Across America with Goldman Sachs 10,000 Small Businesses

Goldman Sachs 10,000 Small Businesses Program Impact & Case Studies

• Program Overview

  • Designed as a "mini MBA" for entrepreneurs, the program aims to mobilize graduates to mobilize their own interests and communities.
  • Core curriculum focuses on distinguishing between working in a business versus working on a business.
  • Emphasizes community building, allowing like-minded entrepreneurs to discuss challenges and opportunities with peers.
  • Provides a platform for advocacy, enabling graduates to testify before Congress and influence policy for small business growth.

• Case Study: Ethel's Baking Company (Jill Bomarito, Detroit)

  • Founding & Motivation
    • Launched in 2011 as a test concept in a church after Bomarito left a career in real estate at age 45.
    • Mission centered on creating gluten-free baked goods that appeal to both celiac and non-celiac consumers.
    • First product was the "Pecan Dandy," based on a family recipe from her grandmother, Ethel.
    • Driven by a desire to contribute to the struggling Detroit economy and automotive community.
  • Growth Metrics & Strategy
    • Reported a 20% increase in sales post-program completion.
    • Transitioned from a local brand to an international one.
    • Implemented automation and new pack sizes to support 2x to 10x scaling capabilities.
    • Establishing partnerships with major national retailers.
  • Challenges Identified
    • Capital availability cited as the primary bottleneck.
    • Cash flow management and understanding receivables described as critical vulnerabilities during growth.
    • Labor market issues include a shortage of expertise, high turnover, and rising wage costs.
    • Owner identified personal lack of marketing expertise as a gap.
  • Program Influence
    • Credit the program with providing the strategic framework and confidence to scale.
    • Leveraged the network to move from financial expertise to comprehensive business management.
    • Engaged in advocacy to create a legislative voice for small business communities.

• Case Study: Fly Creek Cider Mill (Bill Michaels, New York)

  • Business History & Structure
    • Historic water-powered mill built in 1856; purchased by Bill's parents in 1962.
    • Transferred to Bill in 1990s with a fixed purchase price and interest rate; originally unsustainable without operational changes.
    • Current model integrates a gourmet specialty food store, farm winery, cider production, and tourism attraction.
  • Financial & Operational Shifts
    • Sales increased 20% following program participation.
    • Profits increased tenfold (10x) due to improved efficiencies and cash flow management learned in the program.
    • Moved the tasting room upstairs to increase revenue streams.
    • Diversified inventory with private label and gourmet specialty foods.
  • Leadership & Curriculum Impact
    • Identified lack of negotiation skills as a critical deficit prior to the program; now employs formal negotiation strategies.
    • Adopted social media tools for marketing and customer acquisition.
    • Addressed micromanagement tendencies (checking every detail) to focus on strategic business growth.
    • Began delegating authority to successors to ensure the mill's 169-year legacy continues.

• Case Study: Steffensmeyer Welding and Manufacturing (Jenny Steffensmeyer, Iowa)

  • Transition of Leadership
    • Business established in 1982 as a family partnership between Jenny and her husband, Ben.
    • Jenny assumed full ownership and decision-making roles after Ben passed away, shifting from emotional survival mode to strategic leadership.
    • Initially struggled with emotional management but utilized "fresh eyes" to implement organizational and safety changes.
  • Strategic Investments & Expansion
    • Installed a solar field to eliminate high electricity costs, reducing monthly operating expenses from $92,000 annually to $26/month.
    • Pivoted revenue streams from one-off custom farm repair to contract manufacturing with batch runs of 7 to 800 units.
    • Expanded from B2C (farm repair) to B2B (contract manufacturing).
  • Program & Community Integration
    • Partnered with a local community college to identify the program as a solution to leadership and operational gaps.
    • Noted the psychological shift from isolation ("felt lonely") to community support among 39 other entrepreneurs.
    • Succession planning involves her sons, Aaron and Nathan, who are returning to lead the company.
    • Actively advocates for small business economic development at the county, state, and federal levels.