By Michael Stodolak
Changes in career fields and the economy may encourage more people to pursue a new path. Whether driven by corporate layoffs, burnout, or a simple desire for greater independence, many individuals are considering starting their own business. Across the Great Lakes region, states are experiencing a steady stream of new business applications; Michigan saw 148,508 in 2023 (U.S. Chamber of Commerce).
Some entrepreneurs launch unique concepts, while others pursue franchise opportunities. Many emerge from non-traditional backgrounds, such as recent graduates, professionals transitioning mid-career, individuals nearing retirement, or even dual-income households. They often start by working part-time while keeping a full-time job or exploring funding options with a spouse or business partner.
In my community of Bay City, Michigan, people are transforming their side hustles into full-time businesses. This trend is particularly evident in service-based sectors such as bookkeeping, marketing, catering, health and wellness, and professional consulting. The gig economy also continues to grow, with transportation services, independent artists, landscaping, and cleaning services topping the U.S. Census Bureau’s list.
Starting a business or franchise today requires a careful plan to balance big dreams. The economic environment is more complex than it was during the pandemic. Interest rates remain high, consumer habits are changing, and uncertainty dominates the landscape.
Our community roots and 160-year heritage in Michigan position Independent Bank, a member of the Federal Deposit Insurance Corporation (FDIC), as an expert guide in the financial and regional landscape. Here are a few considerations we’re sharing to help customers navigate entrepreneurship in 2025:
Take stock of your current finances
Aspiring small business owners can anticipate an average startup cost of $40,000. The U.S. Small Business Administration offers calculators to help customize this figure. Community bankers can review an aspiring entrepreneur’s current position and assist them in planning for launch and slower ramp-up periods.
Sourcing capital is an important consideration. With interest rates fluctuating, more homeowners are looking to tap into the equity in their homes to leverage for down payments, expenses, and higher-interest debt. Before taking this leap, it is critical to assess risk and the ability to manage multiple payments. Federal, state, and local government programs are another resource, including the SBA 7-A guaranteed loan, SBA 504 loan, or a Michigan Capital Access loan, designed for potential businesses that may face issues with collateral.
Understand the business model
Whether it’s a startup or a franchise, invest time in understanding revenue streams, overhead costs, and the target market. Business mentors and local organizations, such as the Michigan Small Business Development Center (SBDC), can be invaluable resources. Independent Bank often partners with the SBDC to help entrepreneurs with various aspects, including market research, business planning, and funding strategies. Last quarter, the SBDC’s regional office at Saginaw Valley State University hosted a workshop focused on adapting to today’s economic conditions, and the room was packed.
Build the right support team
Entrepreneurs may have experience or a passion for their new industry but are not expected to master the intricacies of bookkeeping or payroll. In addition to community resources, trusted experts can include a local banker, CPA, attorney, and a mentor from the same industry or a complementary field.
Hiring continues to be one of the most common concerns voiced by business owners, particularly in specialized sectors like finance and skilled trades. From entry-level roles to CFO-level leadership, there is an increasing gap in candidates who possess the financial and technical expertise that today’s businesses demand.
That’s why we’ve prioritized workforce development and economic revitalization in Michigan’s Bay Region. Whether supporting educational initiatives or participating in local economic development boards, we’re committed to helping communities establish the talent pipeline essential for long-term success.
Despite the multitude of complexities today, the entrepreneurial spirit remains strong. States and regions are eager to attract and support small businesses, continuing to invest in programs that help achieve these goals. With the right foundation, more of our customers’ innovative business ideas can develop into viable, lasting ventures.
About the Author
Michael J. Stodolak is Market President at Independent Bank. He serves on the advisory boards for Saginaw Valley State University College of Business, the Graduate School of Banking at the University of Wisconsin, the National Marine Lenders Association in Annapolis, MD, and several local economic development organizations.