By Brook Sutton
As entrepreneurs know all too well, even a potentially world-changing idea isn’t enough to succeed. It requires money to build a business, and trying to secure that money can be a full-time job in itself.
Jonathan Ballesteros, CEO and founder of Geyser Systems, understands the time, effort and occasional heartache of funding his growing business.
Geyser Systems is a purpose-driven company that manufactures water-efficient, portable shower and cleaning systems. In an envy-inducing achievement for any outdoor-oriented brand, Geyser Systems’ went to market, in 2020, at 167 REI locations across the country. With orders from etrailer.com, Bass Pro Shops, Camping World, and a host of other independent retailers, Geyser Systems is on a heck of a roll.
The company’s funding journey has been called a Cinderella story by consultants and observers. While it’s ultimately a success story, it hasn’t come easily. The wins have been earned through Ballesteros’ perseverance and prioritization, as well as outside guidance. The setbacks shine a light on aspects of the funding ecosystem Ballesteros and many others consider broken.
Through wins and challenges, Ballesteros has pushed forward with uncommon organization and big moves–including relocating his company from Austin, Texas, to Montrose, Colo. Over five years, he has secured private investment, small business grants, and local, regional and state level business tax incentives.
The lessons he’s learned can help every fellow entrepreneur navigate the process with greater success.
Kickstarter: Proof of Concept and Business Viability
To get the ball rolling, Ballesteros launched a Kickstarter campaign that capped the number of backers. “While thousands of backers and explosive growth would have been flashy, we weren’t set up to handle that type of production yet. It was more important to us that we were capable of delivering on our promise.”
While the campaign achieved its financial goals, it was not without difficulties. Luckily, backers were patient as orders took longer than expected to fulfill, and Ballesteros doubled down on his commitment to customer satisfaction.
Funding Tip: Kickstarter
Ballesteros says that Kickstarter can be a good starting ground to show your business is capable, but go in with eyes wide open. Today, backers expect the full package: a good idea, a clear path to production, and an ironclad plan for fulfilling the promise of the campaign. Brands need a marketing campaign to drive support before a Kickstarter campaign launches.
Accelerator Program Opens Door to Rural Colorado
Thanks in part to the successful Kickstarter campaign, Geyser Systems was invited in 2020 to participate in the Moosejaw Outdoor Business Accelerator program, based in Gunnison, Colo. Through this program, not only did Ballesteros meet independent investors, he also learned about the substantial funding options in rural Colorado communities.
Ballesteros mapped out a spreadsheet with pros and cons, and available tax incentives, grants, and loans in different Colorado towns. He landed on Montrose for its low cost of living and attractive tax incentives.
Funding Tip: A Resource to Explore the Rural Colorado Funding Ecosystem
Rural Colorado has a rich (no pun intended) ecosystem of funding options for small businesses. Check out the Startup Colorado Ecosystem Map to get started.
Rural Jump-Start and Local Incentives Make Geyser Systems “Made in Colorado”
Moving to Montrose allowed Geyser Systems to capitalize on Colorado’s Rural Jump-Start Program, which is designed to encourage small business growth and rural job creation.
“We wouldn’t be where we are today without Colorado’s investment in us.”
Jonathan Ballesteros, founder and CEO of Geyser Systems
The Rural Jump-Start Program incentivizes businesses through tax incentives, business operation grants, and new hire grants. While the program is under the purview of the Colorado Office of Economic Development and International Trade (OEDIT), it’s ultimately a collaboration between the state, local governments, higher education, and regional economic development organizations.
“The OEDIT team has been an outstanding group to work with,” said Ballesteros. “The fact that there’s an entire office in the state government dedicated to supporting entrepreneurs like me proves Colorado wants smaller businesses to thrive. It makes me proud to be here.”
Ballesteros also negotiated an incentive grant directly with Montrose City Council. “This mix of local and state-wide tax incentives and grants has been absolutely essential to Geyser Systems to move forward.”
Funding Tip: Explore Colorado’s Rural Jump-Start Program
Wide-ranging benefits of the Program include potential incentives for: business income tax, sales and use taxes, personal property taxes, and state income tax for qualified new hires. Businesses can also apply matching grants up to $40,000 and up to $5,000 per qualified new hire. Read how another rural Colorado brand successfully applied for the program here.
Grants and Statewide Opportunities
The OEDIT team introduced Geyser Systems to state-wide opportunities that were not exclusive to rural communities.
Ballesteros applied for, and received, an Outdoor Recreation Industry Impact Fund (ORIIF) grant, a grant through the Colorado Outdoor Recreation Industry Office. No longer available, the grant was funded by the pandemic era American Rescue Plan Act as a tool for hiring or retaining employees.
A different state grant enabled the company to attend the Green Expo in Mexico City. This was an opportunity to make contacts toward developing an international distribution channel that’s well-aligned with Geyser Systems’ water-saving ethos.
The Hidden Costs of Pursuing Funding
We tend to celebrate funding windfalls without acknowledging the often frustrating path to earn them. Even for well-funded companies, the path is often marked by rejection, opportunity costs, and confusion.
This isn’t a cautionary tale to avoid the effort. It’s a practical warning not to mistake success for ease. Even with expert support and robust programs like Colorado offers, securing funding requires one thing every entrepreneur lacks: time.
“Thanks are definitely due to OEDIT and the Moosejaw Accelerator for the education and introductions, but the workload to apply is heavy,” said Ballesteros. “I don’t have a point person for funding. Researching, pitching, and applying falls on me, as I’m trying to run the company. It takes a lifestyle toll to make this happen.”
Most of the funding channels Ballesteros has pursued, whether successful or not, have been worth the effort. For Ballesteros, there has been one exce