Forging the Future: Celebrating MAGNET's 40th Anniversary
Entrepreneurs and small business leaders gathered at the Bounce Innovation Hub for an insightful event, Fueling Business Success: Unveiling the Crucial Role of Capital, hosted by the Burton D. Morgan Foundation in partnership with MAGNET. This breakfast and panel discussion brought together industry experts and aspiring entrepreneurs to explore the pivotal role capital plays in empowering business growth and success.
The event kicked off with a welcome from Michal Marcus of the Burton D. Morgan Foundation. Marcus highlighted the foundation’s ongoing commitment to fostering entrepreneurship through initiatives like Scalerator NEO and programming from the Edward Lowe Foundation, which are designed to fuel growth for Northeast Ohio’s entrepreneurial ecosystem.
Moderated by Jessica Sublett, Chief Executive Officer of Bounce Innovation Hub, the panel included a diverse lineup of financial experts who brought their insights and strategies to the table:
- Ted McQuade – Principal, FocusCFO
- Tara Murphy – Senior SBA Product Specialist and Vice President, Huntington Bank
- Anne Richie – Founder & Managing Director, The Mezzanine Fund
The panelists shared valuable insights into the best financial practices for small and mid-sized companies, emphasizing the importance of having a clear, adaptable plan and tracking key financial metrics. Here are some of the top takeaways:
- Capital is critical: Access to the right financial resources can unlock new opportunities and drive growth.
- Have a revenue plan: It’s essential to have a clear strategy for generating income and to reassess it at least twice a year.
- Track KPIs: Monitor both financial and non-financial Key Performance Indicators (KPIs) to keep your business on course.
- Know your working capital: Having a solid understanding of your working capital needs is crucial.
- Leverage the matching principle: Ensure your financial practices align with the principle of matching costs with generated revenue.
- Focus on cash flows over projections: Cash flow statements give a more realistic picture of your business’s financial health than speculative projections.
- Diversify your funding sources: Relying solely on a bank for capital isn’t advisable. Many banks require a post-transaction liquidity of at least 10% to 20%.
- Personal guarantees may be necessary: For capital needs under $50 million, business owners often need to provide personal guarantees.
- Explore additional funding avenues: Take advantage of resources like JobsOhio and the Ohio Department of Development, which offer incentives and support for local businesses.
A special thank you to our panelists and to the attendees who made this event a success! Visit www.manufacturingsuccess.org for more information on MAGNET's mission to drive manufacturing in Northeast Ohio and Scaleratorneo.org for more information on joining the next cohort of Scalerator!
