Jim Blasingame

Business futurist, award-winning author, speaker and columnist

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Finance / Accounting / Taxes

The New Regular: PPP Update #4 – New Money And Rules

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This is the 23rd edition of my New Regular series, which didn’t begin as a series because no one on the planet imagined Main Street would still be getting hammered by two very dangerous forces: a deadly virus and state/local politicians. So, welcome to 2021 when, apparently, Normal has checked-out for another year.

Since last February, your humble correspondent has been reporting on what I’ve named the “Three U’s of the Apocalypse”: an Unprecedented coronavirus pandemic, precipitating an Unprecedented economic shutdown, necessitating Unprecedented direct government assistance. Now, in my fourth report in this series to focus on that last “U,” let’s bring you up to date on the “Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act’’, or PPP2, for short – which is at least five months late.

This is essentially the availability of another round of Paycheck Protection Program (PPP) funds, with new money and new rules that update the original CARES Act of March 27, 2020. The new law also delivers some excellent new provisions that you’re going to like.

Here’s the essence of this new PPP cupcake with new sprinkles.

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The Presidential Candidates’ Record on Small Business, Part I

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As a leading voice for the small business sector, part of my advocacy is to track and report on public policy that impacts the Main Street economy. In that role, I vociferously support those issues that benefit small business and pugnaciously oppose those that don’t, regardless of political party paternity.

Since 1997, I’ve stuck my finger in the eye of Presidents and Congresses of both parties for policies that hurt – or didn’t do enough to help – the heroes who create half of the U.S. GDP and sign half of the paychecks that support over 100 million Americans.

Prior to every presidential race since 2000, I’ve compared the policies and performance of the two major party presidential candidates based on the top concerns that keep small business owners up at night. This is the first of a two-part series on my 2020 analysis of seven issues that currently find their way to the top of every small business survey. Part I covers the economy, taxes, and regulations. Part II will cover healthcare, entrepreneurship, energy, and the pandemic.

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Searching for investor capital? Don’t make these mistakes – Part 2

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This is the second article in a two-part series on how to maximize your chances of success when approaching an investor for your business.

Last time, I pointed out one of the modern marketplace myths mouthed by talking heads and politicians, which is that small businesses don’t have enough access to capital. You could write a book about what these people don’t know about small business and, as it turns out, Andrew Sherman did.

Andrew is my friend and long-time member of the Brain Trust of my radio program, and his important book, Raising Capital, reveals, among many other things, the common mistakes entrepreneurs make when searching for investor capital. So far in this series, I’ve revealed six of the mistakes on Andrew’s handy list. This time we’ll cover the other six, each followed by my commentary. To see the first article, search for this title with “Part 1.”

The good news for seekers of investment capital is that outside sources have become more robust and multi-faceted, whether from venture capital funds, angel investors, and more recently, crowdfunding. The rude news is that, just like getting a loan, you have to have your corn flakes together to score this kind of funding. The bad news is the investor capital process is very complex, and almost always takes longer. And as you have and will continue to learn, there’s more to acquiring investor capital than writing a business plan.

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Searching for investor capital? Don’t make these mistakes – Part I

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This is the first article in a two-part series on how to maximize your chances of success when approaching an investor for your business.
One of the modern marketplace myths mouthed by talking heads and politicians is that small businesses don’t have enough access to capital. You could write a book about what these people don’t know about small business.

It’s true that capitalizing a startup isn’t easy. Here’s some non-breaking news: funding a startup is supposed to be hard. But if you have a viable business model, a performance track record, can justify future performance, and are creditworthy, capital sources will come and play in your backyard. But remember the Marketplace Golden Rule: “He (or she) who has the gold, makes the rules.”

Before we go further, let’s identify the four primary sources of small business capital:

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Eleven financial fundamentals every small business CEO must know

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Regardless of the size of the business, the ultimate responsibility for success lies with the CEO. If you’re a small business owner, that’s you. And the most critical CEO tasks that result in success or failure lie in the knowledge and practice of financial management fundamentals.

Recent statistics show that over half of small businesses fail within the first four years. Clearly, that mortality rate could be significantly reduced if, before a business opens, the founder/CEO was required to pass a course that teaches business financial fundamentals and how to operate a business with them.

Don’t worry. Your humble advocate would never presume to lump you in with those who need business finance schooling. You, no doubt, are squared away on that score, but perhaps you know a small business CEO who isn’t. And let’s say you’re keen to give that CEO – your “friend” – the maximum opportunity to avoid becoming a marketplace battleground casualty.

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Revealed: Financial Mysteries Four and Five

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This is the last of a three-part series covering what I call The Five Financial Mysteries. The first three Mysteries were about the relationship between cash, accounting, and profit.

In this article, I’ll complete my attempt to help you avoid becoming part of the business failure statistics. If you haven’t seen the first three Mysteries, be sure to look for the previous two articles nearby. Now, buckle up as I reveal Financial Mysteries Four and Five.

Financial Mystery Number Four
You can get squeezed between vendors and customers.

Vendors and customers are the prime entities you deal with financially every day your business is open. Understanding your relationship between these two – literally between, because your business is in the middle – is the key to cash flow management. The way to avoid getting squeezed is by managing your Accounts Receivable (A/R) Days and Accounts Payable (A/P) Days. Warning: This will get a little mathy, but not difficult IF you have current records.

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