Small Business Grants and Contests Still Available in Illinois

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Illinois, or the Prairie State as some call it, is home to 2.1 million small businesses, with over 232,000 located in the Windy City of Chicago, making it one of the most populous states for small businesses. During the COVID-19 pandemic, nearly 35% of the state’s small businesses were forced to shutter either temporarily or permanently, and rising interest rates, worker shortages and spiking inflation are further squeezing them.

Now is the time for small businesses in the state to search high and low for grant opportunities and contests in which they can gain access to free money in order to survive. Here is a list of grants and contests on both a national and local level that are still available to Illinois-based small businesses. 

On a National Level:

Kapitus’ $250K Building Resilient Businesses Contest – Deadline is Looming!

Kapitus has launched its Building Resilient Businesses contest, in which one first-place winner will receive $100,000; one second-place winner will receive $50,000 and five third-place winners will each receive $20,000. To enter, simply send a homemade, 2-minute video briefly describing your business, how it was able to persevere over the last two years, and how you would spend $100,000. The contest is open to all small businesses in the US (excluding Vermont and Colorado) that have been in business for at least a year and have less than $5 million in annual revenue. The deadline to apply is June 30, 2022. To enter the contest, click here.

Antares REACH Grant Program

Small business consulting firm Hello Alice will award $20,000 in grants to women- and minority-owned

Antares Reach Small Business Grants Illinois

The Antares REACH Grant program is giving away $20,000 to women- and minority-owned small businesses nationwide.

businesses to help them prepare for the next stages of growth. The grants are being funded by Chicago-based private equity firm Antares Capital. Applicants must have less than $5 million in annual revenue, have a demonstrated need for support and a strong business plan for growth. Grant winners will be eligible for an additional $5,000 in funding after completion of a post-grant support. The deadline for applications is July 15, 2020. To apply, you are required to become a member of Hello Alice’s community of small businesses. For more information, click here.

WomensNet Amber Grant

WomensNet gives away one $10,000 grant and four $1000 grants to women-owned businesses in distinct categories every month such as skilled trades (January), hair care and beauty products (August) and Creative Arts (October). The site also gives grants of $25,000 to two businesses each at the end of each year, with both of them being previous $10,000 monthly grant winners. Applications are due on the last day of every month. To apply, click here. 

American Express and Main Street America’s Inclusive Backing Grants

AmEx and Main Street America are providing more than 300 grants of $5,000 each over four cycles throughout 2022 to small businesses located in older or historic commercial districts with priority to be given to small businesses owned by the LGBTQ+ community, Hispanic-owned, veteran-owned, and business owners who are women and people of color. Applications for the fourth grant cycle are now being accepted by business owners who identify as native or indigenous people, Hispanic, LGBTQ+ and immigrants and refugees. Membership in the National Main Street Center is not required. Applications for the fourth grant cycle can be found here.

Skip Monthly Business Grant

Skip is a California-based social media company that helps both people and businesses get access to government-related services and information and is part of YoGov.org. Every month since March 2020, Skip uses revenues from its YouTube channel which awards $1,000 grants to small business owners as well as free services and information. The winner is announced on its YouTube channel on the third Wednesday of every month. For more information and to apply, click here.  

 

State Level: Open to Illinois Small Businesses Only

The Land of Lincoln also has several grant and contest opportunities, especially in Chicago, that are still open:

Neighborhood Opportunity Fund Grants 

Chicago’s Neighborhood Opportunity Fund is giving away grants three times in 2022 to small businesses in Chicago’s West, Southwest, and South sides to make improvements to their physical locations. These improvements can include land acquisition for expansion, roofing replacement or repairs and money to cover financing fees for a loan or lines of credit. The awards are up to $250,000 for small improvement projects and over $250,000 to $2.5 million for large projects. Deadlines for the second and third rounds of applications have not yet been established, but you can still apply. To learn more, click here.

City of Chicago’s Annual Business Plan Competition

Chicago Small Business Grants loans

The city of Chicago is giving away several grants to keep its small businesses afloat.

Chicago’s Office of the Treasurer Stephanie Neely is administering a contest to startups and young businesses in Chicago. The first-place winner, to be announced sometime in October, will take home $5,000. To enter, a small business must be a startup or no more than three-years-old with annual revenues of no more than $2 million. Applicants must submit their business plans as well as templates for their executive summaries. Applications are due on July 6, 2022. To learn more, click here. 

Restaurant Employee Relief Fund

The Illinois Restaurant Association Education Relief Foundation is awarding grants to restaurant employees who have faced personal and financial hardships within the past 90 days to encourage food service workers in the state to remain at their jobs. Those hardships include unexpected illness or injury, death of a family member or a natural disaster. The grants range from $250 to $1,500. While not paid directly to business owners, this grant can help owners make things a little easier on staff that is sticking it out through the hard times. Deadline to apply is August 31, 2022. To apply, click here.

Small Business Improvement Fund (SBIF) Remodeling Grants

The SBIF Remodeling grants are aimed at larger small businesses in Chicago with physical locations that are seeking to remodel or visually improve their business locations. To be eligible, the applicant must employ up to 200 workers, and have an average of $9 million in annual sales over the previous three years. Or commercial property owners with a net worth of up to $9 million and liquid assets of up to $500,000. The grant will cover 30% to 90% of a business’ remodeling work up to $150,000. The first deadline for applications is June 30, 2022, while the second and third deadlines are on August 1st and August 31st, respectively. To learn more, click here. 

Don’t Give Up Free Money!

With most federal pandemic aid programs dried up and current economic challenges such as inflation and rising interest rates putting a further squeeze on small businesses, it is more important than ever to apply for a chance to get free money for your business, be it through local or national grants or contests. 

Small Business Grants Still Available in New Jersey

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New Jersey serves as the headquarters for some of the largest pharmaceutical companies in the world and is known for its sprawling suburbs, manufacturing capabilities, pristine shorelines and its 861,000 small businesses. However, high taxes, bloated state budgets and little support from the state government has always made it a tough place for small businesses to thrive in. 

Those difficulties were compounded by the COVID-19 pandemic, which hit the Garden State’s small business community harder than 2013’s Superstorm Sandy. From restaurants along one of the state’s many boardwalks to retailers in one of the state’s 52 cities, roughly one-third of small businesses temporarily or permanently closed between 2020 and 2021. Many continue to struggle to stay afloat to this day, especially with spiking inflation, interest rate hikes and another recession looming.

Fortunately, there are several grant programs and contests available on both a national and state level that can help those small businesses survive and grow. 

On a national level, there are grants and contests that are still open that can land you a large pool of money and are worth applying for:

Kapitus’ $250K Building Resilient Businesses Contest – Deadline is Looming!

Kapitus has launched its Building Resilient Businesses contest, in which one first-place winner will receive $100,000; one second-place winner will receive $50,000 and five third-place winners will each receive $20,000. 

To enter, simply send a homemade, 2-minute video briefly describing your business, how it was able to persevere over the last two years, and how you would spend $100,000. The contest is open to all small businesses in the US (excluding Vermont and Colorado) that have been in business for at least a year and have less than $5 million in annual revenue. The deadline to apply is June 30, 2022. To enter the contest, click here.

WomensNet Amber Grant

WomensNet gives away one $10,000 grant and four $1000 grants to women-owned businesses in distinct categories every month such as skilled trades (January), hair care and beauty products (August) and Creative Arts (October). The site also gives grants of $25,000 to two businesses each at the end of each year, with both of them being previous $10,000 monthly grant winners. Applications are due on the last day of every month. To apply, click here. 

American Express and Main Street America’s Inclusive Backing Grants

AmEx and Main Street America are providing more than 300 grants of $5,000 each over four cycles throughout 2022 to small businesses located in older or historic commercial districts with priority to be given to small businesses owned by the LGBTQ+ community, Hispanic-owned, veteran-owned, and business owners who are women and people of color. 

Applications for the fourth grant cycle are now being accepted by business owners who identify as native or indigenous people, Hispanic, LGBTQ+ and immigrants and refugees. Membership in the National Main Street Center is not required. Applications for the fourth grant cycle can be found here.

Skip Monthly Business Grant

Skip is a California-based social media company that helps both people and businesses get access to government-related services and information and is part of YoGov.org. Every month since March 2020, Skip uses revenues from its YouTube channel to award $1,000 grants to small business owners as well as free services and information. The winner is announced on its YouTube channel on the third Wednesday of every month. For more information and to apply, click here.  

State Level: Open to New Jersey Small Businesses Only

Despite the fact that most of the pandemic-related federal aid to small businesses has dried up, the state is still offering several grants and inexpensive financing opportunities to assist small- and micro-businesses:

The Small Business Lease Grant

New Jersey Economic Development Small Business Loans Grants

Small Businesses in the Garden State should always keep an eye on The NJ Economic Development Corp. for new grant and tax relief opportunities.

The NJ Economic Development Authority (NJEDA) is administering grants to help small businesses and nonprofits with physical locations pay their rents. The $10 million program was funded by the NJ Economic Recovery Act passed in 2021 and is being funded by the state’s Main Street Recovery Finance Program. 

The idea behind the program is to assist in filling vacant lots across the state and assist in the growth of small businesses. Applicants must have a new or newly amended lease that is at least 250 sq. ft. larger than their previous space, and the lease must be for a minimum of five years. Deadline is ongoing, and funding amount depends on the business. To learn more, click here. 

New Jersey State Trade Expansion Program (STEP)

New Jersey has always been a major hub for international trade due to its many marine ports, such as the Port Newark Container Terminal, the Port Jersey container terminal in Jersey City and South Jersey Port Corp. in Camden. 

As such, the NJ State Trade Expansion Program (STEP), in conjunction with the US Small Business Administration, are offering year-round grants to small businesses in the state that are new to overseas trade or sell their products and services overseas. Applicants must have been in business for at least one year at the time of application and manufacture goods or produce services that are at least 51% US content. To learn more, click here.

NJEDA Small Business Improvement Grant Program

NJEDA is awarding grants of up to $50,000 to assist small businesses with physical locations in making improvements and upgrades to their buildings, as well as with purchasing new furniture, office equipment and fixtures. The project costs must be at least $5,000 and must have been at most two years prior to the date of application. 

Total project costs that exceed $50,000 will be subject to Green Building Standards, and applicants that use at least four workers may be subject to affirmative action requirements. Applicants will be awarded on a first come, first served basis. There is no set deadline for application To learn more about the grant program and apply, click here.

Main Street Micro Business Loan Program

NJEDA also oversees the Main Street Micro Business Loan Program. While this is not a grant program, it is popular among very small businesses in the state because it provides long-term, low interest loans to businesses in the state with 10 or fewer employees and annual revenues of no more than $1.5 million. The maximum term for these loans is 10 years and carry an annualized interest rate of 2%. The applicants must have been in business for at least six months. No collateral is required for the loan. To learn more and apply, click here.

Free Money is Better than Attitude!

Best selling author Janet Evanovitch once described New Jersey as a place “where dignity always runs a poor second to getting in someone’s face.” While the state’s small business owners may be tough and have attitude, they’re still going to need help, especially in the economically volatile times we’re living in. If you do own a small business in the Garden State, keep the door open to any new opportunities for free money.

Small Business Grants Lending Florida Kapitus

Small Business Grants, Contests Still Available in Florida

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With major economic hubs such as Miami, Orlando, Fort Lauderdale and Tampa Bay, Florida ranks number three in terms of states with the highest number of small businesses. The state’s 2.5 million small businesses rank it behind only California and Texas. 

With a high number of such businesses, however, comes a high amount of pain: the Sunshine State saw over 32% of its small businesses permanently or temporarily close during the height of the pandemic, one of the highest figures in the country. 

With yet another national recession looming on the horizon, getting free money has never been more important to the survival of the state’s small businesses. Fortunately, there are several small business grants and contests still available to small businesses in Florida on both a state and national level. On a national level, there are grants and contests that are still open that can land you a large pool of money and are worth applying for:

Kapitus’ $250K Building Resilient Businesses Contest – Deadline is Looming!

Kapitus has launched its Building Resilient Businesses contest, in which one first-place winner will receive $100,000; one second-place winner will receive $50,000 and five third-place winners will each receive $20,000. To enter, simply send a homemade, 2-minute video briefly describing your business, how it was able to persevere over the last two years, and how you would spend $100,000. The contest is open to all small businesses in the US (excluding Vermont and Colorado) that have been in business for at least a year and have less than $5 million in annual revenue. The deadline to apply is June 30, 2022. To enter the contest, click here.

WomensNet Amber Grant

Florida is home to 1.1 million women-owned small businesses, making it the state with the third-highest

Lending Grants Small Business Kapitus Women-Only

Previous winners of the Amber Grant for women-owned small businesses.

total of those businesses, so the WomensNet Amber Grants are very applicable to the state. WomensNet gives away one $10,000 grant and four $1000 grants to women-owned businesses in distinct categories every month such as skilled trades (January), hair care and beauty products (August) and Creative Arts (October). The site also gives grants of $25,000 to two businesses each at the end of each year, with both of them being previous $10,000 monthly grant winners. Applications are due on the last day of every month. To apply, click here. 

American Express and Main Street America’s Inclusive Backing Grants

AmEx and Main Street America are providing more than 300 grants of $5,000 each over four cycles throughout 2022 to small businesses located in older or historic commercial districts with priority to be given to small businesses owned by the LGBTQ+ community, Hispanic-owned, veteran-owned, and business owners who are women and people of color. Applications for the fourth grant cycle are now being accepted by business owners who identify as native or indigenous people, Hispanic, LGBTQ+ and immigrants and refugees. Membership in the National Main Street Center is not required. Applications for the fourth grant cycle can be found here.

State-Level: Open to Florida Small Businesses Only

Currently, there are several grant programs that are still available for small businesses operating in Florida to apply to. 

Florida High Tech Research Grants

The Florida High Tech Research Corridor is a public-private partnership between successful high-tech startups in the 23-county region of southern and central Florida and the Universities of Central and South Florida. 

The Corridor provides up to $150,000 in funds for applied research projects between private startups and small high-tech firms and university researchers. Funding is provided directly to the university research team and is used to expand the project’s scope of work and allow our students to participate in cutting-edge, applied research. Industry partners must execute a sponsored research agreement with the university to formalize the project plan and terms. To learn more, click here.

Axis Helps Miami Small Business Grants

Axis Helps Miami, a resource company for small businesses in the Miami-Dade area of the state, is offering several grant opportunities to various small businesses. One is a $50,000 grant to women- and minority-owned small businesses in the area and will include consulting services as well as free advertising at Miami Heat games and partnership endorsements for your business. 

The deadline to apply is July 11, 2022. Another grant will provide $20,000 to small businesses in the area that are looking to scale up but don’t have the funds to do so. The deadline for that grant is July 15, 2022. To explore each grant program Axis Helps Miami is offering, click here. 

Seminole County’s Small Business Assistance Program

Since 2021, Seminole County has been giving grants to small businesses in the county of up to $15,000 to support expenses such as payroll, office utilities and remote access equipment. Applicants must be a for-profit business within Seminole County since at least the beginning of 2020 and must be a member of Sunbiz, a website maintained by Florida state government’s Division of Corporations. Applicants must provide their taxpayer identification number. Commercially zoned businesses with 26-50 employees will receive $15,000 if chosen, while businesses with 2-25 employees will receive $10,000 if chosen. Home- or mobile-based businesses with no more than one employee in addition to the owner can receive $5,000. For more information, click here. 

CareerSource Florida’s Incumbent Worker Training Grant – Apply Soon!

CareerSource Florida is awarding up to $100,000 to any small business owner in the Sunshine state who is seeking to train existing employees with new skills. The employee must work at least 37.5 hours per week and must have been employed with the applicant for a minimum of six months. Those interested must register with CareerSource Florida’s website. Deadline for applications is June 30, 2022. To apply, click here.

Enterprise Florida International’s (EFI) Virtual Business Matchmaking Grants

Enterprise Florida is offering grants of up to $2,500 for small businesses in the state interested in expanding overseas, but do not want to have to travel to set up an export program. The program includes virtual introductions with pre-screened overseas partners and distributors via teleconference or videoconference. The program also includes a grant that covers the full cost of matchmaker service, whether it is provided by EFI or the federal government’s US Commercial International Trade organization. Companies can apply year-round. Grants must be approved before the first day of virtual matchmaking appointments. For more information, click here.

Orlando Business Assistance Program

The city of Orlando isn’t just known for Disney World and Universal Studios, it’s also home to over 37,000 small businesses. The city’s Business Assistance Program provides grants throughout the year to assist businesses in relocating or expanding in Orlando, which include funds for development fees, permitting and other costs associated with relocating and expanding. Small businesses must pay half the related costs, and the grant amounts can be up to $20,000. To learn more about this program, click here.

Apply Soon!

If you’re a small business in Florida, any chance to gain access to funds would probably be welcome, as after-effects of the COVID-19 pandemic and current tough economic conditions such as high inflation, rising interest rates and an employee shortage are still rocking the economy. Act quickly, as many deadlines for small business grants and contests are coming up quickly.

Recession small business lending Kapitus

A Recession is Looming, and the Time for Small Businesses to Prepare is Now

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You don’t need to be an economist to know that a recession is looming in this country. Most major financial indices show that the stock market is tanking. Inflation, especially fuel prices, continues to skyrocket, despite rising interest rates. Rising prices are forcing consumers to purchase only essential goods, and two years on lockdown due to the COVID-19 pandemic have them drifting more towards purchasing services such as travel packages and dinners out than physical products. 

Unlike the recession caused by the COVID-19 pandemic, small businesses don’t have Economic Injury Disaster Loans (EIDL) or the Paycheck Protection Program to fall back on this time around. Even the Employee Retention Tax Credit, a program designed to encourage businesses to retain employees during the pandemic, has expired. 

The good news, however, is that there are several steps you can take to prepare your business for a recession so that your company may survive and be in a great position to thrive once the economy bounces back. 

#1 Cut Operational Costs

Obviously, revenues often fall short of costs during a recession, and this often presents a painful conundrum for small business owners – how do you cut costs without crippling your business? Worse yet, how do you tell loyal employees that you have to let them go? While it’s a daunting task, the first thing that must be done is to separate your essential from non-essential costs and see where you can pare back. Some suggestions:

  • Cut down or eliminate the purchasing of less popular inventory, while focusing on having the most popular items in stock.
  • If you outsource services such as marketing or payroll, for example, you should consider moving some of those services in-house if possible.
  • During a recession, business owners need to adopt the mindset of doing more with less. Therefore, you might have no choice but to furlough employees or, better yet, make them contract workers. This, of course, will make you and your remaining staff busier as you will have to absorb the work these employees would have produced, but this may be necessary during difficult economic conditions. 
  • See where you can cut down on office supplies, especially big-ticket items.
  • If your business operates out of an office, small business owners may want to consider a smaller space while allowing non-essential workers to work from home. This trend is already happening because of the pandemic, so it shouldn’t be too difficult to implement. 

#2 Be Creative in Your Product Offerings

It’s important to remember that you’re not just a business owner; you’re also a consumer in your personal life, and therefore, you need to let your customers know that you’re feeling the same economic pain as they are. See if you can bundle popular products or hold regular discount sales to show customers that you understand what they’re going through and that you’re willing to help them. This can maintain a positive cash flow during a recession while retaining loyal customers.

#3 Adjust Your Marketing Efforts

The first thing that often gets cut during a recession is the marketing budget. While there may be opportunities to save costs in that area, you must remember that your greatest assets during a recession are lifetime customers, as they are the ones who most likely will continue buying from you when times are tough. Therefore, it will be important that you focus more heavily on marketing and selling to them during a recession. 

Change your marketing approach by offering repeat customers special discounts as a way of showing them that you appreciate their business. As stated above, let them understand that you feel their pain during these difficult economic times, and that you’re willing to cut prices for them on certain products. Doing this will go a long way towards ensuring your business not only survives the recession, but comes out stronger on the other side.

#4 Have an Honest Chat

Kapitus employees small business lending

During a recession, small business owners should have an honest discussion with their workers about being furloughed or laid off.

Your employees keep your business going just as much as you. During a recession, it’s important to have an honest, sit-down discussion with your remaining staff. Let them know that there is a recession and that sacrifices will have to be made in order for the business to survive. These sacrifices don’t have to be job losses. These can include seeking a cheaper benefits plan (if you offer them), possibly cutting down their hours and letting them know that they may need to produce more work to compensate for the fact that others were let go. 

In all likelihood this is going to be an uncomfortable conversation to have. You can explain to them, however, that recessions don’t last forever and that the situation will improve once business improves. They will probably appreciate your honesty.

#5 Get Your Financing in Order

Getting your financing in order just may be the most crucial element in your plan to survive a recession. The first thing you should do  if your small business has a lot of debt and you aren’t in the position to pay it all off now, is consolidate or eliminate that debt by taking out a lower-interest term loan, or negotiate a better deal with lenders for a lower rate or even try to get them to agree to receiving interest-only payments until business picks up again. Also, try to pay off as much debt as you can at the onset of the recession.

Second, if you don’t have much financing, you might want to consider strategically applying for more. A business line of credit may help you keep up with payroll and other expenses during a slow period. Government-guaranteed financing such as a long-term SBA 7(a) loan (if you qualify) can provide you with a relatively inexpensive way to gain funds to keep your operations going during a recession. Invoice factoring can help you get immediate cash for your outstanding invoices, while purchase order financing can get your suppliers paid right away. 

Of course, it may seem counter intuitive to add debt as a way to survive a recession, but remember: recessions don’t last forever. You’d be taking on this debt as a convenience to get your bills paid, and when economic conditions improve, you’ll be in an even stronger position to succeed.

Prepare Now 

Whether we like it or not, we are at the onset of a recession in 2022 and most likely part of 2023. This is a double whammy for small businesses that were already troubled due to the pandemic. Careful financial planning and examining ways to operate your business more cost-efficiently now could mean the difference between still existing in 2024 or shutting down over the next year-and-a-half.

Small Business Construction Green lending

Biden’s New Orders Expedite the Need for Contractors to go Green 

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The importance of going green just became even more important for small construction companies, as President Joe Biden signed three executive orders on June 6, 2022 aimed at boosting clean energy construction projects and the use of domestically manufactured clean energy technology. 

What the Orders Entail

President Biden’s new executive orders expedites the need for construction companies to become eco-friendly.

Specifically, the orders require the US Dept. of Energy to deploy the use of the Defense Production Act of 1950 to expand American manufacturing of solar panel parts, environmentally friendly building insulation, heat pumps, equipment for making clean power-generating fuels, and critical power grid infrastructure. Federal construction contracts will also require local contractors to use eco-friendly materials. 

According to an announcement from the White House, the order will encourage the use of project labor agreements that offer wages “above and beyond the prevailing rate and include local hire provisions.” The order will also encourage clean construction projects in low-income areas burdened by legacy pollution.

The orders also place a two-year moratorium on tariffs being placed on imported solar panels that the US imports from countries such as Cambodia, Thailand, Vietnam and Malaysia, from which the US gets 80% of its solar panels. The new orders aim to help achieve the Administration’s ambitious goal of eliminating carbon from the nation’s power supply by 2035. 

Why it Matters

Aside from, well, protecting the environment, the orders emphasize the urgency of contractors and subcontractors to demonstrate that they can handle green projects. This will be especially important as the federal government begins to search for contractors to handle a bevy of upcoming construction contracts as a result of the passage of the $1.2 Trillion Infrastructure Investment and Jobs Act passed late last year.

Put simply, it would behoove small construction companies to show that they have expertise in government-led clean energy construction projects. Aside from the executive orders, the construction industry – one of the least green industries in the US – needs to start making a push toward becoming green to survive going forward. This has become more than just a trend – currently, the building industry uses nearly half of all electricity used in the US, according to Research Gate, and more than 28% is used by the transportation industry. ComfyLiving.net estimates that green construction projects will reach nearly $100 billion by 2023 in the US.

Actions to Take

There are several ways small construction companies can certify themselves as being proficient in green technologies. 

  • Get Green Certified. Construction companies can receive their “green certification” through either the Green Building Initiative (GBI), which assists the National Association of Home Builders to promote sustainable energy building guidelines for residential structures, or the Leadership in Energy and Environmental Design (LEED), which is a rating system for construction eco-performance.  The two programs use performance-based codes to ensure that construction companies use design, construction, tools, and processes that are up to state and local green codes. The International Green Construction Code (IgCC) often sets these requirements as well and is followed by both LEED and GBI. This certification is a quick way to let government agencies and private clients know that you are environmentally conscious, as well as an excellent construction company.
  • Use Recycled Construction Materials. Using recycled materials to construct a home or
    small business construction eco-friendly lending Kapitus

    Using environmentally- conscious materials such as eco-friendly insulation will go a long way towards making your construction company “green.”

    building will go a long way in letting your clients know that your company is serious about being green. These materials can include recycled concrete, wood and steel, and involves the use of eco-friendly materials such as plastic composite lumber, wool bricks and polyurethane rigid foam. 

  • Offer Green Solutions. Your company can make a lasting impression on customers by offering various green solutions when building a home or office building. Nearly half of the power used by homes and office buildings is for heating and cooling, so giving them greener and cheaper options for electricity and insulation will show that your construction company is environmentally conscious.  Installing solar panels would probably be the most obvious way of making a home or office building more energy efficient. You can also use eco-friendly insulation so as not to waste hot or cold air through a structure’s HVAC system. Other options include offering to install programmable thermostats, water-conserving plumbing, green HVAC systems and offering to install low emissivity (Low-E) windows.
  • Use Energy-Efficient Construction Vehicles. It may be time to replace and update your equipment with environmentally friendly machinery. Construction equipment manufacturers such as Bobcat, Volvo, John Deere and Caterpillar already produce construction equipment such as backhoes and bulldozers that have economy modes and on-demand throttles installed in them to reduce their carbon footprint. These companies are also in the process of developing electric (instead of gas-powered equipment) to become more eco-friendly. 
  • Show Concern for Your Customers’ Health. Present manufacturers’ reports on the materials you are using to your customers to inform them that you are using materials that will benefit their health and wellness, especially when it comes to the air quality in their homes or buildings. Such reports are produced by the Health Products Declaration Page site run by SCS Global Services, and the Environmental Product Declaration site.
  • Use Energy-Efficient Processes. Using 3D printing to show models of your projects to customers and blockchain technology to centralize data from contractors, subcontractors and customers to prevent wasting hundreds of pages of paper. You can also use construction software produced by such companies as ProCore and Worksuite to make projects more efficient by managing material procurement to cut down on waste and save time, money and resources. 

Market Yourself as Green

Making your construction company green won’t mean much if customers and potential contractors don’t know it. It’s important to make the necessary changes to your marketing strategy to inform future customers and government contractors that you meet eco-friendly standards. 

Make changes to your website and advertisements to let the world know that you’re eco-friendly. Also, make sure that one of your pre-qualifications is that your company adheres to environmentally friendly standards. This could very well mean the difference between landing and losing a client. 

Don’t Get Caught Off-Guard

It’s obvious that more state and federal agencies will require contractors and subcontractors to follow eco-friendly standards, especially with the passage of the Infrastructure and Jobs Act. It’s crucial that your construction company takes the necessary steps to let the world know that, in addition to being an excellent construction company, that you’re also environmentally conscious.

Small Business Funding Lending Kapitus

Government Offering $10B in Small Business Funding – How to Take Advantage

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Small businesses should be checking in with their state governments to see how to get a piece of the latest round of pandemic funding. In late May 2022, the US Treasury Dept. issued the first chunk of the federal government’s much-debated State Small Business Credit Initiative (SSBCI) – a $10 billion program included in the $2.1 trillion America Rescue Plan Act of 2021 that distributes money to states, territories and tribal governments for the purpose of providing venture capital to, and encouraging private lending for, small businesses. 

States must apply for the federal funding, and if chosen, will receive money in three tranches throughout the year. The program also allocates $1.5 billion of the $10 billion for women-, minority- and veteran-owned small businesses, as well as those in economically disadvantaged areas. An additional $1 billion in incentive funding has been set aside for states that demonstrate a proven ability to reach those small businesses.

The Treasury recently released $200 million to five states – Maryland, Hawaii, Kansas, Michigan and West Virginia in the first of three tranches to be released to them this year. 

The Purpose of SSBCI

There have been grumblings from some politicians that pandemic funding is no longer needed as unemployment has decreased dramatically, and that the program has the potential to be rife with corruption. 

Both the Biden Administration and the US Treasury Dept., however, have pointed out in public statements that there are several safeguards in place to detect and avoid corruption. Among them are that states receiving funding will not receive subsequent tranches if they have not met specific performance and compliance requirements, and they will also be required to provide quarterly and annual statements on how the funding is being deployed.  

The Biden Administration has said that the program is still necessary to support the thousands of budding entrepreneurs who launched small businesses during the pandemic, as many of them lost their jobs or worked from home and became inspired to start their own businesses.

Funding Lending Kapitus Small Business

Biden Administration advisor Gene Sperling said the SSBCI program is meant to boost small businesses and entrepreneurs still suffering from the pandemic.

In a public statement, Gene Sperling, a senior advisor to the President, said, “This program is directly putting more wind at the back of this trend. It is precisely about helping people with good business plans and strong ideas but without deep financial ties or significant collateral not to be unfairly shut out of access to capital as happens far too frequently in our economy.”

How it Works

Once states receive their initial tranche of funding, they must meet requirements of how the money is spent. Generally, states that receive funding can redistribute money towards community development programs, minority depository institutions, community banks, economic development programs and nonprofit organizations that support small businesses in their communities. As mentioned above, states that offer funding opportunities to women-, minority and veteran-owned small businesses will be favored when applying for funds.

Maryland, for example, will use its funding to expand the state’s Neighborhood Business Works program, as well as increase the state’s venture capital funding to aspiring startups, as well as provide debt offerings to new small businesses, said Owen McEvoy, deputy secretary of the state’s Department of Housing and Community Development, in a public statement.

Specifically, the act outlines five areas in which individual states can spend the funds:

  1. Loan Guarantee Programs. Individual states can partially or fully guarantee private small business loans. These can include microloans – smaller loans often earmarked for startups in underserved communities. Small businesses can also receive partially guaranteed lines of credit, term loans and commercial real estate loans.
  2. Collateral Support Programs. This type of program gives eligible small businesses cash collateral for a loan that otherwise do not have such assets on hand to obtain a loan.
  3. Capital Access Programs. These types of programs typically create a reserve fund in local communities to shield eligible private small business lenders from taking large losses when borrowers default on their payments.
  4. Loan Participation Programs. In these types of programs, the state government can act as a direct lender by offering to purchase a portion of a small business loan or granting a new, companion loan to loans that already exist. 
  5. Venture Capital Funding. Participating states can use government funds to either directly fund startups or provide assets to private VC managers that invest in startup small businesses.

Other Rules

States that receive funding must spend at least 80% of funds received through the SSBCI program and must release detailed progress reports on how the funding is being distributed, as well as reports on how those supported businesses are faring. States must also demonstrate stringent screening requirements of applying small businesses to guard against fraudsters posing as small business owners. 

How to Take Advantage of Funding

Unfortunately, small businesses will have to do some legwork to try to find out whether their individual state has received funding through the SSBCI program, as there isn’t a single way to do so. Small business owners should:

  • Keep a close eye on press releases and announcements from the governor’s office of their respective state.
  • Check with local private lenders and VC funds to see if they have received funding guarantees from the SSBCI program.
  • Monitor news of community development programs in your state.
  • Frequently check for breaking news about small businesses in your state and local communities.
  • Keep a close eye out for any new announcements from your local Small Business Administration office. 

Don’t Pass up Opportunities for Funding

By not renewing the Paycheck Protection Program and the Restaurant Revitalization Fund, it’s clear that the chances of Congress authorizing spending on any additional pandemic relief funding is nil, so this may be the last chance for small businesses to capitalize on such funding. 

Monitor your state government carefully to see if and when funding from the SSBCI comes through. If your state receives funding, your state government will clearly spell out ways you can take advantage of that.

Subscription Box Small Business Lending Kapitus

Enhance Your Success by Offering Subscription Box Services

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There’s no doubt that these are trying times for US-based small businesses, as rising inflation and employee shortages, among other factors, are clouding their future cash flows – especially in the retail and eCommerce spaces. One of the sure ways to pad your future cash flow, increase customer loyalty and increase your database of repeat and lifetime customers is to offer subscription box services.

Although people often think of video streaming services or publications when they hear the word ‘subscription,’ this service has become popular among retailers selling physical products. In short, more retailers are offering groups of products to customers who agree to pre-pay for and receive on a weekly or monthly basis for a predetermined time frame. 

According to tech consulting firm NCR, subscription services among eCommerce and retailers rose 23% during the COVID-19 pandemic, and have increased 17% on a year-over-year basis for the last five years.

In fact, the pre-pandemic years saw the rise of the most popular retail subscriptions services such as Birchbox (beauty supplies), Blue Apron (homemade meal kits) and Dollar Shave Club (men’s shaving products).

Should You Offer a Subscription Service?

Whether you should offer subscription services depends on the products you sell, as they aren’t for every small business. For example, such a service probably wouldn’t be a good fit for construction companies and business services firms such as accounting and law firms. If you sell physical products, however, a subscription service can bolster your bottom line and ensure future sales, and the best part – if you set it up correctly, you don’t need to be a major retailer to offer such a service. 

No matter what physical products you sell, subscription services have skyrocketed during the pandemic. Consumers have shown that they enjoy receiving a surprise box of products tailor-made that fit their personal or professional lifestyles on a weekly or monthly basis for an automatically recurring fee, especially now as more consumers are working from home. 

Get Inspired

If you’re unsure whether the products you offer would work in a subscription plan, you should first determine who your target customers are and what niche you are seeking to fill. The first thing you should do is check out other successful, small- to medium-sized businesses that have made it work for inspiration. Examine how companies such as The Honest Co. (environmentally safe baby products) and KiwiCo (homemade science projects for kids) have successfully built their businesses around subscription services.

Granted, those are now large companies. If you believe your business is too small to offer this service, you’d be wrong – consider the success of these small business subscription services created at the height of the pandemic that are still going strong today:

  • Business Book Monthly. Business Book Monthly is a small business that has built a successful model by getting customers to subscribe to a service in which they receive a new business advice book as well as an assortment of office products every month.
  • GlobeIn. GlobeIn sends exclusive artisan products for the home or office monthly and offers a
    GlobeIn Kapitus Small Business lending

    GLobeIn is a great example of a small business finding success in the subscription box industry.

    three- or six-month or annual subscription with prices ranging from $35 to $40 per month. Notice how its site features positive business reviews and colorful graphics highlighting its various products.

  • CrateJoy. CrateJoy offers several unique subscription boxes containing  products such as flower arrangements, monthly earrings and food and snacks. Its most popular subscription is its Fair Trade Fridays boxes, which contain artisan trinkets from various independent artists. 
  • Sitti. Sitti partners with women-owned businesses and sends monthly boxes containing nine ethnically diverse artisan products.
  • Each Peach Market. Each Peach Market sends boxes of gourmet cheeses with recipes, handmade chocolates and wines on a quarterly basis for a few hundred dollars per year. 

Where do you Begin?

If you have products that you know your customers will love to receive at various intervals, it’s time to set up a service – but, where do you begin? Once you’ve figured out your niche and determined who your target customers are, here are some steps you can take to launch your subscription box enterprise:

#1 Create a Prototype Box

The first question to ask yourself is: what do my customers want? Whether you sell gourmet snacks, clothing or beauty and fashion products, put a list of products together that your target audience would want. Advertise that product on social media, on your website or in your physical store to see customer reactions to it. 

It may take a few tries, but once you’ve come up with the perfect box, you must be creative in how you’re going to update and personalize those boxes at the intervals you want – be it weekly, monthly or quarterly. This sounds like a chore, but it’s something you can have fun with as a business owner. 

If you sell gourmet snacks, for example, you may want your boxes to contain food items that correspond to the different holidays during the year. If you’re a home goods store, you may want to sell boxes that contain small items for gardening in the spring. 

#2 Price it Accordingly

Obviously, your ultimate goal as a small business owner is to be profitable, but you don’t want to charge so much that it will drive away customers. Like with any product, you need to take into account the cost of the materials, marketing costs, transaction fees and packaging and shipping costs when pricing your boxes. 

With inflation currently skyrocketing, you should also consider that consumers are seeking bargains now more than ever before, so a key component of your success will be to market your subscription boxes in a way that lets customers know that they will be saving money by pre-purchasing your subscription boxes than if they simply purchased the products separately. 

#3 Personalize Your Boxes

One of the allures of a subscription box is that the subscriber sees it as a present to him or herself every month. Every customer has their own tastes, so it’s important to give them choices as to the style of boxes that they want based on their age, gender, income level, etc.. 

For example, subscription box company BespokePost, which sells retail items from clothing to hardware tools, takes into account each customer’s age, color preference, grooming habits and size before personalizing boxes for them, ensuring that they deliver boxes that individual consumers will enjoy. Personalizing your boxes will bring you greater customer loyalty and ensure future subscriptions. 

#4 Figure out Inventory and Shipping

Everyone knows the economic challenges businesses are facing right now, especially small businesses. For this reason, small businesses need to figure out the best way to keep inventory flowing and shipping costs down. The rules of inventory management have changed for small businesses over the past year as supply chain disruptions continue. 

eCommerce and physical retail stores seeking to offer subscription boxes should set up a system in which inventory can be pre-ordered. Your list of suppliers should be diversified, and it may be best to partner with other small businesses to offer unique products and to make sure you have products in stock for your customers.

As far as shipping goes, examine the best and most cost-effective shipping fulfillment companies for your subscription service, especially if you’re engaging in direct-to-consumer shipping practices. There are also a variety of ways you can reduce shipping costs so that you don’t have to pass those costs along to your customers. 

Enhance Your Business

In all, subscription boxes are a great way to ensure future sales, increase cash flow and customer loyalty. The past three years has witnessed skyrocketing growth in the popularity of subscription box services from retailers, as customers like to feel special with personalized boxes and want to feel like they’re getting a bargain. If a subscription box service is right for your business, don’t find yourself left in the dust in this growing trend.

Federal contract small business kapitus lending

Tips on Applying for and Winning Government Contracts

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A windfall of government contracts, both on a federal and state level, are on their way for small businesses over the next few years, thanks to the passage of the massive $1.2 trillion Infrastructure Investment and Jobs Act that was passed last November. 

The current law requires 23% of prime federal contracts be eligible for small businesses, especially women- and minority-owned businesses, and the new law means that local and state governments, as well as the federal government, will be seeking to contract construction firms, IT companies, engineering firms, equipment manufacturers, electricians, law firms and a host of other types of small businesses. 

The Money is out There…

Don’t miss out on the lucrative opportunities that will be coming from the federal government.

The new infrastructure law calls for:

  • $110 billion to repair existing roads and bridges and build new ones; 
  • $65 billion to be spent on building high-speed internet across the country; 
  • $73 billion to upgrade the nation’s existing power grids; 
  • $39 billion to increase and improve public transportation;
  • $15 billion on electric vehicle investments; 
  • $25 billion to modernize airports, and
  • $55 billion to enhance water safety.

The challenge for small businesses throughout the country now is to find and apply for these government contracts and prepare to take on new public projects. Small businesses intending to work on government contracts need to prepare themselves in terms of marketing, inventory management and employment. 

Finding Contracts

If your small business plans to apply for a government contract, the first thing you need to do is register your business in the System Awards Management (SAM) program run by the federal government, if you haven’t already. This is the system in which you can create a profile of your business and describe what your business is capable of. 

Once you do that, your business will be entered into the Dynamic Small Business Search database that is run by the SBA. That’s the database that is used by federal agencies to find small businesses with which to contract. Small businesses can also use that database to connect with other small businesses for subcontracting work. Government agencies are required to use SAM to advertise all federal government contracts over $25,000.

You also want to secure a contract with the US General Services Administration (GSA), which connects government buyers with contractors. By doing so, you will get onto the GSA’s schedule, which means you’ve been approved to do business with the government. You’re also going to want to keep up with your state and local governments, as much of the funding from the Infrastructure Act will go to them for contracting as well. 

Preparing to Serve

Landing a government contract can be quite lucrative for your small business, but you need to take steps to ensure that your company can handle the work that such contracts require. This will most likely require your business to have great access to capital and hire additional staff with specialized skills. Remember, there are a number of financing tools out there that can help you prepare to land a big contract. Some of the basic steps are: 

Increasing Inventory, Modernizing Equipment 

Landing a contract with the federal government could mean that you must either increase your inventory or buy new supplies. A construction firm, for example, may have to stock up on extra lumber and other materials and purchase new machinery to fulfill a large contract. That could mean expensive upfront costs for you if you do win a government contract. With current supply chain disruptions and rampant inflation, you may be short on immediate funds for new materials. 

This is where lending tools such as purchase order financing can come in handy. PO financing provides assets to pay your suppliers upfront, and the lender will base its borrowing decision on the credit of your customer, and in this case, who has better credit than the federal government? This type of financing will help you with your cash flow because it allows you to operate without having to take on additional debt, and it also allows you to make sure you can meet the necessary milestones for a project that you are hired for. 

If you need new, expensive equipment to fulfill a contract such as a new bulldozer for a construction project, you may want to consider equipment financing – financing that has relatively few requirements and can pay for vital equipment upfront. You should also carefully consider whether purchasing equipment makes more sense for you than leasing equipment.

Hiring Specialized Workers

If you’re going to bid for government contracts, you may need to hire additional staff that specialize in the work being required. For example, if you’re a construction firm that wins a bid to build a new road or bridge, you’re going to want workers experienced in doing so. If you’re a law firm that’s been contracted to perform an environmental study for a new construction project, you may want to add attorneys that specialize in that. 

Hiring additional workers may be both difficult and expensive, especially now that we’re still amid the “Great Resignation,” and will require extra operating cash. If you run a small construction firm, hiring additional workers for a government contract may be especially expensive, since you will be obligated to follow the Davis-Bacon Act, which mandates that construction workers for a government contract be paid the average wage of workers of a similar private project.

If that’s the situation you’re in, you may consider taking out a line of credit or negotiating an increase to your line of credit if your business already has one in place, or even taking out a new business loan. A line of credit and a business loan are generally cost-effective ways of fulfilling your operating costs – including meeting payroll – during times when your cash flow may be uneven. 

Create a Marketing Plan

The federal government, , in many ways, is no different than any other client – you need to get its attention through marketing and advertising efforts. Target specific government agencies that you want to win contracts from. Get to know who the decision makers and influences are in those agencies, and create campaigns that involve email, text and social media marketing. Let them know that your small business is capable of performing the task they are seeking to contract out. 

The Federal Insurance Deposit Corp. (FDIC) has a very good presentation on how to effectively market to the government. If you don’t have the time or bandwidth to market yourself, there are actually several firms out there that specialize in this type of marketing. 

Don’t Miss Out!

Many economists believe that the US is heading into a recession as inflation and interest rates continue to spike, so it’s important that you get as much business as possible for your small company. Government contracts represent great business opportunities, as winning them will bolster the reputation of your firm and guarantee income.

Small Business Grants Lending Kapitus California

Small Business Grants Still Available in California

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With major urban hubs such as San Francisco, Los Angeles, San Diego and San Jose, California is indeed a golden place for small businesses. With 4.1 million small businesses scattered throughout the state, California boasts the largest population of small businesses in the US, eclipsing even New York and Texas. 

With the most small businesses, however, came the most suffering during the COVID-19 pandemic out of any other state. By 2021, over 40,000 small businesses were forced to close, including one-third of the state’s independently owned restaurants. Also, more PPP loans were taken out by California small businesses than in any other state. 

Congress has made it clear that they are not going to allocate any more COVID relief money for small businesses. Programs such as PPP and the Restaurant Revitalization fund most likely will not be given any renewed funding, so small businesses in the Golden State are going to have to turn to grants for relief.

There are still some state and national grants and contests that California small businesses can apply to.

Kapitus’ $250K Building Reliant Businesses Contest

Kapitus has launched its Building Resilient Businesses contest, in which one first-place winner will receive $100,000, one second-place winning will receive $50,000, and five third-place winners will each receive $20,000. To enter, simply send a homemade, 2-minute video briefly describing your business, how it was able to persevere over the past two years, and how you would spend $100,000. The contest is open to all small businesses in the US (excluding Vermont and Colorado) that have been in business for at least a year and have less than $5 million in annual revenue. The deadline to apply is June 30, 2022. To enter the contest, go here.

The Small Business Innovation Research Program (SBIR) and the Small Business Technology Transfer Program (STTR)

These two federal programs serve as a conduit between small businesses engaged in scientific research and development and government agencies seeking to provide them with grants, and especially pertains to California’s Silicon Valley, the world’s largest hub for technology startups. Grants come in all sizes from various agencies. For example, the US Dept, of Energy provides grants to small businesses innovating in energy production. The STTR program requires that applying small businesses have a partnership with a nonprofit scientific research organization. To qualify for either program, click here.

American Express and Main Street America’s Inclusive Backing Grants

California has one of the largest Hispanic and LGBTQ populations in the country, so the American Express and Mainstreet America’s Inclusive Backing Grants national program very much so pertains to the Golden state. AmEx and Main Street America is providing more than 300 grants of $5,000 each over four cycles throughout 2022 to small businesses located in older or historic commercial districts with priority to be given to small businesses owned by the LBGTQ+ community, Hispanic-owned, veteran-owned, and business owners who are women and people of color. Applications for the fourth grant cycle are now being accepted by business owners who identify as native or indigenous people, Hispanic, LGBTQ+ and immigrants and refugees. Membership in the National Main Street Center is not required. Applications for the fourth grant cycle can be found here.

The California Dream Fund

The California Dream Fund is a $35 million small business grant program by the state’s Office of the Small Business Advocate through select centers of the state’s Technical Assistance Expansion Program (TAEP) . New entrepreneurs and small business owners must complete an intensive training program through select participating centers of their local TAEP office. Following successful completion of the training and consulting program, new businesses will be eligible to apply for a microgrant of up to $10,000. Those interested can apply here. 

The Job Creators Quest Grants

Southern California business owners who identify as people of color, military veteran or with the LGBTQ+ community with two to 20 employees can still apply for a $100,000 grant program from Founders First, which will choose 30 winners by the end of the year. As a business owner, you need to demonstrate that the grant money would be used as growth capital or to provide premium wage jobs, as well as fix or enhance vital equipment in order to scale up your business. The deadline to apply is Nov. 30, 2022, and the small business applicants must be located in the Los Angeles, Orange County, Riverside, San Bernardino and San Diego regions. Those interested can apply here. 

The San Francisco Storefront Grant Program

The city of San Francisco is providing $1,000 to $3,000 grants to assist small businesses in low-income districts become compliant with the city’s Accessible Business Entrance program that ensures that businesses are accommodating to those with disabilities. To qualify, your business must have been sued for not being accessible to disabled peoples and be a nonprofit. The deadline for the grant program is June 30, 2022. Interested applicants can learn more about the program here.

Don’t Lose Free Money

Small businesses across the country are being hit with the trifecta of bad economic conditions: skyrocketing inflation, staff shortages and supply chain disruptions, and that condition is being especially felt in the most economically diverse state in the country, California. Small business owners should seek to obtain grants any way they can in these uncertain times.

Marketing Sales Retention small business Kapitus

Sales 101: Don’t Forget About Customer Retention!

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Filling your pipeline with sales leads is one of the most important tasks for you as a business owner. Afterwards, however, what’s even more important is customer retention – turning your first-time customers into repeat customers, or better yet, lifetime customers. Getting repeat customers is crucial to the future of your business, as it guarantees future sales, and selling to an existing customer is typically cheaper in terms of customer acquisition costs than acquiring a new one.

There are several ways to encourage return shoppers, even during these harsh economic times.

Automation Works

Manually keeping in touch with your existing customers can be an exhausting task, and one that you probably don’t have the time and bandwidth to do as a small business owner. Fortunately, there are software packages out there that can do the work for you by automatically sending text and email messages to existing customers advertising a promotion or a sale, conduct a customer satisfaction survey or send them newsletters or blog post alerts if your website offers content.

On average, email marketing produces an ROI of $36 for every $1 spent, according to consumer research group Litmus. Additionally, 97% of Americans own a cell phone and use their phones to shop, and according to a study by Simply Texting, mobile phone marketing campaigns have an average conversion rate of 45%. There are many email automation software packages out there (and some of them are free!) to choose from, as well as SMS marketing tools you can use to automate these processes.

“Because You’re a Loyal Customer…”

One of the most powerful methods of getting a repeat sale is to make the consumer feel as if they’re getting a special discount or bargain. You can use this as a strong selling point to existing customers who already know your brand and, presumably, trust you. Send them special offers on either updated products or ones similar to what they’ve already purchased via a text or email campaign. This will make your existing customers feel special and less likely to view your promotional messages as spam.

Additionally, “aftersales” are a great way to retain customers, especially if you’re a services firm such as a cleaning firm or a car mechanic shop. You should reach out to existing customers to gently remind them that they may be due for another cleaning, or that they’re cars are due for another oil change or maintenance.

Do Your Employees Care?

Let’s face it, whether you own a retail store or an eCommerce business, your employees are the key to successfully retaining customers, as they are largely the ones who deal with them and thus provide the “customer experience.” As consumers, however, we all-too-often deal with employees who simply don’t care – be it a sales clerk at a retail store or a customer service representative on the phone. These employees are often young and get paid subsistence-level wages, and therefore aren’t concerned about whether customers choose to buy products from your company. Even if you tell them that you’re unhappy and threaten to never buy a product from their company again, their response will most likely still be total apathy.

If this is the situation you find yourself in as a small business owner, you can join the rest of the older generation and ruminate over Millennials’ and GenZers’ supposed lack of work ethic, or you can take a more constructive approach by asking yourself, ‘Am I doing enough to incentivize my employees?’ Offering performance-based bonuses, career training on sales, being flexible when it comes to work schedules and promoting a strong team environment will motivate your employees to want to contribute. 

Listen to Feedback!

Listening to your customer feedback is key to improving your business, and how you react to it is one of the important keys to retaining customers. You should diligently examine whether your business has been reviewed. Think of every review, whether it’s on Yelp!, Google Reviews or social media, as a chance to retain a customer. You should also view negative reviews as positive – if they’re reasonable and rational, they will offer you a roadmap on how to fix issues with your business to make it more attractive to customers, as well as a chance to appease any unhappy customers. 

It’s also important to personally respond to both negative and positive reviews. With negative reviews, be apologetic and offer either some sort of clarification or ways to make it up to the customer. Other consumers will see that and this will enable you to make a positive impression on other potential customers. 

Retention is Key to Survival

As a small business owner, much of your time will be spent trying to gain new prospects and customers. While that is certainly vital for your business, what’s even more important is keeping the customers you already have. Relatively small investments in automated email software packages and in a good training program for your employees will go a long way in ensuring the longevity of your business.

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