payne's journey with Potter's Crackers exemplifies the power of vision and strategic thinking. Payne, who had prior experience in the food industry, recognized the national potential of the organic crackers that the company's founder, Nancy Potter, had initially positioned as a farmers' market brand.Payne's background as a smokehouse operator at the renowned Johnsonville sausage company gave him the insight to see that Potter's Crackers could thrive beyond the local market. Once the crackers were selling in upscale grocery stores like California's Bristol Farms, Payne was able to convince investors that with a little more effort and funding, the company could truly take off.Networking and building relationships have also been crucial for Danielle Goss, the co-founder of River Falls craft mocktail company Kul Mocks. Goss and her husband Nate Goss started the company with their own savings in 2019 and were able to secure a "friends and family" investment round just before the COVID-19 pandemic began. Since then, they have obtained a loan through the Small Business Administration, run a crowdfunding campaign, and sold "convertible notes" to continue growing their brand.

Leveraging Synergies: The Forage Kombucha Story

The investment dynamics for Forage Kombucha have been somewhat different, as it is part of the same company as Forage Kitchen, a successful cafe chain that started on State Street in 2015 and has since expanded to seven locations across Wisconsin and Illinois. When owners Henry Aschauer and Doug Hamaker wanted to start packaging drinks to accompany Forage's salad and grain bowls, they were able to leverage the stability of the cafe business model to secure funding for their kombucha production facility.Aschauer emphasizes the importance of finding a few "true believers" who are sold on the business idea and can serve as advocates for the brand. He encourages other food entrepreneurs to network and build relationships with potential investors, as these connections can be instrumental in securing the necessary funding to take their businesses to the next level.However, the panelists caution that entrepreneurs should not automatically accept the first investment offer they receive. Goss, for example, has been selective in her search for "strategic partners" who can help her brand grow, rather than simply taking the first available funding. Simmons echoes this sentiment, emphasizing the importance of choosing the right partners to work with, as "just because someone comes with money doesn't mean that you always have to just jump right into it."