Yogi Berra, the famous New York Yankees manager, is quoted as saying: “When you come to a fork in the road, take it.” After almost 20 years at Braun Intertec, Lee Bales had choices for his career. He had managed the construction materials testing group in the Hibbing office of the national geotechnical engineering, environmental consulting, and testing firm, and to advance his career within the company meant a move to the Twin Cities with more responsibility and more pay. Lee chose the “other” fork.
“Braun Intertec was and is a good company,” said Lee. “I enjoyed the work and even met my wife there; she works there still. However, my friend, Jeff Peterson, and I spent time talking about one of the businesses he owned, Pokegama Lake Store. He was looking to sell that operation, and after doing some homework, it seemed like an opportunity I didn’t want to pass up.”
Lee grew up in Waconia, Minnesota, and his career brought him to Grand Rapids in 2012. His desire to be an entrepreneur helped him rise through the ranks at Braun Intertec, but with two young children (ages 6 and 2), the fork in the road that would have taken him back to the Twin Cities wasn’t as attractive as remaining in Grand Rapids and working for himself.
“The Pokegama Lake Store was a good operation, but I’ve done some things to streamline things.” Lee explained. “We’ve also leased space in the store to Tike’s Trophy Meats, so their presence along with the liquor, bait and gas that we sell at that location makes it a good business. We also have a great location near the lake and right on Highway 169.”
As Lee considered the pros and cons of purchasing the business, Jeff Peterson introduced him to Nate Lloyd, one of the business bankers at Grand Rapids State Bank.
“Nate laid out my options for financing the purchase,” said Lee. “I wanted to see if it was financially viable, and I had done my own analysis. I know my way around a balance sheet in addition to profit and loss statements, but I’m not a financial guru by any means, so Nate helped me figure out how to go about financing this purchase. I had shopped around, and GRSB wanted a bit more of a down payment than other banks. However, the service I received from Nate was worth it.”
Lee closed on the business loan in April 2018. It wasn’t long afterwards that another business opportunity presented itself. Terry Schmitz, owner of Frontier Sports in Marcell, passed away suddenly in December 2018. Lee knew Terry and his wife, Karen, and after a few months, Karen agreed to sell the business to Lee.
“I knew and respected Terry,” Lee explained. “Karen was not interested in continuing to run the business, so we talked. As I thought about it, the fit with Pokegama Lake Store was good. Frontier Sports is a full-service operation in Marcell: it’s a convenience store with a whole lot more. If you need a roller for your boat lift, we have it. If you need an ice auger, fishing rod, or a loaf of bread, we have that, too. We also have a deli, so we offer breakfast sandwiches, pizzas, tacos and more. It’s a different operation, but the community service area is different, too.”
Lee went back to Nate Lloyd and Grand Rapids State Bank, and they were able to finance this purchase, too.
A year later, Lee enjoys the challenges of running both businesses. The two operations are seasonal to some extent, so during the summer months Lee employs 12 people at Pokegama Lake Store and up to 14 at Frontier Sports. During the winter months, both businesses operate with six people.
“I like the idea of doing business locally,” said Lee. “Nate Lloyd and Grand Rapids State Bank make it easy to do business locally, and that’s a huge benefit.”