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Creative ways to improve your cash flow despite a global pandemic (we’re serious)

(FINANCE) Keeping the lights on has become a major priority for many businesses country wide, so how do you keep your cash flow up during this crisis?

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cash flow

More than ever, cash is king. How can you stimulate cash flow in this era? How do you turn a trickle into a flow?

Business is down globally, with large and small businesses struggling with cash flow and supply chains everywhere you look. People are staying home and trying to spend less money, as many of them have lost their jobs or income.

We’ve rounded up the best advice from several sources to help you make some sense of it all–and hopefully some money, too. Nothing is foolproof, but we sincerely hope these tips help you and your business hang in there. These times are challenging, but we know things will improve eventually.

One piece of advice each of these experts notes is to look at your business differently during this period. One way to do this is to prioritize short-term gains vs. long-term plans. This doesn’t mean to act recklessly, but rather to evolve a little. Let’s face it, if you aren’t bringing in money and reining in costs at this point, you may not survive to bear that long-awaited fruit of your labor.

An outstanding example is the restaurant industry. Since most restaurants around the country have shifted to takeout only, the ones who are staying open have been creative in transforming their business model. Some clever shapeshifting I’ve seen in restaurants include: offering family packages, offering meal kits (i.e., uncooked meat, pasta, and sauces to be cooked at home), offering a popup market for basic groceries, offering virtual tastings (where you pick up the food, and they conduct the tasting or class online), giving discounts on gift cards, and offering cocktail kits.

Another key factor is to treat people well during this time: employees, customers, and suppliers alike will remember your behavior during the crisis once we return to better days. Remember, they are likely hurting, too. Ask yourself how you can best bring value to them while taking care of your bottom line.

Here is some specific advice we’ve collected from experts such as The Harvard Business Review, Deloitte, KPMG, and ECG Management Consultants.

  • Adjust variable costs to the extent possible. Of course, curtail non-essential company travel plans, training, meetings, and entertainment costs. Looking at labor costs, it is more challenging. Yet, try shifting contract work to permanent employees as a cost-saving–and employee-saving measure. Consider encouraging employees to take available paid leave, and encourage voluntary unpaid leave.
  • Verify your own lines of credit. Make sure your sources of financing are going to remain available to you.
  • Be cautious and do plan ahead with your inventory. You want to confirm that your supply chain of essentials is likely to remain reliable, but plan for a disruption. You may want to seek out additional sources or viable alternative products and raw materials. You need to be able to continue to supply YOUR customers.
  • Look realistically at any possible delays in your payables. Check in your area–you may be able to defer utility payments temporarily, or make a mutually agreed-upon arrangement with one or more of your suppliers to change the way you pay them. Do not do this willy-nilly, though–those supplier relationships are crucial, and you definitely want to keep the actual lights on.
  • Review your invoice and collection practices. At all costs, invoice on time with clear payment terms.
  • Consider your customers, their payment history, and reliability. Ask yourself–or them–how hard hit their industry is, how likely they are to struggle with payments. An honest, up-front conversation about ensuring payments (even if through a new agreement, like the ones you want to make with your suppliers).
  • Elect to deduct 2020 Disaster Losses on your 2019 taxes. Section 165(i) allows for this accelerated loss deduction on your tax return.
  • If you own or run a larger company or one with an almost certain return to good times and can afford it, you may even benefit in the future by pausing or greatly reducing your larger salary in order to keep paying employees and keep the company flush. I know, I know, this option sucks, but it garners good will among employees and the community that should ideally come back to reward you sooner rather than later. Save the company’s butt? You get a juicy bonus on the flip side, no doubt!
  • Throw out the rule book for some things. Waiting to release a product or content for a traditionally optimal time? Reconsider that–would people benefit from it? If it’s software, training, or intellectual property such as a book, musical content, or film, get that out the door NOW. People want it and need it. This means new customers! You may want to offer these cheaper than usual or even free, as an investment in the future.

Look into funding through no-interest or low-interest loans and grants. In addition to the SBA Disaster Loan government loan, search for additional sources of funding through private sector grants. Here’s a partial list of entities offering this type of relief, particularly for small businesses.

  1. Facebook is offering $100 million in small business grants, given in cash and also some Facebook ad credits.
  2. Amazon is offering $5 million in a Neighborhood Small Business Relief Fund for Seattle businesses.
  3. Kiva, the international microloan organization that offers small businesses zero-percent interest loans of up to $15,000.00, has recently expanded their loans available to U.S. entrepreneurs.
  4. The Opportunity Fund offers grants and low-interest loans mainly to small businesses owned by underserved entities, such as women and minorities. They are expanding their resources in light of the coronavirus impact.

I hope these tips help you with your business. I’m not only a writer cranking out content, but I’m also a small-business owner biting my nails over the income loss this has brought. I’d love to hear any ideas you have that you’re implementing for cash flow and survival. I want us all to make it!

Joleen Jernigan is an ever-curious writer, grammar nerd, and social media strategist with a background in training, education, and educational publishing. A native Texan, Joleen has traveled extensively, worked in six countries, and holds an MA in Teaching English as a Second Language. She lives in Austin and constantly seeks out the best the city has to offer.

Business Finance

India bans cryptocurrency prior to releasing their own

(BUSINESS FINANCE) India is potentially planning to ban cryptocurrency — and instead, they’re planning to introduce their own version of it for purchase.

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Cryptocurrency coin on a phone open to a purchasing app.

Owning mainstream cryptocurrency these days is a bit like owning a pair of Crocs: Potentially lucrative (especially if you’re Post Malone), but mostly just weird. A recent report shows that India is planning on adding “illegal” to that list, possibly ahead of launching their own cryptocurrency in place of the banned ones.

The proposed law would also fine anyone found tradingor even simply owningbanned cryptocurrencies in India. Mining and transferring ownership of cryptocurrency would similarly warrant punitive measures.

CNBC notes that this law would be “one of the world’s strictest policies against cryptocurrencies” to date. While some countries have imposed strict laws regarding things like mining and trading cryptocurrency, India would be the first country to make owning it illegal.

Some talk of jail timeincluding sentences of up to 10 yearsfor cryptocurrency owners and users was floated by Indian lawmakers back in 2019, but there is no explicit indication that those terms would be present in this rendition of the bill.

To be fair to the lawmakers involved here, the bill wouldn’t be as cut-and-dry as “has bitcoin, gets fined.” According to the CNBC report, people who own cryptocurrency would be able to “liquidate” their earnings for up to six months preceding the bill going into effect. This would theoretically allow investors to hold onto their portfolios for a bit longer before having to cash out.

But that leniency might not matter anyway. It doesn’t take a genius to see that this move could do two dramatic things to the cryptocurrency market: Add yet another niche option for investors, and destabilize every other pre-existing cryptocurrency optionor, at least, make them less stable than they already were.

In fact, the simple introduction and threat of this bill could be enough for the cryptocurrency market to take a nosedivesomething that can’t be discounted as a factor in making this decision. Current reports put Indian-owned bitcoin values at roughly $1.4 billion, though, so it’s clear that the bill hasn’t had a deleterious effect at this point.

The fact that India’s central bank has plans to introduce a government-sponsored cryptocurrency of their own cannot be separated from this bill, either. While the official government position is that blockchain is to be trusted while existing cryptocurrencies are eschewed and dismissed as “Ponzi schemes”, it’s clear that at least part of this bill is motivated by a desire to thin out the competition.

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Business Finance

Which generation has cried the most over money?

(BUSINESS FINANCE) Financial stress is tough on everyone. Here’s who has cried the most about money woes, and a few tips on how to alleviate some of that stress.

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Upset young man seated on bench with head in hands thinking about money.

There’s been serious critique in the last several years about the educational system and what basic knowledge young people should be taught in the United States. Home Economics (Home Ec) comes to mind (everyone should probably know how to cook or sew a button), as well as financial literacy.

There are many young Americans who grow up not really having a deep understanding of budgeting and fixed and variable expenses… But it may not be their fault. Perhaps, Mom and Dad (or other guardians) have always been paying for all of their expenses, making sure they had a roof over their head, clothes on their backs, and food in their fridge. Because, that is what you’re supposed to do as a parent, correct?

So, while there’s no reason to blame anyone, often the process of learning what it costs to live and pay your bills is a rite of passage.

The current state of debt and financial fears also doesn’t mean that Millennials and Gen Zers weren’t educated around savings or working. Many young people have had part-time jobs (although much less in comparison to Gen X or Baby Boomers) but they may also be able to use the majority of that income for discretionary spending – which never created room for feelings of lack when they didn’t have to pay rent or a mortgage.

This scenario can ultimately create a challenge when you are finally out on your own and now have student loan debt, credit card debt, utility bills, and required car insurance. Especially if you are young person moving to a big city for exploration and/or new opportunities, where the cost of living can be quite high.

If you are feeling nervous or sad around finances, you are not alone. If you have cried over your personal balance sheet or your bank statements, you are also not alone. According to yahoo!money, a recent online survey of 1,004 Americans by CompareCards.com found that “7 in 10 Americans said they have cried about money in their lifetimes. Many cited worries over their job or making ends meet. Younger Americans appear the most vulnerable to financial tears. About half of millennials and half of Gen Zers said they cried at least once in the past month over money.”

So how can you cry LESS about money? Well, the first thing is to not be too hard on yourself. But you will also want to create a plan that works for you. Each person deserves financial freedom and not a bank statement that makes them cry on the regular.

Here are some financial literacy resources that may help you figure out how to navigate your way out of crippling debt.

Dave Ramsey Books – The Total Money Makeover – A Proven Plan for Financial Fitness

Bravely Go with Kara Perez – Feminist economics + inclusive personal finance

Debt Relief Programs – you’ll have to do your research but there may be a program that is right for you and an agency that can help you set up a realistic payment program for you

Student Loan Forgiveness – it is worth looking in to your options if you are feeling overwhelmed with student loan debt and there may be ways for your loans to be forgiven

Financial Advisor – consider working with a professional that can help you with your budgeting, investing and retirement savings/funds

And you may still cry because this is big adult stuff… But hopefully you trust yourself to do the research, explore, ask, and find options that work for you to gain a little more control over your financial situation.

If you are not already doing so, it may be as simple as starting with a budget to better understand your income and outgoing expenses. Being informed can help you to plan better for the future and make you feel less like crying.

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Business Finance

Lauren Ford explains how you can support women in fintech all year

(BUSINESS FINANCE) Interview with Lauren Ford: Celebrate International Women’s Day beyond just the day by including more women in your finance company.

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Women in fintech over laptops and paperwork, in discussion.

A bit delayed, but happy International Women’s Day! It’s been a hard year, but this is one day I can always look to for inspiration. To celebrate this year, I interviewed Lauren Ford – the Customer and Content Marketing Manager at OneStream Software, a corporate performance management solutions provider. Not only is Ford a total powerhouse in her industry, but she is also a firm believer in female empowerment in the world of tech.

Here are her top 5 tips on how finance companies in particular can strengthen their gender diversity efforts – and a little bit about Ford too:

Tell me a little about your background and how you came to be the Customer & Content Marketing Manager at OneStream.

I have an extensive background working with enterprise software, specific to digital transformation, and I came to OneStream with a decade’s worth of experience in the Marketing Communications field. After earning my degree in Public Communications and Applied Economics from the University of Vermont, I was intrigued by the state of technology: What it had brought us, what it was doing for us now, and where it was taking us next. I was determined to get involved and landed a role at a start-up software development firm, specializing in enterprise content management and capture automation solutions specific to the office of finance. At the time, there were 30 employees – and I was 1 of only 5 women in that fintech space.

Overtime I achieved more prominent roles in the organizations and built customer-centric marketing teams, driving strategies for customer engagement and advocacy. The small start-up I knew had grown immensely but after 8 years it was time to take on a new challenge in a larger, well-known company – which brought me to OneStream.

What is it like to be a high-powered women in this industry at OneStream?

It’s no surprise that there is a shortfall of women in finance-leading roles. But, OneStream has really taken the time to focus on engaging, nurturing and retaining the best professionals throughout the industry. And over time the company has created a culture where women in high-powered positions are more prominent and well-respected. There are many women who have made it to the top – and what’s great about that is they’re open to sharing their journeys, challenges, and wisdom to the greater OneStream community. So much so, that the company recently introduced the Women of OneStream group, which has been developed to support the business success of OneStream and the women within. This group works to inspire and transform the landscape of women in fintech and in technology to achieve personal growth and company success. It’s inspiring to have this type of support within our industry, and I commend OneStream for taking the necessary steps forward to ensure a welcoming workplace.

We both know that there is a great lack of women in finance and fintech industries – what do you make of this disparity?

Obviously, the statistics about women in finance and fintech are quite grim – and sadly this is all too clear when looking at high-level leadership positions. Demanding hours can take away from home life, which could be a main reason why more women aren’t entering finance roles. But in my opinion, the biggest obstacle to women entering the finance field is an unsupportive or biased corporate culture. Even when a company looks to implement change to close the gender gap, people in senior roles are often privier to what’s happening whereas entry-level employees don’t have as much visibility to changes in policy or behavior – and therefore don’t believe it exists.

I think it’s important to communicate messages of change to all levels of the workforce hierarchy, and something as simple as creating more opportunities for mentorship and sponsorship can help make women feel more supported in their finance careers. The good news is we are lifting a veil on a problem that has always been there, but wasn’t always discussed, and now we are paving the way for change.

How can we help to combat this disparity moving forward?

I think there are some strategies that women can use to achieve a more prominent role in their organizations. Standing up, making their voices heard and cultivating relationships with people they respect and admire is important. Creating a support network is key to success. On the other hand, there are several things an organization can do to support diversity, equality, and inclusion to transform the perception of women in fintech:

  • Create internal support groups dedicated to diversity (ex. mentorship programs that empower women to improve and advance)
  • Offer consistent support from the top
  • Develop leadership training to help all get a seat at the table
  • Reevaluate company benefits (ex. paid family leave)
  • Expand internship/apprentice programs to train young and upcoming females (ex. teach them about finance and technology)

How do we make this push for women in finance as intersectional as possible? Why is this important?

There has been a lot of time and effort spent on segmented groups to promote diversity, but many people fall into multiple minority groups. Women and ethnic minorities are often disadvantaged when seeking roles in the finance field. Business leaders must adopt an intersectional lens and pay more attention to the interplay between the characteristics of ethnicity/race, gender, and social class in their onboarding. To help address this, organizations can:

  • Develop a Diversity and Inclusion Policy and create a strategy with quantitative data to meet diverse onboarding goals.
  • Expand internship/apprentice programs to train young women in high school and college to teach them about finance and technology and recruit for entry-level positions.
  • Encourage employees to invest time (volunteering, speaking, and tutoring) in youth STEM programs to help educate and interact with young people who are traditionally underrepresented in STEM fields.

What does International Women’s Day mean to you? How does this day tie into your career goals?

International Women’s Day is a day to reflect on the challenges and accomplishments of women throughout history and those who have fought for the equality of so many things I often take for granted. It’s a day filled with pride! I have gratitude for the women I am surrounded by, from my family to my friends and colleagues. This day also is a reminder that although we have come so far, there is still a long way to go.

There is definitely still a long way to go. If you own, manage, or work at a tech or finance company, Ford’s tips are definitely worth trying to implement. There is an amazing generation of young women coming into the workforce, and you won’t want to miss out – this boss knows what she’s talking about.

Happy ITWD!

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