June 2024 Newsletter

  In This Issue

• Using Financial Analysis to Make Better Business Decisions
• Boosting NC’s Mid-Sized Businesses: Practical Strategies to Achieve Sustainable Growth
• The SBA is unveiling new credit lines of up to $5 million to fund small businesses

Using Financial Analysis to Make Better Business Decisions

By Gene Holland, Interim Director of SBTDC Raleigh and Joel Harper, Director of SBTDC Chapel Hill

Do You Understand Your Business’s Financial Picture?

In our roles as Counselors and Center Directors with the SBTDC, we are frequently called upon to help clients make better business decisions based on their company’s financial statements. Unless the client has already been assisted by a CPA in financial reporting and tax return preparation, any financial records are often sloppy at best and sometimes nonexistent. While it is unrealistic to expect a small business owner to have skills that approach those of a trained accountant, it is crucial that they understand the basics of financial accounting and adopt a scalable bookkeeping platform early. Otherwise, the owner will never fully understand the company’s financial position, nor will they be able to communicate this information effectively and efficiently to other parties of interest.

Larger corporations devote entire departments to accounting and finance, in addition to hiring outside CPA firms to assist with audits and tax preparation. While it is understandable that a small company or sole proprietor, especially at or shortly after launch, often lacks the resources to dedicate a person or department to these roles, it becomes even more crucial that the owner understands his/her company’s financial fundamentals. As former owners ourselves of very successful small businesses, we cannot imagine attempting to operate daily and make strategic decisions without the ability and means to understand our company’s financial positions. Obviously, we are convinced that this lack of knowledge or awareness is a widespread problem, so what are some solutions?

Boosting NC’s Mid-Sized Businesses: Practical Strategies to Achieve Sustainable Growth

By Ron Sweetman of SBTDC at UNC-Charlotte and Rachel Bridgers of SBTDC at East Carolina University

As a mid-sized business owner, you understand the significant role you play in driving the economy forward. Businesses like yours create jobs, spur innovation, and contribute to the vibrancy of our local communities. But, like everyone, sometimes you hit roadblocks on your journey to growth. That's where the Small Business and Technology Development Center (SBTDC) can step in, offering practical strategies to help you overcome these challenges and achieve sustainable growth.

Our Perspective: Combined Expertise to Support Your Growth

Insights from a Former CEO 

Ron Sweetman, Former CEO and General Business Counselor at SBTDC

As a seasoned business owner with 30 years of experience and a general business counselor at the SBTDC, I understand the unique challenges faced by mid-sized businesses in North Carolina. Here are some insights and strategies to help you navigate these challenges.

Internal Barriers for Mid-Sized Businesses

• Insufficient Strategic Planning: At the SBTDC, we help businesses develop robust strategic plans that outline clear goals, identify potential obstacles, and chart a path for sustainable growth.

• Outdated Processes: We assist in identifying inefficiencies, implementing modern solutions, and optimizing your processes to drive productivity and profitability.

• Leadership Gaps: Through targeted leadership development programs and personalized coaching, the SBTDC can help you cultivate strong leadership capabilities within your organization.

The SBA is unveiling new credit lines of up to $5 million to fund small businesses

by Adriana Lanzas of SBTDC Raleigh

• The U.S. Small Business Administration plans to unveil new government-backed credit lines of up to $5 million for small businesses, SBA Administrator Isabel Casillas Guzman told CNBC.

• The SBA is launching a working capital pilot program in the coming months that is designed to be more attractive to both lenders and borrowers than the agency’s existing products, Guzman said in a phone interview.

• The SBA’s new working capital lines will have an annual fee and maximum interest rates based on the prime rate plus 3% to 6.5%, which would be roughly 12% to 15% today, according to the agency.

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