mallory ottariano kind apparel

Kind Apparel: How This Business Owner is Overcoming Challenges With a Fast-Growing Business

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One of the biggest business challenges is having a business that is growing “too fast,” but rapid growth can bring a surprising level of complexity. Sounds silly, right? Mallory Ottariano, the founder and CEO of Kind Apparel, a women’s adventure clothing company, makes unique, colorful, versatile outdoor wear dedicated to “gals who get after it.”

In the past 3 years, Kind Apparel has doubled year-over-year in organic growth. Running a fast-growing business presented Mallory with some new challenges and learning experiences along the way.

Fortunately, Mallory overcomes the challenges of growing and scaling production for her business in great strides. She has an open-minded approach to management and is learning as she goes. They demonstrate the grit, hustle, smarts and creativity that the customers display when they’re out hiking, climbing and skiing.

Mallory Ottariano and Kind Apparel’s story offers several key insights and lessons on overcoming business challenges.

Growing Without Traditional Capital

Many new businesses find it difficult qualifying for small business loans from traditional lenders. Even if your business has strong revenue and growth, banks might be reluctant to lend you money. They might think you don’t fit into their conventional loan application guidelines.

“As a young company with few assets aside from inventory, we’re not attractive to banks, although we have impressive revenues,” Mallory Ottariano said. “I have been rejected for lines of credit and loans by eight banks, and the biggest reasons for rejection are that I don’t have enough capital to put up against the loan, that our fast growth is scary to them, and that funding retail and inventory is scary to them. Every single bank said ‘your revenues are good, but it’s just too risky.'”

Another challenge for Mallory’s business is that the company is on a long buying cycle. It takes Kind Apparel a long time to produce their high-quality specialty clothing. Banks typically want to see a shorter accounts receivable cycle.

“We’re on a 9-month buying cycle with our wholesale accounts, so we collect orders, produce and deliver well before we’ll ever get paid,” Mallory said. “For this fall, we have more orders on the books than we’ve ever had, which means more capital needed to manufacture the products. But the banks feel this is too far out. They want to see accounts receivable of 30-60 days, which just isn’t possible for us because it takes up to 6 months to make our products.”

Developing Personal Relationships

Mallory has adapted by developing a personal relationship with a nearby bank. “I have a small line of credit that I’ve been able to make a little less small through good relationships with the bank who happen to own the building our office is in,” Mallory said.

“Because we’re unable to get the amount of capital we need from banks, we have had to scale back on our wholesale goals and sell more direct-to-consumer where we have less lead times,” Mallory said. “This has actually been a really exciting thing for us, because we’re able to offer smaller, regular product releases which keep our customers engaged and excited about what’s next.”

The lesson: sometimes a business challenge can be the opportunity you need to change your business model.

Adapting to Problems With Vendors

The quality of your product and the reputation of your business often depends on the quality of your vendors. If one of your vendors fails to deliver, that can leave your business in a bad situation.

Mallory Ottariano knows how challenging it is to find the right long-term factory partners. One of her factory partners didn’t deliver on quality when she needed it most.

“It’s been incredibly hard to find long-term factory partners that can scale with us and still maintain quality,” Mallory said. “Last year, in the middle of our production season, we had to terminate our factory because we were seeing major quality issues and late deliveries. We had seams popping and unraveling, legs that were different lengths, and overall messiness.”

Kind Apparel’s brand is based on being a reliable supplier of durable outdoor clothing, and they charge a premium price. The company cannot accept bad production from a factory.

Protect Your Brand’s Reputation

“Our price point is fairly high, around $100 for a pair of leggings, and the quality of the product we were getting didn’t merit this price tag,” Mallory said. Sometimes it’s hard to know when to cut ties with a partner. Mallory had to make a tough decision.

“We were scaling so quickly, and right at the beginning of scaling was when this factory’s quality really started to slip,” Mallory said. “I only saw it getting worse with more volume, and I thought the best option was to terminate and deal with timeline recovery now, as opposed to when our volume gets to three times this size.”

“It was an absolute nightmare,” Mallory said. “We had to literally pack thousands of half-sewn pieces of clothing onto pallets to ship to a new factory that unpacked and picked up where the previous factory had left off. It resulted in huge delays and losing wholesale accounts.”

The lesson: protect your company’s reputation. Prepare to make a change – even if you have to incur added costs.

Embracing Curiosity and Unconventional Thinking

People from all kinds of careers and education backgrounds can be successful as entrepreneurs. Mallory believes that her unconventional background has helped her to think creatively in building her business. “Even though I’m the CEO, I have no formal business education or management experience; in fact, I have an art degree,” Mallory said. “Everything I’ve learned about business has been on-the-job, through trial and error and experimentation.”

“Just try things,” Mallory Ottariano said. “There’s a lot to be learned by making mistakes. If you’re not making mistakes and coming up against walls then you’re not risking enough.”

The lesson: Every business founder has their own life perspectives that they bring to the table. Don’t devalue your own skills and strengths. Keep learning and taking chances along the way.

Learn more about Kind Apparel on their website, or follow them on Instagram.

The Latest Internet Scams, And How To Avoid Being The Victim Of A Scam

The Latest Internet Scams: How Can You Avoid Being The Victim Of A Scam?

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Internet scams are booming, and why not? They’re easier to pull off than robbing a bank. And, they don’t require weapons any more hazardous than a home computer. Small business owners can easily fall victim. Your vulnerability may lie in that you’re often too busy multi-tasking – keeping your business humming – to exercise sufficient caution. How can you avoid being the victim of a scam as a small business owner? Acquaint yourself with the most common ones. You’ll notice an offer or request that has the hallmarks of internet scams.

Some common internet scams are “rip-offs”. You might get something in return for what you pay, but not much. One is the SEO (search engine optimization) quick fix. Naturally you want your website to draw in new customers, and hope it can be accomplished quickly and cheaply. Search engines – especially Google – are very adept at rejecting old SEO tricks that used to result in high search rankings.

SEO Internet scams

The Internet has many blogs questioning the value of SEO services in general, not just the scams. In reality, up-to-date SEO tactics can help your business, but not on the cheap. They don’t perform miracles.

Be sure to review the credentials of anyone who promises to push your website to the top of search engines. Talk to the key people at that company with your hype detector turned on. Also, talk to more than one (ideally, at least three) SEO service providers before pulling the trigger. Along similar lines, companies are always promoting small business coaching and business development services. Some might even be legitimate…many aren’t.

Last year, the Federal Trade Commission (FTC) forced a promoter to return fees paid by more than one thousand victims. “Most people who bought the defendants’ services did not develop a functioning business, earned little or no money, and often ended up in debt,” according to the FTC. In a similar case, the FTC shut down a business coaching promoter that sold information packages for nearly $14,000.

Common scam tactics

Take note of the following tactics that, according to the FTC, scammers commonly use. They:

  • Make themselves appear credible by claiming to have connections with a company you know or a government agency.
  • Rush you to make a decision before you have a chance to investigate what’s being offered.
  • Warn you that something drastic is about to happen. They prompt you to make a payment before you have a chance to give their claims a reality check.
  • Typically want payment through wire transfers, reloadable cards, or gift cards that are nearly impossible to reverse or track.

Some internet scams and theft schemes continue to take a toll on business owners and consumers alike. Often the “new” ones are just more sophisticated, and therefore effective, versions of the old ones. Take phishing, for example. The perpetrators’ goal is usually to steal your money outright. They try to gain access to your business or personal bank or investment accounts.

Caught in a phishing net

Scammers who hope to catch you in their phishing nets and haul you in have become very adept at collecting information about you or people you know (including family members) and using it to gain your confidence. If you have at least a modest digital social life, you have probably left enough information about yourself online that can be snagged by a skilled phisher.

Such information can be used by a scammer to pose as an acquaintance who is asking you to check out a website for some logical reason. Following a link to a website can result in your computer being infected with a virus that can be used to hijack your computer to gain access to login and passwords you use to engage in financial transactions. Virus detection software is helpful, but not foolproof.

Phishing scams also can lead you to websites meticulously constructed to mimic a legitimate site. It could take the form of an office supply company, either an imaginary one or a fake version of a legitimate business’s website. You “purchase” goods but never receive them, and the scammer pockets the money.

Even the best email spam filters can be tricked—and when they are, you might be, too. Consider these pitches you might fall for in a moment of weakness, even if you would hang up on someone who tried to deceive you using a phone call:

  • You receive a (phony) invoice that looks like it’s for a product or service your business uses, such as your website’s domain registration. You might be unsure about who your domain is registered with, but know that you’d be in big trouble if it expires. So in a panic you pay the bill, only later to discover the bill was bogus.
  • You receive an email seeking confirmation on an existing order of office supplies or other merchandise. Without thinking, you confirm. Then the stuff arrives, and if you don’t pay for it promptly, you get threatening demands for payment noting that you confirmed the order. To end the harassment, you just pay the bill, and vow not to fall for that one again.
  • Scammers purporting to be from a gas, electric, or water utility inform you that your service is about to be interrupted unless you pay an invoice immediately by wire transfer. In reality, your service was never at risk.
  • You receive a message from a “government agency” threatening to suspend your business license, or fine you, or take legal action if you don’t pay up. Or maybe you’re informed that you must buy labor law compliance posters that you can get free from the Department of Labor.

The speed and convenience of the Internet can be a great boon to your business, but it can be equally helpful to scammers. Developing a moderately suspicious mind, stopping short of paranoia, may be the best tip on how to avoid being the victim of a scam.

Got you covered: Do you have the optimum liability insurance coverage for your business?

Do You Have the Optimum Liability Insurance Coverage For Your Business?

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Is your business one incident away from financial collapse? Guarding against that contingency with the right kind of liability insurance coverage is a practical solution for most business owners. But buying insurance isn’t easy. You can spend too much, or too little.

First, you need to review your own exposures as a business owner. In doing so it helps to understand the difference between the frequency of particular categories of insurance claims, and the typical amount of the loss.

Claim Frequency vs. Claim Cost

Some of the most common claim categories involve the least amount money, and vice versa. Here’s what one industry study reveals about the dynamics around liability insurance coverage. Over a five-year period, the following were the ten most common property and liability claims, and the percentage of policyholders filing such claims:

  1. Burglary and theft: 20%
  2. Water and freezing damage: 15%
  3. Wind and hail damage: 15%
  4. Fire: 10%
  5. Customer slip and fall: 10%
  6. Customer injury and damage: below 5%
  7. Product liability: below 5%
  8. Struck by an object: below 5%
  9. Reputation harm: below 5%
  10. Vehicle accident: below 5%.

The two categories that average the highest claims are reputation harm ($50,000) and vehicle accident ($45,000). And the least costly? Burglary and theft ($8,000).

It’s important to look at industry-wide claims data as a starting point. You need to look at the unique risks you and your business faces when you’re assessing your liability insurance coverage needs. In general, the less expensive the coverage, the more improbable it is that you’ll face a claim. But if you’re hit with a highly improbable claim, it might be enough to put you out of business if you lack insurance protection.

Assessing Liability Insurance Coverage Needs

Assessing your insurance needs involves the gloomy exercise of imagining a lot of worse-case scenarios.

More realistic concerns are injuries to customers, fire, and so on. Workplace injuries to employees are covered by a category of liability insurance, workers compensation. That’s legally required in every state except for private sector employers in Texas.

Some risks that you may face aren’t the first to come to mind. As noted, reputation damage is relatively rare, but very costly. How might it come about? Suppose a disgruntled former employee starts posting negative (and inaccurate) statements about your company in social media and it goes viral. It can hurt your sales and/or talent recruiting efforts. Or what if one employee mistreats a customer, and word of the incident spreads? Or, for the first time ever, a customer is seriously injured by one of your products (due to misuse of the product), and the event is blown out of proportion by the media?

Sometimes reputation risk and your exposure to cyber crime overlap. For example, suppose your customer database is hacked, and you need to warn customers to take extra precautions to limit their risk of identity theft. Such an event could not only leave a sour taste in the mouths of customers, but, when the word gets out, cause prospective customers to be wary of doing business with you.

Specialized Business Insurance Coverage

While specialized liability insurance coverage is available for risks like cyber crime and reputation damage, it is also often covered under the most basic kind of business policy you can get: general liability. If it is, you face the task of determining whether it does so adequately.

General liability insurance covers medical and legal costs associated with bodily injury and damage caused by your business. This includes incidents with customers on your premises, damage to property you rent caused by fire and other natural causes and “advertising injuries”–like running an advertisement violating a copyright.

If you own your own business real estate, you’d generally need commercial property insurance to cover most categories of damage that can occur. A business owner’s insurance geared to small business owners may be available that combines elements of general liability and commercial property insurance.

Employment practices insurance has become relatively common. It covers costs associated with discrimination, sexual harassment and wrongful termination charges.

The Role of Insurance Advisers

All liability insurance coverage available to you can be overwhelming. That’s where professional insurance brokers and consultants enter the picture. A smart broker take the time to recommend a plan of coverage that meets your needs and budget.

They will also generally advise you on steps you can take in a risk management effort to mitigate the hazards that your business faces every day. It may even make you eligible for lower insurance premiums.

Installing appropriate security devices is a basic first step, if you haven’t already done so. Also, to lower the risk of theft or other problems caused by employees, conducting criminal background checks as part of your hiring process, is recommended by liability insurance companies.

As the old saying goes, an ounce of prevention is worth a pound of cure. And when the “cure” you don’t want to face is settling a multi-million dollar claim against your business, the “prevention” of buying liability insurance wisely and instituting a risk management program, it’s a small price to pay.

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Preventative Measures for Small Businesses To Take During COVID-19

Preventative Measures for Small Businesses To Take During COVID-19

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With COVID-19 having broad impacts on the global economy, you might be wondering if there are preventative measures for small businesses to take to protect themselves and their customers during these uncertain times.

Indeed there are. Below you’ll find actionable steps that businesses operating in a wide array of industries can take to secure services, put customers at ease, and stay nimble as new information becomes available.

Bolster Inventory

One of the most important preventative measures small businesses can take during these earlier stages of the COVID-19 disruption is to bolster their inventory.

It’s time to examine your current purchasing practices. Pay special attention to your overseas suppliers that may be impacted by export delays. You’ll likely want to increase orders from a typical 30-day supply to a 60- or 90-day supply, especially for your most popular inventory. If you find suppliers challenged to meet your increased quantities, don’t be shy about exploring alternative suppliers. At the very least, you’ll establish new supplier relationships and lay the groundwork for securing operations during current and future market disruptions.

You’ll also want to take steps to bolster your internal inventory for things like office and cleaning supplies. Consider increasing your orders for your daily consumables. Purchases like copier/printer paper, shipping supplies, and in-office consumables like paper towels and toilet paper can all be stored. Whether supply chains get disrupted for these items or not, you’ll use them regardless.

Establish In-Office Protocols

Major consumer-facing businesses have made a proactive practice out of sharing their preventative measures with the public. Whether it’s an airline sharing aircraft disinfectant procedures or your local fitness club letting customers in on their cleaning methods, your customers and employees will appreciate your procedural transparency.

Let the people you rely on most to keep your business running know that you’re taking their health and safety seriously. Here are some tips for safety measures small businesses like yours can take to reassure your team and customers:

  • Office/store cleaning: Consider an email or in-store signage letting customers know your daily and overnight disinfectant procedures. Offer hand sanitizer pumps or wipes if you have shopping baskets or carts. Add additional wipes at checkout/customer service areas. Place paper towels instead of reusable fabric hand towels in all public restrooms.
  • Examine return policies: Explore whether you need to make adjustments to return timelines to accommodate a customer’s desire to limit public exposure. Also, examine how you’ll process returned items and sanitation procedures for returns if necessary.
  • Employee measures: If you haven’t already, now’s a perfect time for an all-hands meeting to discuss COVID-19, its impacts, and safety measures your company is taking. Ensure employees have a plentiful supply of disinfectant products like wipes, soap, and hand sanitizer. Establish a firm sick policy and consider a permanent adjustment to your paid sick leave time.
  • Leverage technology: Consider limiting employee travel (even out and about in town) to avoid unnecessary exposure. Implement digital meeting tools like videoconferencing to continue collaboration during times of limited mobility.

Using the tips above, you can both reassure customers and employees as well as continue business operations responsibly.

Stay Up-To-Date

New information comes out each day about the impacts of COVID-19. One of the most important preventative measures for small businesses is an ongoing commitment to awareness.

Establish a point person or team within your company to stay up-to-date on the latest news. This includes information about new cases, travel recommendations, safety suggestions, and more. The following sites can provide reliable, authoritative information on COVID-19:

Depending on how COVID-19 affects your region, you might consider closing your business for some time to prevent disease transmission. While not an easy decision, it could be a necessary one for safety. Always consider whether a temporary closure of your physical location(s) could benefit public health and make contingency plans for key employees to work remotely during times of potential closure.

With so much news coming out each day about COVID-19, it’s natural to feel a bit flummoxed. However, a bit of planning, a generous amount of communication, and some common-sense safety measures can make your team and customers feel more secure during unsettling times.

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How Customer Service Can Help Small Businesses Survive A Potential Slowdown

How Customer Service Can Help Small Businesses Survive A Potential Slowdown

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Customer service might be the key that helps many service-oriented SMBs survive slow supply chains caused by COVID-19.

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coronavirus supply chain disruption

Supply Chain Disruption: Managing Impact from COVID-19

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U.S.-based SMBs account for roughly one-third of all imports into the country. Supply chain disruption during the COVID-19 era proves to be a critical threat to operations and profitability.

However, means do exist for businesses to mitigate the impact of these market disruptions. Simultaneously, businesses can create improved supply chain protocols to manage such disruptions.

Below, you’ll find insights from Suuchi Ramesh, founder and CEO at Suuchi Inc. and Albert Goldson, Executive Director at The Cerulean Council. Their tips can help your business navigate the current landscape. They can help you chart a path forward to improve you and your business’ resilience in any market.

Immediate Impacts of COVID-19 on Supply Chain

What can SMBs expect to experience as COVID-19 extends its reach across the globe? “The immediate impact will be robust customer demand for current inventory,” says Goldson. Businesses will stockpile inventory, which means suppliers could experience accelerated inventory sell-through. While the initial cash flow could be considerable, there are impending downsides.

Increased demand will cascade into multiple supply chain disruptions. Businesses might find themselves caught between depleted inventory and extensive replenishment delays due to indefinite lead times from overseas suppliers. Goldson states that companies could experience a cash flow squeeze due to uncertain lead times.

Ramesh anticipates that U.S.-based businesses will turn an eye toward risk and shift to an emphasis on local-for-local supply chains. “With more local control, businesses will have a better way to combat macro-economic variables.” Businesses are beginning to consider the impact COVID-19 might have on different areas of their supply chain. Ramesh advises companies to hedge their risks against disruptions from all suppliers.

“Today, it’s the east, but it really could be anywhere across the globe,” she says.

Four Tips for Managing Supply Chain Disruption

The following tips can help businesses to hedge risks and mitigate cash flow disruptions due to COVID-related delays.

Focus on Digital Systems

A supply chain is only as good as its communication protocols. That’s why Ramesh says businesses should consider investing in digital systems to improve communication in their supply chains.

“For companies who are primarily communicating by email or phone calls, when things like COVID-19 happen, communication comes to a halt,” says Ramesh. “If you have a system that connects your entire supply chain, it provides continued communication when something like this happens.”

Diversify Your Supply Chain

Now’s the time to diversify suppliers and initiate outreach to other potential suppliers. When businesses can develop a base of multiple supplier countries, they can still course-correct when one global supply center is affected. While new suppliers might seem to be a short-term solution, Ramesh considers alternative sourcing to ultimately be a long-term play.

“For brands that are lethargic or just don’t have the resources to think about multiple sourcing partners, it’s natural to procrastinate if there are no immediate risks,” she says. “When you’re forced to search for a short-term alternative, if successful, it can turn into a long-term opportunity.”

Goldson advocates for businesses using this time to establish multiple alternative suppliers.

“Even if you already have a secondary source, establish a third source,” says Goldson. “The world economy is entering a period of high risk and uncertainty, and the more options you have, the better you can weather the storm.”

“Stress Test” New Suppliers

Businesses can identify new suppliers and engage in entry-level transactions. Therefore, it’s critical to ensure new partners can meet demands under extreme conditions. Goldson advises that companies occasionally “stress test” suppliers by giving secondary suppliers a larger than usual order to see if they can handle the demand.

“It’s counter-intuitive, but think of how you test your car’s air-conditioner in the winter to make sure it’s running okay after months of non-use,” he says. These stress tests can help businesses identify maximum orders per supplier and create fulfillment strategies for a wide array of supply chain disruptions.

Focus on Compliance and Sustainability

As you put stress test protocols in place, Ramesh advocates for businesses to find a newfound focus on compliance and sustainability. “A disaster like COVID-19 is one thing, but you want to ensure that if any type of similar issue has impacted a partner, they have the procedures, resources, and steps in place to combat the issue and a digital system to record it all,” she says.

Have open and frank conversations with suppliers about current market disruptions. Ask them how their businesses are making adjustments to prevent future slowdowns on their end. Communicating about compliance and sustainable business practices across varied market conditions will ultimately strengthen the relationship between customer and supplier for the long term.

You now have four tips to help you shore-up supply chain disruption in the wake of COVID-19.

By diversifying your supply chain and investing in better communication across the board, you’ll be prepared to withstand market variances both now and in the future.

protecting your cash flow during the coronavirus outbreak

Tips for Protecting Cash Flow During COVID-19 Market Disruptions

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COVID-19, so far, has had far-reaching impacts on global trade. Your business could be one of the many curious about protecting cash flow during the current COVID-19 market disruption.

U.S.-based small and mid-sized businesses import one-third of all U.S. imports according to census data from 2016. Since exports from areas impacted by the coronavirus are already happening, businesses face a variety of challenges. Lower stock levels, missing components, and top-selling products could be in dwindling supply – all of which decrease cash flow.

If your business stands to endure a slowdown on account of COVID-19, you can still keep operations above water while trade turmoil settles down. Below you’ll find multiple strategies for protecting cash flow, taking an inside-out approach starting with business operations.

Analyze AP/AR

While it’s likely already part of your periodic financial review strategy, now’s the time to take a deep dive into accounting as the first strategy for protecting cash flow. Both accounts receivable (AR) and accounts payable (AP) might be due for a strategy shift. Both can also help bring much-needed cash in-house or keep cash-on-hand for a bit longer than usual.

  • AP: Look for subscription-based vendors and consider suspending service on non-essential office supplies and services. Reach out to vendors and leverage your good payment history to negotiate early pay discounts or extended due dates for a defined period of time.
  • AR: Extend early pay discounts to customers with timely payment histories. For past due receivables, consider establishing payment plans or discounting invoices to bring that cash on board.

Keep in mind that your customers and vendors might also be experiencing effects from the COVID-19 market disruptions. The strategies above can help keep cash flow steady and prevent the need to reduce headcount. You might also find that you build new goodwill with those on the other end of your AP/AR efforts, as they’re likely looking for cost-saving and improved cash flow measures right now as well.

Explore Bridge Funding

While COVID-19 won’t be around forever, just how long it will be around for remains unknown. That’s why today is an ideal time to explore bridge funding options as a strategy for protecting cash flow.

On-demand funding tools like a business line of credit can help you tap funds as needed and fill in cash flow gaps. You can also explore purchase order financing if you need to switch-up suppliers during lean cash flow times.

More conventional bridge funding solutions like business loans can help fund operations for the long-haul. Many loans offer flexible terms where payment frequency adjusts to meet your cash flow, which could be advantageous in the COVID-19 business environment.

Invite Solutions to Protect Your Cash Flow

Transparency is key during turbulent business times. That’s why it’s critical to bring your entire team up to speed on how it’s anticipated that COVID-19 will impact the business. Once your team is up to speed, invite them to contribute to conversations surrounding protecting cash flow.

For many small and mid-sized businesses, departments/employees can get unintentionally siloed. There’s reduced visibility to how other departments/employees manage day-to-day operations. Management might also have reduced visibility to how each department/employee could help keep operations going during periods of reduced sales or diminished supply.

Create a call for ideas. Encourage employees to cross-collaborate on solutions. Explore ways to dig deeper into your existing customer base versus a focus on new customer acquisition.

A commitment to transparency and collaboration can help surface efforts that could incrementally improve your cash flow. You also might discover a greater sense of team ownership in the company’s day-to-day operations and new initiatives that will boost business well beyond the days of COVID-19.

You now have three strategies for protecting cash flow during the COVID-19 market disruption, all originating from inside your company. The best part about all of these strategies is that they’re not just for times where a health concern is complicating your supply chain. Rather, they’re enduring strategies that all businesses can use year-round to keep operations lean. You could maintain a well-cultivated talent roster and deepen employee participation in the company’s short- and long-term goals.

 

Copyright 2021 • Kapitus • All Rights Reserved
information about the coronavirus

Coronavirus (COVID-19): What Small Business Owners Need to Know

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It’s nearly impossible to tune into the news these days without hearing a mention of coronavirus. Also known as COVID-19, this disease outbreak is wreaking havoc across the globe. You might be wondering what you most need to know about the outbreak as a small business owner.

This article will get you quickly up to speed on COVID-19. Learn what it is; how it’s transmitted. Read about the ways the virus could impact your business–and where to go for timely and reliable information.

What is coronavirus (COVID-19) and how is it transmitted?

According to the Centers for Disease Control (CDC), the current coronavirus (COVID-19) outbreak began in China in 2019. Coronaviruses are a family of viruses that occur in humans and animals alike. The current strain, however, hasn’t been seen before. There is no current vaccine available, and as it’s a virus, antibiotics aren’t effective in treating someone infected with COVID-19. Current antiviral drugs, like those used to manage the flu, are ineffective against COVID-19.

Experts estimate that COVID-19, like the flu, is transmitted by person-to-person contact. The two most common methods of contact are close contact (people within six feet of one another) and through respiratory droplets in the air from sneezing or coughing.

How could coronavirus impact my business?

COVID-19 could impact businesses from two directions: from outside and within.

Outside factors that could affect your daily business operations include:

  • Supply chain: Businesses that rely on overseas manufacturing or component sourcing could experience significant delays that impact fulfillment timelines.
  • Foot traffic: If an outbreak occurs in your city, brick and mortar businesses could see a significant slow in foot traffic, impacting revenue.

The virus could also impact factors within your company, including:

  • Remote work needs: If an outbreak happens locally or within your company, you might need to shift operations so that employees work remotely to prevent the likelihood of disease transmission.
  • Revenue decline: Revenue disruptions from supply chain issues or local outbreaks could impact cash flow, which could impact payroll and create challenges maintaining headcount.

While the above impacts might not have been on your list of goals for 2020, awareness puts you one step ahead. You can be proactive instead of reactive.

What can my business do to protect its customers and employees?

One of the most critical actions that businesses can take at present is to establish a stringent hygiene policy companywide. The tips outlined below might seem like common sense; however, in a fast-paced business world where staffing is sometimes lean to keep costs down, these measures often fall by the wayside.

Here are the most important actions the CDC currently recommends that businesses take:

  • Sick policy: Employees who are sick should stay home to reduce the risk of disease transmission. Sick employees should not return to work until they’ve been fever-free for at least 24 hours.
  • Enforce hygiene etiquette: Employees should wash their hands with soap and water (hot or cold). Hand sanitizer should also be made available, though it is currently in short supply. Make employees aware of cough and sneeze etiquette.
  • Cancel non-essential business travel: Shift to video meetings and remote collaboration methods to avoid exposing employees to potentially infected travelers.
  • Enact environmental cleaning: For SMBs with physical work locations, work with your janitorial service or those assigned to cleaning duties to implement additional sanitation procedures.

Think of ways that your business can play an active role in preventing the transmission of COVID-19. Maintaining a clean workplace and enforcing sick policies can go a long way to protecting your workforce and customers.

Where can I find accurate and timely updates?

Now, you’ll want to keep up-to-date on news about the virus as it comes available. Here’s what you can do to continue informing yourself and staying in-tune with the news.

Where can you turn for trusted information?

First, bookmark the CDC COVID-19 website. This site is a regularly-updated destination for scientifically-verified information on the outbreak and current concerns.

Next, have a look at the World Health Organization’s “mythbusters” page on the outbreak. The information here counters several dubious myths floating around about the virus and can help save you some needless panicking.

Finally, always consider the source of information. Misinformation about the disease is already rampant. The two sites above will have the most up-to-date and accurate information from medical and scientific experts. Your business is hard enough to run each day. You deserve reliable information to help guide you through adverse situations like the current coronavirus.

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6 Essentials Any Small Business Website Needs

6 Essentials Any Small Business Website Needs

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In today’s digital landscape, a small business website is one of the most important tools any business owner can have. It’s a place where your audience learns about who you are, what you do, and how you can help them. But what are the essential areas all small business websites should focus on when creating or updating their sites? We asked Katie O’Brien, a website designer and brand strategist, what small business owners should focus on. Here’s what she had to say.

1. A Simple Home Page

You don’t need to do all of the things on your website’s homepage. Focus instead on being clear and concise. O’Brien says, “Visitors should immediately — without scrolling — know exactly what you offer and if it’s for them. This makes the difference between someone landing on your page and immediately clicking the back button to go back to their search results…or sticking around and taking action on your website.”

2. Hours of Operation

When are you open for business? While you might think this is common knowledge, new-to-you customers might not have any clue when you do business. If you own a traditional storefront, this is especially important, but it’s important for remote workers or digital storefronts as well.

3. Testimonials

If you haven’t collected praise from your previous clients or customers, now’s the time. Your prospects want to read recommendations from people who have worked with you.

“The testimonials not only validate your products and services,” says O’Brien, “but they allow potential clients to imagine what it would be like working with you or purchasing from you.”

So, where should you place this praise? O’Brien suggests using them in two different ways. She says, “Testimonials should be strategically placed throughout your website to support the individual goals of each page on your website. You should also have a dedicated place on your website to list out all testimonials.”

4. A Clear List of Services

“Clarity is key with your services page,” says O’Brien. But what does that mean? If you have multiple offers or products, you may have a lot to say. However, there is a way to keep the main page structured. O’Brien says, “If you have multiple offerings consider having a simpler overview on your services page and an individual page for each service.”

“You’ll want to get clear on the action you want your potential clients to take. Should they book a call? Purchase a product? Once the call to action is identified everything should be built out around that.”

5. An About Page About the Both of You

Don’t think that the about page should be about only you and your business. Since this is one of the most viewed pages on any small business website, use it to remind your audience what problem (of theirs) you can solve. For example, a nutritionist might talk about how diet culture creates self-esteem issues, and then go on to talk about how her mission is to teach people to eat healthy in a way that makes them feel good about themselves.

6. Social Media and Contact Information

You want to keep people on your website until they’re ready to follow your calls-to-action, such as booking a call. However, not everyone who visits your small business website is primed to buy — though they may want to keep following you and reach out when they are ready. Here’s where directing them to your social media accounts and having a clear contact page come in handy.

But, O’Brien says, “Social media information and your contact information serve two completely different purposes. Most of the time if someone wants to contact you they have a very specific reason – for instance, a question before they buy. Those who are connecting with you on various social media outlets just want updates from you… some of the time.”

To help those clients wanting to buy, make your contact page easy to navigate to at all times, and keep the copy simple. As for social media, O’Brien suggests placing them in the footer of the small business website.

The key is keeping viewers on your site, until they’re ready to take the steps to move into the direction you’re leading them via your copy and design, not lose them to social media.

This may seem like a lot to do on one small business website, but don’t stress. O’Brien says, “I think a lot of people feel websites are this super complicated formula, but they’re a lot simpler than most think. Clearly state what it is you do or provide and how they can move forward. That should be the primary focus of every website.”

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business loans nc

Business Loans in NC: Your Ultimate Guide

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As a small business owner in the Tar Heel state, you focus on the future with your hands on the present. You have plans to take your business to the next level. Luckily as a North Carolina resident, there are many types of loans from a variety of organizations and institutions to support your business specifically. Depending on your needs and plans, you’re sure to find business loans in NC that fits the bill.

You want to expand your staff; increase your product offerings; ramp up your credit; grow your inventory; invest in an exciting new opportunity. But to realize those plans, you need some financial support from a lender who understands you and your business on a near-personal level. You want a small business loan made just for you. Today, we’ll explore the offerings available to North Carolina residents and businesses so you can make your next move expediently.

Carolina Small Business Development Fund Loans

If you’re looking for business loans in NC, a great place to start is the Carolina Small Business Development Fund–a nonprofit and Community Development Financial Institution that “lend[s] to start-ups and existing businesses across the state, with emphasis on businesses that have difficulty accessing financing through traditional loan sources.”

Carolina Small Business offers a variety of core loan products specific to businesses in the state. For example, if you live in Mecklenburg County, have an annual revenue of less than $1,000,000,000 and don’t have any unpaid judgments, open tax liens, or principal and business bankruptcy in the past five years, you may qualify for the Mecklenburg County Small Business Loan Program. This program offers up to $75,000.

Are you rebuilding your business in the wake of a natural disaster? Consider the Small Business Recovery Fund. It’s designed to “provide gap financing as a complement to Small Business Administration [SBA] and other disaster recovery programs.” This loan grants a minimum of $1,000 to small businesses with no maximum amount. Other disaster-based loan programs offered by Carolina Small Business include the Hurricane Florence Recovery Loan Program.

Carolina Small Business also offers Veterans Direct loans if they’re in-state veterans and/or their spouses are, and Healthy Carolina loans to established businesses and new entrepreneurs involved in the “production, processing, wholesale, distribution, and retail of healthy food products.” This is only possible as long as they’re located and selling healthy foods and food products in food deserts. In addition, Carolina Small Business’s African-American Loan Fund assists African-American entrepreneurs as they develop and expand their businesses.

Mountain BizWorks Loans

Live in Western North Carolina? If so, you may qualify for a loan with Mountain BizWorks. Mountain BizWorks offers loans as low as $1,000 to as high as $250,000 for small businesses in your area. Their model is unique. This means that they “consider non-traditional collateral, offer flexibility in the loan structure, and loan decisions and relationships are managed locally.” What’s more is, they’re willing to work with you to discuss out-of-the-ordinary circumstances that might have hurt a once-strong score. Interest rates vary based on your individual circumstance. However, they promise an answer within two to three weeks of your loan application.

Carolina Farm Credit

Carolina Farm Credit specifically applies to North Carolina’s farmers and rural residents. They offer farm and land loans for agribusinesses. As a farmer, you can seek support in funding for farm improvements, equipment, livestock and operations. Carolina Farm Credit offers farm land and acreage financial options. This is a good option if you’re hoping to expand physically or just get off the ground.

Local Banks and Credit Unions

When it comes to finding the right loan for your business, banks and credit unions can be particularly helpful. Local banks may provide additional tools and resources and leverage connections to help you get a loan that suits your needs and credit that a nationally recognized bank might not be able to do. In North Carolina, there are many banks that value small businesses and their contribution to the economic well-being of the state.

BB&T

With 285 branches in nearly 200 cities, BB&T is one of the biggest banks in the state. Its options for small business loans in NC are vast. Borrowing options include loans through BB&T, and benefits for members who utilize the SBA.

Self-Help Credit Union

Self-Help Credit Union, another major bank in North Carolina, offers small-business and commercial loans, as well as:

Truliant Federal Credit Union

Truliant Federal Credit Union has branches throughout the state. They offer tools to help you assess your business’s finances and secure the right loan for your needs. Loan options include SBA loans, USDA business and industry programs, construction and auto loans, equipment financing and others.

First Bank

First Bank, located throughout the Carolinas, is another fantastic option for business loans in NC. As a local bank, First Bank is intimately familiar with the markets your business touches. They can use that knowledge to support you in making financial decisions. First Bank’s small business loan offerings range from SBA loans to credit cards to lines of credit and beyond. They suit solopreneurs, entrepreneurs, and business owners with dreams to expand their business, to reconfigure financial structures, finance major investments, and beyond.

SBA Lenders

There’s a host of SBA lenders dedicated to supporting North Carolina small businesses in securing loans. According to the SBA North Carolina District Office, these include “SBA 7(a) Lenders, 504 Certified Development Companies, and SBA Microlenders.” For specific details and contact information, see the SBA North Carolina District Office’s official list.

As a small business owner based in North Carolina, you have lots of location-specific borrowing options. While this list contains some of the best and most diverse options for NC business loans, it certainly isn’t every single available option. In fact, depending on the nature of your business, your location and your needs, you might even be surprised to find a loan that’s “tailor-made” just for you.

Funding your next business endeavor can feel daunting, time-consuming, and confusing. If you find yourself feeling overwhelmed by choice and unsure where to start, utilize the resources offered by local banks (or local branches of major banks), the small business administration, or the Carolina Small Business Development Fund. Or, for fast, personalized service, unique expertise, and an answer guaranteed in as little as hours after you apply, consider finding your best financing solution through Kapitus. Once you’re approved, you can hit the ground running and make those pivotal moves that take your small business to the next level in 2020 and beyond.

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