Invest in new customer touchpoints

One of the most effective ways to reach new customers and expand your customer base is to increase your brand’s visibility. For some SMEs, this may involve investing in digital marketing to reach the customers who shop or make buying decisions online. For others, it may mean launching an above-the-line advertising campaign or handing out flyers.

Still, others might want to pitch their product to popular supermarkets and focus on becoming a supplier rather than just a standalone product or service provider. As a small business owner, you will need to find out how you can reach more of the right people.

Hire new specialists

There comes a time in the lifespan of a small business where the people who have needed to wear multiple hats and become the ultimate multi-taskers need to hone in on their strengths and their specific areas of expertise. When it comes time to expand, you may find it necessary to fill a skills gap and get more hands-on deck to take your business to new heights and expand in ways that only specialists can provide guidance on.

Ben Bierman is a managing director at Business Partners Limited 

 

New Small Business Grants for COVID Relief Available from State, Local Governments

Published: Oct 30, 2021 by Annie Pilon In Small Business News 0

Providence COVID-19 Small Business Recovery Grant Program

The city of Providence, Rhode Island is offering microgrants of $2,500 to small businesses negatively affected by COVID-19. More than 2,700 businesses can receive funds. There’s an online portal to apply. And the deadline is December 31.

New Mexico Business Recovery Grant Program

New Mexico is opening up another round of grant funding for small businesses affected by COVID-19. There’s a total of $200 million available. Eligible businesses can use them for expenses like rent and mortgage payments for local storefronts. Applications are due by December 7.

Arizona Crisis Contingency and Safety Net Fund

Arizona recently announced $3.5 million in funding to various small business grant assistance programs throughout the state. There are four main funds, including the EmergeAZ Fast II Grant program and the Arizona Small Business Association Growing opportunities grant. Each program has different qualifications and requirements. But all are aimed at helping businesses recover from the past two years.

Central Texas Small Business Grants

The Bell County Commissioners Court and Central Texas Council of Governments recently unveiled a second round of grants for local businesses affected by the pandemic. This includes $1 million in funding from the federal American Rescue Plan Act. Many local businesses received funds after applying last year. But those that were eligible and did not receive funds will be considered for this round.

Chi Biz Strong

Chicago small businesses will get access to another $20 million in funding. The money comes from the federal American Rescue Plan Act. And the new program, known as Chi Biz Strong, will award grants of $5,000 to $10,000 to small businesses and nonprofits affected by the pandemic. November 12 is the deadline to apply.

Williamsburg COVID-19 Small Business Grant Program

The city of Williamsburg, Virginia recently announced Phase 3 of its COVID-19 Small Business Grant Program. Local small businesses in Williamsburg, Poquoson, and York County can apply for up to $15,000 in funding. Grants awarded during the first two funding rounds count toward that cap. The online portal is now open and will close when funds have been dispersed.

Windsor American Rescue Plan Act Funds

The town of Windsor, Connecticut just approved $500,000 in new grant funding for local small businesses. The money comes from from the American Rescue Plan Act. And it will be available to local businesses and nonprofits with 25 or fewer employees. Businesses that have already received funds in earlier rounds can apply. But at least $200,000 will be set aside for organizations that didn’t receive funding in earlier rounds.

REPORT: THE BEST AND WORST CITIES TO START A SMALL BUSINESS

by Jeffrey McKinney October 28, 2021

A welcome sign at the city limits of Raleigh, North Carolina.

When it comes to starting a business, Raleigh, North Carolina is the best city to do so, and Bakersfield, California is the worst.  

That is the finding from a  report by Lending Tree. The lending marketplace analyzed nine metro- and state-based metrics — ranging from the proportion of self-employed residents to unemployment rates to one-year business survival rates — across the 100 largest metros in America based on population.

The report comes as COVID-19 has forced many small business owners — including Black American entrepreneurs –  to find new ways to operate. Healthcare costs and consumer spending have been cited among the biggest challenges this year for those firms. Yet with 2022 approaching, observers hope some of those obstacles will diminish. If that occurs, it could provide fuel for new small business start-ups.

“It’s definitely a challenging time to start a small business, but that doesn’t mean that you shouldn’t do it,” says Matt Schulz, LendingTree chief credit analyst. “There are always going to be things that you can’t predict. The truth, however, is that if you have a good idea, a thoughtful plan, adequate funding and a willingness to take the risk and put in the work, any time can be a good time to get started.”

 

Location has long been a key factor budding entrepreneurs need to consider before launching a successful new enterprise. Here are some of the top findings from Learning Tree:

• North Carolina has the best places to start a small business. In fact, Raleigh at No.1,  Charlotte at No. 3 and Durham (No. 4) were ranked best as places for small businesses to start. Nearly 55% of Raleigh’s population is in their prime working years between ages 25 and 54.
• California was the worst place to start a small business, Three of the Golden State metros — Bakersfield, Stockton and Fresno, — take the lowest spots, while Riverside places in the bottom 10. Bakersfield was the worst of all metros.  It has the highest unemployment rate — 10.7% — among the 100 metros. It also has the lowest percentage of residents with at least a bachelor’s degree — 17.1% — among the metros.
• The South commands the top 10 places to start a small business. The South has five metros in the top 10, while Western and Midwestern states occupy the other five slots.
• The West rules the bottom 10 places to start a small business. Honolulu joins the four California metros in the bottom 10, while Midwestern and Northeastern states take the other five spots.                                   In terms of Metro areas, the top five spots respectively were Raleigh, North Carolina, Austin, Texas, Charlotte, N.C. , Durham, N.C., and Boise, Idaho.

 

Elon small business owner faces supply chain disruptions

While pandemic related shortages were supposed to be resolved by now, small business owners across the globe are now facing the unknown: an endless cycle of supply chain disruptions

By Ashlyn DeLoughy | 10/27/21 2:07pm

Photo by Grace Terry | Elon News Network
All that Jas owner Michaelle Graybeal works an afternoon in her shop.

Nearly two years since the peak of the pandemic, a supply chain crunch that was believed to be temporary is leaving business owners like Michaelle Graybeal, owner of Elon’s All that Jas, without stock. 

A supply chain encompasses all of the activities and resources that go into service. Across the globe, massive COVID-19 related supply chain disruptions are occurring with the container market, shipping routes, ports, trucking lines, and warehouses. The result? Business owners are faced with shortages of key manufacturing resources, order backlogs, shipping delays, and increases in product costs. 

According to data released by Resilinic, a global leader in the supply chain risk monitoring space, disruptions due to supply shortages were up 638% in the first half of 2021. 

All that Jas is a gift store and sorority store all in one. During the months of the shutdown, Graybeal increased her online presence through social media and her Etsy shop, making those from out of state and across the country, regular clients. Yet once students returned to campus last fall, Graybeal found herself being confronted with a new set of economic challenges. 

“I felt that we would be beyond this, but we’re not,” Graybeal said. “It is what it is. We just have to keep on going, keep moving forward.” 

It’s a combination of delays, supply shortages, and rising costs that continue to trouble businesses large and small. This is what is making it much more difficult for Graybeal to fill her larger group orders — she cannot find more than 100 shirts anywhere, sometimes she cannot even find 50. 

“When we're doing group borders we might be ordering 150 shirts. Well, try to find 150 of the same shirts right now, it is a challenge,” Graybeal said. “I was literally yesterday, looking for a group, and it took six vendors all over the country to be able to find 150 shirts.” 

According to Elon Supply Chain Management Professor K.C. Kasserman, the problem is that delays and product shortages caused by the pandemic continue to get worse, creating a domino effect of other economic issues. 

“Wages for truck drivers and even ship workers are already going up because it’s taking more money to entice people to work, which means transportation costs go up,” Kasserman said. “Additionally, since people are having problems getting products off of, let’s say ocean freight, they move to air, which costs more, which again raises prices — making retail consumer prices go up.” 

Due to differences in volume, Elon Senior Lecturer in Supply Chain Management Coleman Rich, said small business owners are taking the brunt of the ongoing shipping delays. 

“Let’s say that I’m a small business owner of a hardware store. Well because Home Depot has so much more volume, whatever they can get from overseas, they’re going to get,” Rich said. “They’re going to get their supply first and I’m going to get mine second. So in that case, there’s a lot of items that I just can’t get because the bigger box stores will get in first.” 

To stay afloat, business owners mitigate risk. This is what Rich describes as finding creative ways outside of traditional means of getting products. For Graybeal, this means outsourcing to completely different vendors across the globe. Sometimes this even means compromising with the customer in terms of the details of their original order by potentially having to modify the shirt color, brand, or style. 

Graybeal says two organizations on-campus regularly place orders with her: Panhellenic and Sigma Kappa sorority. Elon junior Mel Jones is Sigma Kappa’s t-shirt chair and has been working with Graybeal since the start of the semester. 

“They just do so much for our community,” Jones said. “It's important for people to remember to go order from them because obviously there's a lot of companies they could choose from, but it's better to support a local business.” 

While business owners like Graybeal are pushing through these impacts, for now, the supply chain, according to Rich, will eventually work itself out. 

“All of this will eventually balance out, but it will take a considerable amount of time,” Rich said. “It’s just so unfortunate. It is unfortunate for the small business owners because, again, they’re being impacted a lot more than somebody like a Home Depot or Lowe’s.” 

But there is something, according to Rich, that puts business owners like Graybeal ahead of some of the larger companies: customer service. 

“We are all about customer service, so we're going to work super hard I think more than a lot of people would, to go that extra mile and make sure it happens, ” Graybeal said.  

Ashlyn DeLoughy is also a member of Sigma Kappa, a sorority mentioned in this article. 

The US government’s $10B small biz program, explained

The State Small Business Credit Initiative (SSBCI) is a small biz program targeting disadvantaged groups.

$1T.

The US government has spent more than that amount to prop up small businesses since the start of the pandemic, per The Wall Street Journal.

The funds haven’t been evenly distributed, though. And the government is trying to rectify that…

… with a new $10B commitment

The program is called the State Small Business Credit Initiative (SSBCI) and funds will come from the $1.9T covid relief package passed last March.

One of the main goals is to direct money toward disadvantaged groups including racial minorities, rural communities, and veterans.

Republicans are questioning the need for the Democratic initiative, noting that there is an overlap with other programs.

Where did previous funds go?

According to WSJ, the flagship Paycheck Protection Program (PPP) — primarily targeted at small businesses — provided fewer loans on average “in areas with majority Black, Hispanic, American Indian or Alaska Native populations.”

On top of this, it’s estimated that criminals have stolen ~$100B — yes, billions — in covid relief funds. We’re going to go out on a limb and say that money didn’t end up covering payroll for your neighborhood bakery.

How it works

Per the Treasury, the federal government will use the funds to back investing and lending activities, with $3.5B specifically allocated for these buckets:

• $500m: Very small businesses (fewer than 10 employees)
• $2.5B: Total state funds for businesses owned by the socially and economically disadvantaged
• $500m: Technical assistance

States will receive money based on a formula that accounts for hardships (e.g., job losses vs. national average). From there, they set programs — from loans to venture capital — that best target their respective locales.

A major obstacle for the SSBCI is letting people know they are eligible. So, here’s an application overview.