The financial health of small businesses is the number one concern of many NJTC members. On Friday, March 27th, the NJTC hosted its Lunch and Learn webinar to review options, new loan and grant programs, and financial steps small businesses can take in this critical time from longtime advocates of the NJTC: Kathleen Coviello, Executive Vice President at NJ Economic Development Authority and Mark Kolb, Entrepreneur in Residence at Tech Council Ventures.
Mark Kolb from Tech Council Ventures forecasts that the coronavirus will have long-lasting economic implications. From Mark’s expert opinion, he feels there is a real possibility the ripple effects of this pandemic will be felt for at least 12 months.
As a business owner, it is important to take time to determine the potential impact on company financials using multiple scenarios that affect your different products or services.
Communication with your investors is essential right now. They want to know that you are running the different possible scenarios and analyzing what your business needs to survive. Your investors want to see that you’re re-evaluating and readjusting your current business model to reflect the current climate.
Time is of the essence for small businesses. To weather the storm ahead of us, small business owners have many opportunities such as extending their streams of income or funding options available through state and federal resources.
Review Financial Options
The most pressing economic need is to help small businesses survive until the pandemic passes. Everything is going to slow down. Sales will be slow so consider cutting back and reducing your expenses. Although, it all depends on the company since some of the best companies were born during times of the recession – such as Adobe, Disney and IBM.
Kathleen Coviello shared new initiatives through the NJEDA released under the guidance and direction of Governor Murphy. Her biggest tip was to seek out resources while working from home, and use your network, government programs, and community resources to stay financially healthy. Funding and grants are quickly becoming available for New Jersey small businesses, especially for main street businesses that were hit hardest from COVID-19. You can find the full list and details of these programs, which total over $75M in financial support, online at cv.business.nj.gov.
Not a main street business?
Check out the free qualifier, Eligibility Wizard, on CV.business.nj.gov where you can quickly learn which financial resources will work for you. All applications will be offered online, including the ability to sign electronically.
Extend Your Business
If a small business is unable to qualify for funding, there are still ways that it can make it through the pandemic. It’s imperative, now more than ever, to have an “adapt” mindset. With this mindset, you’re likely to see more results and allow your company to thrive in this situation. Small business owners are encouraged to try to diversify the products and services they offer to customers. Seriously consider moving your products and services online. This is an unique opportunity to revisit your products and services, and see how you can potentially offer it in a digital format. Revisit your business model and think outside of the box to develop new streams of income.
Areas of Hope
Many companies are stepping up, acting quickly and working hard to help small businesses. There is still capital in the economy, and you can still fundraise. Remember, out of chaos brings opportunity.
NJTC will be checking the pulse of the community weekly and will share resources along the way.
Watch The Full Webinar Presentation
NJTC has compiled useful links and past videos/webinars to utilize as resources to help your organization during COVID-19. Safety measures, best practices and more on our COVID-19 resource page are available here.