BUSINESS & FINANCIAL PLANNING DURING A PANDEMIC Steps and - - PowerPoint PPT Presentation

WOMEN’S BUSINESS DEVELOPMENT CENTER

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BUSINESS & FINANCIAL PLANNING DURING A PANDEMIC

Steps and Resources

W W W. W B D C . O R G

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Introductions

Blanca ca Berthier ier Direc ector tor of I IL SBDC bberth thier@wbdc ier@wbdc.o .org https://wb ps://wbdcsched dcschedul ulin ing.a g.as. s.me/ me/Blan Blanca caBer erth thier ier

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Introductions

Abiga gail l Scanlan anlan Ass ssociat

• ciate

e Direc ector tor, Access ess to to Capit ital al asca canl nlan@wbdc an@wbdc.o .org https://wbdcscheduling.as.me/AbigailScanlanCHI

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Road Map for today …

• Assess your situation
• Set business and financial goals by

adapting and pivoting

Create a Strategic Business Plan Post Pandemic

• How can I expand my

revenue streams?

• What new action steps

can I take?

Plan for Profit

• Cash Flow Statement your best ally
• Know your costs & pricing

Manage & Assess Your Cash Flow

• Current funding resources
• Ongoing sources to help grow your business

Be Aware of Available Resources

01

02

03 04

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Let’s take a moment …

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How do we create a new strategic business plan post pandemic?

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Assess Y

• ur Situation
• How is my business being impacted? Is this

temporary or long term?

• Should you stop marketing and advertising

during a crisis?

• In time, the market will recover, business will

pick back up.

• When it does, will you be there when your

customers are looking?

• It’s easy to be reactive during stressful times,

but… Reac active tive response ponse is j jump mping ing from m tactic ic to tactic tic without hout a pl plan, n, and making ing decis isions ions based ed on fear ar.

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How can we adapt to change?

• The world has changed whether we like it or

not.

• Small business owners have been thrown into a

world of transformation.

• Plan for the short and long term.
• Establish goals.
• Pivot your marketing.
• Review what is working, what you can keep?
• Listen, observe and find out what your

customers need.

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Strategy: Vision for your business

Time to plan for the new business realities and what that means for your business

Wh What wi at will ll be be di differ erent? ent?

30 30-60 60-90 90

Days ays

6 Months? 1 Year?

• Imagine your business in 6 months, 12 months and ask yourself
• “What will my market look like in a year?”
• “What do I need to do to get through this time”?
• Develop and align your short and long-term goals and turn them into an action

plan based on strategies that will help you meet your goals.

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Review your business plan

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Sales Marketing Finances Operations & Management Other

In

2 months 6 months 12 months

I will…

Name __________________ Company ________________

Understand my ideal customer Have a plan to acquire more customers Institute a Customer Relationship Management (CRM) System Find opportunities for subcontracting Become certified as a M/W/DBE Have a consistent presence on social media Create or improve my company’s website Appear in local media Understand how to use financial tools to better

• perate my

business (P&L statement, breakeven no.) Review my pricing structure Solve a current financial problem my business is experiencing Obtain money from a lender for my business Invest more of my

• wn money to

grow my business Have processes for human resources (job descriptions, paperwork, employee procedures manual) Have a plan to retain my employees Set standards to improve customer service Create operational processes Create or improve my company’s B2B marketing material

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T ake Action

Tell your clients you’re

• pen

n for

• r busi

sine ness, ss, they ey probably don’t even know! Some me clie ients ts might ght check k yo you u out on social ial medi dia. a.

• - Have you posted an

update?

• - Are you active?
• - If not, they might take

that as a sign that you’re closed.

If you you are e te tempora mporarily y closed, sed, let people ple know, , along ng with th an ex expectatio ation, , when n they ey can exp expect t to to hear back ack from

• m

yo you. u. Rev evie iew w yo your ur fina nanc nces es and prep epar are e for a loa

• an

n if yo you u need d one.

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Communication

• Start by clarifying your message.
• Did you have to pivot your operations

to stay open during this time?

• If so, share this information with your

clients.

• Let them know you are open and how

you are servicing them.

• The content you share during difficult

times will be remembered, so :

• Stay away from self-serving

content.

• Practice empathy.
• Engage with your community.

This Photo by Unknown Author is licensed under CC BY-SA-NC

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T actics

Before e yo you can n sprea ead d the wo word, d, it’s important to know where re yo you need ed to sprea ead d the wo word. d. Crea eate e a mark rketi eting ng plan. n. Revie eview w yo your r target get mark rket et and deter ermine ine appropria riate e co communi unicati cation n channe nnels. s. Which ich channe nnels ls should uld yo you use? e?

Your website Google My Business Facebook Twitter YouTube LinkedIn Look at your analytics data

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Other ideas …

Record video updates about your business to share on social media. Keep your customers informed about your

• perations.

Provide updates on how things are going. Record a video on how you’re giving back to the community. Record videos that are useful, such as ways potential clients can use your products or services. It’s a Time to Be Social, people are spending more time on social media right now. When considering content creation for your social media channels, keep in mind:

• content needs to be helpful
• address pain points and give information
• should not be self-serving.

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Show your values

• Show your values and who you really are,

seize this opportunity!

• When the dust settles, people will

remember those who help and give back in a time of need.

• Share your brand message - consistent and

not self-serving.

• Think about how to engage with messages

that help solve your customer’s biggest problems or fears.

• Think about what your clients’ needs,

concerns and how you can address them.

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T en Recommendations

• 1. Let your clients know if you’re open for business
• 2. Add

d a w website site banner ner or pop up on your ur website ite

• 3. Update

ate your ur contac tact t fo forms ms

• 4. Update

ate hours s and posts ts

• 5. Share

are content tent on social al media ia

• 6. Try

y writing ting a bl blog

• 7. Look fo

for rele levant nt groups ps to join n in social al media ia

• 8. Share

are videos

• s
• 9. Be present

sent

• 10. Show
• w you

u care

This Photo by Unknown Author is licensed under CC BY-SA-NC

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BUSINESS FINANCIALS

Wh What at sho hould uld I focus cus on n to to re-build build my my bus usines iness s an and stay y he heal althy? y?

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Financial Statements : What are they telling

Y

• u?

Tells you if your business is profitable aka Profit and Loss

Income Statement

Tells you if you are going to run

• ut of cash

Cash Flow Statement

• Do you have more assets than liabilities?
• How much cash do you have?
• How much do you owe?
• Lots of additional details like:
• How quickly are you paying your

vendors?

• How quickly are your customers

paying you?

• Do you have enough short-term

assets to cover your obligations?

Balance Sheet

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Cash is KING!

Assets ts Sales Ca Cash

Ste tep 1 You need CASH to buy ASSETS Ste tep 2 You use ASSETS to generate SALES Ste tep 3 You get CASH from SALES

Cash flow is the lifeblood of any business.

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Managing Y

• ur

Cash Flow

• Know current costs
• Licenses
• Deposits
• Equipment
• Inventory & supplies
• Know your Ongoing Costs
• Marketing, Insurance, etc.
• Inventory & supplies
• Labor costs (wages plus taxes)
• Space costs (rent, utilities,

property taxes, etc.)

• Estimate your Revenue
• What are new streams of

revenue?

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Highlights the outflow and inflow of cash for your business.

Startup Month Month Month Month Month Month Month Month Month Month Month Month 2018 Costs 1 2 3 4 5 6 7 8 9 10 11 12 TOTAL BEGINNI NING NG CASH 2,000 1,500 1,200 900 750 660 570 630 690 900 1,070 1,240 1,430 1,500 Revenue from Sales 750 750 1,000 1,000 1,000 1,250 1,250 1,500 1,500 1,500 1,500 2,000 15,0 ,000 Loan TOTAL CASH 2,000 2,250 1,950 1,900 1,750 1,660 1,820 1,880 2,190 2,400 2,570 2,740 3,430 16,5 ,500 COGS / Inventory 300 300 400 400 400 500 500 600 600 600 600 800 6,000 Marketing 100 100 100 40 40 40 40 40 80 80 60 80 800 800 Rent 600 600 600 600 600 600 600 600 600 600 600 600 7,200 Supplies 50 50 50 50 50 50 50 50 50 50 50 50 600 600 Equipment 500 TOTAL EXPENSE 500 1,050 1,050 1,150 1,090 1,090 1,190 1,190 1,290 1,330 1,330 1,310 1,530 14,6 ,600 NET CASH 1,500 1,200 900 750 660 570 630 690 900 1,070 1,240 1,430 1,900 1,900 Loan Loan Payments ENDING CASH 1,500 1,200 900 750 660 570 630 690 900 1,070 1,240 1,430 1,900 1,900

This must be positive!

Cash, not profit

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T emplate

• Add lines for potential new revenue streams
• Think about some new pricing for the new
• world. Apply this here and see how it impacts

your cash flow.

Play around with this!

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PRICING

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Getting to the right price!

• Pricing can become an entrepreneur’s

biggest marketing headache

• You will feel the pressure to set the right price for

your product / service, and experience the least certainty that you are doing a good job

• Pricing is notoriously difficult to pin down
• YET getting closer to the RIGHT price can have a

tremendous financial impact on your business.

• Even the slightest of improvements can lead to

significant results

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Don’t Be a Loss Leader

• Try to avoid offering your services at the

lowest price to get customers in the door!

• Pricing products or services is one of the most

difficult decisions a small business makes.

• Small service businesses typically tend to

underprice their offerings.

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Pricing Strategies

• Know your customers
• What other options do they have?
• How price sensitive are they?
• Align your products to what customers will pay
• High touch / higher price
• Low touch / economy price
• Provide cost savings to cost-sensitive customers

without reducing advertised price

• Coupons etc.

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What is the Market Charging?

• One of the common themes you will hear

from small businesses is that they must charge “what the market” is charging for the same product or service.

• Do you have the means to do a

comprehensive survey of the competition?

• Are you relying on anecdotal information,

which may or may not be correct?

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29 Competitively

Priced But Still Not Making Money?

• No one is making money at that price
• In which case you might want to

look at adding new value added services or product offerings

• Your expenses are way too high
• You can track down those

expenses and potentially fix the problem

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SBA EIDL Resources

• For general information on the Paycheck Protection

Program and other EIDLs

http tps://di ://disas sasterlo erloan an.sb .sba. a.go gov. .

• For business specific questions:

SBA custo tomer mer servic ice e ce center er at at (800) 0)-65 659-2955 2955

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So … you were approved for the PPPL?

Your lender will ask you to provide additional documents after the 8 week period to validate your loan forgiveness. You will want to gather:

• Documents verifying the number of full-time equivalent

employees on payroll and their pay rates, for the periods used to verify you met the staffing and pay requirements:

• Payroll reports from your payroll provider
• Payroll tax filings (Form 941)
• Income, payroll, and unemployment insurance filings from your

state

• Documents verifying any retirement and health insurance

contributions

• Documents verifying your eligible interest, rent, and utility

payments (canceled checks, payment receipts, account statements)

• Good recordkeeping

will be key!

• Track and prove

your spending.

• Spend your PPP

Funds on the right things.

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Monitor your credit …

✓ Take the time to review your credit, most grants and disaster loan programs do a credit check. ✓ Be prepared to discuss any challenges that may be on your report. ✓ Try to mitigate any blemishes on your report. ✓ Why is this important?

• Ensure that you know who’s pulled your

credit

• How many inquiries do you have?

Prote tect ct yo your credi dit in in th these unce certa tain in ti times!

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Other thoughts…

• Does my bank fit my needs?
• How organized and prepared was my business for

this event?

• How can I create a better financial platform for my

business?

• How financially healthy was my business?
• Should I start thinking about financing?
• Do I really understand my business finances and

how can I get better?

W h a t a re s o m e t a ke a w a y l e s s o ns f ro m t h i s p a nd emic s i t u at io n?

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Alternative Online Lenders

• NOT ALL LENDERS ARE CREATED EQUAL. Or are even regulated equally!
• Online lending is a largely unregulated space.
• These lenders are targeting small business owners, masking true rates, and offering quick cash for little

more than a bank account number in return.

• Many of these are predatory in nature and are like payday lenders for small business.

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WBDC Access to Capital Direct Loans

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WBDC Services

www.wbdc.org

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Key T ake Away’s : Call to Action!

❑ Breathe! And, assess your situation. ❑ Evaluate your business plan and pivot where necessary. ❑ Send out clear communication about your business. ❑ Update your Cash Flow Statement. Where else can you find revenue? Where can you cut expenses? ❑ Assess your funding needs. ❑ Check out local resources and online classes to develop your skills as a business owner.

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THANK YOU

Questions?

WWW.WBDC.ORG