By James Pruitt, Senior Staff Writer

Racial economic gaps still tear an ugly gash in our country’s financial landscape. Intergenerational wealth far disadvantages historically underprivileged groups. Due to complex economic circumstances, some minorities have even lost ground on many fronts. Many even struggle to maintain homes bought and paid for by struggling grandparents during the civil rights era. No one should forget the role of large private institutions in fostering such inequalities.

Complex economic changes over the past several decades have largely disadvantaged minorities. At the very least, some large banks have taken enough responsibility for their role in economic shifts that they have contributed to several programs to aid minority small business owners. Whether these efforts are merely nominal remains to be seen.

Enter “Corporate Call to Action: Coalition for Equity and Opportunity.” This alliance of financial institutions dates from September 2020. As recently as last May, eighteen financial institutions agreed to set aside $10 billion dollars for minority business owners over the next five years.

These institutions include Bank of America, Morgan Stanley Dean Whittier, Goldman Sachs, and Citigroup. They have set a goal of $30 billion dollars for historically underprivileged groups. Incidents such as the George Floyd shooting seem to have mustered the political will for a more proactive approach.

How do business owners access capital from this alliance of institutions? Between them, these companies boast an estimated $27 trillion in capital. As “Corporate Call to Action” develops, the organization intends to apply funds in a variety of directions. How they apply this capital makes all the difference.

Their website, https://corporatecalltoaction.org, references “four pillars.” First, they mention “Supply Chain and Business Partner Ecosystem.” Second, the organization references “Community Investment.” Third, another pillar is “Talent Pipeline.” This pillar involves internship and workplace development programs.  Fourth is “DEI Commitments and Transparency.” “DEI” refers to “diversity,” “equity,” and “inclusion.” The “Call to Action” began with an alliance between the Connecticut Office of the Treasurer, the Ford Foundation, and several for-profit institutions. We all hope this alliance turns out well.

Hopefully, these institutions have finally absorbed some responsibility for the economic inequalities they have historically fostered. In the long run, this corporate movement may or may not adopt measures that fit with the needs of relevant business owners. However, as things unfold, valuable opportunities may spring from these initiatives. Entrepreneurs should stay vigilant for opportunities as they arise. These vast funds, set to good use, should ideally reap great benefits given the right political will and engagement.

At the same time, pro-bono funds sometimes dissipate when trickled through large bureaucracies. The “Corporate Call to Action” is still quite new. Hopefully, their developments continue in the right direction. Proper development of such initiatives require transparency, as well as watchfulness on the part of stakeholders.

Soon, these resources could find channels for real change. Grass-roots entrepreneurs could benefit from engaging as closely as possible with the member organizations and development of their new initiatives. In the long run, presumably these corporate programs will morph and adapt. In the process, interested business owners should take any measures to involve themselves. Engagement is key. Only in this fashion will these programs respond to the needs of relevant communities.

VAMBOA, the Veterans and Military Business Owners Association hopes that this article has not only been valuable but provided some unique perspective.  We work hard to bring you important, positive, helpful, and timely information and are the “go to” online venue for Veteran and Military Business Owners.  VAMBOA is a non-profit trade association.   We do not charge members any dues or fees and members can also use our seal on their collateral and website.   If you are not yet a member, you can register here:

https://vamboa.org/member-registration/

We also invite you to check us out on social media too.

Facebook:  https://www.facebook.com/vamboa

Twitter:  https://twitter.com/VAMBOA

Do not forget that VAMBOA members receive significant discounts on technology needs.   Check them out here:

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

By James Pruitt, Senior Staff Writer

Short-term credit often provides vital sustenance to a new business. Short-term creditors also commonly predate on fresh entrepreneurs.  Regardless of need, business owners should use such lenders cautiously.

“Loan sharks” can suck businesses dry in their times of vulnerability. This stage of the pandemic likely exposes the vulnerabilities of many businesses. Small businesses now likely struggle with debts as well as labor and inventory shortages. Predatory lenders may circle like vultures at this stage.

Are there healthy routes to short term credit? Absolutely. Three outlets can provide safe short-term loans for the cautious small business owner.

Lines of Credit and Online Short-Term Loans

Always beware of unethical practices by creditors. Predatory lenders often exploit smaller business owners with exorbitant Annual Percentage Rates or APRs and crushing terms. Of course, businesses do need a cushion when a crisis arises. This cushion could be hard cash in a savings account or a line of credit from any of a variety of lenders, including mortgagers and small banks.

As discussed in our previous blog posts, cash flow poses issues for many business owners. You need money to make money, right? A trustworthy lender usually asks two things from a small business for a simple line of credit: At least six months in business, and at least $50,000 in annual revenue. Short of these requirements, Veteran Business Owners should give a second look to any lender offering short-term lines of credit. A line of credit may provide the “emergency fund” to protect a business in cases of a short-term crisis.

At a pinch, an online short-term loan may offer a tempting alternative. Direct cash from a lender may provide another “safety net.” However, absent reasonable terms, business owners should look elsewhere before contracting with lenders that seem too eager to dispense short-term capital. Their collections efforts will likely haunt them afterword.

Most online short-term loans have similar terms as lines of credit. A decent credit score tends to hold greater significance when the lender offers hard cash outright. These loans offer further risks, and the lenders use even more caution when approving short-term cash.

These loans can range from four to five digits. However, bear in mind that the payback period can range from three to eighteen months. Creditors will want their money in the meantime. Lenders will also wield greater leverage in negotiations for payment plans and repayment terms. In short, despite the occasional necessity of short-term money, lenders inevitably demand their pound of flesh afterward.

Equipment Loans

These loans are a different sort of animal. Lenders foreclose on the equipment itself in case of default on these loans. Such equipment may include kitchen equipment, warehouse machines, and even company-owned mobile devices. Most lenders expect more security from business owners for such loans, since damage to equipment can greatly decrease its value following repossession.

Trustworthy lenders generally expect eleven months in business, a decent credit score, and $100,000 in annual revenue before securing a necessary piece of equipment. The risk to the lender is greater, so the contractual terms place more responsibility on the borrower.

When to Use a Short-Term Line of Credit?

All businesses (and even individuals) should ideally have an emergency fund. Lines of credit and short-term online loans may plausibly furnish that cushion. Additionally, Veteran Business Owners may lack investment funds during their idea’s development phase. In the case of shorter loans and payment plans, both lenders and borrowers generally should recognize the urgency of repayment. Hence, everyone should apply a fine-tooth comb to short-term financing. Short-term lenders can be as sketchy as they are sometimes necessary.

VAMBOA, the Veterans and Military Business Owners Association hopes that this article has not only been valuable but provided some unique perspective.  We work hard to bring you important, positive, helpful, and timely information and are the “go to” online venue for Veteran and Military Business Owners.  VAMBOA is a non-profit trade association.   We do not charge members any dues or fees and members can also use our seal on their collateral and website.   If you are not yet a member, you can register here:

https://vamboa.org/member-registration/

We also invite you to check us out on social media too.

Facebook:  https://www.facebook.com/vamboa

Twitter:  https://twitter.com/VAMBOA

Do not forget that VAMBOA members receive significant discounts on technology needs.   Check them out here:

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

By James Pruitt, Senior Staff Writer

With relaxed social distance requirements, business owners have seen many pandemic challenges flip-flop. Suddenly, proprietors cope with stir-crazy patrons chomping at the bits to leave the isolation of shelter-in-place requirements. Many establishments have rarely seen demand increase so rapidly. Unfortunately for business owners, many low-wage jobs remain unfulfilled, and inventory has run dry.

Everyone is playing catch-up and vying or the same inventory and talents.  It is very competitive.

How can businesses compensate for shortages in labor and inventory? As expanded unemployment continues, many workers still opt to collect rather than rejoin the workforce. Adding to the labor shortage, months of quarantine have led to some product shortages. However, during this period of demand exceeding supply, various strategies can manage white-hot growth even with a skeleton crew.

Expanded roles may compensate for vacancies. Efficient use of entry-level workers need not confine them to boring, unstimulating daily routines.  Increased workload may necessitate diversified job descriptions. Many new employees have usable education or expertise outside their entry-level job descriptions. Further training may help businesses fill needs for diverse roles while helping employees reach their potential. As icing on the cake, such opportunities for professional development may lead to fruitful relationships long-term.

It also makes sense to look and think out of the box when recruiting new employees.  Many potential employees welcome working remotely and with today’s technology and a good work ethic, this can and does work.  It is important to many as they reevaluate their quality of life.

Additionally, consider hiring Veterans.  They are disciplined and have an extraordinary work ethic.  Additionally, there are significant tax credits from $2,400 to $9,600 on many hires depending on the specifics.  You should also consider hiring members of the National Guard and Reserve who can be activated but make outstanding hires.

As demand rises, inventory may run tight. In such a case, consider streamlined use of resources. Technological developments may help. Some managers automate inventory management with algorithms that predicts when and how much product to buy. Several apps utilize various such algorithms.  Quickbooks Desktop Enterprise, Paragon SMB, Katana, and Brightpearl may provide valuable tools. Careful accounting for inflow and outflow of inventory minimizes shrinkage and ensures optimum resource use.

After the COVID debacle, many people just want to get out. Some business owners have noticed the increase in demand over the past few months. Sixteen months of “stay-in-place” orders” have left people starved for entertainment, dining, and even the presence of others. During those sixteen months, a worldwide economic hiatus let the “consumerist well” run dry for many product-thirsty consumers. Production slowed, and workers stayed at home. Buyers stayed in place. The recent surge in demand presents an invaluable opportunity for business owners as well as their employees. During this recovery period, everyone can gain from professional development opportunities as well as the chance to streamline business processes.

While demand does exceed supply, consider the opportunities for business development in the meantime. We all want good service and high-quality products. Additionally, challenges keep proprietors on edge. This window provides a golden opportunity to ensure the wheels are greased as the machinery of your business going forward.

In short, relaxation of COVID-era restrictions provides priceless opportunities for both small business owners and their workers. Beforehand, many larger companies did not know how to utilize every lot of inventory, or each one of their employees. However, technological innovations have provided the tools to create better companies. The recovery from COVID can provide the impetus. Each of the two can lead to business processes that improve life not only for consumers, but for business owners and their employees as well.

VAMBOA, the Veterans and Military Business Owners Association hopes that this article has not only been valuable but provided some unique perspective.  We work hard to bring you important, positive, helpful, and timely information and are the “go to” online venue for Veteran and Military Business Owners.  VAMBOA is a non-profit trade association.   We do not charge members any dues or fees and members can also use our seal on their collateral and website.   If you are not yet a member, you can register here:

https://vamboa.org/member-registration/

We also invite you to check us out on social media too.

Facebook:  https://www.facebook.com/vamboa

Twitter:  https://twitter.com/VAMBOA

Do not forget that VAMBOA members receive significant discounts on technology needs.   Check them out here:

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

The COVID-19 pandemic was life changing in so many ways quickly and drastically transforming the way we all worked, learned, and socialized. As 2021 continues to march forward and states relax their COVID guidelines and closures, employers today are increasingly wanting to keep virtual options open for workplace training, even as their business doors reopen, and their offices fill back up.

This is true for education both training-centered for the company or to help employees stay competitive in their field by rounding out their skills.

Why is virtual training such a great investment for any company? Below are some compelling and persuasive reasons why education and training online should continue to be the new normal as we move forward post pandemic.

1.) Outstanding Training that is Not Location Limited: 

Training programs are now more accessible because Small Business Owners are not limited to any specific location. Not only can your employees learn wherever they are based, but they are also able to learn from qualified instructors anywhere in the world.

Scheduling is more flexible, and your employees’ needs are more easily met.   Additionally, more can be learned from a broader range of subjects and teachers. Your employees can now gain valuable training with the best instructors regardless matter where anyone is located.

2.) Expands your Resources:

Learning online expands the scope of your company’s digital resources. Digital learning platforms make more information available, in multiple different formats, that are accessible whenever and wherever it is convenient for the learner. They also foster a better collaborative environment, and this promotes the overall welfare of both the company and their employees.

3.) Keeps Employees Competitive in Your Field:

Your employees will do a better job for your company if they are continually improving and refining their skills. They need to stay on top of the latest trends, practices, systems, and technologies being used in your company’s field. Providing learning opportunities for your employees boosts your own company, as well as enhances their career opportunities and makes them feel more connected to you for providing skill enhancing opportunities. Training is part of almost every professional career.  Another benefit to your Small Veteran Owned Business is that your happy, incentivized, employees that are allowed to grow and because of their continued training, education and growth, they tend to stay.

As a Small Veteran Owned Business, there are few investments that are better to make than investing in the education of your employees. Allowing them to enhance their skill set, at a time of their choosing, and in any location that is comfortable for them will not only boost the likelihood of them actually attending the courses, but their overall satisfaction as an employee of yours.  Their higher levels of skill and knowledge will directly benefit your business. Virtual learning has dramatically shifted what and how we all learn.  It is certainly a change for the better.

VAMBOA, the Veterans and Military Business Owners Association hopes that this article has not only been valuable but provided some unique perspective.  We work hard to bring you important, positive, helpful, and timely information and are the “go to” online venue for Veteran and Military Business Owners.  VAMBOA is a non-profit trade association.   We do not charge members any dues or fees and members can also use our seal on their collateral and website.   If you are not yet a member, you can register here:

https://vamboa.org/member-registration/

We also invite you to check us out on social media too.

Facebook:  https://www.facebook.com/vamboa

Twitter:  https://twitter.com/VAMBOA

Don’t forget that VAMBOA members receive significant discounts on technology needs.   Check them out here:

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

Most business owners say that they lack free time or even the time to do much more than work. They tend to work almost non-stop.   This is because their passion for their business is what had led them to success. However, working yourself to death is not a good thing to do.  It is so important to have balance and all work, and no play is unhealthy and can burn you out.   It is critical that you take control of your schedule and get some much needed down time.  Sometime scheduling your downtime just as you schedule an important meeting can be important and ensure that you have this balance. Below are three ideas to help you better manage your time and schedule.

1.) Say no… and mean it!

Most business owners find it difficult to turn down projects or opportunities that may prove valuable at some later date. They often end up overloading their schedules and stressing themselves out.

When asked to do anything, you should step back and consider if the proposition is providing real value to you or your business. Will the opportunity be beneficial both in terms of time spent on it and yield the desired result? Occasionally you may just take on a project because it seems like fun, or you like the person asking you to do it. Make sure that you take a few minutes to analyze any new opportunity or request in order to make an educated decision on whether it is worth your attention. If it is not, say no and mean it.

2.) Delegate!

Many business owners are overwhelmed with tasks; whether it is stocking shelves, answering calls or emails, managing payroll, heading to bank, or the multitude of other day-to-day tasks that need to be done. Even if you do not have employees, you can (and should) still be delegating tasks to others to help free up some of your time. Start with your staff and employees and then ask other people that you trust outside of the business (family or friends) who are able to assist with some of the more minor tasks on your list.

3.) Work-Life Blending…

As a Small Business Owner,you most likely already know that you cannot completely separate your personal life from your work life. This is not a bad thing. Instead of a work-life balance, most have a work-life blend that can be incredibly beneficial to the business and the business owner as long as it is managed properly. Learn when to focus on the business and when to focus on your personal life. Make sure to prioritize as needed and take time off to completely disconnect occasionally for goodness’s sake!

Managing your valuable time as a Small Veteran Business Owner will always be a constant challenge.  However, with a concerted, strategic effort, you can better schedule your business and life.  This will provide you more free time and help you stay passionate and energized to grow your business.

VAMBOA, the Veterans and Military Business Owners Association hopes that this article has not only been valuable but provided some unique perspective.  We work hard to bring you important, positive, helpful, and timely information and are the “go to” online venue for Veteran and Military Business Owners.  VAMBOA is a non-profit trade association.   We do not charge members any dues or fees and members can also use our seal on their collateral and website.   If you are not yet a member, you can register here:

https://vamboa.org/member-registration/

We also invite you to check us out on social media too.

Facebook:  https://www.facebook.com/vamboa

Twitter:  https://twitter.com/VAMBOA

Don’t forget that VAMBOA members receive significant discounts on technology needs.   Check them out here:

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