Why Building A Healthcare Branding Strategy Is Crucial For Your Medical Practice

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As an independent healthcare practitioner, 100% of your focus is, of course, on providing your patients with excellent, personable care. 

While you are taking care of your patients, however, how will new patients learn who you are or what makes you special as a practitioner? In other words, if you’re not focused on the healthcare branding for your practice, how do you expect it to survive going forward? Given that the COVID-19 pandemic is not yet over and the Delta variant is on the rise, how will you convey your expertise to current and potential patients on how to best protect themselves and get vaccinated? 

“Independent practitioners typically need healthcare branding the most, yet they are historically the least likely to engage in it,” said Mark Macias, founder of New York-based MACIAS PR, a  public relations firm specializing in healthcare. “More than likely, I suspect it’s because they don’t have the time to devote to this side of the business practice.”

What is Healthcare Branding?

Essentially, healthcare branding is the message that your practice delivers to new and existing patients telling them what differentiates your practice from others. Without this message, new patients won’t have a reason to choose you as their medical practitioner. Web-based testimonials and media interviews, for example, can help spread your message and showcase you as an expert in your field.

“Healthcare branding is a type of marketing approach that gets your product and services directly in front of patients,” said Macias. “It doesn’t matter if you’re selling a service directly to patients or providers, creating a brand is critical to business growth. Without it, patients have no way of finding you.”

Fabiana Melendez Ruiz, a senior publicist at Austin, Texas-based marketing and branding firm Zilker Media added, “Healthcare branding is essentially the same as any other kind of branding. You want to OWN your image so have a website that delves into what you, as a practitioner, can offer in addition to your practice.”

Why Do You Need Healthcare Branding?

Essentially, you need branding so that existing patients keep coming back and new patients have a reason to choose you over other doctors. 

A critical component in branding for your practice is having a web presence, say healthcare PR professionals, as most consumers will initially search online when they need a doctor. It is important that your practice has a robust, user friendly website, and that your site will appear in searches. 

“Here’s why you can’t overlook healthcare branding and digital marketing,” said Macias. “If you’re a patient and need to see a specific physician or dentist, you’re probably going to search online for help. Gone are the days when you ask a neighbor or friend for a reference. 

“Instead, most of us go to Google or another favorite search engine. If you don’t appear in that search engine, your brand effectively doesn’t exist. That is why it’s so crucial to engage in healthcare branding, and digital marketing. You need to make sure the name of your company appears in front of patients as they are looking for a physician or other healthcare practitioner.”

What are the Components of Healthcare Branding?

Macias said that media interviews, a blog and promoting your practice on social media are crucial elements in differentiating your practice from competitors. Additionally, public service announcements (PSAs), especially surrounding the pandemic, are especially important in letting your patients know that you are on top of the current trends in medicine.

“There are many aspects to building a brand on the web,” said Macias. “Today, you can build a brand much faster on the web. Gone are the days when you would publish an advertisement in the local newspaper or monthly magazine and hope the ads would deliver new phone calls. Today, you can get in front of patients and consumers who are directly researching services that you provide by leveraging the media, blogs, editorials and social media.”

Ruiz said that healthcare branding should consist of a website “that includes a media-friendly bio for the practitioner that offers credentialing information, a list of services, a media page with any earned media and a PR contact and then a general contact page with ways patients can reach the practitioner.

“For medical professionals it is important to stick to facts, but the delivery may be different. As a marketer I always recommend a blog to drive SEO to the website, but other practitioners may be more interested in Instagram and Tik Tok so they may include a feed that updates when they upload to these sites.”

How do I Execute a Healthcare Branding Strategy?

Both Macias and Ruize agree that there are several steps to executing a successful branding strategy, but they all center around storytelling. What is the story of your practice? What makes it unique? Why should patients choose your practice over others?

“This is where healthcare branding gets a little more nuanced,” said Macias. “The initial step for me involves story telling. What is your story and why are you the best healthcare practitioner in your space? It might sound like bragging, but it’s not. 

“Healthcare is a cluttered space and to gain media traction, you need to understand how you are different from others. What is your specialty that should drive patients to you? That should be a component of any healthcare branding campaign. 

“Location also matters. If you want to drive patients to your physical office, that requires a different approach than a practitioner who can work virtually or remotely with patients. But at the root, storytelling is the key to any successful healthcare branding campaign.”

While branding may not be at the forefront of your priorities as a healthcare practitioner, a strong branding campaign is important to your survival. It is critical for your current and potential patients to know and understand what makes you the best doctor for them, and what makes your practice special. Not engaging in healthcare branding could very well leave your practice in critical condition down the road.

What Kind of Website Do I Need, Are Websites Worth It?

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Now that you’ve decided to build a website for your small business – congratulations. Your company will receive more visibility, better branding, and eventually more sales.

Before you build your site however, there are several questions you’ll need to answer in order to to determine if you should build a site through a low cost, do-it-yourself website platforms such as Wix, SQUARESPACE or GoDaddy, or make the significant investment in building your own robust website:

  • What products are you looking to sell on your site, and how do you plan on selling them?
  • Are you selling subscriptions? Will the purpose of your site be to make appointments for people to come into your brick and mortar business to buy products or services? 
  • Are you seeking to sell products directly through your websites via online payments?
  • Do you plan to feature industry content or a blog on your site?
  • How will your site stand Apart From Competitors?
  • What Actions Do You Want Site Visitors to Take?

What Should Your Site Accomplish?

Now that you’ve answered those questions, you essentially have two choices: You can use a DIY website platform, which does have its advantages – most of them charge a low monthly fee; provide an easy-to-use website template, and provide web security and basic analytics. This may be the best option to choose if you’re simply looking to expand your presence and just check off the “web presence” box for your business. 

For example, if you’re an independent restaurant owner who wants visitors to use your site to make reservations, or a car dealership owner who wants your site visitors to make appointments for test drives of your vehicles, then a DIY site may be the best choice for you.

DIY platforms do have their drawbacks, though. Almost all of them charge additional fees if you look to add features to your site, and many of them will ask for a large percentage of your revenue if you are seeking to use your site for direct sales. Additionally, the web template that you choose may be being used by other customers, so your website may not look unique.

If you want your website to do more, however, such as accommodate direct sales of your products, offer sales or discounts, or generate industry buzz through a blog page, then building your own website is probably the best bet for you. 

Be warned, however: while building your own site will be well worth the effort from a sales and marketing standpoint, it will be a long, arduous, and expensive process, and one that will require you to first analyze whether it will be worth the money to do so. 

Figuring Out if it’s Worth it

Now the question becomes: based on your wishlist for a website, is building a site worth the money? The answer to this question is paramount in deciding whether to invest capital into building your own site. The process of answering this question is also a bit complicated and may require you to hire an outside web consulting firm to assist you. 

 

The first thing to do is to figure out the cost of building a website. A basic laundry list of things you will likely need to spend money on in order to create your own site can include:

Do some research to find out the fees of website consulting firms and the market price for a web designer/programmer, if you choose to hire those. In order to house your website and make it available to the public via the world wide web, you can either purchase your own server – the machine that will house your site and may cost upwards of $1,000 – or hire a website hosting platform such as Bluehost or HostGator for a low monthly fee to house your website for you. 

There are many advantages to using a web hosting service – you won’t have to pony up the cash for your own server, and they provide web security for your site. Keep in mind, however, that a hosting platform will charge you the monthly fee for as long as your business’ website exists (which could be up to $60 per year), and there could be add-on charges if you look to make changes to your site.

In addition to hosting costs, leasing an original domain name through services such as GoDaddy, Domain.com or Name.com can cost anywhere between $20 to $50 per year, on average; and purchasing a domain name outright could cost you thousands of dollars.

Other costs to consider: If you do not have expertise in building a website, you may want to hire an experienced web designer/programmer to help you. Hiring an outside firm or an internal employee to do this may be expensive but making a mistake in building your site could be even costlier. Also, you will need a payment processing app to enable your customers to purchase items from your site. Apps such as Merchant One, Clover or ProMerchant will enable them to do that.

Estimating Your Site’s future Revenue

Now that you have an idea of the cost, the next thing you should do is have your website consulting firm assist you in creating a general, one-year projection of revenue for your site, since the process can be complicated. Some lenders may ask for this if you look for financing to build your site.

Of course, we all know that a general calculation of ROI is income minus cost divided by cost, but how do you calculate that if you don’t know what the actual revenue of your site will be? 

While it is impossible to calculate exactly what the revenue will be, you can make a rough estimation by examining the benchmark for similar-sized companies in your industry. The web consulting firm you hire should have data on this, or you can use an online tool called Similarweb, which tracks that. You can also use a web service called Unbounce, which can give you a benchmark conversion rate – the percentage of visitors of an ecommerce site who end up becoming customers. 

“This way, you’ll have an idea of what to expect in terms of revenue,” said Lucie Loubet, director of digital marketing at web design firm DesignWare. “Just remember to look at the paid vs. organic traffic breakdown in Similarweb to understand how much additional money you will have to invest in customer acquisition.”

Dawid Zimney, product manager at web consulting agency NerdCow, added “Your web agency needs to know your conversion rate, your market and your audience. They need to benchmark this against the historical improvements of the conversion rate on their clients’ websites.”

Another marketing term to know is customer lifetime value (CLV) – the estimated value of a return customer. For example, if you own a restaurant and you see certain customers coming back because they love your food, or a retail clothing store and you see customers returning for the service, you can calculate the average amount they spend per visit and multiply that by the number of times they visit your business. 

The website firm you hire can help you estimate the percentage of customers who will become repeat customers, as well calculate their CLV.

 

Final Calculation

Nikita Chen, founder and CEO of item authentication firm LegitRails, said the final step in calculating your website’s future ROI is to multiply the number of estimated customers with the CLV, and then determine whether that number is greater than the cost of building the website. The web marketing firm you hire should help you with that. 

“If the number is higher, you are in profit, and it is, therefore, a good idea to create the website,” she said. “If the number is lower (which could be the case if you’re running excessive ads) it might not be in your best interest. The figure you come up with at this stage will also determine your ROI,” said Chen.

Financing Options to Pay for Your Site

If you’ve realized that your needs require you to build a custom website but you don’t have the cash on hand to pay for it, that’s okay. There are several financing options you can choose from. 

A business line of credit may be a good option for you since building a website will not be a one-off expenditure. A business line of credit – much like a personal credit card – will give you the flexibility to spend as you go along in the process of building your site, and you will only be charged interest on what you borrow. You can also pay it down as you go along.

If you’ve predetermined a budget for building your site and plan to stick to it, then a business loan may be right for you. If you go to a traditional lender, they may ask you for a business plan or projected ROI on your website. Alternative lenders such as Kapitus will generally just ask to see your company’s revenue history and approve you for financing more quickly than a traditional lender.

Test Your Site First

Now that you’ve decided to go ahead with your site, you should have your web designer/programmer build a test site, typically referred to as a beta site. Pick the top functionality of your site, have your programmer design and build it, and release it online. The beta site should be a limited release of your website with the goal of gauging audience reaction a nd finding bugs before the final release of your site. 

The site is usually opened up to a limited number of users, such as employees of your company or friends or family. The idea of the beta site is to listen to their feedback and use that to make improvements or adjustments to your final website. 

Next Up

“If you build it, they will come…”

Now that you’ve done the calculations and figured out that building your own site is worth it, how do you build a site that is visually appealing, user friendly and will generate additional sales? In the next article, we will discuss what your site should look like to make that happen.

Small Business Loans NYC: Your 2019 Guide To Local Lending

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Small Business Loans NYC: Your 2019 Guide To Local Lending

When you decided to launch your small business in New York City, you were likely drawn to the city’s vibrant energy, exciting communities, and world-class workforce. You were probably less enthusiastic when you realized everything operating a business in the City entails: insurance policies, unexpected expenses at every turn, and oh-so-many regulations.

Getting a business off the ground — and then keeping it running — can be daunting for even the most seasoned business owners. For first-time owner, it can be even tougher: sometimes it feels like the deck is stacked against you.

The good news is that even though starting a business can be an isolating experience, there are countless financial institutions and programs that exist solely to help business owners thrive. Many of them are based right here in New York City, meaning you get to have a face-to-face relationship with someone who is (quite literally) invested in your success!

The following report explains some of the best local loan options available for New York City business owners in 2019. The best part? It’s written in plain English… from one NYC business owner to another! No advanced degree or knowledge of financial jargon required. (After all, you’re probably paying your CPA or CFO a pretty good chunk of change… leave the jargon to them!)

Small Business Loans NYC: Top Lenders for NYC Small Business Loans

Just like there’s no one-size-fits-all when it comes to loans, there’s no one right lender, either. Big, national banks are a great fit for some businesses, while smaller, local banks make perfect partners for others. Still other business owners find that credit unions, government programs, or non-profits are best aligned with their needs. Here’s a list of a few of New York City’s top lenders for small businesses.

1. Chase Bank

Chase Bank is based in New York City, but it also happens to be the largest bank in the country. The bank is one of the top financiers of small-business loans nationwide: In 2018 alone, Chase’s SBA-backed business loans totaled $68 million to more than 550 small businesses across the five boroughs. In addition to SBA loans, the bank offers flexible financing and business lines of credits for qualifying businesses.

2. Cross River

Cross River describes itself as a “trusted financial services organization that merges the established expertise of a bank, with the innovation and product offering of a technology company.” Founded in 2008, the company’s home office is just outside the City in Fort Lee, New Jersey. They’ve earned rave reviews from their small-business clients for competitive rates and terms, especially for SBA-backed loans. Customers can borrow up to $5 million on a 7(a) SBA-backed loan and up to $18 million for 504 loans with repayment periods of up to 25 years.

3. Brooklyn Cooperative Federal Credit Union

Brooklyn Coop is one of the city’s top small-business lenders. It’s a credit union, not a bank — which means it’s a non-profit institution. It considers loan applications “from any business regardless of its history,” offering flexible repayment terms of up to 12 years. Its startup loans start at $500 and go up to $15,000, while established companies can borrow up to $50,000.

4. NYC Capital Access Loan Guaranty Program

The NYC Capital Access Loan Guaranty Program is a public-private partnership that helps micro and small businesses who have been unable to access conventional bank loans get up to $250,000 to be used for working capital, leasehold improvements, and equipment purchases.

5. Nonprofit Finance Fund

If you’re a nonprofit or social-enterprise startup looking for funding, the Nonprofit Finance Fund’s New York office is an option to investigate. NFF currently manages over $347 million in assets and has provided $875 million in financing over the past 40 years. It’s a US Community Development Financial Institution (CDFI), meaning its focus is on making affordable loans available to help a community’s least-advantaged citizens.

Small Business Loans NYC: Top Traditional Lenders for NYC Small Business Loans

Looking for a traditional lender in NYC? Here’s where to start. The banks and credit unions below all offer favorable terms for SBA-backed loans, bank-term loans, and various other types of small-business lending.

1. Bank of America

Bank of America offers several types of loans to business owners. Most require a business to have been operating for two years and generating $250,000 in annual revenue.

2. Wells Fargo

Wells Fargo is another national bank with many loan choices. It offers loans as small as $10,000 for qualifying businesses.

3. TD Bank

TD Bank calls itself “America’s most convenient bank,” in part because it’s open seven days a week. Its direct loans offer up to $1,000,000 to entrepreneurs for expenses ranging from manufacturing to equipment to real estate.

4. Empire State Bank

Empire State Bank is a full-service, community-oriented bank that opened in 2004 to help serve the needs of all New Yorkers, including small-business owners. It offers various loan and lending options.

5. New York University Federal Credit Union

The New York University Federal Credit Union offers loans of up to $250,000 to help with everything from inventory and working capital to housing needs, plus various micro-loans. In order to join, you or an immediate family member must be an NYU alum, student, or an active or retired employee, faculty member, or staff member.

Small Business Loans NYC: Top Government Programs for NYC Small Business Loans

Various programs exist to help small businesses thrive in the boroughs. Here are a few examples.

1. Contract Financing Loan Fund

If you’re hoping to get a contract as a contractor or subcontractor with a New York City entity or agency but need working capital to do so, NYC’s Contract Financing Loan might be for you. It offers qualifying business owners up to $500,000 at an annual interest rate of 3% to help kickstart contract work.

2. M/WBE Opportunities

If you’re a minority or woman business owner, you may qualify for various incentives from the City. The Office of Minority and Women-Owned Business Enterprises was established in 2016 to help level the playing field for diverse founders. Its initiatives include awarding $20 billion to M/WBEs by 2025 and ensuring 30% of City contracts go to M/WBEs by 2021.

3. Veteran Institute for Procurement

If you’re a veteran, the Veteran Institute for Procurement is a resource dedicated to helping you secure federal contracts and navigate lending options available to you.

4. Business Center for New Americans

The Business Center for New Americans offers small business loans ranging from $75,000 to $250,000 to small businesses in Queens and Staten Island, and to specifically immigrant, refugee or women-owned businesses in Brooklyn, the Bronx, and Manhattan.

5. SBA Loans

The SBA guarantees loans of virtually every amount from $500 to $5.5 million. There are SBA offices in every borough that can help you identify what loan is right for your business and find the right lending partner. You can even get matched with a mentor to help you as you grow.

Small Business Loans NYC: Top Funds/Non-profit programs for NYC Small Business Loans

Many funds and non-profit lending programs exist to help entrepreneurs. These options don’t go through traditional banks, although investment criteria and repayment terms can be similar. Here are a few of the top options.

1. Innovation Venture Capital Fund

New York State operates its own $100 million venture capital fund to invest in early-stage startups. It is mainly focused on companies developing new technologies that are aiding job creation and driving economic growth. Its direct-equity investments typically range from $500,000 to $1.5 million.

2. Accion

Accion is a non-profit lender that offers highly-customized loans to business owners of every type. It has special programs for women, veterans, Native Americans, and minority business owners looking to grow their organizations.

3. TruFund

TruFund is a non-profit financial institution that provides financing and business services to “small businesses that cannot access affordable financing through traditional sources.”

4. Grameen America

Grameen America has invested more than $1.2 billion to women entrepreneurs via microloans. Their focus is on serving current and aspiring female business owners living at or below the federal poverty line.

5. Excelsior Growth Fund

Excelsior Growth Fund offers various types of loans to businesses that have been operating for two years that have at least two employees. Their focus is on spurring economic development and job creation.

Small Business Loans NYC: Online Small Business Loan Options

You can get just about anything online these days, so it should come as no surprise that online small business loans exist, too. Various lenders, like Kapitus, offer loans of all types and sizes. Each institution sets its own requirements, and they can vary greatly from lender to lender. If you’re considering an online small business loan, make sure to read — really read — all the fine print. It’s paramount that you understand all the terms and conditions of the agreement you’re entering. The last thing you want to do is get into a long-term partnership with a lender that may not provide the flexibility your business needs.

Grants for NYC Small Business Owners

Many entrepreneurs think grants are the Holy Grail of funding options, likening them to “free money.” While that may be true in theory, it’s important to note that most grants come with very specific conditions for how money can — and can’t — be spent. They’re also hard to come by since competition is tough.

Many grants are industry-specific; come with employee-hiring stipulations; or are offered only to entrepreneurs of a certain background, race, ethnicity, or gender. If you meet the criteria, here are five annual grants for which your business may want to consider applying.

1. FedEx Small Business Grant Contest

Every year, FedEx awards grants to 10 or more entrepreneurs to help their businesses grow. In 2019, the company awarded business services and $50,000 to a grand-prize winner, $30,000 to a runner-up, and $15,000 each to eight third-place small businesses

2. Citizens Committee for New York City

The Citizens Committee for New York City offers micro-grants (usually under $5,000) on a rolling basis for specific projects to help beautify specific neighborhoods, schools, and/or blocks.

3. Office of Mental Health: Forensic Homeless Intensive Case Management Program

Each year, the State grants $338,000 to businesses that assist mentally ill homeless individuals returning to New York City from New York State prisons with accessing housing and developing skills to remain independent and in stable housing.

4. Visa Everywhere Initiative

Visa is one of literally dozens of corporations with grant programs and contests. Like FedEx, it launched a corporate grant program several years ago aimed at helping entrepreneurs. Each year, the company awards a $50,000 grant to the startup that best demonstrates an ability to “solve payment challenges of tomorrow.”

5. Economic Development Grants

If your business needs to purchase land, equipment, or even fixtures for a new office, you may qualify for one of many economic development grants available through the State of New York.

For more grants, visit the New York State Grants Gateway portal.

As Frank Sinatra so famously put it, if you can make it here, you really can make it anywhere. The most important thing is not to be afraid to ask for help: after all, New Yorkers are well known for looking after our own.

Did you know that, according to a state report, more than 98% of New York’s businesses employ less than 100 people? Almost half (45%) of the state’s businesses have sought financing in the past 12 months, and 70% have annual revenues of less than $1 million.

Let Kapitus help you find the perfect local loan solution to help you and your business grow. Get simple, personalized, no-pressure information on the best options for your business today.

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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.

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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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