Financial Relief

Businesses have experienced disruptions all-around during this pandemic. Riding this crisis out into the foreseeable future, businesses need to assure both employees and customers that they are safe. The comfort factor is critical.

Employees need to be assured that management has their best interests in mind when setting up a safe and healthy workplace. The CDC suggests being flexible and non-punitive with leave policies, establishing an emergency communication plan and considering staggering shifts. Employees should be encouraged to stay home if sick, and they should exercise proper hygiene etiquette for coughing, sneezing and hand washing.  The CDC also suggests implementing practices to minimize face-to-face contact between employees. 

Customers should be encouraged to exercise proper hygiene etiquette when in public to protect themselves and others. Social distancing is critical within a retail business or office, out of respect for other customers and employees. Small businesses need to enforce the distance between customers in order to keep customers safe and comfortable. 

If you are a small business owner struggling with this quarantine, or if you want to be a small business owner, bring your questions and concerns to the virtual CNM Business Incubator.

Staff are available to assist you with creating, launching, and growing your business, as well as help you find ways to overcome the adversities you, as a small business owner, might be experiencing right now.

Every Wednesday from 12:00 noon until 3:00 p.m., we’re “open” for business!  

Use this link to join us. 

Meeting number (access code): 809 504 022 
Meeting password: jKscjR8XY58

Faculty and staff who own their own businesses are ready to coach you from idea to launch, and beyond.

Starting a business now could be a fantastic idea if you focus on customer needs and set up reliable distribution channels. You can refer to our previous post on “Ten Businesses to Launch…” 

The CNM Business Incubator is open virtually to assist you with creating, launching and growing your business. Every Wednesday from 12:00 noon until 3:00 p.m., we’re “open” for business! Faculty and staff who own their own businesses are ready to coach you from idea to launch. Join us at https://cnm.webex.com/cnm.

Meeting number (access code): 809 504 022
Meeting password: jKscjR8XY58

Below are seven steps to ensure a successful start: 

1. Consider drafting a business plan. This document could be simple but effective if you take the time to research and map out your ideas. Make sure to research and confirm suppliers and a reliable distribution channel. The same goes for where and how you will be producing or selling your products and services.
2. Test your idea. Before a full-blown launch, see if customers will purchase your product or service. You can operate for a while without actually registering your business. 
3. Know the market. Doing some pre-launch research via social media or email could be the ticket. Find out what your customers want/need.
4. Understand your future customer. Customer behavior will change coming out of the coronavirus and recession. Will your product/service still be needed?
5. Establish cash resources. As with any business, cash flow is critical. Be sure to plan for unexpected expenses when setting up. Also, set up a contingency fund that can be used when cash flow dries up temporarily. 
6. Choose the right business structure. If you register your business without choosing a legal structure, you will automatically be a sole proprietor, which means unlimited liabilities. That might hurt you. Research and consider an LLC or corporation if you have potential liabilities. 
7. Design a creative marketing plan. Most new businesses utilize social media. That’s smart if you measure results (KPIs – key performance indicators). You need to know what’s working and what is not. Consider low cost promotion that’s effective, and don’t think that you can rely on word-of-mouth to get your business going. Customers need to hear about you from a variety of sources.

The coronavirus pandemic has affected thousands of small businesses. Many cannot maintain operations or fulfill contractual obligations. Companies and organizations from all sectors are experiencing severe business interruptions. What can small businesses do to survive?

First, contact your local Small Business Development Center. These amazing people are working day and night answering the most pressing questions, helping small business owners with their applications for state and federal funds, and connecting them with available resources to help sustain their operations. Fran Fernandez, Center Director of the SBDC for CNM’s Workforce Training Center, suggests checking out the NMSBDC website at www.nmsbdc.org. Business owners can register for free confidential business counseling and free live webinar trainings to address and answer questions regarding the SBA Economic Injury Disaster Loan and the Payroll Protection Program applications. Ms. Fernandez says to continue to check in with the SBDC, as new webinar trainings will continue to be added on a regular basis. We have set up a COVID-19 Call Center where people can register online and schedule to speak with a counselor within 24-48 hours of first contact.

Another local expert offers her advice. Linda McCormick, Real Estate Director for Daskalos Development & Investments, says it’s essential to communicate with your landlord. “You don’t want to just stop paying your rent and not say anything.” Ms. McCormick has been advising tenants to apply for the SBA 7-A loan paycheck protection program where 25 percent can be used for rent. This program, aimed at small businesses with 500 or fewer employees, is set up by the government to help businesses continue paying their employees as well as rent. The loan may be 100 percent forgiven if employees are re-hired, but even if businesses cannot re-hire, the pay back is one percent interest over two years. 

One thing Ms. McCormick warns about is asking for help when you don’t need it. “Tenants should not ask for rent release when a business is open and operating. That’s annoying,” she says. Doing this could jeopardize assistance in the future if a need truly arises.

Another piece of advice from Ms. McCormick – gather 18 months of sales to show how your business has been impacted.  “This way your landlord can clearly see when the drop occurred.”

Lastly, carefully consider how long you are asking for rent deferral.  How long will it take you to ramp up again and start paying the current and deferred rent.  “Be sure what you are asking for,” says Ms. McCormick.  “Make sure that you can sustain sales and perform at the level to pay the increased rent.” 

There is no doubt that our local business landscape has morphed during the past weeks. Many businesses are hurting, and some will not survive. Some entrepreneurs are finding ways to support the community while building a budding venture. Businesses that help people “social distance” from others are prime examples. We need to realize that our behaviors post-pandemic will most likely change, taking with us those things we learned and enjoyed while staying at home. 

Delivery Services

From far and wide, delivery services are topping the list of helping keep people at home. Giant food delivery services have stepped in, but local entrepreneurs can assist local businesses get their goods out there as well. Consider the local plant nursery that wants to sell seedlings during the spring planting time or the paint store that wants to get products to bored homeowners. 

Meal Prep Services

Creative chefs (and short order cooks) could utilize the many unused commercial kitchens to prep food for local families. Set up a quick Wix website, create social media, and boom, you’re in. Partner with a local delivery service for quick, easy delivery.

Home Gym Equipment 

With gyms closed, people are looking for creative ways to exercise. Selling equipment, big and small, with “how-to” instructions and workouts are at an all-time high.

Landscaping 

We’re at home and looking out the windows more than ever, and what we’re seeing is a need for improvement. The warm weather brings lots of landscaping ideas.  

Game Makers  

Most of us have already binge-watched to the max and could use some creative ways to pass our free time at home. Board games, puzzles and crafts top the list. If you are imaginative, design your own and sell them.

Cleaning Services 

Homes are not the only thing that could be cleaned and detailed. Cars, trucks and RVs need some TLC while not being used. 

Education 

Parents of school-aged children are trying their best to engage their children and are struggling in many cases. Why not hire a virtual tutor? Workbooks are also selling faster than hand sanitizer. If you have the background and knowledge, create your own worksheets or books, and sell online.

Financial Services 

What better time to help people with their finances and retirement than now. Should people re-think their investments? Revise their budget? Not eating out has saved money for many people. Help people start a new regimen. Looking further into the future regarding retirement – we like staying at home; can we retire sooner than expected?

Virtual Event/Party Planning

Weddings, baby showers and anniversary parties have all been cancelled or postponed. Why not show people how to set up their celebrations online? Cover all the little things that go along with this low-cost method, such as invitations, videos from guests, party favors and more. 

Digital Marketing

Even before the coronavirus, small businesses were desperate for digital marketing assistance, and now it’s even worse. If you are good at creating social media campaigns, small businesses need you. They need to engage their customers now more than ever.

Whatever you choose, know that the Small Business Development Center in your area can help you set your plans in motions, for free! You will need to create an organized business plan and develop financial projections (income/revenue as well as expected expenses). A marketing plan will help you launch and grow.