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Mountain BizWorks
Scale-up Strategy:
Mountain BizWork's current scale strategy focuses on an expansion and marketing program aimed at increasing the capacity and impact of its lending program. Key components of the strategy include: |
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Strategic planning with board and staff.
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A marketing and outreach campaign that builds off previous work on rebranding. The effort will include updated market research on potential borrowers, as well as a print and Web advertising effort.
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Partnerships with lending institutions.
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Geographic expansion of the lending program.
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Progress Update as of May 2008:
Mountain BizWorks expanded its lending operations by increasing visibility and by strengthening board and staff capacity. |
- Held separate board and executive staff retreats, which refocused board and staff on loan program expansion, specifically on increasing the loan amount to $50,000, adopting CDFI minimum standards, and re-looking at the organization’s capital structure, loan loss rate and efficient loan decisions.
- Coordinated 120 different media mentions in local media about MBW, member businesses or information related to MBW events.
- Produced additional collateral materials, including an annual report, membership booklet, financing brochure and Spanish services brochure.
- Increased number of referrals from partner banks.
- Postponed geographic expansion due to funding issues.
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Background:
MBW has provided microenterprise services in a largely-rural area for the past 18 years, initially using a peer-lending methodology. One of the largest predominantly rural microenterprise programs in the country. |
| Core Microenterprise Services: |
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Foundations Business Planning Program focused on basic business skills and planning
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Growth through Objectives (GO) Program provides coaching for more advanced clients
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Small business loans
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Membership services, including individual technical assistance, access to the computer lab/member center, alumni groups and alliances, etc.
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Mountain Made retail store provides a venue for client products
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| Highlights: |
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Formed a CDFI (Mountain BizCapital) in 2002 to fund its growing need for loan capital.
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Recently rebranded and repositioned the organization (including name change and addition of communications manager).
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Enhanced technology capacity includes improved hardware and communications capacity, new databases (TEA and Donor Perfect), and a centralized Web portal for technical assistance providers.
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Strategic restructuring of board and staff to position for growth.
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Development of partnerships that expand funding and service offerings.
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| Current Scale: |
Scale Projections: |
FY2005: 762 clients and 25 loans disbursed
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FY2008: 835 clients, 81 loans disbursed, $2 million outstanding |
FY2006: 661 clients and 31 loans disbursed
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FY2009: 875 clients, 95 loans; $3.1 million outstanding |
FY2007: 744 clients and 67 loans disbursed
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Learning Questions:
Portfolio management: As they scale-up their lending efforts, what is the right amount of “touches” to give borrowers along the way – to ensure repayment of loans but maintain efficiency?
Bank partnerships: What are the experiences of others, what has worked well? How to set priorities regarding which banks to reach out to, work with?
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