Small business development center offers strategies for small business owners

DAYTON-Judy Jones an advisor from the Walla Walla Small Business Development Center met with Port of Columbia Director, Jennie Dickinson and local business owners in a Town Hall meeting on April 21. The purpose was to provide strategies to help business owners "survive and thrive" during the nonessential business shutdown, due to the COVID-19 challenge.

Jones said the time is now for small business owners to take a hard look at some strategies for staying afloat.

She said the most important thing small business owners can do is to find ways to increase cash flow, enough for a six- month period of time. This is important in order to be prepared for the effects of a possible surge in COVID-19, during the fall and winter months.

"With that understood we want to start planning and developing our response, now, and then you will have a better opportunity to hang in there. We encourage you to hope for the best, but you have to plan for the worst-case scenario, because we really don't know how long things will last," she said.

Jones said Washington State Governor Jay Inslee will roll out a phased plan for reopening business, but not all businesses will reopen right away.

"Again, prepare for at least six months. Get that number stuck in your head, because it is critical to ramping your business back up, and turning it around," Jones said.

Jones offered some strategies for weathering the storm.

"I always ask what will you do in the first ten days of reopening your doors? Hopefully, you have thought about that already, but we are encouraging you to do a ten, twenty, thirty, and forty-day plan," she said.

"With that, we want you to think more holistically about what small things can be done," she said.

First of all, eliminate any expenses that are not essential, and liquidate as much as possible.

"You can triage expenses," Jones said. "Talk to your creditors and get as much furlough as possible. Contact landlords and see if you can get reduced rent or abatements. Extend, defer, or lower payments.

Reduce the amount of inventory your business carries.

"This is where most businesses are holding way too much inventory. Start there and assess that inventory, and what you can sell down, or you can discount, quickly," she said.

Explore different marketing and sales techniques, like online sales. Look at offering discounts. Create some specials for clients.

"Community engagement and giveaways are really great ways to reintroduce your business and gain new clients," she said.

Explore selling to untapped channels, like grocery stores.

When it is time to reopen, Jones suggests introducing the most profitable services first, phasing in the others slowly over a period of time. This can be "chunked" into ten-day sections, she said.

Jones also discussed the Small Business Administration's Paycheck Protection Program (PPP).

She said the first federal stimulus package contained $20 million in Economic Injury Disaster Loans through the SBA, which is now over.

But Jones said there will be more money in the second stimulus package for the Paycheck Protection Program, which paid out $1 million in loans in the first phase.

She said the promise from the SBA is that if business owners applied through a lender for the PPP before the closing date, their applications will be honored.

Jones talked about lending sources and utilizing alternative lending sources to apply for the PPP because they are also SBA partners. She mentioned Mercy Core and Craft 3, and national sources like Google, Intuit, PayPal, or Square.

"You can go to their websites and their portals are open to take the PPP application. They are not third- party lenders. They are assisting the SBA with processing, like brick and mortar banks. They have to adhere to the same guidelines and offer the same percent loans.

She said local banks are a good choice, as are state banks.

"We always encourage people to apply locally first. If you can work with your own bank it's going to be better," Jones said.

Additional sources of revenue include lines of credit and credit cards. She said the SBA has also put forth a tax credit.

Jones said if you have already applied for PPP or are planning to do so for the next round of funding, the best thing to do now is to lay your employees off and move them to unemployment.

She said the Employment Security Department has just begun accepting applications for unemployment from people like business owners, artists and contractors.

"I encourage people to do that because you have a home to take care of and other expenses," she said.

Jones encouraged people to move quickly when the portals opened to apply for the PPP in the second round of stimulus funding

Jones said she is available for private counseling and help putting a response plan in place.

"Hang in there. Let's get a plan going. Let's get ahead of it, as much as we possibly can," Jones said. "If we can do that then we have a great possibility of turning your business around and helping you to reopen your doors."

Jones can be reached by phone at: (509) 525-0850 or online at: Judy.Jones@wsbdc.org.

Presentations and classes are also available to small business owners. Information is on the Walla Walla Small Business Development Center website at: wwsbdc.org.