By Debbie Gregory.

If you are looking to start a business, the odds are good that you will be looking for financing to get it off the ground. You can always apply for a loan or you can use your own personal credit cards or savings to fund your new business.  However, if you do not want to deal with debt, or you need to conserve your cash for another reason, you may want to consider applying for a grant.

There are quite a few small business grants out there offered by the government or nonprofit programs that you won’t be required to repay in the future. If your small business meets the criteria, you can apply and may receive the funding that you need.

Most grants are for specific business purposes or roles, so it is very important to understand the specifics of any small business grant you apply for. Do your research and become intimately involved with understanding the process and rules.

Is my business eligible for a small business grant?

Eligibility depends on quite a few factors, such as:

• Your business owner category
• The type of business you plan to open
• The type of grant you are looking to apply for
• The granting agency itself
• The location of your business
• More

For example, grants are set aside specifically for those with certain statuses, such as:

• A US veteran
• A woman
• A minority business owner
• Green businesses
• A Native American
• A person who identifies as LGBT
• Small nonprofit organizations
• More

If you or your business falls into a special category, it may increase your grant eligibility.

What Government grants are available for small businesses?

There are several places you can check for small business grants awarded by the federal government. The most well-known is the Small Business Administration (SBA), which is typically known for small business loans. Though they also offer grants directly and in partnership with other organizations. Visit the SBA’s website for more information and eligibility requirements.

Other federal government agencies and state and local agencies to check include:

• gov : This site gives a good overview of grants available, how to qualify and how to apply.
• SBIR and STTR grants : “Small Business Innovation Research” (SBIR) and “Small Business Technology Transfer” (STTR) grants are for entrepreneurs focused on developing technology for consumer use.
• National Institutes of Health (NIH) grants: They provide grants to small businesses in biomedical technology research and development fields.
• USDA Rural Development Business Grants (RDBG) grants: They offer technical assistance grants to small rural businesses and cooperatives.

What other grants are available?

There are plenty of non-government grants out there for small business owners for startup or certain types of business development. Here are a few to consider:

• org: This site shares a wealth of accredited grant fund resources.
• Visa Everywhere Initiative : This is an annual contest sponsored by Visa which awards up to 150,000 in prizes and global recognition.
• FedEx Small Business Grant Contest : This contest is open to for-profit businesses that have been in business at least 6-months and have fewer than 99 employees. The award is up to $25,000 that the business can use for print and other business services.
• Patagonia Corporate Grant Program : This program is for innovative nonprofit organizations, in specific geographic locations, who work to preserve the environment. The program awards between $20,000 and $30,000.

We invite you to stay tuned for Part 2 of this mini-series on Small Business Grants.  In Part 2, we will review the application process and more.

VAMBOA, the Veterans and Military Business Owners Association, hopes that you have enjoyed these articles addressing Small Business Grants   We work very hard to bring our audience timely and valuable information.

VAMBOA does not charge members any dues or fees.  If you are not yet a member of VAMBOA, please join here:   https://vamboa.org/member-registration/

Members may use our seal on their web sites and collateral and will receive special discounts and other important information.

By Debbie Gregory.

Just when we thought we were “over the hump,” coronavirus cases have once again spiked. Many brick-and-mortar stores took fatal blows trailing the last wave of shutdowns. Hopefully, the lessons from the first wave may cushion the impact of the next.

The necessary steps include education about the important measures to protect customers and staff, and to balance this information with the needs of your business. Then business owners can plan those steps for reopening in a safe manner.

Always ensure that information sources are reliable.

• Best sources include the CDC, at cdc.gov
• Guidelines for Opening Up America Again, https://www.whitehouse.gov/wp-content/uploads/2020/04/Guidelines-for-Opening-Up-America-Again.pdf
• Coronavirus.gov
• OSHA, www.osha.gov
• World Health Organization, which has a coronavirus information site at: https://www.who.int/emergencies/diseases/novel-coronavirus-2019?gclid=CjwKCAiAzNj9BRBDEiwAPsL0d__FIHt2u10uM-dKWoXQl4IBp3X91iqydExOfZ9XS0g9XCYolOYN7RoCgKcQAvD_BwE

Misinformation abounds about coronavirus, and the importance of accurate information about this crisis cannot be overstated.

We can expect another spike in coronavirus cases over the winter especially with holidays. Brick-and-mortar businesses will face a larger impact than online businesses. Brick-and-mortar stores should consider the following: the ability to enforce proper social distancing, any lockdown orders that may exist within your specific locality, the severity of the pandemic within your specific locality, and level of contact with customers. Some examples of businesses facing the worst impact include gyms, restaurants, and beauty establishments.

Depending on the structure of the business, human resources issues may prove tricky. For example, last spring a business had to shut down for two weeks because an employee called in to lie about having coronavirus: https://www.thestate.com/news/coronavirus/article241351951.html.

The company’s facility needed a thorough cleaning, leading to huge financial losses in the meantime. Other, more small-scale companies may simply deal with such issues on a case-by-case basis given the management’s relationship with the employee. The ABA notes the importance of input from both employees and clients. They also note that each reopening plan will be different, given the circumstances of the company. For example, some businesses may require brief health screenings by qualified health professionals, such as quick temperature checks.

The ABA (American Bar Association) notes that “[reopening a business during the pandemic is essential and inevitable but it will certainly be a daunting process that will require consideration of how workers can be brought on safely, how customer concerns will be addressed, and how everything can be done in a way that allows the company to survive financially.”

https://www.americanbar.org/groups/business_law/publications/blt/2020/10/protecting-workers/.

On the plus side, news is positive about the defeat of the pandemic in the next several months. Even recently, several companies and institutions have developed several vaccines with amazing success rates. On the negative side, winter and the holidays has brough a surge in cases that we must address before return to a semblance of normal. Dr. Anthony Fauci estimates a rollback of coronavirus measures sometime in April: https://www.deseret.com/u-s-world/2020/11/13/21562555/coronavirus-dr-anthony-fauci-covid-19-vaccine.

In the meantime, small businesses can use this next surge as an opportunity to expand their horizons, build their online presence, and augment their human resources expertise.

There is hope on the horizon especially with the effective vaccines and their distribution. The hope is that this pandemic will not last forever, and resources abound for struggling business owners, despite its devastating impact. Such a crisis arises once generations. Hopefully, we can strike a balance.

VAMOBA, the Veterans and Military Business Owners Association wishes you health and prosperity in 2021 and beyond.

We hope that you have enjoyed this article.   We work hard to bring our audience timely and important information.

We do not charge members any dues or fees.  If you are not yet a member of VAMBOA, please join here:   https://vamboa.org/member-registration/

Members may use our seal on their web sites and collateral and will receive special discounts and other important information.

By Debbie Gregory.

Cash flows in and flows out. Cash flow is important and is a key indicator of a company’s health. As discussed in the previous article, cash flow is different from profitability. Cash flow measures the liquid assets on hand, while profitability relates more to the long-term expansion of the company.

Different types of income and expenses break into different categories of cash flow. We can break these down into (1) “operating cash flow,” (2) “investing cash flow,” (3) “financing cash flow,” and (4) “other cash flow.”

Differentiating types of cash flow helps businesses create a cash flow statement. These statements are important both for internal accounting and tax purposes. Each type of cash flow may require its own equation for records maintenance. These records are important for any company’s operations procedures, regardless of the company’s size.

• Operating Cash Flow

“Operating cash flow” comes from a variety of sources. On the incoming side of the equation, “operating cash flow” might include the direct cash revenue from goods or services is one such source. Outgoing cash flow might be employees’ wages, purchase of supplies or equipment, utility bills, overhead, or payments on loans. Other types of operating cash flow, besides direct revenue, may include interest on loans and payments from lawsuits. The most common formula for “operating cash flow” is the following: Net Income + non-cash expenses + changes in working capital.

• Investing Cash Flow

“Investing cash flow” may or may not be relevant depending on the size or operations of the business. Such cash flow may be incoming or outgoing.  Examples may include business acquisitions, insurance settlements, or loans originating from the business or business owner. Generally, the equation from “investing cash flow” is earnings from any investments minus any liabilities, such as loan payments or insurance liabilities.

• Financing Cash Flow

“Financing cash flow” moves between owners, investors, and creditors. The owners themselves could move cash into the company from their own savings or other income sources. Aside from owners, investors or creditors may contribute to the financing of the company. Investors, for their part, could overlap with creditors, who could issue loans or other financial arrangements.

In consideration of the interests of investors and creditors, owners should consider the appropriateness of moving cash out of the company coffers, depending on circumstances. The most common formula for “financing cash flow” is the following:

Financing Activities Cash Flow = CED – (CD + RP). This formula could help a company issue a cash flow statement.

• Other Cash Flow

Other types of cash flow might involve charitable contributions, earnings or costs for company events, or any variety of incentives for employees, assuming use for the company’s business purposes. Calculation methods may defer to the owner’s convenience and operations procedures.

• Cash Flow Statements

The above four categories suggest methods of organization for cash-flow statements, for record-keeping purposes. Companies should issue a cash flow statement at least quarterly. The company’s management may use the above classifications at their discretion.  However, the statements themselves are necessary records for any company’s archives, both for outside requests and internal reference.

We hope that you have enjoyed this article and the prior one on profitability.   We work hard to bring our audience timely and important information.

We do not charge members any dues or fees.  If you are not yet a member of VAMBOA, please join here:   https://vamboa.org/member-registration/

Members may use our seal on their web sites and collateral and will receive special discounts and other important information.

By Debbie Gregory.

Cash-flow and profit margin both relate to the health of a company. However, each term relates differently to the company’s bottom-line. Cash-flow is important to a company’s expansion and potential. Profit margin is a different concept that may relate more directly to the company’s bottom line.

Cash-flow governs the everyday workings of the company. Cash flow may come from any of a variety of sources, including the owner’s personal funds, investors, or loans, as well as revenue. Cash flow pays the bills, the employees, and the creditors in the short-term. Profits matter in the long-term, especially in the wake of large investments from investors or creditors.

For a smaller company with an independent cash flow, operations may continue for quite some time (or even indefinitely) before turning a profit, based on the enthusiasm and motivations of its operators. This is especially true with a home business. For a larger enterprises, profits must ultimately keep up with the cash flow. This is especially true when the original investors become creditors demanding payment.

So how do we more specifically define profits versus cash flow? “Profit” is basically the same as “net income.” Within a given period, your “profit” is your business revenue minus your expenses (including cost of providing products and services and overhead).

But how to manage cash flow? Assume a loan of $15,000, with a payment plan of $500 per month. That initial loan provides a healthy cash flow early in the history of the company, but the subsequent $500 per month will eat just that much into the profit margin.

Financial experts sometimes consider cash flow a better indicator of a company’s performance than profit margin. Cash flow affords better opportunities for growth. Cash flow may indicate better credit on the part of the company, and greater enthusiasm on the part of investors. By extension, the incoming monies may signal a brighter future for the company.

On the other hand, profit holds a different importance to the company’s bottom line and plans for expansion. A small side-business can emphasize profitability from the get-go, absent lofty ambitions. Smaller enterprises need not incur debt. Entrepreneurs with bigger plans must consider cash flow while they can maintain their company in the growth stage before reaching the critical mass necessary to generate independent profits.

A small business should consider maintaining a “cash flow statement” that details their periodic cash flow. These statements are called “free cash flow,” or “FCF” statements. In order to calculate your “FCF,” you should:

(1) calculate your operating cash flow

(2) subtract your capital expenditures

(3) on the chance that your company pays dividends, subtract your dividends, which are shares of profits paid to part-owners of the company.

Business owners should carefully monitor both cash flow and profits, for the sake of the progress of their company, as well as tax considerations. Cash flow could originate from an excited or generous relative, or a small business loan, or any of a variety of sources. Profitability depends on total revenue minus expenses, including negotiated payments to investors or lenders.

Profitability may indicate long-term success, but cash flow generally indicates engagement with the economy and a vibrant outlook for success. Healthy cash flow demonstrates that the company functions in the here and now. In many cases profitability may come afterward.

We hope that you have enjoyed this article and the prior one on profitability.   We work hard to bring our audience timely and important information.

We do not charge members any dues or fees.  If you are not yet a member of VAMBOA, please join here:   https://vamboa.org/member-registration/

Members may use our seal on their web sites and collateral and will receive special discounts and other important information.

By Debbie Gregory.

The COVID-19 pandemic, with all the necessary social-distancing and isolation measures, has pushed businesses in almost every industry.   The pandemic has pushed businesses to allow some, or their entire, workforce to work remotely.

The various collaborative technology platforms such as Zoom, Slack, and Microsoft Teams have all seen a dramatic increase in users and a huge demand for their services. This increase in demand for these services is not likely to go away once the pandemic ends or abates. Among younger business owners and workers, remote working is being viewed in an increasingly positive light.

Earlier this year, 500 small business owners across the United States were surveyed about remote work and below are the findings of those surveyed:

A.) Small Business Owners are More Open to Hiring Remote Workers:

Currently about 55% of small business owners in the United States would consider hiring remote workers after the pandemic ends or abates. This is a significant increase from the previous year (2019) as only thirty-six percent would have considered it at that time

B.) Age Determines How Remote Work is Viewed:

Small business owners, aged 18-34, stated they have used remote workers in the past twelve months; Sixty percent would consider hiring remote workers in the future; Eighty percent or approximately one half of the small business owners aged 18-34 surveyed stated that they feel remote workers are more productive than on site office workers; while only thirty-five percent of small business owners aged 35-44 and a mere fifteen percent of small business owners aged over 65 stating remote workers are more productive than office workers.   Additionally, small business owners aged 18-34 also feel the quality of remote workers to be higher than office workers, forty-three percent as compared to sixteen percent of small business owners who are 65 or older.

C.) All Generations are Concerned About Remote Work Challenges:

All age groups surveyed agreed that working remotely comes with a great deal of benefits for both the employees and the employers. However, there were also a significant number of concerns about the challenges presented by moving the workforce from the office environment to the home.

Concerns such as:

• Employees are being distracted
• Employees spending too much time on personal matters during work hours
• The ability to effectively manage employees remotely
• Information safety and security
• Technology requirements, service, and upgrades

D.) Most Small Business Owners (in all age groups) Were Already Working Remotely Themselves:

Even though the older generations of business owners are hesitant to allow their employees to work remotely, many were already doing it themselves. In fact, approximately sixty-five percent of small business owners work remotely. It is not surprising that younger business owners are more likely to be working from home, eighty-six percent; the older generations are not far behind with fifty-four percent working remotely.

As employers and employees alike experience the benefits of working remotely, more companies will inevitably decide to make this leap. In the future, once the pandemic has finally passed or abated, there will be a dramatic rise in fully remote companies without any physical workplace.  This will also dramatically change the commercial real-estate market especially in very high rent areas on both coasts.

Since so many VAMBOA members are working remotely, we want to extend to our members and friends, significant discounts up to 50% from our Dell, our technology partner.   Here is a link to check them out:

https://vamboa.org/dell-technologies/