Register To Attend If you are a small business owner and entrepreneur looking to take your business to the next level, you should consider making an investment in time to attend the National Small Business Week Virtual Summit, taking place Monday, May 2nd through Thursday, May 5th, 2o22.  All you need to join the event is a computer or mobile device with a reliable internet connection and speakers/headphones.

Starting a solo business is financially empowering, whether you do freelancing to earn extra income or build a full-time enterprise. But along with greater financial independence comes the risk of not being paid. Clients may pay late; some may not pay at all. When your client doesn't pay, what can you do? Late payments from clients happen for a variety of reasons. How you respond can determine whether you get your money—or keep the client. Reacting to a brief delay with the threat of a lawsuit, for example, could damage your client relationship needlessly. On the other hand, failing to follow up could result in hundreds of lost work hours and financial problems for you if your client never pays their bill. The following steps begin with simple reminders and escalate to more significant action. Keep reading for tips on how to prevent missed payments in the future. 1. Resend Your Invoice If there’s been a simple problem—the invoice got lost, the client’s bookkeeper is on vacation—resending the invoice acts as a reminder. Send one as early as the day after a payment was due if necessary. 2. Contact the Client If resending an invoice doesn’t trigger a response, respectfully reach out to your client with an email or a phone call and inquire about payment. They may tell you a payment has already been sent or that one will be issued soon. Make a note of when you should expect payment, along with a calendar alert to follow up again if payment doesn’t arrive as promised. 3. Stop Working for the Client If you sent the client a new invoice and spoke with them about the late payment by phone, it may be time to step up your actions if payment still hasn’t arrived as they said it would. If you’re continuing to do work for them, consider pausing until you receive payment. Continuing to work may just result in a bigger bill—one that you aren’t sure is ever going to be paid. It also takes time away from paying clients. Letting your client know that you can’t continue working without payment may prompt them to act quickly. Are you working on a product, such as a book manuscript or custom cabinetry? Don’t deliver it until you have payment in hand. 4. Send a Debt Collection Letter You can have an attorney prepare a debt collection letter for you or find a templated letter to modify online. A debt collection letter acts as formal notice and documentation that your client owes you money, including how much they owe and when it was due. In your debt collection letter, you might specify whether you’d be willing to set up a payment plan to help your client get back on track or let them know you plan to initiate formal debt collection action. Depending on your client’s reaction or lack thereof, you can send more than one of these letters, escalating the matter’s urgency. 5. Consider Your Next Steps It’s possible your client will come through with payment at any of the previous steps. But if you’ve made every effort to collect payment from your client and they still refuse to pay, you can try taking them to small claims court to recover your money. Be sure to hold on to any documentation, such as debt collection letters, asking the client to pay. You’ll need to prove you are owed the amount you claim by providing contracts, letters, receipts or other information noting the agreed upon amount for the job. You’ll also need to find out what the small claims dollar limit is in your state. You can also look into turning over the debt to a collection agency to collect payment. However, you’ll only see only a fraction of your payment if collections are successful because the agency will take a percentage of the amount collected (which may or may not be equal to what was owed. You may also decide simply to move on. The time and stress required to recoup your loss may not be worth it. If you’ve lost tangible goods, you may be able to write off your loss on your taxes. However, you won’t be able to deduct an unpaid balance for services—the IRS doesn’t allow it. How to Avoid Not Getting Paid in the Future It’s impossible to completely avoid the risk of being stiffed. Even a good client can suffer an unexpected financial downturn or a sudden life crisis, and it can be hard to know whether a prospective client is creditworthy. You can’t eliminate risk entirely but you can reduce it by following a few basic tips: Sign a contract with a payment schedule. Whether it’s prepared by the client or by you, a contract spells out the scope and cost of the work you’re proposing. It can also include a payment schedule with clear deadlines and late payment fees (or discounts for early payment). Especially with a new client, get paid as much as possible up front, or consider breaking the payments up to coincide with specific work milestones. Vet new clients before you take them on. Has a new client been referred to you by someone you know? Have they been in business for a long time or are they just starting? Do they have references you can call? If you’re unsure about a new client, think about the work you agree to as having a credit limit attached to it: Start with a $500 project then increase the size of the projects if things go well. Speaking of credit, you can also check a prospective client’s business credit report. The information in Experian's business credit reports is continually updated, always accessible and includes the Experian business credit score, credit trade payment information, corporate registration, business public records, key personnel, and a lot more. Make it easy for clients to pay. Accepting electronic payments or credit cards may give your clients helpful options to pay on time. You may also consider accepting a payment plan or partial payment from a client who’s having trouble paying an invoice. If you do, though, think twice before accepting future work from them. Building a Stronger Business The more you depend on money from your freelance work, the more critical it is to get paid—in full and on time. When clients pay late or don’t pay, your business and personal finances suffer. You may not be able to meet your business expenses or pay your personal bills. You risk falling behind in monthly credit card and loan payments. You may also have to use business or personal credit to make ends meet while you’re waiting on payments and may be stuck with debt if you’re never paid. Fortunately, most business transactions don’t go this way. By limiting your risk with upfront payments, smaller projects and frequent billing; using contracts that spell out work and payment terms clearly; and following basic steps to collect when payments run late, you can reduce your chances of running into trouble. The risk of lost payments can also motivate you to build a cash cushion for your business—or your personal finances—so a late payment here and there is easier to manage. In these ways, the threat of late payments can make your business and your finances stronger, by making you a smarter business owner. About the author Gayle Sato writes about financial services and personal financial wellness, with a special focus on how digital transformation is changing our relationship with money. As a business and health writer for more than two decades, she has covered the shift from traditional money management to a world of instant, invisible payments and on-the-fly mobile security apps. Gayle began her career as a staff writer for Entrepreneur magazine. As an independent publisher, she edited and produced a series of personal finance magazines for credit union members and THINK, an executive magazine for the credit union industry.

Women-owned small businesses make up roughly 34 percent of new business starts. They are among the businesses most heavily impacted by the pandemic, and minority-owned women-led small businesses were the fastest-growing segment coming out of COVID. Despite solid growth, Women business owners face significant barriers to success. We studied a large dataset of women-owned small businesses to understand their unique needs and challenges. The result is a fascinating look at a powerful small business segment. In this talk you will learn: · Credit behaviors · Top industry sectors · Areas of opportunity for lenders Register for Webinar

Experian wants to shine a light on Diversity, Equity, and Inclusion by sharing stories told by business owners, policymakers, or anyone who believes actions speak louder than words when it comes to creating jobs, equality and inclusion in the workplace, and what it feels like to run a small business when the odds are stacked against you. This week we speak with Brandelyn Green, owner of Voice of Hair, a thriving hair care products brand with an amazing online community. The video of our interview is below. Brandelyn's segment appears at 14:24 in our episode. Brandelyn Green talks to Experian about the power of a strong community  What follows is a lightly edited transcription of our interview with Brandelyn. [Gary Stockton]: Brandelyn Green understands the value a strong community can bring to a small business. Her company, Voice of Hair, helps women of color find the best hairstylists, hair products, and hair extensions through a portfolio of pictures, videos, and reviews. But the idea for her company came from a situation involving her health. In today's Inclusion-Forward segment, we get to learn more about this rising entrepreneur and what drives her. Brandelyn, welcome to the Small Business Matters podcast. [Brandelyn Green]: Thank you for having me, Gary; excited to be here. [Gary Stockton]: Well, we're excited to have you. Brandelyn, could you share a little bit about how your business got started? [Brandelyn Green]: Sure. So my background is in industrial engineering and then I went back and worked in the CPG industry for a while. And I thought that was my dream, because I was a CEO of a little brand, but I realized it wasn't. So I came to Austin in 2014, I had always struggled to find a great hairstylist. So I wanted to create a platform that could help women of color, and really a lot of black women had this issue where we moved to different places that we can't find trusted stylists. Well, I was building this portfolio or this two-sided platform, and just had a lot of development issues. And so I said, let me just start with social media to see if people even are trying to find hairstylists. So really to kind of build out an MVP in a way. And on Instagram I started just highlighting hairstylists that I thought were amazing in different cities. And my audience grew really quickly in the first year, our community grew from zero to 100,000 followers. And then every year after that, it seemed like we grew at least a hundred thousand more followers. And so then I started to kind of work with other brands and people, you know, wanted to promote with us, which was cool. But it wasn't until 2018 when I kind of had some health issues–I found out that I had a non-cancerous brain tumor, a pituitary tumor, that it was affecting my hair and my fertility and was making my hair fall out. And I was like, you know what? I need to create a solution for myself. And hopefully if it works, I'll share with my community. [Gary Stockton]: Wow. So was this your first business? [Brandelyn Green]: Yes, this is my first business. [Gary Stockton]: I don't think we can call this beginner's luck, right? I mean, just watching the growth cycle of your business. You started it in 2014, right? [Brandelyn Green]: Yeah. I started posting to social media in 2014, but I did not launch my first physical product until 2018. So the first four years I was really building community. Honestly, I pivoted like 10 times. I was trying to figure out, you know, what can I do with this massive community, so I just kept serving them. And then finally, you know, I asked them, what do you guys want? And people were always sending me DM's and emails. Like, can you please tell me which products are going to grow my hair? What products do you recommend for this issue? And instead of, you know, highlighting other brands, what if I just made my own products? So that's what I did. [Gary Stockton]: So it seems like community, it's such a major success factor for Voice of Hair. Would you agree with that? [Brandelyn Green]: Yeah, absolutely. The first product that we created was our Hair Elixir. So that's what I use to kind of help restore my hair. And I sent it to friends and family and a couple of close influencers that I knew from social media. And they were like, "Oh, I love this oil. Yes, please let me know when this is available to buy." So when I was ready to launch, like I created a private group and I asked them to help me with the name of the product. I asked them, what benefits are you looking for? So I utilized their input to create the product. And even with our product extensions that we've created since then, I mean, it's really come from their feedback. [Gary Stockton]: So what's your social media strategy overall? [Brandelyn Green]: Well, I started on Instagram and then we added Facebook and Pinterest, and now we're on Tik TOK as well. So we have all the platforms. And so my goal is at least to always have a presence, even though I know I have channels that really convert for us and also help us connect with our community. But right now our strategy is really to continue to grow the community, to keep people engaged. So when I did decide to launch products, I didn't want to just turn the page into a platform that was all about me and my products, because that's not how people found me. And I felt like that wasn't truly genuine to what voice of hair was. So we still do highlight a lot of great hairstyles, hairstylists tutorials, and try to provide that education for people through our blogs. But we do also let people know, hey, we sell products. If you're looking for a solution, we have that solution for you. [Gary Stockton]: So it's sharing knowledge really. I mean, it's thought leadership for hair. You're delivering value. I'd say that your first step is to deliver value to your audience, deliver it on a consistent basis. I mean, I was just bowled over by the amount of content that you have on your Instagram channels. And I've checked a few of your other channels out. What's really great about the community that you've built here, Brandelyn, is it's a lot of user submitted content as well. So you're not limiting to just pitching product it's, "Hey, you know, let's look at these new styles and look at really creative things that people are doing with hair." [Brandelyn Green]: Yeah. And actually that has been, I would say like the biggest blessing for our business, because when I did finally launch products, I have, and I still do have people who will message me and say, Hey, I would love to try your products and make content for you. So sometimes I get people–influencers, hairstylists, or people who I can see from their profile that they actually know what they're doing, but they'll say, "Hey, would you send me the products? Can I make content for you?" And I say, yeah, absolutely. So it it's kind of mutually beneficial because then I can give them exposure. And in return I can get content that we can share. [Gary Stockton]: Yeah. So it's primarily e-commerce. And I read that you had a product release that was just hitting upon the supply chain crunch of late last year. How did you work through that? Because you were able to successfully launch something, right? During the supply chain packaging shortage? [Brandelyn Green]: Yeah. So like I said, when we first launched, we had literally just one product, which was our Hair Elixir. And I knew that while people like the oil, it may help them to restore the hair, moisturize it, but that's not a complete hair care solution, especially for a woman who is looking for overall hair health. So I knew we needed a shampoo, conditioner, a leave-in, all those things. And I tried to launch this product, this product, honestly right before the pandemic hit, and had some slowdowns, right? Like in December when things are supposed to roll out, December of 2019. So then I ordered enough packaging and supply. So that once the manufacturer that I'm working with was ready, and had all of the raw ingredients, then he can just go and get the products made for me because that's, I mean, it's one thing when you're making products at home and you're making like 50 at a time, but I was trying to, you know, scale and make more. And I needed a partner who could do that. But the packaging was something that was a big issue because like droppers, for example, these were like, eight months back ordered, bottles, jars. So I used the money that I had available. I ordered enough to keep me around for like the next several months. And so thankfully when the packaging came in, he was able to go, whereas some of his other customers that he was working with, like he had all their raw ingredients, but had no packaging for them. So then they were delayed even further. [Gary Stockton]: Wow. Good move on your part. So are you completely self-funded or have you ever sought financing? [Brandelyn Green]: We are self-funded so we bootstrapped and I think, you know, in the future becoming funded is something that could maybe help us and we could actually grow a lot faster, but for now we have been bootstrapping. So I think it's great because then, you know, I own all of the company, but I would say there are some benefits to having a cash infusion from an investor. You can move a lot quicker. So it's not completely off the radar for us. It's just not where we are right now. [Gary Stockton]: One of the things that we hear a lot and from the Fed Survey of Small Businesses of color, is that they have big challenges getting access to capital. Do you think businesses of color get enough support from financial institutions and could more be done? [Brandelyn Green]: I definitely think more could be done. And I feel that we don't typically get our fair share. I'm grateful that I've applied for a couple of grants and gotten some of those which have helped float us, you know, through some challenges that we've had. I'm a part of a couple of business entrepreneur groups with other businesses of color; even getting a line of credit is something that has been hard for a lot of my colleagues. So it's, it's really tough, especially because it's not just the access, but it's knowing where to go, who to talk to, then knowing the things that you have to have in order; there's that knowledge gap, but then there's also the networking piece and I feel like certain businesses, these institutions, don't understand, for hair care,  they don't understand it unless you can prove that you've had consistent sales and growth. [Gary Stockton]: Yes. these are great points. So how, how did COVID impact you? You and I had a few conversations leading up to our  interview here, but could you share what things have been like the last couple of years keeping your business running? [Brandelyn Green]: Yes. So I think in 2020, you know, where we had, like the peak, everything was shut down. For me, that was quite unexpected in just how many people were willing to buy. I was selling on Amazon at the time. I wasn't able to keep up with the inventory on Amazon. And so I eventually got off of Amazon; I'm back on now, but I was off for about six months because we were really low on our inventory with our Hair Elixir, and that was the only product we had at the time. So that was probably one of the biggest challenges. Since things have opened back up, I would say it's still difficult in terms of the additional delays, mostly with supply chain and then now with inflation. I mean, every supplier that I've worked with, their costs continue to creep up and we, I get it where everybody is getting squeezed, but it does make it a little bit challenging in terms of like forecasting and your margin and your profit that you you're going to have. So those are some of the challenges we've been trying to work through. [Gary Stockton]: Yeah. But you're, you're surviving. And I would say, I'd say you're thriving in, based on the growth that I've seen and in what you're doing there with social media and always having new content. I was watching, I watched your aloe vera video. I know it's it's from last year, but I'm like, this is genius. I mean, that's part of growing a thriving community is doing how to's and, and sharing your own personal experience. Right? [Brandelyn Green]: Right. And I think honestly, there are so many brands, especially in the black hair care market. I think a lot of people have jumped in because they see that it's growing and it's, you know, it's a low barrier to entry. But the one thing that I feel like I can do is to try to connect with people on a personal level. So even if it's just going live and giving them some tips, at least they can see that I'm a real person and not just like, you know, this figure this brand. So that's the one way that I'm able to distinguish myself from like some of the bigger brands that you might see, you know, in retail, [Gary Stockton]: What's the best piece of advice you ever received about running a small business? [Brandelyn Green]: Oh, that's a good question. Well, I would say like, as a product-based business, talking to your customers is so vital. And when I say talking to them, I'm not just saying like on social media and like having, you know, like responding to their comments. I mean, like calling your customers and understanding, you know, Hey, why did you buy from me? You know, why do you keep buying or why, you know, why didn't you buy again, these are questions that are sometimes uncomfortable, but I think are, have been very helpful for me in terms of figuring out like what our next step is or the things that are missing in our business, because from the outside looking in, or even, you know, I'm in the business everyday. And I think we have things together, but when I talked to a customer and they tell me, "I had a really hard time checking out and I didn't understand, you know, this process," it's like, wow, okay, you had that problem, then there are hundreds of people who've also experienced that, and just having told me, so I would say that has been like the most enlightening and most beneficial thing. [Gary Stockton]: You've set up the website to have that flow of customer experience reviews. And that's something that a lot of e-commerce businesses kind of, kind of miss, you know, right. From the, from the beginning. I see that as a, a very important success factor, there is getting reviews, but also, you know, listening to maybe some of your detractors, if people haven't had a good experience, you know, responding and you're saying, get in there and communicate with them directly and trying to understand where could things could have gone better. Right? [Brandelyn Green]: Yes. we have a customer service manager who, you know, all of the, those kinds of issues, customer issues, they get bubbled up to her and, you know, small things like, Hey, you know, I have a quick question or, Hey, this coupon code didn't get applied. She won't come to me for that. But if there's a customer who says like the product didn't work or the product, you know, she had some sort of experience with it, then I actually will, a lot of times call that customer and just let them know, Hey, this is who I am. I'm the founder. I heard you had an issue. Can, can you help me understand what happened and how we can make that right for you? And I think most often when people get those kinds of calls, they're first of all, like, wow, you're calling me. But secondly, they they'll oftentimes pour out their hearts to me. And so it usually, it's a way to win back customers as well. [Gary Stockton]: Yeah. Well, it keeps that community growing and because that positive experience is going to feed on itself because that person's going to go out and say, you know, I, I had something that maybe was initially not a good, good moment of magic for, with this hair product, but then the founder contacted me and, oh, it's just fantastic. It got resolved. And you know, that, that story is going to be shared. Good for you for you know, taking a hands on approach to customer service. Thinking about business in 2022 Brandelyn, is the glass half empty or is it half full for small businesses? [Brandelyn Green]: I think it's still half full. I think we just have to figure out other ways to kind of stand out, because I think the pandemic has done a lot of good things for small businesses. I mean, I think it's created a lot of new opportunities, even, you know, making people more comfortable with, for example, e-commerce and buying online, creating services that people didn't realize they needed. So I think there's a lot of opportunity, but I think we, as small business owners really have to figure out how to stand out from the noise. And some of that is it really comes down to spending more time, like with segmentation, understanding our customers and getting really clear on what their needs are. And then speaking specifically to those needs and not trying to just, you know, address every problem that you think a customer has, but maybe picking that one need and being everything to that customer. [Gary Stockton]: That's wonderful. Well, Brandelyn, thank you so much for taking time out to share about your business and your strategy for building a thriving community on social media, and I want to remind our listeners to follow up with Brandelyn and check out her website. It's voiceofhaircare.com, and on Instagram, if you look up @voiceofhair, she has almost a million followers incredible. And some of the content on there is really fantastic. So go check it out. [Brandelyn Green]: Thank you so much for having me, Gary. You're very welcome.

Gary Stockton: In November of last year, the federal reserve banks conducted the Small Business Credit Survey. In all, they surveyed nearly 11,000 small businesses to ask them about their financial condition, whether they had sought financing in the prior 12 months, and what the effect the pandemic had on their business. The results of that survey have just been published in the 2022 Report on Employer Firms. Emily Wavering Corcoran is the Program Manager of the Small Business Credit Survey (SBCS) in the Community Development Department of the Federal Reserve Bank of Cleveland. The SBCS is a national collaboration among the 12 reserve banks of the Federal Reserve System, to gather timely information on small business, economic conditions, financing needs and credit availability. And we're recording this interview on Friday, March 4th, 2022 ahead of the Federal Open Market Committee meeting. Emily, welcome to the Small Business Matters podcast. Emily Wavering Corcoran: Thank you so much, Gary. Glad to be here. Gary Stockton: Well, one of the most heavily impacted small business segments is leisure and hospitality. Could you tell us what you found out about the financial condition of businesses in this sector? Emily Wavering Corcoran: Absolutely. So as you've mentioned in sort of the background you gave about the survey, the SBCS is fielded every fall. The 2021 SBCS, of course, was fielded from September through November, 2021. And it gathered information from over 17,000 small business owners across the country, including nearly 11,000 small businesses with employees. So that's the segment of small businesses that this report in particular focuses on. As you mentioned, the survey provides detailed information on performance and financing conditions from the perspective of small business owners. In addition to the standard questions about business conditions, debt and credit, the 2021 survey included questions about the ongoing effects of the pandemic, including its impact on revenues and employment, operating challenges, including workforce challenges and applications for pandemic related financial assistance. We also, for the second year in a row, included a question asking small business owners about the financial condition of their business, which is what you just referenced. They were given five options to select from. They could say their business was in excellent financial condition, the financial condition was very good, good, fair, or poor. Out of all employer small businesses, 59% were in poor or fair financial condition at the time of the survey, so, fall 2021. Now, when we drill down more deeply, we see that firms owned by people of color, firms with fewer employees, and firms in particular industries, including leisure and hospitality, were most likely to be in fair or poor financial condition. So relative to small businesses in other industries, leisure and hospitality firms were more likely to be in fair or poor financial condition. So three out of four firms in leisure and hospitality. In many ways, this is not surprising, right? Leisure and hospitality includes restaurants, hotels, entertainment venues. So many of those small businesses that were particularly hard hit, especially early in the pandemic. And that shows the persistent impact of that initial hit and trying to weather the pandemic as a firm that really relies on face-to-face contact, on having people come into the business–All of those things really hold for firms in the leisure and hospitality sector. Gary Stockton: More than half of the firms were in fair or poor financial condition at the time of the survey. And nearly all firms faced at least one operation or financial challenge in the prior 12 months. With so much government assistance made available, why do you think so many small businesses are still struggling? Emily Wavering Corcoran: Yeah, I think for this question, it's important to think about the counterfactual. What might SBCS data look like had pandemic related financial assistance not been made available? I don't know the answer to that question, no one does, but the fact that business performance numbers are tempered, and that many small businesses continue to face operational and financial challenges, even with pandemic related financial assistance, suggests that in the absence of that support, aggregate outcomes for small businesses, and of course the resulting SBCS data to measure those outcomes, could have been much worse. Gary Stockton: Can you talk a little about which businesses applied for additional financing vs. those who did not, and some of the reasons why they did not apply? Emily Wavering Corcoran: The Small Business Credit Survey identifies applicants or small businesses that did apply for credit, and non-applicants, or small businesses that did not apply for credit. So we get both sides of the experiences, right? Apply for credit, don't apply for credit. And then we can drill down to more deeply understand both of those sets of firms: firms that did apply, firms that chose not to apply. So 36% of firms did apply for financing. And 64% did not apply for financing. When you look at just that set of non-applicants, firms that did not apply for financing, 46% of those businesses did not apply because they had sufficient financing. So they did not need to apply for a loan or a line of credit because they had ample financing through other streams. Then 14% of that non applicant pool were discouraged, meaning that they did not apply because they believed that they would be turned down. When you look again, one step further, more deeply at those discouraged firms, a majority of those firms, or just over half of those firms, believed they would be turned down because of weak business financials. And then other reasons that those folks cited in the survey were lender requirements, the belief that lenders would not extend financing based on some characteristic of their business; previous denials and bad experiences in the past that made them discouraged about applying again, and missing documentation was also a relatively big factor for folks. Gary Stockton: You mentioned them being concerned about weak financials as a leading reason. Would that be a major concern when seeking government help through the PPP program? Or was it just maybe a confidence issue with that business owner? Emily Wavering Corcoran: I think both. Financials are certainly an important part of the credit application process. And so as we saw, business fundamentals being hard hit through the pandemic, that certainly played out in both folks deciding to apply for credit or not. And then also it played out in some of the outcomes that we saw for folks who did choose to apply for credit. Gary Stockton: Yeah. The other thing that we noticed in the report was that 2021 PPP outcomes were worse than 2019, particularly in that leisure and hospitality sector. And particularly with black and brown businesses, do you know what's going on there? Emily Wavering Corcoran: Yeah. So again, I would point to some of the information in the report about financial condition, about annual revenues and employment. Certain segments of firms being really hard hit, and then that playing out in different ways in terms of credit access. We did, as you point out, we saw both a decline in firms seeking PPP and a decline in firms receiving PPP. The why is an incredibly complex question to answer, right? Definitely not fully answered by SBCS data, but it is at least partially explained by the relatively smaller size of the third round of PPP funding compared to the two prior rounds, as well as additional eligibility requirements for PPP. But again, not fully answered by SBCS data, certainly something that I'm sure additional research will look at in the years to come. Gary Stockton: What was the most surprising thing to you about the 2022 survey? Was there one thing that really stood out to you as, as important? Emily Wavering Corcoran: Good question, but to be honest, “surprised” doesn't quite capture what I felt about any of the survey results as we were digesting the data and really examining things. In many ways, I feel like the survey data add greater nuance and more robust evidence to ongoing narratives about small business hardship and resilience that we've been hearing about and talking about over the last two years at this point. instead of surprise, I would say that the results for me strengthened my resolve to continue collecting and producing this data so that we can continue to have structural information on small business credit experiences. Small business does matter, and of course, small businesses are on the road to recovery, but it appears to be a long and uneven road, but SBCS data will continue to be there as small businesses move forward. Gary Stockton: Well, Emily, I'd like to thank you for sharing your thoughts with our listeners. Where can they learn more about the great work going on at the Federal Reserve Banks? Emily Wavering Corcoran: I love that question. You can learn more about the Small Business Credit Survey in particular at www.fedsmallbusiness.org. I would also encourage your listeners to check out www.fedcommunities.org, which is a website that shares information across the Federal Reserve System on the great work that the Federal Reserve Banks are doing at the community level. Gary Stockton: Emily, thank you very much for your time. 2022 Small Business Credit Survey Note: We recorded this interview on Friday, March 4, 2022.

Today, we're going to explore change, develop a plan, and follow through with Barry Moltz. Barry gets small business owners un-stuck. He's a nationally recognized expert on small business has given hundreds of presentations to audiences ranging in size from 20 to 20,000, appearing on many TV and radio programs. But Barry speaks from experience, founding and running many small businesses with great success and failure for more than 20 years. His first book, "You Need To Be a Little Crazy – The truth about starting and growing your business," describes the ups and downs and emotional trials of running a business. In his seventh book "Change Masters, Barry explores follow-through and why so many small business owners pay for expensive advice, agree to take action, and then never follow through. What follows below is a lightly edited transcript of our interview. [Gary]: Barry, welcome to Small Business Matters. We're in the middle of, or coming to the tail end of, of the COVID pandemic. There's been a lot, and there's been so much change. I mean, people have really been forced to pivot. Are small businesses more open to change, given COVID and rapid pivot situations, do you feel? [Barry]: No. People only change, in my opinion, when they're in incredible pain, and certainly, with the COVID-19 pandemic with businesses having to shut down or have fewer hours or occupancy, they had no choice but to change. When restaurants were closed, they had to become grocery stores. They had to do takeout. One of the things I liked about the pandemic one silver lining was I got to eat food from fancy restaurants, where I could never get a reservation because they were doing takeout. [Gary]: Yeah. Yeah. It's, it's, it's been a real eye-opener. We've seen so many great situations where people have innovated and pivoted in such a creative way. Restaurants that may not have been able to do seated dining are catering to people; even in our kitchens at Experian our kitchen staff were making meals for local charities. So you really have to think out of the box. [Barry]: And the products have been amazing. I was at a restaurant in Hollywood last week, and when you sat down, there was a little paper bag that said mask caddy on it. It was a place where you could put your mask while you sat and ate. I mean, you would never have seen that before, right? [Gary]: Yeah. But desperate times call for desperate measures. Right? And, going contactless, we've seen a lot of innovation in the space. So how do you confront change in your own business Barry? What was your experience like? [Barry]: Well, change for me has always been difficult because our brain wants us to keep doing the same thing, because what they figure is if you've been doing the same thing over and over again, and you're still alive, I guess it works. And so you don't want to do something different. Our brains get lazy because we give them those patterns as we get older. But what I try to help small business owners focus on is not the changes that I want them to make, but how do they make the changes that they know they need to make but have had a hard time taking action. And the way you start to make that change is really to take a very small step, as much as we like to say in the retelling of the story that most businesses, they took, these giant leaps to change. Most of the time they start with such a small change, and then they build from there. [Gary]: Why do you think so many small business owners struggle with change? It seems to be a pretty common problem. [Barry]: Yeah. I mean, I think it's fear. Things are going okay. They're making enough money. And again, people only change when they're in incredible pain right? So think about how we've had telemedicine visits for a long time, but Medicare only started to pay for them during the pandemic because they had no choice. So again, most people don't want to change their business because they abide by the expression. "The devil I know is better than the devil. I don't know." They don't know what changes are going to bring. So they're afraid. So they stay where they're at. That's why people stay in marriages that they're no longer in love with or stay at jobs that they no longer like working at. [Gary]: Fear, it's the fear of change, right? So you've worked with hundreds, probably thousands in your time. Can you share some examples of businesses you've worked with who were ready for change and successfully did so? [Barry]: Well. I mean, during the pandemic, what I was amazed by, I had a one client who helped design clothes for various fashion brands, and they changed actually designing fashion masks. So again, they went where the need was. I saw that the Pawtucket Red Sox, who was part of the Minor Leagues during the pandemic, only Major League baseball. There wasn't Minor League baseball. They had nothing to do with their stadium. So they decided to open a promotion called "Dinner On The Diamond" where you could go into the baseball field, they set up tables, and you could have ballpark Franks and cotton candy and things like that at the ballpark, there was no baseball going on, but there was another way they could use that physical facility, which I thought was amazing. [Gary]: That's a great story. Yeah. I saw just so many examples. I mean, even if it's not limited to just restaurants. I saw one instance where there was a media studio, but they typically go out and film events and send film crews on site, but they couldn't do a lot of that. But they got into the business of enabling churches to do streaming. So they had the whole consulting side of their business spring up around putting streaming systems together and training churches to operate the equipment and conduct services. Free Book Giveaway On Tuesday, May 3rd, 2022, 1:00 p.m. Central, Barry will do a deep dive on his new book in a webinar "How to make the changes in your business you must make." The first 1,000 registrants for the webinar will receive a free copy of "Change Masters." Register early to secure your copy. Register for Webinar [Barry]: You saw restaurants and hotels hook up where, hey, you want a dinner night out, come to our hotel room, we'll do room service or have the restaurant bring in-room service for you. Or you want to get out of the house use our hotel room as your day office?. There's a sign still at the Burbank Airport in Hollywood, it says "Rent This Entire Hotel" it's the Artesian Hotel in Las Vegas starting at $8,500 a night for you and your family. So people were innovative. They were thinking of ways to deal with what it is. And I think that's the wonderful thing about small business owners, we're going to take a gut punch, but then we're going to figure it out. [Gary]: What if the necessary change is a change of management or ownership? [Barry]: Well then that's really, what's going to happen. I mean, mainly I'm dealing with business owners, so they never think that the problem is them, but the business often has outgrown them. Think about it, there are very few companies that can take very few owners that can take it from founding up to a hundred million dollars. So once my business has got to be about $10 million in sales, that was it. I didn't want to deal with all the HR and all the legal types of things you got when you had a much larger business. So I think you have to realize where can you effectively manage change or bring change to the organization? And if you can't any longer, it's time for you to go. [Gary]: How can a small business determine if the change is necessary? [Barry]: Well, usually they're stuck in one of those areas. So, for example, their pipeline isn't full, they're not bringing enough customers, or they're getting customers in the front door, and their existing customers are going out through the back door. They're not keeping the customers they have, or there's a tremendous amount of turnover in their business, or they can't find new employees. That has to do with how they're doing leadership and management. There's not enough cash for their business, or their customers keep going to their competitors, which means they're not providing an outstanding customer experience. Or the owner says, you know, I can't get anything done. And they blame time for when it has to do with focus and attention. So if they're stuck somewhere, it means something's gotta change. My favorite expression is from Albert Einstein. He said, "the definition of insanity is doing the same thing over and over again, and expecting to get different results." And so many of us act that way. [Gary]: There's a national shortage of workers, you know, with COVID. There are so many people changing jobs with the Great Resignation. Retail and a lot of frontline types of positions like restaurants were hit with this problem. What do small business owners need to do change-wise to be competitive and attract workers beyond the wage challenge? [Barry]: Well, to attract the workers, you now have to figure out how their personal life will fit into your business. It used to be how is business going to fit into people's personal life? But it's really the other way around. You've got to have a strong culture and a strong vision and mission of why these people should be part of your company. And you have to care about how they're doing, not only inside the company but also outside the company. But to have not so much dependence on employees. One of the things you need to do is use technology. We saw the implementation of technologies accelerate during this pandemic with people putting in processes and different kinds of automation. Automation could take over if there was a turn-over or they didn't have the people to actually do the work. [Barry]: I mean, one of my favorite automations that finally caught on during the pandemic was contactless payments. I've been using my Google Pay, Apple Pay for many years. I really like it. I can use my watch, but now it has caught on because no one wants to touch anything. Or the QR code made a huge comeback where we got the menu from just scanning the QR code, or I was able to pay by scanning the QR code at the restaurant table. So I love those things, and I think that's going to continue to keep going on. [Gary]: What about the small business owner who is reluctant to change? You have probably dealt with quite a fair share of those situations. What if it is someone that's just reluctant? I watch The Profit with Marcus Limonus, and there are so many cases there where the person just doesn't want to change. [Barry]: Listen, people who aren't willing to change will end up the way of Blockbuster and taxis, right? Because someone's going to come into a more innovative space. Remember, innovation and disruption are the two sides of the same coin. When you're Blockbuster, it's disruption, but when you're Netflix and it's innovation. And when you're a taxi, it was disruption. But for Uber and Lyft, it was innovation. Someone's going to come in. Who's going to be smarter, look at the problem differently, and have enough money. And they're going to out-innovate you. And that's hard because many companies in an existing business are still making money, so why should they change? This is why it was so difficult for Blockbuster and taxis to change or think of the yellow pages. They had a hard time getting to digital advertising cause they were making so much money from their print guide. It's hard to be that innovator when you're primarily the dominant player in the industry. [Gary]: What inspired you to write "Change Masters"? [Barry]: People would hire me to consult and help them change. We would get together; they would pay me money. We would put together a very detailed plan of the changes they wanted to make and how they would make the changes down to each of the steps. And then I would leave, and nothing would happen. They wouldn't do any of those changes. So I got frustrated with people paying for expensive advice, but they never really got anything out of it. So I decided to focus on not specifically what they needed to change, but how they could make the change and really step-by-step. And I put together in the book 20 steps that you can make to do any change. Now, when I tested this change matrix out with my wife, I said, honey, could you fill this out because I'm testing it for the book? She looked at the worksheets; She goes, I don't have to fill it out; there are no changes I need to make. So I'm not trying to motivate people to make changes I'm trying to help them to make the changes they know they have to make. [Gary]: The book is called "Change Masters – How to Actually Make The Changes You Already Knew You Needed to Make", Barry, where can our listeners learn more about you and the book? [Barry]: You can go to my website, which is www.barrymoltz.com or Barry Moltz on any of the social media sites, except for Tik Tok. I don't do TikTok. [Barry]: That's awesome. Thanks, Barry, for sharing your ideas today on Small Business Matters.

Farmers & Merchants (F&M) Bank of Long Beach, CA has awarded $60,000 to 22 local micro and small businesses since 2020. In the first year of the program, F&M Bank had 84 applicants. In the second year, more than 600. Recipients say these grants have come at the perfect time to help with challenges sometimes made even greater by the ongoing pandemic. (Farmers & Merchants Segment appears at 28:37) “There were a lot of small businesses in our community struggling, that were having to rethink how they do business and how to adapt to circumstances well beyond their control,” said Andrea Carlson, Vice President at F&M Bank. “We were able to help more than 6,000 businesses through the SBA's Paycheck Protection Program (PPP), but we still saw a gap in assistance for businesses that didn't meet the criteria [for that program]," she said. Applicants did not have to be members or clients of F&M Bank to be eligible to receive the grants. To qualify, a business had to have existed for at least two years, have fewer than 20 employees, be in the bank’s geographical service area, and have less than $1 million in revenue. Microbusinesses Fall Through the Cracks "F&M Bank is really a jewel for small businesses. People tend to forget about these microbusinesses, that make less than $2 million a year, have less than 20 employees. But there are a lot of us like that, we are a growing part of the greater economy, but we are so often overlooked," said Omar Hernandez, a disabled veteran and owner of Global Urban Strategies, a PR firm for municipalities. “Because of the pandemic, everything really just stopped. So our cash flow just stopped. So we worked off our cash reserves, and then our savings. For me, our employees are the most important component of my business. We have to invest in our people. This grant was so important to us, because we were able to keep getting everyone paid on time.” Hernandez says he plans to become a customer of F&M Bank now. “The way I see it is, they invested in me, so why not go and do the same thing and do business with them?” Tatiana Pacheco owns Andrea's Healthy Kitchen, a juice bar in Rosemeade, CA. Just as sales began slowing down at the beginning of the pandemic, her business location suffered a colossal fire. "It took us one year to reopen. Even though December is our slowest month, we were able to keep our employees paid for that month. This grant came at just the right time," Pacheco said.       Black-Owned Businesses Disproportionately Harmed by Pandemic A study1 from the early months of the pandemic showed 41% of Black-owned businesses closing their doors. Thirty-two percent of Latinx-owned businesses closed. Compared to about 17% of white-owned businesses. So F&M Bank gave priority to grant applicants whose businesses serve underprivileged neighborhoods, and/or are owned by people of color. Jala Eaton of On My Own Financial is an attorney and financial and estate planner on a mission to close the racial wealth gap. She started her business prior to the pandemic offering financial education and estate planning to business owners and families. “For me, these funds are going to build infrastructure and software to help me continue to serve my clients virtually. So online scheduling software, client management systems, even paying the annual fees to be an LLC,” Eaton said. “There is a big disparity—40% of Black businesses went out of business last year, because of COVID and lack of access to resources and money. That’s why I’m so passionate about talking to my community about money and being strategic with it.” Eaton said she's also planning on hiring her first employee this year.     F&M Bank was founded in 1907 on the principles of honesty, integrity, the home, the church, and service above self. Each year F&M Bank gives away more than $1 million to charities, non-profit organizations, and religious entities within the communities they serve. Find them on social media, and learn more about the other extraordinary entrepreneurs who received grants as part of this program. And thanks to Farmers and Merchant’s Bank for investing in the community.   Link to study: https://siepr.stanford.edu/sites/default/files/publications/20-022.pdf Got a story about Diversity, Equity, and Inclusion? Email us at smbmatters@experian.com. Listen to the full episode on any of these platforms:

  We're celebrating Black History Month, so in this special Inclusion-Forward episode of the Small Business Matters podcast, we're going to talk about generational entrepreneurship — the idea of following in your family's footsteps by going into business for yourself. Our guest today embraced entrepreneurship with Gusto. Keewa Nurullah owns kids' boutique Kido in Chicago, Illinois. She's a fourth-generation entrepreneur and a direct descendant of a Black Wall Street Business Owner from Greenwood district in Tulsa, Oklahoma, she's been featured by CNN and NBC. She was also recently named Black Entrepreneur of the Year for 2021, an award presented by Officially Black Wall street, Clover, and Snapchat.   [Gary]: You're a fourth-generation Entrepreneur. Can you tell us a little bit about your family's roots in small business? [Keewa]: Sure. My Great Grandfather had a tailor shop on black wall street in Tulsa, Oklahoma, and after the family was forced to flee during the massacre of 1921. Thankfully, he was able to relocate in Chicago and he was able to reopen a tailor shop on the south side here. And he taught my Grandfather the trade. And so at one point, both my great-grandfather and my grandfather had tailor shops on the south side. And although my mother didn't follow in her father's footsteps by being a tailor, she's an artist and entrepreneur, she's always been self-employed. And so I've kind of followed everyone's footsteps, I guess, because I'm both an artist and also a business owner with a brick and mortar myself. [Gary]: So your family story, I mean, being a direct descendant of someone who was impacted by the terrible massacre, you've heard details of what happened there. Your great grandfather, his business, was it a casualty of the events in Tulsa? And did he just literally pick up and flee to Chicago straight from Tulsa? [Keewa]: Yeah. Well, as far as we know, both the business and the home were burned. And so, you know, without knowing the details of his exit story, we know that he was helped out of the city limits at least by a customer of his, and it was my great grandfather and my great-grandmother, my grandfather who was a baby and his sister who was a toddler. So as anyone with young children knows, it's the thought of trying to escape a very violent and traumatic situation with very small children is a feat in itself. So I feel very, very lucky and honored that he was able to, you know, finagle his way out to safety. For sure. Yeah. [Gary]: So he comes to Chicago and he's a tailor by trade. And so he starts just opening his own business and continuing on there with new clients, right? In a much larger city, is there some story there on how his business grew? Subscribe To The Podcast [Keewa]: Not really. We don't, we don't have a lot of details, but as I can imagine with other black people who migrated from the south, you know, whether during restoration or, you know, just in the early part of the 20th century without the Internet, without these kinds of technology, I think once you've found yourself in that Northern city, you say, okay, well, who do we know? You know, is there anyone else from Oklahoma as their family? And so, all I can do is kind of put myself in his shoes and think, you know, well, first they had to find somewhere to be, and the easiest way to find that was to find your people, you know, but yeah, he had a skill that was necessary. You know, people weren't wearing jeans and sweatshirts back then, you know, everybody needed a suit. And so thankfully he had that skill to kind of immediately be able to be put, to work, to earn for his family. [Gary]: Yeah, that's great. And then his son went into,  did he take over the business or open his own tailor shop? [Keewa]: So initially my, my grandfather, after learning the trade from my great-grandfather, he enlisted during World War II as a young man. So he was a tailor in the war. And then when he returned from the war, he decided to kind of set up shop for themselves. So they both had their own kind of customer demographic. You know, my grandfather had more of a young guys, more of the fashionable guys and my great-grandfather had, you know, maybe the older set, but they were both able to have their own shops at one time until my great-grandfather retired. [Gary]: Do you know where the stores were located? Have you have you visited that part of town? [Keewa]: Well I'm around there all the time. Cause I live on the south side myself, as far as I know, according to my Mom, I think one of their shops was on 47th street and one was on 63rd street in Chicago, you know, back in the, in the forties and fifties, both of those streets were thriving centers for black business. 47th street had a lot of the clubs and music venues that people like at a James and Nat king Cole when they tour, they would go into the black neighborhoods to perform because everything was so segregated. So according to the location of both of their tailor shops, they were also in kind of these thriving black business hubs on the south side. [Gary]: And of course your Mother pursued her own business. Did you see your mother being independent, not working typical nine to five jobs influencing your path to ultimately become an entrepreneur yourself? [Keewa]: Definitely, definitely. You know, she had four kids and so if a kid gets sick, you know, if they're, there's so many reasons were now me as a parent, I understand the, the need for flexibility to kind of be able to control my income, but also be present for my kids. And so I think, you know, the desire for her to pursue her artistic desires and also have this flexibility to be there for her children. I think definitely informed me in some ways once I chose this path. [Gary]: So what inspired you to open Kido? I love the name by the way. [Keewa]: Yeah. I had my Son and I didn't really have, I feel like the friends that I had at the time he was born either had older kids or they didn't have children yet. So I was kind of in a position where I didn't really know what was needed. I didn't have that immediate network of people who were having babies at that time. And I didn't really have any family members who had young kids or little cousins or that type of thing. So I was discovering a lot for the first time. And one of the first things I look for was, you know, clothing, once the baby shower kind of gifts run out and you start shopping on your own. And I had a little boy and I just was looking online and shopping for him and just really disappointed by the options, especially for little boys, you know, not very colorful, very gendered, some even like macho messaging, you know, "I'm so tough" or, you know, "Daddy's little Slugger", which really didn't resonate with me or my values or my style. And so I just, you know, with all that time, it was just like breastfeeding and kind of just sitting there when he was asleep, I just started doing my Google researching and just like, what does it take to just print some onesies or kind of develop a few ideas that I had and that, that was the beginning of the business. [Gary]: How did you start? Did you just go and get a space? Or were doing swap meets or how did you start up the business, what was the plan? [Keewa]: Yeah, I pretty much just started in my living room. I hired someone for artwork. I used my husband, my husband's a visual artist. He did some of the artwork. I figured out how to send that artwork to a printer, to print on, you know, some blank, some blank onesees, and everything was just shipped to my home, to my living room. And so we started online. I started a website, I got a logo. I did, you know, I followed all these steps that I kind of researched that other people had done, had a big launch for the website. And then after that kind of first initial push and probably just all my friends bought something, I realized, you know, that's not going to be enough. I have to have other people buy things for it to kind of be a real business. And so, yeah, I sold in local markets and festivals. And then what I realized once I started to meet my customer face to face was that, there were other parents like me who wanted to meet other parents and families who didn't have friends too, were having babies at the same time. And so that's how we started our South Side Storytime. Just kind of as an opportunity to have families in our network, meet in a place where they could have their kids with them. And, and that was the beginning of connecting the Kido brand to events and really bringing community together. [Gary]: The community really factors in a big way in your approach, the Storytime, music as well. I've seen some pictures of the events. The other thing I noticed, it's multicultural, you know, there are white children, black children. It's not this, isn't just a one race thing. You know, this is, this is definitely to bring people together, which I think is so beautiful. [Keewa]: You know, anybody who's spent any time in Chicago or is from Chicago knows how segregated the city is. Even to this day, everyone kind of stays in their own neighborhoods and where they feel safe. And when I started Kido, that was a goal of mine was to really connect families and to have neighbors learn about each other, that no one living in such close proximity to each other shouldn't know what that other person is going through or about their culture. So, that was a goal to kind of bring people together and also educate one another just by being around, you know, do you even know what Muslims celebrate? You know that it's Ramadan, and you shouldn't invite them out for lunch today. These are just kind of basic things that like, I felt like meeting other families and parents would really just educate people in a way that was more immersive. [Gary]: Yeah. Yeah. I love it. Well, let's talk a little bit about social media because you've got a very active presence. I've been following what you're doing on, on Instagram primarily. Can you talk a little bit about how you're integrating the digital into the bricks and mortar space? [Keewa]: Once we started having these events, we kind of connected the Kido brand to a vibe. If you will, this thought that like, parents are still cool, parents can still be their individual selves and, and still, you know, have a family. And so meeting more and more families who are like, yeah, I want a party, but I have kids or yeah. You know, let's, let's, we still, we should still be able to do fun stuff. We, we, in, in uniting our community kind of also just establish yeah. This vibe. And so, especially in 2020, when all of a sudden out of nowhere, people were unable to come to the shop. We knew that we would have to translate that somehow over a screen so that people missed us so the people, you know, they just felt like they were missing out on something, because I knew that that would encourage people to still support us and look out for us in a way that we needed. And so that's really, yeah. I feel like our social media became even stronger after the pandemic, because we wanted to translate the vibe across the screen, you know, like, what is Kido up to, like, what do they have in stock, even though families were the people that were, you know, in the house the most, you know, they didn't necessarily want to shop out in public with kids that aren't vaccinated yet. So we just wanted them to feel like they weren't missing out on the party and that they still knew what was going on. [Gary]: I saw that you were doing things with bookshop.org where you've got a store on bookshop.org is that like an affiliate program where you still get some revenue, but people can have the product shipped directly to them, but you have this, you can choose the product mix. Right? [Keewa]: Yeah. I can only have a very curated collection of books, but we sell more books than anything. We're in the Booksellers Association. So we're about a five bookstore, but we have a curated collection that's really focused on inclusivity, representation, you know, multicultural education. And so people come to our shop, they're obsessed with the book collection, but we don't have everything. You know, we don't have, you know, your, your classics or somethings that families might be looking for if they don't know, you know, what we're about. So being on Bookshop kind of allows us the opportunity or really allows our customer, the opportunity to support us and buy any book they want. We love bookshop because they're really like an Amazon alternative, you know, for people who want any kind of book, but you're supporting independent bookstores who really need their help as opposed to the big guy. So we love bookshop. It's a very new platform, but in such a short amount of time, they made a huge impact for independent bookstores. So very thankful for them. [Gary]: I became aware of them during the holidays. When we we had our first Festivus, you know, Secret Santa, but we did a virtual Secret Santa, which I'm like, well, how are we going to do this? Have I got to ship something to somebody, and we ended up doing it with gift cards, but they were virtual gift cards. And there's a little platform that allows you to really just do it as if you were in person. And I had some Bookshop.org certificates. So that was a lot of fun. [Gary]: Has the area changed much since you opened Kido? [Keewa]: I would say so. It's been interesting to see the ebbs and flows just out of the city and small businesses within the cities, since the pandemic started after the looting and even up until maybe, you know, six months ago, our downtown area and the gold coast is still not what it was before. All of the kind of luxury and big box stores that got looted. A lot of them didn't reopen. So in the Loop and in the Gold Coast and the Central Chicago area, you still have this, you still have these visual reminders of what happened in 2020. Where we are in the South Loop, our small businesses are trying to stay strong, but we have seen kind of a second round of closures after 2020. You know, a lot of businesses weren't opening in 2021 after we got over the hump. And, and now with the latest surge and just the kind of cumulative effect of just wearing this pandemic, we've seen this kind of second wave of small businesses closing, and it's unfortunate, you know, people who have made it all this way. And then when they tell you, you know, you gotta get vaccination card checking at the door and you need all of these kind of PPE requirements again, and then some people can't make it. So, there's that kind of change and that kind of visual reminder that we're still in this very challenging time. [Gary]: Yes. It's really tested Entrepreneurs. And like you've been doing with digital, integrating digital. I think the real resilient businesses are the ones that are open to change and open to challenge. And you're winning awards. I mean, you were awarded Black Entrepreneur of the Year in 2021. Congratulations. I mean, what was that like to receive that recognition from such a prestigious organization? [Keewa]: Very surreal, you know, I won't get down on myself and say that I don't deserve it. However, any entrepreneur knows that. My business has been around for three years, the brick and mortar that has been around for three years, we've been around for five years online. There are businesses that have been open, you know, 30 years, 35 years. And they're so many entrepreneurs that I admire for the way that they've been able to stay in the game or the way that they've been able to be leaders in their industry. And so I know that that it's a, it's an accomplishment, but I also feel like, well, anyone who has survived, I'll take it. And it really validated something in me to keep going, but I also am, am sharing it with all of my fellow business owners who have made it through this time. For sure. [Gary]: What's the most important piece of advice that you've received as a business owner and entrepreneur? [Keewa]: Really just listen to your customer. I think a lot of people have a product that they, they've had the idea they've gone through all the steps to put it on the market. And they are so intent on selling their specific vision to a customer that may not even exist yet. And some people don't take the time to really listen to what their customer, or potential customer or what people in general actually need. And that's something that I think I've become better at, especially during this pandemic. The fact that we started as a clothing company and at the top of the pandemic families were, we were sheltered in place. We were in our pajamas all day. So, so if I kept pushing clothing and I wasn't listening, I would be out of business, but instead I'm listening and I'm like, okay, well, let's bring that way down. And then we amped up, you know, board games, puzzles, toys, because we were just in tune with what our customer was going through and what they needed at the time. And I, I feel like you need, you need to listen, listen, listen, and be flexible. [Gary]: Do you hope to inspire your children to become entrepreneurs? [Keewa]: I have to inspire them, but they can become whatever they want to, you know, I think especially being the descendant of a black wall street business owner and being a mom, I of course desire to build some kind of generational wealth. But they can do with that, what they want. You know, I don't want to impose anything on them. But I hope they're inspired by something that they have the freedom to do as they wish. [Gary]: So during COVID, did you face challenges getting access to any of the government programs, paycheck protection, or any of the grant programs that were, that were available? [Keewa]: Oh, wow. That was very, very, that was a very interesting. [Gary]: Tell me bout it. [Keewa]: The first round came and went and then we heard the news stories of the Lakers got a bunch of money and Potbelly's got a bunch of money, Ruth's Chris Steakhouse. And I think all small business owners were just sitting here, like what's going on? That's not who needs help. So the second round came along and thankfully I was approved for a PPP and, but then even after that, I hear a people who don't even have businesses scamming and getting way more money than I asked for. So I just, that whole situation was very perplexing. And I tried not to put all my eggs in that basket. You know, I was really just grinding, trying to make the business work to its maximum potential, even though, you know, I'll take what I can get if it's, if it's "free money", but it was just disappointing to see how people really took advantage of that help and how so many small businesses may have ended up closing because they didn't have access to that money that they needed. It was, it was very, you know, it was unprecedented. We hadn't had to do anything like that ever before, but I was just disappointed at the people on the top and the bottom who kind of grabbed for all that they could while the people who it was created for, you know, were just left in the dust pretty much. [Gary]: There was, I mean the first round, I think it was difficult because they wanted to roll out a lot of money quickly and the banks weren't prepared to do that quickly. And I think for businesses that didn't have those existing relationships with their banks or the, they had, shall we say, loose ties with, with lending organizations that it was just impossible and so very frustrating, but businesses of color just did not get the access to capital that they deserved and needed and something, I mean, if we go through another pandemic, I hope, you know, I hope it's at least a hundred years from now. I don't want to go through another one of these anytime soon, we'll be better prepared with PPE and all of that stuff. I mean, it's been quite a journey. [Keewa]: It really has when you think to the, to the very beginning and the struggles that we had and just how those have morphed into these current struggles. It's, it's been a whole lifetime. I'm definitely ready for it to be over. But you know, for us as a business focused on children, we're still in it because our parents, our families still have children under five who can't be vaccinated. So that comes into play. You know, when we think about our foot traffic levels or we think about, you know, we're still not having events again yet, it's we have that customer in mind because that's me as a parent and that's a lot of our target audience. So we're still in it. [Gary]: I get a sense of joy when I talk to you about your business Keewa, it's obvious that you really enjoy being an entrepreneur. Would you, would you agree with that? [Keewa]: I do. I've had, you know, this, I feel like as my second chapter of life and I, when I think of the first chapter, I think of all of the, the ups and downs and the uncertainty that, you know, as what I, what am I doing? Am I supposed to be doing this? How am I going to make any money? You know, that, especially in my twenties, just that uncertainty of am I going in the right direction? And I feel like with Kido, I've, I've found my purpose. I know that this is what I was supposed to do. And so there's so much relief from that, that I feel like that opens me up to the joy, you know, to, to really just be happy about bringing these moments to families about spending time with my family, both at work and at home. And yeah, I can't suppress that sometimes. You know? [Gary]: Well, Keewa, it's been an absolute pleasure speaking with you today. You're an inspiration. What can I say? How can our audience learn more about Kido Chicago? [Keewa]: Well, yeah. Where our website is kidochicago.com. We're, on Instagram at kidochicago, where I'm, TikTok at kidochicago and Facebook as well. Stay tuned. We're we're on hold for events right now, but hopefully they will be backup. So for any local Chicago families come and check us out. [Gary]: Thank you very much. [Keewa]: Thanks for having me.   Got a story about Diversity, Equity, and Inclusion? Email us at smbmatters@experian.com. Listen to the full episode on any of these platforms:

  What's the difference between Hard and Soft Credit Inquiries? In this Business Credit Answer we'll explain the difference between Hard and Soft credit inquiries. Let's start with the inquiry its self. An inquiry occurs when your commercial credit is reviewed for decision monitoring or to provide an invitation to apply for credit or service. There are two types of inquiry, soft and hard. The names are representative of the impact to your commercial credit score. A soft inquiry happens when you or someone you authorize reviews your credit report and your business is not seeking credit. Still, the performance of your business is being monitored or reviewed. Here's an example, a commercial credit issuer, a trade creditor may check your credit to pre-select you for an offer, or they may just be monitoring your business credit for health of your business. Soft inquiries don't impact your credit score because they aren't attached to a specific application for credit. You can have dozens, even hundreds of soft inquiries in your credit report, and they still don't impact your score. A hard inquiry on the other hand occurs when you are applying for commercial credit or service, and your credit information facilitates that credit decision. A hard inquiry can stay on your credit report for up to two years, but they play a minor role in your score and the fear of a hard inquiry shouldn't keep you from applying for credit. When you need to open a new account, an inquiry indicates that your business is in the market for credit. Inquiry, volume and velocity on your credit report helps to monitor your business for fraudulent activity or alert creditors that you might be seeking some additional funding and even give them a heads up. That's the difference between Hard and Soft credit inquiries. You can check your Experian Business Credit Score by purchasing a one-time copy of your credit report, or by signing up for business credit monitoring, including unlimited access to scores. Read our post on checking your business credit score for more information.