Entrepreneur: LocalFund Inc. helps kick-start local businesses

Dreaming up a new business is hard. Drafting a business plan is harder. Finding a location, buying inventory, hiring employees and quitting your current job are all hard too.

Gazette Staff

The toughest part, however, may be lining up financing, according to Cliff Grant.

Grant is president of LocalFund Inc. at 1250 15th St. W., Suite 204, in Billings.

The company provides Internet-based entrepreneur-investor networks for local communities. "Our service provides an efficient means of helping entrepreneurs get in front of local and regional investors who genuinely have an interest in their venture," Grant said.

LocalFund can be reached in Billings at (406) 294-5050 or (877) 296-5050.
Nature of the business:

One of the greatest gaps in the process of starting and growing a business is securing the required funding.

Once we establish a local network, entrepreneurs simply enter a summary of their business plan on our Website using easy to follow templates. Investors can review business plans for local businesses and simply contact the entrepreneur directly to learn more.

Why start this business?

LocalFund was started to address the disconnect between entrepreneurs and investors. Traditionally, the process of getting entrepreneurs and angel investors together has been a loose and unorganized process. We streamline the process by providing communities with their own local entrepreneur-investor network.

We believe that the entrepreneurial spirit is a key component to local economic development and leads to community and individual prosperity. LocalFund supports entrepreneurship by helping entrepreneurs and angel investors get together.

Where did start-up funding come from?

Personal savings and local angel investors. While we did get funding from angel investors, it took close to a year to raise these funds when it really should have only taken a few months.

How long have you been in business?

Since December of 2000.

Biggest challenges in running the business?

Establishing credibility as a new business was our greatest challenge. Many businesses and organizations are hesitant to buy from, or partner with, a new company. This is especially true with companies like LocalFund that provide business services on an ongoing basis.

What was done to overcome those challenges?

One of our key strategies is to partner with other businesses and organizations that already have a stronghold in the markets we’re most interested in. For example, we signed an exclusive agreement with the National Business Incubation Association to provide local entrepreneur-investor networks to 500 U.S. incubators and another 250 abroad. Being a partner with a world-class organization gives us instant credibility and gets our foot in the door.

What is being done to expand the business?

We’re continuing to seek strategic partnerships around the world. Rather than engage exclusively in direct sales, we spend our time forging partnerships and alliances which lead to sales volume that we could never achieve on our own. Just this week we signed a partnership with Idea Café, one of the leading small business resource Websites.

Your worst business mistake?

Underestimating the length of time to implement the business plan.

Advice for someone running a business?

Make sure you have adequate funding to support the business without relying on immediate revenues. It always takes longer and costs more than you think it will.

Number of workers?

One full-time worker and four contract workers. Our business strategy is to outsource those functions which are not part of our core business. We also have over 50 associates in 26 states who market our service to local entrepreneurs and investors.

What’s your five-year plan for the business?

Our goal is to have 400 local networks throughout the U.S. and another 100 foreign networks. We want to be the place to go for entrepreneurs who are seeking capital and investors who are seeking local investment opportunities.

A question you would ask other entrepreneurs?

How did you get started as an entrepreneur? I love to hear how entrepreneurs came up with their business idea and how they made it a reality.

If you weren’t doing what you are now, what would be your dream job?

I truly enjoy what I’m doing now. We’re building a world-class company, and we get to help entrepreneurs realize their dreams.

“Entrepreneurs” appears regularly in the WorkWeek section. The feature will help readers become familiar with new businesses, as well as educate others in the challenges of starting a business. If you have been in business for at least one year and would like to tell your story, please contact:
Chris Jorgensen
Billings Gazette
401 N. Broadway
Billings, MT, 59101
657-1311, office
657-1208, fax
[email protected]

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