Six Business Aspects to Consider When Starting a Small Business During a Crisis

6 Business Aspects to Consider When Starting a Small Business During A Crisis

As discussed in previous blog posts, natural entrepreneurs have a way of making the best out of the most uncomfortable situations. Whenever there is a lack of resources, creative minds are put to the test to come up with innovative ideas and products that solve a current and future market problem. If you have decided or thought about starting your own business, but are afraid because of the current situation, there are some things you should consider prior.

With the COVID-19 pandemic, the world finds itself exploring a new normality, meaning that there will be new consumption patterns, health and safety regulations to be followed, all of which will become the new normal. It is your responsibility as a business owner to adapt to this new normality in order to succeed and stay afloat. These are the matters you should consider in order to start a successful business during and post-pandemic:

·      Adapt to the new world

This point cannot be stressed enough. Understanding the difference between current and future market needs versus prior pandemic needs will result in having a business that will succeed long-term.

·      Focus on current market needs

When high magnitude events occur at a bigger scale impacting the entire population, they pave the path for new market needs. Identifying and targeting these needs in a way that is sustainable, is the core of any successful business.

·      Less competition for resources

With everything going on, there will be less demand for resources such as business loans, equipment and infrastructure. This will result in lower interest rates, cheaper equipment, and lower lease rates.

·      Focus on solving a problem

Do some market research to identify market needs that businesses are failing to satisfy and find your own way to solve these. Not only will it make your business relevant, but this will be your differentiator. Once you have identified the need you are going to target, find innovative ways to ensure that your business or service becomes a need in people’s everyday lives.

·      Focus on the things you can control

It can become overwhelming weighing all the things that are out of our control, leading us to feeling helpless and lacking motivation to start a business. Instead, try focusing on the things you can control. Be proactive about your business, recruit top-qualified talent that matches your business needs and standards, and try starting to drive attention to your business by implementing marketing and advertising strategies that catch your target market’s attention.

·      Implement the necessary safety precautions

Having the perfect business that solves certain needs at the right time will not be enough if your customers do not feel safe visiting your business. Make sure your business is compliant with the new health and safety regulations to create a safe environment for you, your employees, and most importantly, your customers.

Lastly, ask yourself these questions as a guidance to build the foundations of your business:

·      Can I identify a new need that resulted from the crisis? If so, which one?

·      Do I have a competitive advantage where I am able to serve this need?

·      Do I have the proper qualifications to serve this need?

·      Am I able to hire others or find a co-founder to treat areas where I lack expertise at?

·      Do I have the necessary financial resources to start my business?

 

Bibliography

Forbes Business Council . (2020, June 8). Starting a New Business Venture in Trying Times? Here's How To Do It Right. Retrieved from Forbes : https://www.forbes.com/sites/forbesbusinesscouncil/2020/06/08/starting-a-new-business-venture-in-trying-times-heres-how-to-do-it-right/#74aca4177f0c

Haimerl, A. (2020, May 20). Is a Pandemic the Right Time to Start a Business? It Just Might Be . Retrieved from The New York Times : https://www.nytimes.com/2020/05/20/business/coronavirus-small-business-startup.html

Notice of Funding Availability CARES Funding

Notice of Funding Availability CARES Funding

The Economic & International Development Office of the City of El Paso released the Notice of Funding Availability (NOFA) for Coronavirus Response + Recovery Programs available. There is $18,505,000 available for Economic Relief Programs, non-profit agencies and government entities are welcome to apply. A list of the programs available can be found on the city website at http://www.elpasotexas.gov/economic-development. 

The CARES Treasury Relief Funds + Entitlement Grants (CARES Funds) provide support to local entities, businesses and households who are struggling during times of COVID-19. CARES Funds addresses community needs by focusing on three major goals:

·      Housing + Basic Needs

·      Livelihood + Employment

·      Fostering Economic Prosperity

Applications are due Friday, June 5^th, 2020 at 5:00 pm MDT. Any questions that may arise regarding the applications for the Economic Program should be sent to Economic Development at EDapps@elpasotexas.gov.

The Greatest Ideas Come from the Most Uncomfortable Times

The Greatest Ideas Come from the Most Uncomfortable Times

“The truth is that our finest moments are most likely to occur when we are feeling deeply uncomfortable, unhappy, or unfulfilled. For it is only in such moments, propelled by our discomfort, that we are likely to step out of our ruts and start searching for different ways or truer answers.” M. Scott Peck

The economic impact that has resulted from the pandemic during the last few months has driven economists to believe that we will enter a recession. It is uncomfortable times, when there is a lack of resources that the greatest ideas come alive. It is when there is a lack of resources that we exploit our creativity in order to put the little resources available to work.

The COVID-19 pandemic is a great opportunity for entrepreneurs to come up with ideas that will help people adapt to the new world. Many of the big companies we see right now were founded in the midst of a recession, such as General Motors and Microsoft, while others opened their first location in the middle of a recession, such as Trader Joe’s and Hyatt Hotels Corporation.

During the last recession of 2008, many of the popular companies nowadays were founded as startups, and now they are companies valued at millions of dollars. These companies include:

o   WhatsApp

o   Venmo

o   Groupon

o   Instagram

o   Uber

o   Airbnb

o   Pinterest

o   Slack

o   Square

o   Warby Parker

These companies are prime examples that the greatest, most innovative ideas that will dictate the future of society, come from the most uncomfortable times.  

Wilson, M. (2020, April 20). 14 successful companies that started during US recessions. Retrieved from https://www.businessinsider.com/successful-companies-started-during-past-us-recessions-2020-4?r=MX&IR=T

Conklin, A. (2020, March 30). 10 successful startups founded during 2008 Great Recession. Retrieved from https://www.foxbusiness.com/markets/startups-great-recession

Weru, S. M. (2020, May 4). 10 Successful Businesses That Were Started During Economic Downturns. Retrieved from https://www.benzinga.com/general/education/20/05/15944325/10-successful-businesses-that-were-started-during-economic-downturns

List of Resources for Small Businesses During Covid-19

List of Resources for Small Businesses

Small businesses are the backbone of the economy, which is why aiding them through the different financial hardships facing them with the global pandemic is key. The government has put together different programs that target different needs business owners may have:  

Paycheck Protection Program https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program

Paycheck Protection Loan Guide https://www.uschamber.com/sites/default/files/023595_comm_corona_virus_smallbiz_loan_final.pdf

Economic Injury Disaster Loan Emergency Advance https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance

SBA Express Bridge Loans https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-express-bridge-loans

SBA Debt Relief https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-debt-relief

A Step-by Step Guide on How to Apply for an SBA Economic Injury Disaster Loan https://www.uschamber.com/co/start/strategy/applying-for-sba-disaster-relief-loan

Unemployment Benefit Services https://www.twc.texas.gov/jobseekers/unemployment-benefits-services

State-by State Business Reopening Guidance https://www.uschamber.com/article/state-by-state-business-reopening-guidance

Guide to the Main Street Lending Program https://www.uschamber.com/report/guide-the-main-street-lending-program

Employee Retention Credit https://www.irs.gov/coronavirus/employee-retention-credit

Guide to the Employee Retention Tax Credit https://www.uschamber.com/report/guide-the-employee-retention-tax-credit

How the Employee Retention Tax Credit Works https://smartasset.com/financial-advisor/employee-retention-tax-credit

 Guide to Coronavirus Paid Leave Program https://www.uschamber.com/report/guide-coronavirus-paid-leave-programs

Small Businesses Reopening Guide Post-pandemic

Small Businesses Reopening Guide Post-Covid19

The coronavirus pandemic has impacted communities all around the world, and we have seen a major shift on customer’s consumption patterns throughout the situation. As a result of this, along with the Stay at Home order that has been put in place across many states, small businesses have experienced crucial operational stress.

Government’s orders for restoring the economy vary depending on the area, but there are many places that are allowing businesses to reopen soon. It is no secret that things will be different once the lockdown orders are lifted, businesses are able to reopen, and citizens are able to leave their homes. This is a transition process that will happen periodically, while maintaining the public health and safety to avoid of a setback.

There will be certain guidelines that will be required to follow in order to ease the reopening of businesses. These guidelines include the following:

·      Safety and cleanliness must be number one priority and should be reinforced in all establishments among its employees.

·      Comply with social distancing rules, this includes limiting the number of people allowed in establishments at once.

·      Facilities and appliances should be disinfected frequently, while ensuring employees are appropriately trained on this process.

·      Provide hand sanitizer to customers if interaction employee-customer is required.

·      Screen employees to rule out any health conditions

·      If possible, arrange flex work strategies such as telecommuting, job sharing, split-shifts

·      Practice constant hand washing before and after serving a customer

·      Wear face coverings

·      Implement up to date ways of shopping such as store pickup, curbside service, delivery by mail, and delivery to customer’s homes

·      Dissuade customers into entering the business unless required

·      Handle payments through internet or over the phone if possible

·      Reduce employee-customer interaction as much as possible

·      Disinfect any areas that may have come in contact with the customer  

Following these guidelines will ensure the safety of your employees, your customers and your overall business’s economic well-being.

Strauss, S. (2020, April 29). Be smart and safe about reopening your small business in a post-coronavirus world. Retrieved from https://www.usatoday.com/story/money/usaandmain/2020/04/29/coronavirus-safe-smart-small-business-reopening/3042491001/

Montes, A. (2020, April 25). As El Paso enters new stage in COVID-19 battle, here is the latest on business openings, face coverings. Retrieved from https://www.elpasotimes.com/story/news/2020/04/25/coronavirus-el-paso-leaders-amend-covid-19-orders-what-you-need-know/3022002001/

Center for Hispanic Entrepreneurship Partners with the City of El Paso

The Center for Hispanic Entrepreneurship Partnered with the City of El Paso for Accelerate EP 

The Center for Hispanic Entrepreneurship served as a partner to the City of El Paso in its program, Accelerate El Paso. The CfHE supported the City by gathering data and composing the final report, as well as through the creation of an ecosystem that maps the resources available in the city of El Paso.

Background

Accelerate El Paso was an initiative derived from a $100,00 grant from Living Cities to establish a partnership between the City of El Paso and its local business partners with the purpose to develop the region’s small businesses.  The partners included the Small Business Development Center, Workforce Solutions Borderplex, El Paso Chamber, El Paso Hispanic Chamber of Commerce, the Hub of Human Innovation, El Paso County Economic Development Office, and the Center for Hispanic Entrepreneurship.

The program was divided in three different phases:

·      Phase I: Building Networks, Strategies and Momentum

·      Phase II: Training and Collaborative Network Launch

·      Phase III: Data Analysis

During the different phases, the partners cooperated in various ways to establish the cohort of businesses and provide training and guidance via one-on-one consulting to those who were part of the cohort.

El Paso Minority Business Landscape

Based on research conducted for the crafting of this paper, the following findings were key:

·      The El Paso County population is estimated at 840,758 with 51.5% female, and 48.5% male.

·      El Paso’s population is composed of 84% Hispanic, and minorities comprise 86.63% of the population.

·      According to the U.S. Census Bureau, 78% of businesses are minority owned, 39% women owned, and 8% veteran owned.

·      By the second quarter of 2019, El Paso had about 24,772 establishments and a total employee size of 304,401.

·      The major industries are Services, Retail Trade and Finance, Insurance and Real Estate.

Even though minorities excel at having an entrepreneurial ambition, they tend to face more hardships during the process of starting, managing and growing their business compared to those non-minority owned businesses, the reason being that they lag behind in key business factors. These factors include lack of capital when starting a business, lack of access to financial resources, lack of education, and lack of management skills, all of which downplay the business’ success.

In order to better serve those minority owned businesses, we first need to be aware that these businesses are the backbone of the economy, and as they grow, the U.S. economy grows, which is why helping them succeed is key. By identifying their biggest areas of opportunity, we understand what their needs are and can make better judgement as to what resources provide them with.

During the first phase of the Accelerate EP, a survey was conducted and shared with the business owners to gather data about their business demographics, their top priorities for their business, and the areas they felt they needed the most help with. It was found through the 170 responses that 76% of the business owners were minorities, while 24% were White. The majority of businesses in the region are considered micro-businesses, since their employee size ranges from 0-5 full time and part time employees. About 62% of the businesses claimed having 0-5 full time employees, and 89% claimed having 0-5 part-time employees. The greatest challenge they face is acquiring capital and/or obtaining funding, while their top training needs are Marketing, Accounting, and Job Training. Within the study, six business owners were interviewed, and they also noted that there is a major lack of awareness of local resources, which paved the path to the creation of the ecosystem as a tool to better identify these resources, as well as a need for networking and mentorship.

In the report a more detailed explanation of the research can be found, complemented with graphics and tables that support our research, as well as the ecosystem that locates the organizations that serve as resources in the region.

To download the full report: https://www.utep.edu/business/research/cfhe/research.html

Connect with us:
https://www.utep.edu/business/cfhe.html

Denisse Olivas 
Director of the Center for Hispanic Entrepreneurship 
dolivas@utep.edu 
(915) 747-7738 

Priscilla Gonzalez 
Undergraduate Assistant 
pgonzalezt@miners.utep.edu 
(915) 747-7738 

The Step by Step Guide to Become an Entrepreneur 

Deciding to start your own business can be as difficult as it is exciting. You are jumping on the most enriching life adventure ever but at the same time you may feel lost without knowing where to begin. This is a basic guide of steps to take to open your own business. 

1. Take a Stand for Yourself

Whatever the motivation was for you to decide to become your own boss, either if you were unsatisfied with your current situation there is no point on blaming anyone else. The only way you will see changes in your life

is if you start making changes yourself. You have taken the decision now take the challenge of becoming an entrepreneur.

2. Identify the Business that Fits You Best 

If you were unhappy with your previous job and you felt like either it did not fit you well or you where not getting anything out of it, you might as well start a business that you are passionate about but that has the potential to be successful. 

Get to know yourself. Find what your drive is and see if you could make a business out of it. Trust your intuition, and understand the three most common approaches to entrepreneurship:

Do what you know: If you already have some knowledge from a previous job, identify the skills you acquired and see how you can apply these to a new business. 

Do what others do: Explore different businesses until you find one that you like. 

Solve a common problem: Is there anything you see as a common problem where you can contribute to solve it through a product or a service? 

3. Determine If You Should Get an Education 

Education is a key factor of becoming an entrepreneur, even though it is not required it helps to have technical knowledge of your own business and should not be ignored completely. Besides, you have to consider that some industries will require some type of education. 

4. Plan your business 

Planning will help you get a clear vision of what your business would be like, it will help you to stay focused and be confident, and it is even important if you would like to get investors on board.  

Write down your goals, strategies, and action steps you will implement and you

will see how your business shapes itself.

Some questions that may help you to create your business plan can be:

What am I building?

Who is my business going to serve?

What am I promising to my customers?

What promises am I doing to myself as a business owner?

What are my objectives?

What strategies will I use to accomplish my objectives?

What is my first step going to be?

What is my action plan going to be?

5. Identify Your Target Audience 

Identifying your target market is key in order to shape your business according to it. Not everyone may feel identified with your business, or not everyone may find it useful. Demographics such as age, income, race, and culture will play an important role on determining who are you going to market to.

There is industry research available that you can take a look at, but the most effective way to know if your business is marketable or nor, is to reach directly to your target market and ask.

6. Finance Your Business 

Financing will be different depending on the business you choose. If you are planning on opening a lifestyle business, a small amount of funds is needed. On the contrary, if you plan to open a high-tech business, it will require a greater amount of capital. 

Being an entrepreneur means that your personal life and your business are connected with one another, which is why it is important that you make some personal financing to track your money even before you start reaching ou

t to external investors.

7. Network 

Network is basic and needed in any industry, but it may be more important to entrepreneurs since networking is going to get your business growing. Create a strong network of advisers, suppliers, and customers. Networking will help you connect with people that have skills that you can apply to your business, and you may be able to find investors for your business through networking. 

8. Sell by Creating Value 

Often-times, customers do not know what product they are looking for, they just know they are looking for one. It is your job as an entrepreneur to convince the customer that your product is the best option out there. 

Focus on serving your customer through your product or service rather than focusing on selling it to them. Customers in general can tell when someone is genuinely trying to help them find what they are looking for whereas when someone is selling the same product, the same way, to everyone. 

9. Promote Your Business 

It is very important to market your business from beginning to end. You can have the best business ever but nobody will go to you if they are not aware of your business' existence.There are many ways to do it, and this is where having identified your target market is important so you can know where you can reach them. 

Social media is the channel most used during these times so be active on them and promote your business to reach an audience that will be part of your target market. If your target market is not very active on social media, do not underestimate the other methods outside of it. For example, word-of-mouth marketing, having a website, public relations, creating a blog, reach people through e-mail, and make some calls. 

By following these 9 steps you will be on the right track to accomplish your life-long goal of becoming your own boss. 

T. M. (n.d.). So You Want to Be Your Own Boss. Retrieved February 20, 2019, from https://www.entrepreneur.com/article/207488

How to Become an Entrepreneur. (n.d.). Retrieved February 20, 2019, from https://www.learnhowtobecome.org/entrepreneur/