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Surviving the CoronavirusA crash course for the small business owner

Presented by: Matt EvansDate: April 29, 2020 *

* This webinar will NOT reflect changes that take place after this date

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Loans – Please refer to another webinar

This webinar will not discuss the two major loan programs, Economic Injury Disaster Loan and Paycheck Protection Program Loan. Please refer to the webinar on April 24, 2020 to learn more about the two major loan programs:

https://washingtondc.score.org/424-workshop-materials

You should also review the Cookbook document that comes with this webinar. It covers the loans in detail as well as other programs that you should be aware of.

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The COVID-19 World Moves Fast - But Don’t Panic • Assess your current situation with a SWOT – Threats is obviously dominant on the model

right now; so put a lot of emphasis on this part of the SWOT Model• Critical Question: How do I turn Threats into Opportunities to generate Sales?• You will have to be very focused on the things you can control• Turn your workforce into 100% Business Development (BD)• Sales Model is no longer a niche model, it’s more of a Shot Gun, trying to pull in threads of

revenues from multiple streams (everyone is a BD employee now)• Unfortunately, Marketing is now more important; especially digital. This is why you must have

more Sales! Sales = More Cash for Unqualified Expenses (1)

• You will have to watch Cash Flow on a Daily or Weekly Basis and your bookkeeping just became a lot more complicated (QuickBooks Class System)

• You will need to form a serious SME Team (more on this later in the webinar)• And try to be in line as fast as you can at every touch point where you can pull in

money . . . . . . which brings us to the next slide

(1): Expenses incurred by the business that are not covered by PPP or EIDL Loans

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High Level View – Overall Plan (3 Major Steps)

Start Here – The Banks and the SBA will save your small business

Second – Research other sources that can assist your business

Third – Think outside the box and evaluate ways to generate Sales and incorporate other important elements into your plan such as a Digital Communications Plan

Right Side of Model

Left Side of Model

Step 1

Step 2

Step 3

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Right side of the Survival Plan Model

The left side of the Survival Model is where the big $ is, but it is highly unpredictable and gets bogged down. Right side of the model is more predictable. Best place to start is at the City / County Level (less crowded vs. Statewide and Nationwide Touch Points)

Right Side of Model

Identify touch points and get on their mailing list. As you monitor news alerts, jump on opportunities that you qualify for (such as grants)

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Local Level – County Grant

Sign up with the Chamber of Commerce and the County Government to get notices

If the County has a Small Business Office – Ask them about the details = 25% set aside for Restaurants

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Statewide Alerts = GrantWatchOn April 14, 2020, I get an alert about 20 different grants being offered across Maryland:

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Be Pro-Active at the Local Level

https://vimeo.com/brandready/review/402052305/eb7b5173d8

Amount Range Procurement Type

Under $ 10,000 Direct Purchase

$ 10,000 - $ 100,000 Informal – Some Documents Required

Above $ 100,000 Formal – Must be open for bid / proposals

Try and solve a critical problem at the local level, develop a solution with a budget at the Direct Purchase level and see if the County will fund it.

Montgomery County MarylandCASE STUDY EXAMPLE: Mobile App in Loudon County Virginia – Helps local businesses sell their products locally – get a sponsor (Loudon County Tourism Bureau)

Critical Life Cycle Milestones: Working Prototype > User Test Group > Finalize Design > 40 Local Businesses > Pitch to County with Budget > Obtain Grant Money for DeploymentPitch Video to be used with Loudon County officials:

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Study the Marketplace – Where is the Demand?

These businesses need employees: Grocery stores, food delivery services, package delivery drivers, freight trucking, cleaning services, call centers, e-commerce warehouses and logistics, nursing homes, online tutors, manufacturers of popular shelf-stable food products, pharmacies and security services.

https://www.kiplinger.com/slideshow/business/T012-S001-24-major-us-companies-hiring-now-coronavirus/index.html?rid=SYN-yahoo&utm_source=SYN-yahoo&utm_medium=referral

33 Companies Hiring Right Now

6 Businesses Changing Their Business Plans to Adapt to Coronavirushttps://www.uschamber.com/co/start/strategy/businesses-adapting-during-coronavirus

Look at the Job Ads on sites such as Indeed – where is there demand? Who are the companies? What kind of skill sets are in demand? Can you land a Sub Contract with these companies on an interim basis until they fill the position?

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Communication Plan is More Digital1. Visual – Less words and more visual. Embed visual aids into your communication. Don’t

be afraid to use videos and setup a video channel for your customers. 2. Content Driven – Useful and relevant content that pulls people in (Push / Pull Model for

Business Development). Provide Helpful tips, How to, etc.3. Personal and Local – Communication is highly targeted – conveys a personal tone: “Let’s

get through this together” 4. Sharable – Where appropriate, make sure the recipient can easily share the

communication with others5. Design is Important – Clean, Simple and Fast (Look at the Google Search Engine landing

page). Conversions happen in a “Micro-Moment” according to Google. 6. Call to Action – At the bottom of email messages and web pages; ask the customer to do

something (sign up for our alerts, specials, delivery, online Q&A, etc.)

https://www.uschamber.com/co/grow/marketing/tools-for-customer-communication-during-coronavirus

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Example of Clean and Simple Visual Communication

Not Crowded – Uses White Space with Image as the focal point

Remember – People behave differently online vs offline; they will not give you much time. Requires Minimalist Messaging!

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Digital Marketing Training

https://www.coursera.org/Free University Courses:Tap into Linked In Experts to Expand Your Knowledge

Good Online Learning Site:

https://www.udemy.com/

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Hit the Financial Reset Button | Prepare a Budget

1. Cut Variable Cost – Almost everyone directly linked to the customer must be let go. Any direct expense must be cut hard.

2. Abatement and Deferments – Two ways to cut Fixed Cost – Directed at Lender and Landlord. Any indirect expense must be cut gently. Be careful not to cut key support areas such as Marketing and Accounting

3. Shot Gun Revenue Model – Forget the niche approach, must cast broad net to find new revenue streams

4. Prepare a Cash Flow Budget – Determine your monthly burn rate (how much cash are you burning through each month) *

5. Determine the Short Fall – What is the Monthly Short Fall? Develop a Fund Raising Plan to address the Short Fall *

Do

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ore

Budg

et

* See tab 6 of the Excel Workbook for an example

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Put in Scam Control Measures

• Do not accept emails that do not have “.gov” in the extension (www.sba.gov)

• Do not provide any personal financial information to someone claiming they are from the U.S. Treasury or SBA.

• Do not use a financial institution / provider (1) that is not approved by the SBA. The SBA provides tools to help you locate an approved lender:

https://www.sba.gov/paycheckprotection/find(1): Very Broad under CARES ACT (Fundera, PayPal, Kabbage, Intuit, etc.)

• If someone claims they can help process the loan for you in return for a fee, then they are in violation of the CARES Act – loans are setup so the business owner does NOT have to pay a fee.

Would you click on this?

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Extend the Model with Best Practices

https://store.hbr.org/product/coronavirus-and-business-the-insights-you-need-from-harvard-business-review/10440

FREE 80-page Best Practices e-Book from Harvard Business SchoolDownload Link

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SME’s – Critical to Running Your Business Model

J J The CPA has a lot of straight talk YouTube videos:http://www.jjthecpa.com/ppp

• Legal / Compliance• HR / Workforce

Management• CPA / Tax • Accountant / Financials• Digital Marketing / Social:

You must find and communicate with customers online. A good place to start is to refresh your website and social media pages. Also visit the American Marketing Association COVID-19 page:

SME: Subject Matter Expert

CohnReznick has more formal webinars and update articles:https://www.cohnreznick.com/insights/coronavirus-resource-center

Two CPA’s that I follow:

https://www.ama.org/covid-19-support-for-marketing-professionals/

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HR – Society of Human Resource Management https://www.shrm.org/

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Thomas Net – Good Source to Find Suppliers https://www.thomasnet.com/

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Monitor Your Industry – Trade Associations

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Non Profits – CANDID is a good source

GuideStar and the Foundation Center merged to form Candid, supporting the Non Profit Sector

Remember:Non Profits qualify for EIDL and PPP Loans including Churches.

https://candid.org/

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My Favorite: Inc Magazine / Chamber Town Hall

https://www.inc.com/inc-staff/small-business-town-hall-paycheck-protection-program-federal-reserve.html

Every Friday at 12 Noon you get an update tailored for Small Businesses. Includes key burning issues with SBA Loans and Legislation that impacts your business.

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States – Forces Relief: Landlords and LendersSeveral States have passed 90-Day Abatement and Deferment Bills –Landlords and Lenders need to provide relief to Small Businesses

City of Alexandria, VA

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States – Business Interruption Insurance Relief

On March 24, Ohio introduced House Bill 589.

On March 24, Massachusetts introduced Bill SD.2888, and on April 6, the Massachusetts bill was referred to the Joint Committee on Rules.

On March 27, New York introduced Assembly Bill A10226. The New York bill was amended on April 8 and again referred to the Insurance Committee.

On March 31, Louisiana introduced House Bill 858 and Senate Bill 477, which await referral from the House and Senate, respectively.

States are forcing insurance companies to offer some type of benefit under “Business Interruption” clauses

Here is the link for the State of Maryland:https://insurance.maryland.gov/Pages/newscenter/NewsDetails.aspx?NR=2020256

1. Check your business insurance policy –does it have a Business Interruption Clause?

2. If yes, consult with an Attorney on how best to file a potential claim

3. Document and measure your loss in support of a claim

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Start Exploring Right Side of the Model - 3 Links:

https://www.uschamberfoundation.org/reports/coronavirus-response-resources/A good place to start is at the COVID-19 Response Page for the U. S. Chamber Foundation:

https://www.connect2capital.com/A good place to go if you want to explore sources of capital outside of your bank:

https://matchfinder.venturize.org/

A good place to go to find a lender:

https://smallbusinessmajority.org/states/washington-dc

A good place to find local funds

https://grantspace.org/resources/knowledge-base/covid-19-emergency-financial-resources/Best place to search for all possible grants available:

Another good jump off point to explore state https://www.zenefits.com/workest/the-big-list-of-covid-19-financial-assistance-programs-for-small-businesses-by-state/

Remember – You want to build out lots of options, ensuring your chances of survival.

Non-SBA OutsideSources

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More Right Side Model Links to Explore

https://www.thryv.com/thryvfoundation/Thryr Foundation

https://www.artistrelief.org/Artist Relief

https://www.facebook.com/business/boost/grantsFacebook

https://businessforall.helloalice.com/Hello Alice

https://www.liftfund.com/Lift Fund

https://www.spanx.com/the-red-backpack-fundRed Backpack (Women)

https://www.billboard.com/articles/business/9337908/coronavirus-resource-guide-music-professionals-help

State by State Guide for Musicians

https://www.lisc.org/covid-19/small-business-assistance/small-business-relief-grants/verizon-small-business-recovery-fund/

Verizon Fund

https://www.freelancersunion.org/resources/freelancers-relief-fund/

Freelancers Relief

U.S. Chamber Foundationhttps://savesmallbusiness.com/

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Critical SCORE Links

https://www.score.org/blog/comprehensive-guide-cares-act-financing-available-small-businessesMake Sure You Understand the Application Documents that you must submit:

https://www.score.org/event/navigating-long-term-uncertainty-and-aftermath-disruptionMay 7 Live Webinar: Navigating Long-Term Uncertainty and the Aftermath of Disruption

What to Do NOW to Save Your Small Business From COVID-19https://www.score.org/blog/what-to-do-now-save-your-small-business-covid-19

Crisis Communications Planning Checklisthttps://help.score.org/hc/en-us/article_attachments/360062215814/SCORE-Crisis-Communications-Planning-Checklist.pdf

Main Landing Page for COVID-19 Informationhttps://help.score.org/hc/en-us/sections/360007752213-COVID-19-Information-and-Resources

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Recommended Readinghttps://www.inc.com/business-continuity-cash-flow-coronavirus-crisis.htmlINC Magazine Survival Articles >

https://www.amazon.com/Small-Business-Survival-Guide-Jason/dp/1435457803

https://www.amazon.com/Small-Business-Survival-Guide-Protecting/dp/1593374062/ref=sr_1_3?dchild=1&keywords=small+business+survival+guide&qid=1587224916&s=books&sr=1-3

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A Few Recommended VideosThe 90-Day Action Plan to Steer Your Business Through the Covid-19 Crisishttps://www.inc.com/video/webinar:-the-90-day-action-plan-to-steer-your-business-through-the-covid-19-crisis.html?utm_source=incthismorning

1. How to Avoid Getting Flagged for Fraud When Applying for PPP Loanshttps://www.inc.com/video/how-to-avoid-getting-flagged-for-fraud-when-applying-for-ppp-loans.html

Short Excerpt Videos per Previous Town Hall Meetings

2. Top 3 Mistakes People Make When Filing for PPP Loanshttps://www.inc.com/video/top-3-mistakes-people-make-when-filing-for-ppp-loans.html

3. Here's Who to Contact Before Applying for a PPP Loan https://www.inc.com/video/here%E2%80%99s-who-to-contact-before-applying-for-a-ppp-loan.html

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Don’t Forget the Webinar Documents1. Core Webinar Documents – Narra tive Crash Course Document and Exce l Workbook2. SBA Officia l Guidance Documents – Provides direction on how to apply the CARES Act as

it re la tes to SBA loans3. Clarifica tion Alerts – Highly focused guidance specific to an outs tanding topic4. PPP Documents – Se lf Employed – A collection of 9 files to he lp you apply for the PPP

Loan5. EIDL Documents – Some key documents on the EIDL program6. AICPA Spreadshee ts – Helps ca lcula te loan and forgiveness amounts 7. Bus iness Continuity Templa tes – Helps you manage the bus iness continuity process8. Other Guides and Documents – A few more ins ightful documents such as the 50 S ta tes

Lis ting of Re lie f Programs

Landing Page for Webinar:https://washingtondc.score.org/20200429_WkshpMats

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Summarize Key Points• Focus on managing the business and not the loans – let the loan part shake out

downstream of the COVID-19 event. The loans should not impair the business • Don’t sit stuck on the Left Side of the Model. Work other touch points on the

Right Side - Focus locally to find opportunities where you can add value. Solicit the local government; they need help and support right now

• Go outside the Model – You need a lot of “SME” touch points, feeding the business a stream of “intelligence” to make sense out of the chaos

• Your sales model is now very broad in reach – searching for opportunities• And finally, remember this:

This country produced the largest number of millionaires shortly after the Great Depression and we now face another Great Depression moment . . . . . What you do over the next 30 days will define your business for the next 3 YearsThis is a pivotal moment for every small business owner

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