When Peggy Sonnenburg’s corporate role was eliminated in June 2023, she made a bold decision: instead of searching for her next job, she’d create it.
With decades of experience in marketing, branding, design, and product management, Peggy saw an opportunity to build something that brought all her talents together. Just four weeks later, Peggy Bakes launched at Wisconsin summer markets with elevated, gluten-friendly granolas that bridged the gap between health and indulgence.
“I wanted granola to get the same level of culinary focus that other baked goods have gotten,” Peggy explained. “The flavor profiles are designed for food lovers, not for the cereal aisle.”
Peggy Bakes produces nutrient-dense granolas using gluten-free oats, raw nuts and seeds, and natural sweeteners including Wisconsin honey, pure maple syrup, and date syrup. Flavors feature fine French cocoa and real citrus zest—culinary sophistication that sets it apart from grocery store options.
The response was immediate. Customers loved the sophisticated flavors and real ingredients. But as demand grew, Peggy faced a challenge: she had proven her concept, but scaling required significant capital she couldn’t access.
Peggy learned about the State Small Business Credit Initiative (SSBCI) through Wisconsin’s entrepreneurial ecosystem—specifically through her mentor at the Small Business Development Center in Sheboygan County, Ray York. “Wisconsin does an exceptional job connecting founders with resources,” Peggy said. “I’ve been fortunate to be deeply engaged locally and across the state.”
Peggy had demonstrated product-market fit through farmers markets and early retail placements but needed help becoming investment-ready. Contract manufacturing minimums, pre-printed packaging orders, and expanded production capacity all required substantial upfront investment. “Accessing capital at this stage can be incredibly challenging,” Peggy notes. “Traditional financing requires collateral that many founders, myself included, are uncomfortable putting at risk, such as a lien on their home.”
Through SSBCI services, Peggy received strategic guidance that went far beyond basic technical assistance. “What stood out was how deeply my advisor understood my vision, my product, and my approach to building a differentiated brand,” she reflects. “I felt supported throughout the entire process.” The team helped her clarify her business model, strengthen her financial projections, and develop a compelling narrative for potential funders. “The process was thoughtful and thorough, yet simple,” she explains. “The team helped me focus on where my greatest areas of need were and get more clarity on how additional capital would fuel my growth.”
This capital readiness work through SSBCI support prepared Peggy to successfully connect with the Accelerate Growth Fund, which provided a five-figure investment structured as a low-interest loan with flexible payment terms: deferred payments for two years, interest-only payments in year three, and manageable monthly payments in years four and five. “They felt like true partners—people who not only believed in what I’m building but knew how to connect me with funding sources in a way that was strategic and aligned with my values,” Peggy says.
The five-figure loan changed everything for Peggy Sonnenburg and her business, Peggy Bakes. What would have been a two-year growth plan compressed into six months. “Instead of growing at the pace of cash flow alone, I can now invest ahead of demand,” Peggy explains. “The funding opened doors to wholesale conversations I wouldn’t have been able to confidently fulfill without this support.” With capital in hand, she was able to make strategic investments: transitioning to pre-printed packaging, increasing production capacity, establishing warehousing and fulfillment, and funding marketing to support wholesale expansion.
The transition from manual production in shared kitchen spaces to contract manufacturing partnerships was particularly transformative. “Without this support and the funding connection it enabled, I would have been forced to grow slowly, and unfortunately, unprofitably Peggy reflects. “The capital allowed me to move to contract manufacturers, which are a critical step in the growth trajectory.” For small food brands, increasing production in kitchens not equipped for larger batches equates into more people and kitchen hours to meet growing demand at the expense of product margin (and founder capacity to build a robust sales pipeline)–which is why many small food businesses often fail to make it to the next stage. On average, most small businesses take two to three years to become profitable, underscoring the critical need for early-stage capital readiness and sustained support.
Since receiving the five-figure investment facilitated through SSBCI services, the business has achieved measurable growth:
- Expanded to more than 20 retail locations across Wisconsin in just six months
- Achieved a 32% repeat purchase rate online
- Shipped to 28 states since launching e-commerce in October 2024
- Increased inventory capacity by 50% to meet growing demand
- Transitioned to contract manufacturing, to accelerate efficiencies
- Created contract labor opportunities in marketing and culinary development
Peggy Bakes sources Wisconsin honey and maple syrup locally, partners with Wisconsin-based resources and focuses retail expansion throughout the state and Midwest. The business has strengthened month-over-month revenue across wholesale, markets, and e-commerce channels.
Peggy Sonnenburg’s expertise creates impact beyond her own business. Her background in marketing and retail translates into support for the independent retailers who carry her products. “I love using my design background and retail experience to support store owners—not just by filling orders, but by helping them succeed,” she says.
Plans for the next two years include deepening retail distribution across the Midwest through independently owned specialty retailers — the community anchors where discerning shoppers find thoughtfully crafted foods they won’t find on a big-box shelf — alongside strengthened e-commerce and subscription offerings and new product launches informed by customer feedback.
When asked what she’d tell other entrepreneurs seeking similar support, Peggy emphasizes preparation and authenticity. “Know your numbers. Understand your margins, your cost structure, and where funding will create the most leverage,” she advises. “And don’t be afraid to tell your story with honesty and conviction—capital partners want to invest in founders who care deeply about the problem they’re solving and have built a thoughtful, resilient plan for growth.”
She enthusiastically recommends SSBCI services and the Wisconsin team to other entrepreneurs facing similar challenges. “If you’re an early-stage founder who has proven your concept and is ready to scale responsibly, these services understand what you need to become capital-ready and how to connect you with funding sources that actually work for your timeline and goals,” she says. “The team genuinely cares about your success—they’re investing their expertise in Wisconsin’s entrepreneurial future.”
For Peggy, this experience and journey have been transformative. “This experience has given me confidence in my vision, validation from people who genuinely believe in my work, and a renewed sense of purpose,” she reflects. “Building a business later in my career isn’t the easy path, but it has been the most rewarding.”
Seeing Peggy Bakes launch into specialty retailers across Wisconsin was one of her proudest moments. “There are no more ‘scary Sundays,'” Peggy says. “I wake up excited for what’s ahead—because I’m surrounded by a community that believes in this journey.”
The State Small Business Credit Initiative Technical Assistance Center is delivered through the Universities of Wisconsin’s Office of Business & Entrepreneurship and ecosystem partners across the state. For more information, visit our website at business.wisconsin.edu/ssbci