Smart Business Magazine, July 2020

12 Smart Business July 2020 From adversity to innovation When tough times hit focus on the fundamentals of entrepreneurship The disruption caused by the COVID 19 pandemic is unlike anything weve seen in more than a century We continue to live with the uncertainty of not knowing exactly how this will all play out Despite this uncertainty the markets supplier problems and sales interruptions all businesses are facing right now are some of the same issues early stage entrepreneurs face every day Thats why understanding and harnessing your entrepreneurial resiliency is one of the best ways to combat the chaos of a global pandemic Here are a few major themes that emerged from the first days of the shelter in place shutdown Cut through the clutter In the initial weeks of the COVID 19 crisis there was an incredible outpouring of support for small businesses We saw a veritable tsunami of blog posts resource guides and stimulus initiatives all trying to provide answers Unfortunately so much information can quickly become overwhelming especially during a crisis when everyone believes they need to act immediately Find a way to cut through the noise and stay focused on the basics Maintain open communication with your teams customers and investors Assess the immediate impact of the crisis on your business economics and thoughtfully sort out eligibility for any assistance programs Take time in a crisis to get a handle on the situation and start forming a game plan Focus on cash flow Unanticipated financial disruption can be devastating to any business Thats why having a monthly cash flow model is essential The ability to project cash flow out at least 12 months and evaluate what if scenarios helps to quantify cash needs and will inform critical decisions Ironically in a time like this pre revenue startups that have raised significant seed capital rounds can be initially sheltered from major cash problems as they are not yet relying on sales revenue for survival Nevertheless these businesses must be especially frugal with their cash as there is no way to predict how COVID 19 may impact investor appetite months from now when they need to replenish their capital Hunker down double down or pivot A defining attribute of entrepreneurship is agility the ability to nimbly maneuver through both adversity and opportunity For some businesses the best immediate option may be to scale back and try to ride out this market disruption Other businesses may be best served by short term pivots caterer to personal chef or clothier to mask maker Meanwhile some technology companies startups developing remote patient monitoring applications or augmented reality tools are looking for ways to realign more permanently with new long term market dynamics created by this pandemic Whatever the move it should be intentional and well thought out because agility should not be confused with impulsivity In fact leaning on experienced advisers mentors and investors can make a world of difference in helping make the best decisions If there is a silver lining here its that chaos and uncertainty will eventually create new opportunity Times of crisis and adversity often spark new waves of innovation and entrepreneurship INCUBATOR JUNCTION Jerry Frantz Jerry Frantz Chief Investing and Services Officer JumpStart Inc Jerry leads JumpStarts internal and collaborator driven operations that provide capital and services to entrepreneurs while working to ensure these activities generate the greatest inclusive economic impact His team provides services to help entrepreneurs access the capital sales talent mentors and other resources necessary to accelerate growth They conduct due diligence deploy capital and manage JumpStarts investment portfolio jerry frantz@ jumpstartinc org www jumpstartinc org