Building Businesses in Metro Detroit: What Has Changed in 20 Years

I have been starting, buying, and running businesses in the Detroit area for more than twenty years. Over that time the region has been through a lot: a deep recession, a long recovery, a pandemic, and now a period of high interest rates and tight labor. Here is what I think has changed for people building companies here, and what has not.

Capital is easier to find, but patient capital is not

Twenty years ago, a small company in Michigan had few options beyond a local bank and the owner's savings. Today there are more investors, more lenders, and more programs aimed at growing businesses. That is real progress.

What has not changed is how scarce patient capital is. Much of the money available wants a quick result, either a fast exit or steady interest payments from day one. Businesses that need time to grow still have a hard time finding a backer willing to wait. That gap is a large part of why Creek Equity invests the way it does.

A generation of owners is ready to step back

Many of the companies around Detroit were built by owners who started them in the 1980s and 1990s. Those owners are now thinking about retirement, and many of them have no family member ready to take over.

That creates a real opportunity and a real responsibility. These are often sound businesses with loyal customers and experienced staff. Buying one well means respecting what the owner built while bringing in the management depth and capital it needs for the next twenty years.

Finding people is the hardest part

When I started, the hard part of growing a business was usually finding customers. Today it is just as often finding people. Skilled trades, drivers, technicians, and experienced managers are in short supply across Southeast Michigan.

The companies that handle this well treat hiring and training as a core part of the business rather than an afterthought. They promote from within, pay attention to culture, and give people a reason to stay. When Creek Equity looks at a company, the strength of its team and its ability to keep people matter as much as its customer list.

Technology changed the back office

Twenty years ago, many small companies ran on paper, phone calls, and one spreadsheet that only the bookkeeper understood. Today even a small business can have real-time financials, routing software, and online ordering for a modest cost.

That raises the bar. Customers expect faster answers and cleaner invoices, and competitors that have upgraded can move faster. One of the most practical things a new owner can do is bring a company's systems up to date. It is rarely glamorous, and it almost always pays off.

What has not changed

Some things are the same as they were when I started. Metro Detroit still has people who know how to make things, fix things, and move things. Customers here still answer the phone and still reward a supplier who shows up when promised. And relationships still matter more than almost anything else. A good reputation in this region travels quickly, and so does a bad one.

The fundamentals of building a company have not changed either: serve a real need, hire good people, watch the cash, and keep your word. I expect those to be just as true twenty years from now.

Why I am still here

I could invest anywhere. I choose to do most of my work in Michigan because I believe the region has more good businesses and capable operators than it has patient capital to support them. That is an opportunity for Creek Equity, and it is a chance to help build companies that will employ people here for a long time.