State of the City event draws largest crowd
The annual Paramount State of City address and luncheon at Progress Park Plaza on Feb. 12 drew the largest crowd in the history of the event as political and civic leaders, law enforcement officers, educators and members of the business community gathered to assess the accomplishments of the past year, to provide their unique perspectives into events and circumstances shaping the community and to share plans and goals for 2020 and beyond.
World Energy Paramount, which produces sustainable aviation fuel and other renewable fuels at its Paramount facility (see the ad on page 3), was once again the sponsor for the event, which was hosted by the Paramount Chamber of Commerce.
After Pastor Larry Jameson offered the invocation, Paramount Chamber of Commerce President Ben Berg (of Transcom Communications) welcomed attendees and shared an overview of chamber membership. He then discussed various ways that Chamber of Commerce members have made such a positive impact during the past year by giving back to the Paramount community.
Dr. Ruth Perez, Superintendent of Paramount Unified School District, reported that a record number of district graduates were accepted into college last year. She attributed this signal achievement to three key factors: active, ongoing support that students receive to complete courses required for college entry; the district’s unique program that allows students to be “dual enrolled” in both high school and college in certain courses; and Paramount High School Career Technical Education (CTE) pathways, including engineering, computer science, media arts, entrepreneurship, hospitality and medical patient care. Each pathway includes internship and work-based learning opportunities that lead to industry-recognized certifications. (See the related story on page E3 of the PUSD Education News contained in this issue of the Pulse Beat.)
After sharing memories of his own long personal history in Paramount, Mayor Tom Hansen offered two videos promoting the city. He also outlined recent public safety initiatives and reported on the rising property values in the community.
City Manager John Moreno presented a historical survey showing how much Paramount has advanced over the years, then focused on recent achievements related to public safety, infrastructural improvements, water services, special events and programs aimed at improving the quality of life for residents and attracting new businesses to the city.
It is noteworthy that Pulse Beat stories over the past year have covered many of the topics mentioned by the speakers.
To see a video of the complete State of the City presentations, please visit the City of Paramount’s YouTube channel.
Event Sponsor:
City Manager John Moreno shared Paramount history and discussed new programs.
Dr. Ruth Perez, PUSD Superintendent
Mayor Tom Hansen
Pastor Larry Jameson
Why the U.S. Census asks certain questions
The 2020 U.S. Census this April asks questions that provide a snapshot of the nation. Census results affect your voice in government, how much funding your community receives, and how your community plans for the future. Everyone will be receiving invitations to take part and reminders starting this month.
When you fill out the census, you help:
• Determine how many seats your state gets in Congress.
• Guide how more than $675 billion in federal funding is distributed to states and communities each year.
• Create jobs, provide housing, prepare for emergencies, and build schools, roads and hospitals.
The Census asks how many people live at an address to collect an accurate count so state and local officials can draw boundaries for congressional districts, state legislative districts, and school districts.
A phone number is requested in case you need to be contacted for official Census Bureau business. Your number is never shared.
Names are asked for to ensure that everyone in the house is counted.
Asking about the sex of each person creates statistics used to ensure that government programs and policies fairly and equitably serve the needs of males and females. These statistics are also used to enforce laws, regulations, and policies against discrimination in government programs and in society.
Age and date of birth help determine the size and characteristics of different age groups and are used to plan and fund government programs that provide assistance or services for children, working-age adults, women of childbearing age, the older population, and more. These statistics also help enforce laws, regulations, and policies against age discrimination in government programs and in society.
A Producer of Renewable Fuels Using
Animal Fats and Vegetable Oils
Ethnicity or race: The Census asks whether a person is of Hispanic, Latino, or Spanish origin to create statistics needed by federal agencies to monitor compliance with antidiscrimination provisions, such as under the Voting Rights Act and the Civil Rights Act. Data about a person’s race are needed by federal agencies to monitor compliance with the same antidiscrimination provisions. State governments use these data to determine congressional, state, and local voting districts.
The question about relationships in a household creates estimates used in planning and funding government programs that provide funds or services for families, people living or raising children alone, grandparents living with grandchildren, or other households that qualify for additional assistance.
Your responses to the Census are safe, secure, and protected by federal law. Your responses cannot be used against you by any government agency or court in any way—not by the Federal Bureau of Investigation (FBI), not by the Central Intelligence Agency (CIA), not by the Department of Homeland Security (DHS), and not by U.S. Immigration and Customs Enforcement (ICE). To learn more, visit census.gov
Free income tax help
According to Rep. Lucille Roybal-Allard’s website, the Volunteer Income Tax Assistance (VITA) Program offers free tax help to people who generally make $56,000 or less, persons with disabilities, and limited-Englishspeaking taxpayers who need assistance in preparing their own tax returns. IRS-certified volunteers will provide free basic tax return preparation and electronic filing to qualified individuals.
VITA sites near Paramount include: People’s Community Center, 9121 Long Beach Blvd., South Gate, 90280, 323-537-2760; and Barbara J. Riley Community Senior Center, 7810 Quill Dr., Downey, 90242, 562-904-7223 (for seniors only).
You will need to bring:
• Valid photo ID: driver’s license, California photo ID, or passport
• Date of birth, Social Security numbers for taxpayer, spouse, and dependents, if applicable
• Individual Taxpayer Identification Number (ITIN).
• Income tax documentation, including W-2, W-2G and/or 1099-R, from all employers.
• Interest and dividend statements from banks and other financial institutions (Form 1099).
• Total amount paid for day care per child. Bring your day care provider's address, phone number, and tax identifying number (e.g., the provider’s Social Security number or business employer identification number).
• Current tax year’s package if you have received one.
• A blank voided check for bank routing and account numbers for direct deposit of a refund.
• A copy of your last year’s federal and state returns, if available.
• Health insurance exemption certificate or health coverage statements.
In addition to the VITA program, the IRS offers a Free File option for everyone, regardless of income. You can visit irs.gov/filing/free-file-do-your-federal-taxes-for-free, the IRS Free File website, to learn about the different options and how to take advantage of this program when filing your federal taxes.
City Council
Two military veterans honored
Two residents who had been featured on the City’s “Boulevard of Heroes” that honors Paramount men and women who serve in the military—Petty Officer
Second Class Robert L. Myers of the U.S. Navy and Corporal Priscilla Sanchez of the U.S. Marines—were honored at the February 18 Paramount City Council meeting. Both have retired from service. As is customary, the City presented them with their street banners, a smaller replica of the banner, and a “Challenge Coin” that signifies their connection to Paramount and how they have represented the City so well. Corporal Sanchez was unable to attend the meeting.
As a side note, Petty Officer Second Class Myers is the fourth generation in his family to have served in the military, all of them named Robert L. Myers and all from Paramount. From left: Councilmember Brenda Olmos, Councilmember Laurie Guillen, Robert L. Myers, Mayor Tom Hansen, Councilmember Peggy Lemons and Vice Mayor Daryl Hofmeyer.
Public Safety
Crime-prevention information provided for Paramount students following street robberies
In response to a cluster of street robberies near the Paramount High School campus when students were walking to and from school, the Paramount Special Assignment Team and the Public Safety Department worked with Paramount Unified School District last month to provide extra patrol checks and to share important crime-prevention information with all PHS students. Sheriff’s officials had reported that robbery suspects targeted students who carelessly displayed their cell phones or jewelry—so the crime-prevention campaign taught students to be aware of their surroundings, to refrain from displaying valuable items and to immediately report any suspicious activities.
Watch out for IRS scams
During tax season, beware of fake communications from scammers claiming to be from the Internal Revenue Service (IRS).
The IRS never contacts taxpayers by email, text messages or social media channels to request personal or financial information. Also, the IRS will not:
• Call to demand immediate payment using a specific payment method such as a prepaid debit card, gift card or wire transfer. The IRS will first mail you a bill if you owe taxes.
AParamount Education Partnership PEP Talk
Caribbean-themed PEP Sponsor Social on April 24
ll business sponsors that donate to the PEP Scholarship Fund are cordially invited to the Caribbean-themed Sponsor Social on Friday, April 24, from 6 p.m. to 9 p.m. at Progress Park Plaza, 15500 Downey Avenue in Paramount. It will be fun night of great food, casino games, and good company, all in the name of supporting education in Paramount.
Donating to the fund or sponsoring the event are great ways to promote your business to the community at large through the City’s website, social media, and Around Town newsletter, as well as in the Pulse Beat
All donations go to the PEP 501c3 non-profit entity and are tax-deductible.
The generosity of the Paramount business community has helped make dreams of college become a reality for many local students. Since 2004, 377 PEP scholarships worth $1.145 million have gone to Paramount young people, contributing to new local records for college attendance.
For some of these students, PEP scholarships have made the difference in whether or not they could continue their educations. For all recipients, such assistance has been important.
Donations can also be made to the PEP scholarship program by visiting gofundme.com/pepcollegescholarships. If you’d like more information about PEP sponsorships and contributions, please call 562-220-2121.
You can view short videos about the program on the City’s YouTube channel at youtube.com/user/cityofparamount in the playlist titled Paramount Education Partnership.
You can find a list of scholarships, as well as other financial aid and internship opportunities, from more than 2,200 programs on the College Board’s website. Scholarship information is based on the College Board's Annual Survey of Financial Aid Programs. Go to bigfuture.collegeboard.org/scholarship-search
• Threaten to bring in local police or other law-enforcement groups to have you arrested for not paying.
• Demand payment without giving you the opportunity to question or appeal the amount they say you owe.
• Ask for credit or debit card numbers over the phone.
For more information about different kinds of tax-related scams, please visit irs.gov/uac/tax-scams-consumer-alerts
FPARAMOUNT CHAMBER CARES JourneyofLoveand Hope for Our Children
rom time to time, we like to let you know about impotant charitable and community-building work being done by the Chamber and its members. In this issue, we’re focusing on activities of Journey of Love and Hope for Our Children, and we’d also like to tell you about work the Chamber is doing to support a local school.
Journey of Love and Hope for Our Children
is a non-profit organization founded by Lizzie Lopez (shown in the photos above and at the right) to provide life-changing support to orphaned children in Mexico. Lizzie and other representatives from the group regularly visit these children and fund programs to provide basic needs as well as activities to improve their quality of life.
Shown here are photos from a January 4 visit to the Rancho de los Niños orphanage in Baja, Mexico, to celebrate Kings’ Day (also known as Epiphany), which commemorates the visit of the Three Kings from the East to the Christ child. Toys generously provided by the people of Paramount were distributed to 105 children ranging in age from three weeks to 13 years. The visit also included food, entertainment and games, such as ever-popular piñatas.
The group’s next visit is scheduled April 25. For more information, visit journeylh.com or call 562-547-9821.
Chamber helps renovate garden at Collins Elementary
The best way to tell this story is to quote Dr. Ruth Perez, Superintendent of Paramount Unified School District: “Captain Raymond Collins Elementary School’s student garden will receive renovations and new garden beds thanks to the generous support of the Paramount Chamber of Commerce. With over $5,000 in donations, the garden will continue to provide healthy enrichment opportunities for our younger students.” We offer our thanks to all our Chamber members who have contributed to this worthwhile effort. (Please also see page E2 of the PUSD Education News in this issue of the Pulse Beat.)
Membership RENEWALS
We’re very grateful that the businesses below have renewed their Paramount Chamber of Commerce memberships, making our valuable services possible.
S.T.&I., Inc.................................................................................................37 years
7517 Jefferson St., Paramount, CA 90723
Fenico Precision Casting, Inc. 29 years
7805 Madison St., Paramount, CA 90723
St. Francis Medical Center 27 years
3630 E. Imperial Hwy., Lynwood, CA 90262
Options In Design 24 years
15138 Downey Ave., Paramount, CA 90723
Compton Community College District 23 years 1111 Artesia Blvd., Compton, CA 90221
Big Ben Car Wash..................................................................................13 years 16482 Paramount Blvd., Paramount, CA 90723
White House Florist 6 years
9855 Flower St., Bellflower, CA 90706
Somerset Automotive Center 5 years
7337 Somerset Blvd, Paramount, CA 90723
Sanchez Professional Services 4 years
7300 Alondra Blvd., Paramount CA 90723
Grocery Outlet 3 years
15719 Downey Ave., Paramount, CA 90723
American Legion Post # 134 ............................................................3 years
7550 Somerset Blvd., Paramount, CA 90723
Berg Catering..............................................................................................3 years
855 Elm Ave., Long Beach, CA 90813
CNP Performance 3 years 16376 Downey Ave., Paramount, CA 90723
J Jr. Drywall Corporation 2 years
7713 Madison St., Paramount, CA 90723
Rumi Lakha, D.O., Inc. 1 year 8534 Rosecrans Ave., Paramount, CA 90723
Cal 1st Holding Corporation 1 year 16911 Bellflower Blvd., Suite 110, Bellflower, California 90706
261 Fearless Club Los Angeles...........................................................1 year For more information, please visit www.261fearless.org
EMPLOYMENT
PHARMACY TECHNICIAN Full-time. Experience helpful, but willing to consider an excellent new graduate who can learn quickly. Call Martha at Fobi Pharmacy: 562-630-5700
BARTENDER Part-time, including evenings and weekends. Call Leroy: 562-634-9001.
SKILLED LABOR OPPORTUNITIES SkillsetGroup currently has these positions available for first, second and third shifts: Machine operator, sanitation, loading & unloading, forklift drivers, production line, and order pulling. Come in and apply today! SkillsetGroup actualmente tiene aperturas para puestos disponibles para Primer, Segundo y Tercer turno. ¡Ven y aplica hoy! Call us at 866-375-3094 or use Instagram (@skillsetgroup) or Facebook for weekly updates. 7300 Alondra Blvd., Suite 202, Paramount, CA 90723.
STATE FARM AGENT State Farm Agents help customers protect what’s important to them while making time to give back to their neighborhoods. Improve your career! Call David Maciel: 562-305-2111
FULL-TIME SEAMSTRESS 5-Star Interior Services, Inc., needs a full-time seamstress with drapery experience. Contact Leroy at 818-845-4518.
CREW WORKER Specialty construction. Will train. Installation of epoxycoatings, including preparation of concrete floors and other structures using various equipment. Long-term, 30+ hours, including some weekends. Report in person to TECHCOAT, 15720 Garfield Ave., Paramount, CA 90723; M-Th 8:30 a.m.–3 p.m
To place an ad, call the Chamber at 562-634-3980.
C alendar of E vents
March 12 • 11:30 a.m. to 1 p.m.
Ribbon-cutting for Metro Plywood & Hardware
At their location: 15733 Colorado Ave., Paramount, CA 90723. RSVP at 562-364-3980 or Paramountchamber.com (please also see page 10).
March 14 • 9 a.m. to 1 p.m.
Paramount Chamber Job & Community Fair
At Paramount Park: 14400 Paramount Blvd., Paramount, CA 90723. Hosted by Paramount Chamber of Commerce and sposnored by Total Western. Free admission and free parking for this event (see details in the ad on page 16).
March 17 • 7:30 a.m. to 9 a.m.
Ribbon Cutting for Kaizen Dental
At their location: 8813 Alondra Blvd., Paramount, CA 90723. Lunch and networking. RSVP at 562-364-3980 or Paramountchamber.com (see page 10).
March 27 • 11:30 a.m. to 1 p.m.
Ribbon Cutting for Halibut Window Film
At the Paramount Chamber: 15357 Paramount Blvd., Paramount CA 90723. RSVP at 562-364-3980 or Paramountchamber.com. (please also see page 10).
April 11 • 10 a.m. to 2 p.m.
Children’s Day
At Paramount Park: 14400 Paramount Blvd., Paramount, CA 90723. Presented by Paramount-Tepic Sister Cities (for details, see page 14).
April 28 • 11:30 a.m. to 1 p.m.
Ribbon Cutting for El Gallito Tacos al Vapor
This will also be their one-year anniversary celebration. At their location: 8527 Alondra Blvd. # 150, Paramount, CA 90723. Lunch and networking. RSVP at 562-364-3980 or Paramountchamber.com. (please also see page 10).
May 21 • 11:30 a.m. to 1 p.m.
Women in Business & Leadership Luncheon
Please save the date and plan to attend! At Progress Park, 15500 Downey Ave., Paramount, CA 90723. Watch for details in future issues of Pulse Beat
l caldining
To
LOCAL DINING
member-to-member discounts Paramount Chamber of Commerce
As a Paramount Chamber of Commerce member, these discounts are extended to you by your fellow members. Visit the following businesses to receive the discounts listed below. But remember, these offers are available only to Paramount Chamber members!
Attorney & Legal Services
Lerma Law Office (562-272-4353):
15% discount on initial retainer fee or flat-rate service.
Automotive
Herald’s Garage (562-633-2136): 15% discount on labor and a free engine light reset.
Beauty
Family Cutz (562-408-2733):
$3 off regular haircut, 10% off color service. Comeback Barber Shop (310-920-5090):
$17 haircut for Chamber members.
2rue Beauty Salon (562-952-1951):
$25 haircut and blow out.
Cleaners
Alert Cleaners (562-634-4602): 10% discount on any dry cleaning. Communications
Transcom Telecommunications (562-630-1200, ext. 221): 10% off equipment (business phone services).
Contractors
H1 Floor Covering (424/785-5551): 15% off first visit.
Jones Scaffold Co. (800-266-3864): 10% off net rental of scaffold equipment.
Data Base Services
NEXTSTEP (877-305-6932): Free needs analysis and special Chamber member discount rate.
Dental
Paramount Dental Care (800-266-3864): Free whitening. Free exam. Free cancer screening
Financial Services
SG Tax Services (562-630-4004): $25 off tax preparation for Chamber members and their employees.
United Credit Education Services (424-298-1726): $50 off $99 enrollment fee.
Vicky Professional Services (562-634-1178): 20% off bookkeeping and accounting service.
Flowers
Diana’s Flowers (562-529-5045): Free local delivery and free balloons.
Case de las Flores (562-469-8776): 25% off any arrangement.
Funeral Services
Palacios Funeral Home (562-972-5429): 5% off services.
Hotels & Motels
Embassy Suites Hotel (562-861-1900): 15% off best available room rate (subject to availability). Ask for “Chamber rate.”
Insurance
2000 Insurance Service (562-602-0001): 25% off new business.
Medical
Azul Homecare Partners (562-862-9249): 10% off medical supplies (call Giselle Ortegon). Clínica Médica Hispana (562-630-1991): 25% discount.
Hansen, Thomas D.C. – Chiropractor (562-634-0985): 25% off initial visit.
Lakha Medical Clinic (562-602-8877): Alena Skin Care–Free consultation. Cosmetic Surgery & Laser Center (562-865-9600)–10% off any laser or cosmetic surgery Procedure.
Plumbing & Heating
Downey Plumbing, Heating & Air Conditioning (562-861-1234): 10% off HydroJet service and/or 10% off material.
Production (Events)
YSL Production (323-490-6315): 20% any event services: Sound, lighting, stage, LED video, wall & truss equipment.
Printers
Source Graphics, Inc. (562-408-2734): 10% discount on all printing.
T & C’s Screen Printing ((310-292-8508): Free two-color set-up on screen printing. Free set-up on embroidery ($50 value) on a 24-shirt minimum.
Real Estate
Century 21 Allstars–Mark Sourial (562-745-8171): Free market evaluation of your property.
GM Properties (562-696-0200): 5% of gross commissions on closed deals will be sent to the charity of our choice in your name. Ask for Matt. Penta Pacific Properties (562-699-1922): Free market value opinions on commercial and industrial properties.
Real Estate Homes & Investments (562-200-1164): 20% discount. Ask about preferred pricing for Chamber members.
The R.M. Cool Company (562-630-6000): Ask about preferred pricing for Chamber members.
Restaurants
Café Corleone (562-408-6100): 10% discount on all food purchases.
Café Camellia (562/866-2824): 10% discount on food purchases.
Casa Adelita (562-408-2360): 10% off (may not be combined with other specials).
Casa Gamino (562-634-6225): 10% discount on food purchases.
Delfin Seafood & Market (562-630-1928): 10% off any order.
El Compa Restaurant (562-630-1068): 10% discount on all food purchases.
Gus’s Deli, BBQ & Grill (562-630-2802): 10% off all food purchases.
Mariscos El Parihuete (562-408-1661): 10% off on food purchases over $10.
Mariscos Mi Lindo Sinaloa #1 (562-529-5110): 10% discount on all food purchases.
Pika Tortas Ahogadas (562-529-5787): 10% discount on all regular-priced food items (excludes combo deals).
Shakey's Paramount (562-630-6090): 10% discount off regular-price large or medium pizza.
The Hummus Factory, Downey (562-622-2300): 20% off any order.
Skating Rinks
Paramount Iceland (562-633-1171): 10% off admission and skate rental.
Wellness & Health
Spiritual Quest (877/535-2267): 50% off salt lamps only.
Wholesalers & Distributors
Rayvern Lighting Supply, Inc. (562-634-7020): 5% off fixtures and ballast orders (commercial distributor of lighting and fixtures). To learn more about this discount program, please call the Paramount Chamber of Commerce office at
April 21 11 a.m.-1:30 p.m.
Progress Park Plaza, 15500 Downey Ave., Paramount
Four panelists with different career paths will share their exciting and inspiring experiences. Tickets and tables go on sale March 10. For sponsorship availability, call the Chamber of Commerce at 562-634-3980.
Presenting Sponsor:
DATE: Monday, Mar. 30 th , 2020 TIME: 2:30 p.m - 4:00 p.m.
Ribbon-cutting Ceremonies
PHS senior wins local competition in the state Lions Club Student Speakers Contest
Zahkir Citizen, a 12th grade student at Paramount High School, took the first step toward scholarships for college on February 20 by winning the Paramount Lions Club’s local competition in the California Lions Club Student Speakers Contest. He was one of nine PHS students competing for the prize.
Zahkir’s speech was titled “Homelessness in California: What is the solution?” A panel of five judges evaluated all student speeches according to the following criteria: originality, main points being supported by evidence, conclusion, emphasis, voice control and enunciation, pronunciation, sincerity, enthusiasm, poise, cohesive effort, logic, organization, persuasiveness and adhering to the topic. Zahir scored highest overall.
Paramount Lions Club President Adriana Sbarounis said that the club sponsors this program to emphasize the importance of public speaking as a critically important life skill to young people everywhere. She said that she was impressed by the creativity and expressiveness of all the contestants. “Zahkir Citizen will now advance through the district levels to compete at the multipledistrict state level,” she explained, noting that he has the opportunity to accrue various scholarships worth up to $10,000.
Biviano Favela, club contest chairperson, added: “Our club is proudly promoting Zahkir as he advances in the competition, and we hope that his self-expression and independent thinking inspire the public’s perspective on this topic.”
Other contestants were 12-graders Alejandra Rodriguez and Daniel Ramirez and 11th-graders Chiemerie Nnorom, Cathy Martinez, Tiara Taylor, George Paguay, Hailey Zaragoza and Johanna Espana (shown below).
Lions Clubs International is the world’s largest service club organization with more than 1.35 million members in 210 countries and geographical areas around the world. Since 1918, Lions clubs have aided the blind and visually impaired and made strong commitments to community service and serving youth throughout the world. For more information, visit md4lions.org
your business to the whole community for a year!
Advertise in the new 2020 edition of the Paramount Residential Resources and Business Guide
Delivered directly to every home and business in Paramount and distributed all year long at various locations around town, this useful little book is a great way to make sure your business message keeps getting across to customers and clients.
Published by the Paramount Chamber of Commerce, this is more than just a standard business directory. Our guidebook offers all-new community resources and information that will keep readers using it month after month.
Various full-color ad sizes are available, as well as different listings. Your ad could be particularly effective if you make special offers or include coupons for discounts.
By advertising in the Paramount Residential Resources and Business Guide, you’ll be supporting the Paramount Chamber—and the community at large. For information or an appointment, please call:
562-634-3980
Bob Hall – “Fundamentals of Motions” Kimo Gandall PRP– Parliamentary Hegemony: An Empirical Review on the Effect of Procedure on Policy Make Check to: CA Theta Unit by March 23 Mail t o : Elisa Trasoras7752 Pivot Street, Downey, CA 90241 elyed@aol.com 213.458.3230 text Woman’s Club of B ellflower 9402 Oak Street, Bellflower, CA 90706 Saturday March 28, 2020 9: 0 0 am – 12:00 pm $15, Students $5 w/ID
Executive
Executive Assistant: Dora
Paramount High School student speakers pose with Paramount Lions Club officials.
Paramount USD School Board President Vivian Hansen (left) congratulates contest winner Zahkir Citizen.
CBUSINESS CORNER
10 favorite cash flow rules to live by
By Tim Berry, founder & chairperson of Palo Alto Software and Bplans.com
ash is king and all business owners know it. Research “causes of business failure” and lack of cash turns up everywhere. A commonly-cited U.S. bank study says 82 percent of business failures are due to poor cash management. Cash flow problems can kill businesses that might otherwise survive.
I learned the hard way, when my own business suddenly took off, that even growth can stifle cash. In my specific case, it was a matter of building physical products for inventory, selling through channels, and waiting to get paid by distributors.
I’d learned cash flow in business school, but I had to learn it again, for real, by going to my bank, signing a lien on my house equity, and getting an emergency loan.
Don’t let this happen to you. Here are my favorite 10 rules for managing cash flow:
1. Don’t confuse profits with cash. Cash and profits aren’t the same things. Profits are an accounting concept, not money in the bank. Profits are what’s leftover after you subtract costs and expenses from sales. But please read on in my points to follow about how you can be profitable but have money tied up in inventory, or in your accounts receivable, waiting for your customers to pay their invoices.
2. Cash flow isn’t intuitive. Don’t try to calculate it in your head. As soon as you have inventory (like most product businesses including manufacturing, assembly, distribution, and retail) or sales on credit (like most B2B businesses), cash flow takes a hit.
Inventory is usually bought and paid for and then stored until it becomes cost of sales. Making the sale doesn’t necessarily mean you have the money. Incurring the expense doesn’t necessarily mean you paid for it already.
Cash-based accounting sounds good but often isn’t. It takes accrual accounting to reflect unpaid bills and prepaid expenses, spending on inventory, and other factors that can kill cash flow. You or somebody you trust must be able to do and understand a cash flow statement and do regular cash flow analysis.
3. Growth can absorb cash. As in my case above, sudden growth often requires extra cash. We were building things two months in advance and getting the money from sales six months late. We doubled sales in six months and almost went broke in the meantime. It’s paradoxical. The best of times can be hiding the worst of times. The impact of buying inventory and waiting to get paid can be devastating. Yes, of course you want to grow; we all want to grow our businesses. But be careful because growth costs cash. It’s a matter of working capital. The faster you grow, the more financing you need.
4. Business-to-business sales suck up your cash. The simple view is that sales mean money, but when you’re a business selling to another business, it’s rarely that simple. You deliver the goods or services along with an invoice, and they pay the invoice later. Usually, that’s months later. And businesses are good customers, so you can’t just throw them into collections because then they’ll never buy from you again. So you wait. When you sell something to a distributor that sells it to a retailer, you typically get the money four or five months later if you’re lucky. Yes, there are ways to speed up getting paid, but also, in many businesses, you have to accept standard practices. And that means waiting.
The money your customers owe you is called “accounts receivable.” Here’s a shortcut to cash planning: Every dollar in accounts receivable is a dollar less cash.
5. Inventory sucks up cash. You have to buy your product or build it before you can sell it. Even if you put the product on your shelves and wait to sell it, your suppliers expect to get paid. Every dollar you have in inventory is a dollar you don’t have in cash.
6. Working capital is your peace of mind. Technically, working capital is an accounting term for what’s left over when you subtract current liabilities from current assets. Practically, it’s money in the bank that you use to pay your running costs and expenses and buy inventory while waiting to get paid by your business customers. Working capital is money in the bank. It’s the result of good cash flow. Sometimes you can adjust business practices to improve the cash impact, and sometimes it’s just a cost of doing business. You have to be aware of it and plan for it ahead of time.
7. So-called “best practices” aren’t always enough. Sure, there are sometimes some ways to mitigate underlying cash flow weaknesses. Some businesses manage to get prepayments, discounts for prompt payments, on-time inventory delivery, and so forth. Still, in many business cases, the solution is in planning for cash and having enough working capital, rather than changing the way business is done.
For example, a consultant can’t often simply demand deposits or prepayments from clients. I survived in management consulting for decades but learned quickly that my large-
company clients passed my invoices on to finance people and were not concerned about how long I waited for checks.
It was not their problem; and if I’d tried to make it their problem, they’d have hired my competition. So I arranged a bank credit line to finance my receivables.
And, for another example, not all manufacturing businesses can manage their vendors and direct costs well enough to cut inventory turnover. Sometimes the inventory you have to hold in house is just a cost of doing business.
All of which means that best practices don’t often trump common practices. Cash flow is your problem, not your clients’. Inventory turnover is your problem, not your vendors’.
8. Bankers hate surprises. Plan ahead. You get no extra points for spontaneity when dealing with banks. If you see a growth spurt coming, a new product opportunity, or a problem with customers paying, the sooner you get to the bank armed with charts and a realistic plan, the better off you’ll be.
9. Watch these three vital metrics: “Collection days” is a measure of how long you wait to get paid. “Inventory turnover” is a measure of how long your inventory sits on your working capital and clogs your cash flow. “Payment days” is how long you wait to pay your vendors. Always monitor these three vital signs of cash flow. Create a cash flow forecast and project them 12 months ahead and compare your plan to what actually happens. Look for unexpected changes and figure out what happened, and why. Take action where you can.
10. If you’re the exception, hooray for you. If all your customers pay you immediately when they buy from you, and you don’t buy things before you sell them, then relax. But if you sell to businesses, keep in mind that they usually don’t pay immediately.
COME JOIN DR. RUMI LAK H A & H IS TEAM OF PROFESSIONALS
MARCH 7TH 11AM-3PM
Image credit: Nikolay
Frolochkin (Pixabay)
Paramount Chamber hosts lively networking events
‘Speed Networking’
The Paramount Chamber of Commerce held its first “Speed Networking” event on January 28. After a tasty breakfast from Berg Catering, 30 participants engaged in short-duration, round-robin, one-on-one meetings, exchanging information and business cards and then moving on to the next pairing.
Speed networking is modeled on time-saving ‘speed dating’ sessions that first became popular in the U.S. and England in the late 1990s.
Drawings and raffles provided additional excitement at this Chamber event. Here are our four lucky winners:
TParamount Chamber of Commerce and the Norwalk Chamber of Commerce jointly hosted a very successful “Creating Connections Luncheon” on February 25 at Frantone’s Restaurant in Cerritos. Those attending enjoyed lively exchanges and good food. Networking sponsors for the wellattended event were World Energy Paramount, AppleCare Medical Group and Real Estate Homes & Investments CA.
Winners: (left to right): Krystle Morris (Max B. Martinez, DDS, FAGD, FACD), Benigno Sandoval (SELACO), Jaime Abrego (World Energy Paramount) and Luis Beaf (Fobi Comprehensive Pharmacy).
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Join us March 14 at Paramount Park for our 20th annual
Job & Community Fair
Saturday, March 14, 2020 • 9 a.m. to 1 p.m. Paramount Park, 14400 Paramount Blvd. Free admission & parking
• Job seekers Our annual fair brings in a wide variety of job seekers ready for hire, saving you time and money!
• Continental breakfast A chance to network with other businesses before the event opens to the public.
• Private interview room Private room set up specifically for your on-the-spot interviews with candidates.
• Resource information Federal, state and county agencies will be on hand to share important benefits.
Hosted by:
Event Sponsor:
Co-chairs:
Image
(Pixabay)