Winthrop
About Winthrop
Welcome to Winthrop, Minnesota – a thriving community focused on growth, innovation, and economic opportunity. Located in the heart of Sibley County, Winthrop offers a strategic location with access to a skilled workforce, modern infrastructure, and a pro-business environment. With a rich agricultural legacy and a growing network of local businesses, Winthrop is poised for continued economic development and investment. Whether you’re a business looking to expand, an entrepreneur seeking new opportunities, or a community member invested in our future, Winthrop provides the resources and support to help you succeed. Join us as we build a prosperous future together.
WINTHROP NEWS
10 Steps
To Start your Business in Winthrop
1. Make a Local Contact
Small businesses represent 43.5% of the US economy. But connecting to the local economy and making the right business decision will determine your success or ultimate failure. Contact Michael Looft, the Winthrop EDA Director to learn more about consulting and up to date business information for Winthrop and our surrounding rural region. Contact him at administrator@winthropminnesota.com or call 507-647-5306.
2. Research & Development
What role is your business going to play in the economy? What services or products make the right fit in Winthrop? With a fresh look at your business and your ultimate goal to be successful, research if the following are true: Is there demand for your service or product? How do you know your business will be successful? Is it solving a problem? Who would be your primary customer? Researching your clients before opening your doors is the first step to success. Do not commit to your original idea unless it is supported by evidence.
3. Start up Business Plan
Want to be successful? Then you have to write down your goals! A business plan is essential to starting a new business. How will you finance your business? What is your value statements? After your initial success, how will you scale? For examples of business plans and templates visit: www.myminnesotabusiness.com.
4. Network
Don’t go into any new business alone. You’ll want to find mentors, a commercial banker, a willing business attorney, insurance agent. Make sure that you look for grants through the SMIF Foundation, Region 9, and the Minnesota DEED department.
5. Name your Business
Your brand matters! Regardless of how your business is structured, the name you choose is a business asset. For more information on naming your business, go to the Office of the Minnesota Secretary of State website (https://www.sos.state.mn.us/business-liens/start-a-business/how-to-register-your-business/)
6. Choose a Structure
This is the hard part! If you haven’t teamed up with another business owner, or sought legal advice, now is the time. Your legal structure affects your business liabilities, ability to raise funds, taxes and other very important decisions. MN DEED has different types of business structures. You can find them by visiting: https://mn.gov/deed/business/starting-business/organizing/. You can also work with the Legal Corps of Minnesota through the SBDC (Small Business Development Center). Mankato is our nearest SBDC. There is a filing fee for registering your business and choosing a structure.
7. Register Your Business
All businesses are subject to government regulation. BEFORE you buy a building, start a remodel or upgrade the electrical please check with local building inspectors, code enforcement officers and planning and zoning! You’ll also need to register your business with the IRS: https://www.irs.gov/businesses/small-businesses-self-employed/starting-a-business.
There is also a Cottage Food Law in Minnesota. If you make less than $78,000 on food during a given year, you could potentially be licensed under the Cottage License in Minnesota. For more guidance on this visit: https://www.mda.state.mn.us/food-feed/cottage-food-law-guidance.
8. LOCATION!
Are you renting or buying the facility? Are you remodeling? Contact Planning and Zoning or city hall before you start, permitting is REALLY important and can save you thousands of dollars down the road. If you’re planning on a major remodel, it may be necessary to have an architect to look at your plans to get approval. Check with the local code enforcement officer for more details.
Zoning: Make sure that your business is zoned correctly. You cannot build a commercial business in a residentially zoned area, so make sure that when purchasing or renting that you ensure that it is zoned correctly.
Occasionally the Winthrop EDA has buildings and land for sale. Contact the EDA Director for more details.
9. Financing
Without capital, you may not be able to start a business. The Winthrop EDA, Region 9, SMIF and MN DEED all have programs to help Gap Finance starter businesses. But with all programs, you’re going to need skin in the game. Generally all Gap Financing requires a 50% match in funds. If your business is going to take $100,000 to start, you’ll need at least $50,000 to start your business or to be approved for a business loan.
Never go into a business believing there is free money. If you aren’t willing to put money down or directly invest, your business plan might need work.
10. OPEN!
It seems easy, but it can be very difficult. In your business plan, double check how you were going to report income, sales, and profit. How will your activity be recorded on opening day? Remember that a great business owner constantly assesses the business plan, changes when needed. Sometimes you need to start all over again when you open the doors, that’s okay! The ideal situation is that you recognize things are not working before, change, and become profitable. Business should be profit-centric. They’re in the business of making money, this is not a not-for-profit venture. If you’re not making money within 6 months of opening, you may consider changing your business plan and outlook.
