This document discusses reimagining business development services (BDS), also known as technical assistance (TA), provided by CDFIs to their small business loan clients. It argues that BDS should be viewed as a discrete product or strategy to support portfolio performance and mission. The document provides examples of how BDS can be improved by establishing clear goals, metrics, engagement strategies and funding models. It also presents a case study of how one CDFI, Working Solutions, redesigned their BDS program through improved processes, staff roles and impact tracking.
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Our task as CDFIs is to deploy our loan capital as effectively and quickly as possible to meet the needs of the community. "Sales" is not a bad word in nonprofits, because you are working to make capital access equal for all. Learn how you can implement this within your own organization.
With increasing demands to meet the needs of underserved local communities, CDFIs are responding by building a mission-driven sales culture. Friedman Associates will highlight the steps you need to take to develop a culture of sales.
Participate in a conversation about the challenges in running a top-performing CDFI loan fund. We will share our tips and experiences and learn how we can help you meet your performance goals.
Our task as CDFIs is to deploy our loan capital as effectively and quickly as possible to meet the needs of the community. "Sales" is not a bad word in nonprofits, because you are working to make capital access equal for all. Learn how you can implement this within your own organization.
July 2017: NEW UPDATED CAB WEBSITE: www.cabstrategy.com. Here you'll find many more CAB best practices!
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http://au.linkedin.com/in/bradleygiles/
http://www.evolutionpartners.com.au/
HOW to Best Run a Customer Advisory Board: 10 Tips for Creating a World-Class...Rob Jensen
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The presentation focuses on how to run a world-class customer advisory program:
• Design an advisory program – target members, goals, topics
• Effectively recruit members
• Build an advisory board charter document
• Onboard members – discovery interviews on top-of-mind topics
• Build a meeting agenda
• Sustain board momentum between calls and meetings
This presentation was created by Ignite Advisory Group, the world’s #1 advisory board consulting firm, and also Innovation Games, which helps organizations innovate through collaborative, social, and serious business games.
In the early 1990’s, Michael wanted to develop a strategic process to attract the best talent and build a culture founded on the values of integrity, respect, friendship, caring and loyalty. During a conversation with a colleague discussing the direct impact talented employees had on customer relationships and company performance, he learned of the behavioral assessment tool Predictive Index® (PI), published by PI Worldwide®. More at predictiveresults.com
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Strategic Capital Partners offers a multitude of funding options to small business owners across the nation. Speed, simplicity, and security are the driving factors behind everything we provide to our clients. Upon submitting your application, we review it with a dedicated funding advisor. We then search our vast network of lenders to find the best funding options available to perfectly meet the demands of your business. Small business is the backbone of America and Strategic Capital Partners is the backbone of small business.
July 2017: NEW UPDATED CAB WEBSITE: www.cabstrategy.com. Here you'll find many more CAB best practices!
Customer advisory boards are rapidly becoming a standard part of a company's marketing program. CAB meetings allow your executives to meet with a dozen or more of your most important customer decision makers. But not all CAB meetings are successful. A few of the secrets to positioning your CAB for success are shared in this mini-deck.
You can also learn more in my 2-volume set of books: The Flipchart Guide to Customer Advisory Boards and on my CAB blog: http://customeradvisoryboards.wordpress.com.
Professional Qualifications - Darin JanecekDarin Janecek
Discusses my professional background and qualifications, and how I can help your organization accelerate profitable growth through my analytical, strategic, transactional, and transformational leadership capabilities.
Why Customer Advisory Boards are a Business Imperative TodayRob Jensen
Customer or partner advisory boards can significantly help organizations gather insights into its corporate strategies and product direction. Join this insightful and educational webinar to learn how such an advisory council can bring tremendous value to your company.
Customer Advisory Board - Core Competencies of a World Class CABCustomer Advisory
Understand the core competencies required to build a world-class Customer Advisory Board. Based on research conducted by the CustomerAdvisoryBoard.org industry association http://www.customeradvisoryboard.org/
This presentation provides an overview of the One Page Strategic Planning process and why you should consider this framework for planning in your mid-sized firm. Growing businesses must ensure that 4 key decisions are correct in order to grow - People, Strategy, Execution and Cash as outlined in Verne Harnish's books Mastering the Rockefeller Habits and The New Rockefeller Habits.
http://au.linkedin.com/in/bradleygiles/
http://www.evolutionpartners.com.au/
HOW to Best Run a Customer Advisory Board: 10 Tips for Creating a World-Class...Rob Jensen
HOW to Best Run a Customer Advisory Board: 10 Tips for Creating a World-Class CAB Program
A well-run customer advisory board is the ideal method for validating corporate strategies, gathering input on product development, and deepening relationships with key customers.
The presentation focuses on how to run a world-class customer advisory program:
• Design an advisory program – target members, goals, topics
• Effectively recruit members
• Build an advisory board charter document
• Onboard members – discovery interviews on top-of-mind topics
• Build a meeting agenda
• Sustain board momentum between calls and meetings
This presentation was created by Ignite Advisory Group, the world’s #1 advisory board consulting firm, and also Innovation Games, which helps organizations innovate through collaborative, social, and serious business games.
In the early 1990’s, Michael wanted to develop a strategic process to attract the best talent and build a culture founded on the values of integrity, respect, friendship, caring and loyalty. During a conversation with a colleague discussing the direct impact talented employees had on customer relationships and company performance, he learned of the behavioral assessment tool Predictive Index® (PI), published by PI Worldwide®. More at predictiveresults.com
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A Basic knowledge about Stages of Development of Enterprises and their associated capacity building needs and programs and other dimensions.
Useful for businessmen and anyone thinking to have his/her own start-up.
Strategic Capital Partners offers a multitude of funding options to small business owners across the nation. Speed, simplicity, and security are the driving factors behind everything we provide to our clients. Upon submitting your application, we review it with a dedicated funding advisor. We then search our vast network of lenders to find the best funding options available to perfectly meet the demands of your business. Small business is the backbone of America and Strategic Capital Partners is the backbone of small business.
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Citations are reflected in the slides.
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If your company needs to submit a Brand Event Management Proposal PowerPoint Presentation Slides look no further. Our researchers have analyzed thousands of proposals on this topic for effectiveness and conversion. Just download our template, add your company data and submit to your client for a positive response. https://bit.ly/3ffjn4A
Thinking about launching a hedge fund or looking to grow your fund's assets faster? Find out why some funds raise capital faster than others.
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Maximizing the Value of Your Internet PropertiesAffiliate Summit
This presentation is from Affiliate Summit East 2017 (July 30 - August 1, 2017 in New York).
Session description: This session will dissect what motivates buyers to acquire an online business. I’ll provide practical advice anyone can use to increase the value of their business.
2. Background
The CDFI industry has clear standards,
guidelines, and metrics for the operation of a
loan fund.
We can’t say the same for business
development serices. Why?
BDS is a key strategy to support portfolio
performance and mission.
Requires a formal structure to sufficiently
support loan clients’ path to sustainability and
growth.
BDS is a “product.”
2
3. Show of Hands - What do you
call it?
Technical Assistance or Business Development
Services?
Government agencies (except CDFI) use “TA.”
Messaging: Internal vs. External?
We prefer to use BDS, not primarily because it
is used by the CDFI Fund.
Because it better describes the WHO and the
WHAT.
Accurately represents to our clients what we
are accomplishing with them.
3
4. In our travels, we have found
that….
In many cases, BDS is an after-thought, lacking
a discrete strategy for client engagement
outside of an annual site visit, a workshop,
missed payments, restructurings, etc.
Not well-articulated at closing, on websites or
collateral materials.
There are no established metrics to measure
success.
If we don’t know what we are really delivering,
how can we possibly articulate our service
product to our clients?
4
5. 5
What goals should BDS
support?
Mission: Aligns with
organizational mission
to support underserved
entrepreneurs
Risk Mitigation: Risk
mitigation strategy in
tandem with solid
underwriting guidelines.
Impact: business
survival, growth, jobs.
6. What is BDS really all about?
Supporting the entrepreneur to
sustainability
To be able to last or continue for a long
time - Miriam Webster dictionary
The ability to maintain or support an
activity or process over the long-term
business dictionary.com
To maintain balance
6
7. Applied to the businesses
we work with….
Maintain financial balance
Last through the ups and
downs of the market
Keep on keepin’ on
7
8. Ask Yourself….
Do you have an intentional strategy for BDS
services?
Are these goals (mission, risk mitigation,
impact) explicitly stated and quantified in
your strategy?
Is BDS a product offering? What’s your
value-added proposition? Why should I buy?
How do you know if the business is really
growing?
8
10. The Three Legged Stool
The trade leg
The sales leg
The banker leg
10
11. Without all three, the
business falls over…
Loses its balance!
We must support our clients
in all three key areas of their
business so they have
balance in their business and
reach sustainability!
11
12. We focus on the three legs
through:
Entrepreneurial
education
Pre-loan assessment
Post-loan support
Additional resources
12
13. Pre-loan relationship to prepare the client for
capital.
Post-closing on-going relationship.
Systems for tracking compliance and impact of
the organization’s work.
Marketing to tell entrepreneurs about other
organizational programs.
Marketing
Tracking &
impact
systems
Post-
closing
relationship
Pre-Loan
relationship
14. What does it take?
Commitment by the organization to support
clients throughout the process.
Willingness to view BDS as a product and not
as a task.
Sufficient capacity.
Additional resources (cash and-in kind).
14
15. Effective Pre-Loan Assistance
ASSESS Business Skill Gaps
Assess the client’s financial
acumen
Assess the client’s business
skills
Prepare the client for
capital
Redirect for additional
support
16. A closer look at the post-
closing relationship
How does it work?
TA Flow chart
16
17. ID and Closing Skill Gaps
Solution Driven Relationship
Collaborative action plan that is iterative
Longitudinal Outcome and Impact Tracking
Long Term Goals
19. Hand-off to the post-closing
technical assistance staff
Loan officer memo
Setting expectations for
the future
BDS role
Providing financial
statements including
cash flow statement
• TA Flow Chart
19
20. Continuing the relationship
Preparing for the initial site visit
On-going work
Action Plan Template
Financial statements including cash
flow statement
Using technology to keep in touch
Minimize interim site visits
Annual site visits
TA Flow Chart
20
21. A word about delinquencies!
It's all about cash flow
Global debt service
template
TA Flow Chart
21
22. Continual contact continual updating of:
Jobs
Wages (livable?)
Stabilize/Strengthen/Expand
Change in revenue, credit scores
Change in low income status
Tracking Compliance and Impact
25. Understanding of small business
models
Financial statement analysis
Cash-flow management
Communication/persuasive
speech
Creative problem-solving
Sometimes tough-talk…
Provider Skills
27. Who We Are
Working Solutions is a
nonprofit Community
Development Financial
Institution.
We provide San Francisco
Bay Area entrepreneurs with
the capital and consultation
they need to start or grow a
successful business.
27
28. What we do….
Micro- and Small Business Lending
Two products:
$5,000 - $10,000
$10,000 - $50,000
SBA Microlender
BDS through the life of the loan
28
29. What We Do
Average loan size: $22,500
Current portfolio: 210
Outstanding Balance: $3.2M
325 loans for $7.5M
Anticipated FY ‘15 portfolio size: 250
Languages: English, Spanish, Chinese
# staff: 13 FTE
29
30. Our journey of rediscovering
technical assistance
Accelerated portfolio growth
Rising delinquency and default rates
Commissioned a GAP Analysis
GOAL: a.k.a., how we set ourselves up for
success?
30
31. Product & Title
Name Change:
Business Consulting Services
offered by
Business Consultants
31
32. Pre-Loan BDS
Business Development Officers
Initial skills gap assessment
Authority to redirect for additional help
Loan Officers
Deep Dive into financial and business
skills
Gap assessment
32
33. Approved for Capital
Loan Officers
Lender memo summarizing skill gaps
Business Consultants
Review memo
Review file
Send introductory letter before closing
Attend closing
33
35. Post-Closing Process
Provide designated business consultant
based on geography and industry.
Leverage for robust tracking of the
impact of our capital.
Capitalize on the opportunity to tell our
story in our marketing.
35
36. Our Findings
Fundamentally BC is an in-house function.
Clear delineation of staff duties:
BDOs
LOs
BCs
Collections
Already see our default/delinquency rates
falling.
Huge opportunity to efficiently track impact
of our capital.
36
37. Our Conclusions
Process – implementation takes at least
a year
Iterative process
Right hires are critical to success
Be ready for staff push-back to change
37
39. Let’s Do the Math
Assumptions
The smaller your loan size
the more difficult it is to
fund BDS.
The smaller the loan size the
more BDS is needed.
Most loans that fail, fail
quickly.
39
40. Conservative Calculation
Portfolio of $8,000,000
Average loan of $25,000
320 loan clients in the portfolio
Default rate of 4%
Goal to reduce default rate to CDFI MPS of
<3%
4% loan loss = $320,000
3% loan loss = $240,000
NET SAVINGS = $80,000 OR 1 FTE
Business Consultant?
40
41. A Conservative Calculation
Average client owes $25,000
@ 4% default rate – 12-13 clients
failing/year
@ 3% default rate – 9-10 clients
failing/year
Net Change – 3 clients NOT failing/year
41
42. Your Question
Could one skilled business consultant
help 3 of your clients succeed instead of
fail?
Avg. FTE business consultant caseload:
85-100 clients
42
43. Your Question
Would your organization save on
collections capacity?
Would more of your clients reach
SUSTAINABILITY?
Would your organization meet your
mission more fully?
43