Money is Energy

According to SCORE, cashflow is one of the main reasons small businesses fail. Another top reason is poorly-executed marketing strategy. A well-crafted marketing campaign can stimulate cashflow for a small business. These two concepts go hand-in-hand.

So let’s talk about money. Cashola. Funding. Moolah. Energy. Whatever you want to call it.

In today’s email, we’ll discuss the following:

• Funding: The latest on important funding opportunities for small business

• The Market is Shifting: What’s next? The Golden Age, or a recession?

• Spotlight on the 4 P’s: Strategic pricing can help you no matter what the economy.

• Mark Your Calendar: May is special. We’ll discuss why below. (Bonus points if you already know why).

IN A MAIN STREET MINUTE: FUNDING

• CDFI Funding Could Be Compromised The Trump Administration orders to cut Main Street lending programs via CDFIs; this is facing pushback from both sides. I used to work for a CDFI, and this development will certainly change the landscape of opportunity for small business owners who may seek funding moving forward. Especially in underserved communities.

• SBA Announces Agency-Wide Reorg According to the site, core services to the public, including the agency’s loan guarantee and disaster assistance programs, as well as its field and veteran operations, will not be impacted. The cuts are to take the agency back to pre-pandemic staffing levels.

• New State-Level Programs May Supplement: Some states are responding to these shifts. Check with your state about information regarding new loans and grant opportunities.

• Manufacturing Poised To Make A Comeback Are you a fabricator or manufacturer in the US? Are you thinking about launching a business or expanding on an existing one? Now is the time to explore opportunities in manufacturing. The SBA and MadeInAmerica.gov may have opportunities for you and your business, no matter how long your business has been around.

THE MARKET IS SHIFTING: 

First off, the Trump Administration is changing the United States as we know it, with small business being no exception.

Do I think these changes are for the better? It’s way too early for me to form any kind of real opinion yet. But one thing I know for sure, is that we will all feel some discomfort as the economy goes through some major changes.

Something else I know that’s for certain: The small business funding landscape that has existed for years will change, at least somewhat. As a small business owner, you should keep up with these changes.

Secondly, it is important to know that the small business index is strong, reaching levels it once had before the pandemic.

The Q4 ‘24 score is 69.1, down slightly from the Q3 ‘24 score (71.2), which was just below the Q1 ‘20 pre-pandemic score.

This means that small businesses were confident in the market as of the time that report was published…even despite challenges such as inflation. It’s important to point out that reports like this capture one quarter’s worth of data.

However, that data was out of date the moment the report was published. It does not reflect what people are thinking or feeling right now. I anticipate the next report, for Q1 ‘25, will show a dip of some sort. How much is uncertain.

Thirdly, when the market shifts, your target audience’s behaviors may adjust with it. Are you asking them what they think and making adjustments on your end that resonate with them?

(BTW, one of my upcoming newsletters will be on the topic of target audience. Understanding your target audience these days is extremely important, so be sure to check it out.)

Trump promises the Golden Age of America is on the horizon. However, he has warned us about the potential of a recession before that happens. I hear the word “recession” in the news and in conversations I have with clients and other small business owners regularly these days.

Don’t fret! Something to keep in mind is that there is opportunity in every market, no matter if the market is up or down. You just have to find it.

But also be warned: if you’re not prepared for a big market shift, you may struggle. Consider what it means to adjust your pricing, or add a new revenue stream to your business now, to protect your business.

SPOTLIGHT ON THE 4 P’S: PRICE

The 4 P’s of Marketing include: Product, Price, Place and Promotion. We’re focusing on strategic pricing this week.

Strategic pricing gives us the opportunity to protect ourselves from market fluctuations, no matter if they’re up or down.

Preparing a strategic pricing structure now can help ensure the long-term stability of a small business. Instead of reacting to financial hardships when they arise, proactive pricing adjustments can help maintain profitability while keeping customers engaged.

One key approach is tiered pricing, which is offering products or services at different price points to appeal to budget-conscious customers while still providing premium options for those willing to spend more.

This not only expands the customer base but also helps stabilize revenue.

Another strategy is value-based pricing, which focuses on what customers are willing to pay rather than just covering costs.

By highlighting the unique value of products or services, such as superior quality, local sourcing, or personalized customer service, businesses can justify pricing even in tough times.

I often use value-based pricing in my media buying consultancy. This strategy served me especially well during the pandemic. Specifically, I approached corporations in economic sectors that thrived during the pandemic, and needed someone with my seniority and expertise to help them take advantage of the market opportunity. I sold each corporation a well thought out package that consisted of a variety of services. Each proposal highlighted the value I had to offer. I had happy clients. It was a win/win scenario for all.

Additionally, introducing subscription models or bundled pricing can create predictable revenue.

Offering discounts for long-term commitments or packaging complementary products together encourages repeat purchases and increases customer retention.

Subscription boxes are a great example used by many small businesses. When done right, subscription boxes can easily scale a business.

Don’t have a physical product? Explore what it means to manufacture your own. Pro Tip: Did you skip over the section called “In A Main Street Minute” above? If so, scroll back up. There’s information in there about manufacturing opportunities that may inspire you.

Only interested in offering services? Consider a membership instead, where you provide an ongoing service to clients within your target market.

Finally, small businesses should regularly analyze costs and competitor pricing to stay competitive without undercutting profitability. If you discover a direct competitor just cut their prices, find ways to add value to your products or services so you can maintain your pricing. This is called “packaging".

Pro Tip: Packaging your products and services prevents you from having to disclose item-specific costs to your clients. It allows your clients to see the overall value of what you have to offer, instead of trying to find the cheapest deal.

By preparing a flexible pricing strategy now, small business owners like you can navigate economic downturns with confidence, keeping business resilient and profitable.

The beauty of all of these strategies is that once you establish them, you can adjust them later as the market changes. The hard work is setting them up in the first place.

_{MARK YOUR CALENDAR:}

The US Chamber of Commerce is having its annual Small Business Day event on May 1, 2025. Click here for registration information.

The event is free and lasts for several hours. It’s held virtually (or in-person for those in the DC area). I’ll be watching virtually.

You’ll hear stories from small business owners and presenters from the Chamber of Commerce representatives.

I know one major point-of-discussion for this year’s Small Business Day event will be tariffs, which will definitely impact everyone’s marketing strategies moving forward.

Attend if you can! If you do, drop me a line afterwards to let me know your thoughts. I may include some of your thoughts into a future newsletter, where I will address tariffs.

Also, don’t forget that May is Small Business Month! 🎉

Take advantage of this opportunity to help your small business. Partner with other complementary small businesses for a Small Business Month promotion. Introduce a new product or service to your customers as a “thank you”, and a way to maintain interest.

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