4 ways Houston businesses can recover cash flow in a post-COVID world

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There's no quick fix to getting back to where you were, but a keen eye and sensible decision-making will ensure you're more prepared than your competitors. Photo via Unsplash

The COVID-19 pandemic has been a cash flow disaster for many businesses, whether it's small restaurants forced to close their doors for months on end or commercial rental properties unable to fill their office space in light of widespread remote working.

Houston, much like many major US cities is facing a big recovery job as the country looks to move on from the worst of the pandemic. While much is to be determined when it comes to what the Delta varient's effect is, businesses are open and the time to think creatively about recovering cash flow is here.

In this article, we'll look at how Houston businesses can get over what was a huge shock and re-evaluate for a post-COVID world.

First things first: Assess the financial damage

Before you can begin to work on a strategy for recovery, your business first needs to assess the financial damage COVID-19 inflicted on it.

There are many different layers to this, which will become more important depending on the size of your business. Start by looking at the hard numbers that define your business (both pre and during the pandemic), such as:

  • Year profit
  • Yearly spend
  • Yearly losses (and expected losses)
  • Employee salaries

There's a chance things aren't quite as bad as you expected. You might have saved on office space through working remotely or have seen an uptick in online customers that represents a revenue shift. This may seem like basic business management, but in a situation such as this, it's easy to ignore the forest for the trees.

Once you've got these numbers in line, you can start to develop a rebuilding plan that relates entirely to your business, rather than cutting and pasting one from another business that is unlikely to have experienced the same issues.

Re-assess your business plan

Chances are, you didn't include a contingency option for a global pandemic in your business plan. No need to panic. If you made it this far, you were obviously a well-structured and organized business. However, to ensure you survive future challenges, it's worth re-assessing your business plan.

Specifically, you need to look at how ready your business is to pivot to the idea of the 'new normal'.

There are many decisions to be made, from top-level finances to employee management to customer service. You may be forced to implement new systems to keep track of your newly remote team, offer subsidies for utility bills to your staff or implement new quality control tests to keep your customers safe and comfortable with your business.

A wider analysis of your industry can be a more effective exercise than looking directly at your plan. Competitors may have innovated in ways you didn't initially think possible. Pay attention to trends and emerging opportunities to mark yourself as a business worth shopping for and working with. Find that profitable niche and see if your business plan can be re-worked around it.

Your business plan will lay bare your business model's strengths and weaknesses in the new world. Don't try and plough through difficult weather with the wrong tyres. Make a simple change, even if it means hard decisions, for the good of your company.

Optimize daily processes and cut out wasteful tasks 

So you've analyzed the damage and re-assessed your business plan for a new set of challenges. Now you can get into the gritty details of making a change.

One of the simplest and most cost-effective ways of getting your business running with a positive cash flow again is to optimize those wasteful daily processes and tasks you and your team get stuck on every day.

Of course, many of these will be unique to your industry and way of doing business, but from invoicing to daily admin tasks, there's so much wasted time every day that could be better spent getting your business back on track.

A few immediate suggestions include:

  • Cutting down on business travel by prioritising virtual meetings and re-thinking how your sales and executive staff travel. Even company cars can become less of a money burden if you take the time to know how to how to save gas (and the money you spend on it)
  • Going paperless and using that printer money to operate through cloud software won't just bring your business into the 21st century, but make daily meetings and employee collaboration more most-effective
  • Using financial trackers to assess your financial situation regularly and automate invoicing, making sure you're always getting paid on time

Monitoring all of this excess spend spillage and ensuring you're on top of emerging problems can be made very simple through time tracking tools. Rather than just a way to keep an eye on remote employees and cut out excessive slacking, Houston businesses can spot which needless tasks are making key employee's life difficult and where budget is being wasted through these (as of March 2020) essential digital tools

.

Consider outside funding options

Last year, we covered how creative thinking in terms of financing can be Houston businesses' path out of COVID financial burden. Since then, much has changed, but many of the methods remain realistic ways businesses of all sizes can recover cash flow.

Unless you went into the pandemic with significant cash to burn, you're likely playing things quite close to the line right now. Without customers through the door and big contracts, you might need working capital to jump-start your recovery.

Fortunately, some great financing options for small businesses have sprung up or gone from strength to strength throughout the COVID rebuilding period. Some of these options include:

Now, not all of these options will work for your business, particularly the ones aimed at small businesses. However, they're all reasonable ways of getting a short-term boost to buy remote office equipment, re-work your business for social distancing to avoid closures or bring in new employees.

The key is not to become reliant on these revenue streams. They should be short jabs to get your business going again, not a consistent fix you should turn to in the event of financial challenges. Borrowing can be both an unhealthy attitude to have and a competitive venture.

Completing these tasks will help you establish a timeline for recovery. No one is quite sure what their business will look like once COVID-19 is completely a thing of the past, but the pandemic should be a lesson that no business can be caught slacking.

The journey to recovery, particularly sorting out your cash flow is full of tiny steps. There's no quick fix to getting back to where you were, but a keen eye and sensible decision-making will ensure you're more prepared than your competitors.

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Kayleigh Alexandra is an entrepreneur and writer at WriterZone and Micro Startups based in the United Kingdom.

In-office working isn't going away — but it'll look different for decades to come. Photo courtesy Eric Laignel/IA Interior Architects

What do post-pandemic offices look like? This Houston expert explains

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Reflecting on what we have all recently experienced, our physical relationship with the workplace has out of necessity become more fluid. However, we believe that this pandemic will be the catalyst that will accelerate positive change in workplace design.

The shift ahead in workplace design will not simply be driven by performance measures. There is a renewed longing for a workplace that is driven by direct human experiences – one that enhances face-to-face encounters, offers spaces tailored to the moment, and deliberately fosters health and wellness. We all are reexamining the next generation of office buildings in search of a solution.

Emerging diagnostics

Prevailing strategies assume we will return to physical offices after the delivery of vaccines. However, projections for herd immunity across the world, based on the current rollout policies, vary widely — up to 10 years. As such, this disease will likely be impacting our lives and our livelihoods for much longer than we had ever imagined.

It is critical for us to now consider how to build resilience into the design of our buildings in order to confidently and safely welcome people back to the office this year. Ultimately, workplace safety will be a baseline with a winning workplace experience that truly beckons people back to work.

The human experience

For those professionals able to work from home, the past year has been reduced to living in a physical silo, reliant on technology to facilitate connection and as a substitute for community. Research has reaffirmed the extraordinary value of in-person human connection to solve complex problems and provide a sense of wellbeing.

The average office worker spends up to 35 percent of their work day collaborating and directly engaging with others. It is in this context that breakthroughs and innovation actually happen. It comes as no surprise that, of the people surveyed, the majority consistently express a desire to return to their office and colleagues.

Successful design will also be measured by the ability for space to address other needs such as social interaction, flexibility, comfort, and wellness. Intentionally blurring the boundaries between living, working, and playing benefit the experience.

Business leaders have now received unprecedented insight into employees preferences and they witness firsthand their work lives at home. For those that leverage these insights, there is a payoff. Employers see a 21 percent increase in performance and 17 percent increase in employee health. These desires are age agnostic and invite inclusivity according to research from Brookings.

Modeling for a shifting agenda

The new workplace will again become the center for collaboration and human engagement. While employees have the possibility of working anywhere, as designers, we need to deliver a workplace that offers a compelling, safe, and healthy experience. Our goal is to create a workplace environment that allows people to be healthier and feel safer than they may be in their own homes. By integrating superior smart building technologies, thoughtful planning and innovative design, the next-generation workplace experience has the power to realign priorities within our built environment to best serve the health and wellbeing of its occupants and users. Below, we outline a day in the life of a hypothetical workplace that exemplify this new approach.

The Ground Floor and Lobby Experience. Upon arriving, generous and clear pathways will intuitively lead to the main entrance. As the central node bringing people together and serving the entire complex, a spacious day-light filled lobby will establish the entire circulation experience for the building. Proper design of entrances will reduce touchpoints, contamination, and user anxiety. Automatic sliding doors, automatic revolving doors, and swing doors with touchless actuators will facilitate a touch- and stress-free arrival and circulation experience including interface with security. Elevators with destination dispatch will safely deliver employees to their selected floor.

Connections & Conveyance. Corridors and stairs are not just important means of conveyance, but they also inherently activate spaces and multiply the face-to-face encounters people pine for. By encouraging the use of stairs, elevator demands can be reduced. Furthermore, welcoming open stairs, when paired with atriums or other common areas, encourage communication and collaboration between employees. Stairs offer an excellent alternative for trips down to the ground level or between adjacent floors. To encourage stair usage and create a safe, anxiety-free experience, several design elements might be considered, including: improved visual connections between a stairwell and floor for users to see those entering and exiting; providing larger landings as waiting areas for slower users; and, where requirements allow, incorporating exterior stairs aid both natural ventilation and visibility.

Fresh Air. In the workplaces currently in design, employees will have enhanced access to abundant fresh, clean air as a result of the adoption of advancements in filtration strategies and technologies. Beyond the pandemic, these workplaces will actually be healthier environments with the ability to significantly reduce cases of air-transmitted illnesses such as the flu and the common cold. Employees will be healthier than before. In the transformed workplace, health issues that previously contributed to absenteeism will plummet and foster greater productivity.

Impact of Light. Our next generation buildings will bring employees closer to daylight and welcoming daylight into the building is invaluable by whatever means possible. Intuitive design can prioritize occupants' health and comfort with a number of passive and active strategies. A daylight-filled atrium breaks down isolation between floors, provides visual connections between people, and channels daylight deep into the buildings. In fact, throughout Europe, planning guidelines suggest that no employee should be farther that 21 feet from a window. While reducing solar heat gain, a high performance enclosure can maximize daylight harvesting, provide occupied spaces with abundant natural light, and offer users access to outdoor views. The significant health and productivity benefits of providing users access to natural light and outdoor views have been well documented.

Outdoor Places. User-oriented outdoor spaces, such as plazas, patios, and green roofs, offer a place for respite, fresh air, sunlight, and nature. The value of which has been underscored by the pandemic. While many recent office developments have incorporated such spaces to some degree, in a post COVID-19 world, they have become a must-have amenity. There is already an increased expectation for significant private and shared outdoor terraces, roof gardens and balconies. These outdoor spaces should be flexible enough to support a variety of uses as occupants increasingly look to these spaces for dining, casual meetings, fitness, and a variety of other social activities.

Digital engagement

Smart buildings are just the beginning. Yes, the smart building is an important piece, but connecting the building systems (HVAC, lighting, solar, water, security) to a secure infrastructure that will benefit mobile employees.

When we connect all those dots (building – network – human experience), it pays off in the long run in regards to overall company wellness, happier staff, being more sustainable and in control of our real estate portfolio.

Looking ahead, tomorrow's buildings will need to evolve more than ever before; similar to the Tesla car, these buildings will constantly update according to our preferences. It's exciting to see it learn and offer new features as we become more acquainted. This is the level of design that will be incorporated into the future workplace and make it successful. The building will predict our needs and become our home away from home.

Rewriting the rules

Solutions to a brag-worthy workplaces will embrace the opportunity to rethink design conventions. They will make the human experience the first order of importance to reactivating our buildings. It starts with a proven design process to crunch the data collected on habits and preferences to create fresh concepts for both destinations and passageways. The term "mixed-use" will take on new importance to define our new workplace experience.

Private development and investment will drive such innovation to achieve market interests; ideally with the support of public policy. In Houston, we famously have less restrictive zoning requirements which can foster the advancement of our buildings, businesses, and neighborhoods. It has been an advantage for the city when competing with other U.S. cities for the attention of business leaders from both coasts. Houston is also promoting Smart Cities technologies to local leaders to boost economic development and human experience. These investments are critical to keeping the office experience safe and relevant to our futures.

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Based in Houston, Mark Gribbons is the principal and design director at IA Interior Architects. This piece was co-authored by Jon Pickard, principal and co-founder of Pickard Chilton.


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Rice University's edtech company receives $90M to lead NSF research hub

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An educational technology company based out of Rice University has received $90 million to create and lead a research and development hub for inclusive learning and education research. It's the largest research award in the history of the university.

OpenStax received the grant funding from the U.S. National Science Foundation for a five-year project create the R&D hub called SafeInsights, which "will enable extensive, long-term research on the predictors of effective learning while protecting student privacy," reads a news release from Rice. It's the NSF's largest single investment commitment to national sale education R&D infrastructure.

“We are thrilled to announce an investment of $90 million in SafeInsights, marking a significant step forward in our commitment to advancing scientific research in STEM education,” NSF Director Sethuraman Panchanathan says in the release. “There is an urgent need for research-informed strategies capable of transforming educational systems, empowering our nation’s workforce and propelling discoveries in the science of learning.

"By investing in cutting-edge infrastructure and fostering collaboration among researchers and educators, we are paving the way for transformative discoveries and equitable opportunities for learners across the nation.”

SafeInsights is funded through NSF’s Mid-scale Research Infrastructure-2 (Mid-scale RI-2) program and will act as a central hub for 80 partners and collaborating institutions.

“SafeInsights represents a pivotal moment for Rice University and a testament to our nation’s commitment to educational research,” Rice President Reginald DesRoches adds. “It will accelerate student learning through studies that result in more innovative, evidence-based tools and practices.”

Richard Baraniuk, who founded OpenStax and is a Rice professor, will lead SafeInsights. He says he hopes the initiative will allow progress to be made for students learning in various contexts.

“Learning is complex," Baraniuk says in the release. "Research can tackle this complexity and help get the right tools into the hands of educators and students, but to do so, we need reliable information on how students learn. Just as progress in health care research sparked stunning advances in personalized medicine, we need similar precision in education to support all students, particularly those from underrepresented and low-income backgrounds.”

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2 Houston startups selected by US military for geothermal projects

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Two clean energy companies in Houston have been recruited for geothermal projects at U.S. military installations.

Fervo Energy is exploring the potential for a geothermal energy system at Naval Air Station Fallon in Nevada.

Meanwhile, Sage Geosystems is working on an exploratory geothermal project for the Army’s Fort Bliss post in Texas. The Bliss project is the third U.S. Department of Defense geothermal initiative in the Lone Star State.

“Energy resilience for the U.S. military is essential in an increasingly digital and electric world, and we are pleased to help the U.S. Army and [the Defense Innovation Unit] to support energy resilience at Fort Bliss,” Cindy Taff, CEO of Sage, says in a news release.

A spokeswoman for Fervo declined to comment.

Andy Sabin, director of the Navy’s Geothermal Program Office, says in a military news release that previous geothermal exploration efforts indicate the Fallon facility “is ideally suited for enhanced geothermal systems to be deployed onsite.”

As for the Fort Bliss project, Michael Jones, a project director in the Army Office of Energy Initiatives, says it’ll combine geothermal technology with innovations from the oil and gas sector.

“This initiative adds to the momentum of Texas as a leader in the ‘geothermal anywhere’ revolution, leveraging the robust oil and gas industry profile in the state,” says Ken Wisian, associate director of the Environmental Division at the U.S. Bureau of Economic Geology.

The Department of Defense kicked off its geothermal initiative in September 2023. Specifically, the Army, Navy, and Defense Innovation Unit launched four exploratory geothermal projects at three U.S. military installations.

One of the three installations is the Air Force’s Joint Base San Antonio. Canada-based geothermal company Eavor is leading the San Antonio project.

Another geothermal company, Atlanta-based Teverra, was tapped for an exploratory geothermal project at the Army’s Fort Wainwright in Alaska. Teverra maintains an office in Houston.

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This article originally ran on EnergyCapital.

Houston investor calls for all angels to move the ecosystem forward

houston innovators podcast episode 233

One of the biggest components of a well-functioning startup ecosystem is inarguably access to capital, and Mitra Miller is dedicated to enhancing education around investment and growing Houston's investor base.

As vice president and board member of the Houston Angel Network, the oldest angel network in Texas and one of the most active angel networks in the country, Miller strives to provide guidance to new and emerging angel investors as well as founders seeking to raise money from them.

"Most founders have no idea or understanding of how investors think — we are not an ATM," Miller says on the Houston Innovators Podcast. "We are really partners you are getting married to for the next 5, 8, 10 years — sometimes longer. We need to bring your allies in every sense of the word."



HAN, a nonprofit, provides a unique opportunity for its members, as Miller explains. The group consists of around 100 individuals from all business backgrounds, so evaluating companies together brings more than just a wealth of capital — but also a wealth of knowledge.

"What HAN provides is access to investments," Miller says, adding that members have the benefit in evaluating companies together with people from different backgrounds. "Inside a group like HAN, we have extraordinary expertise."

In addition to educating both founders and investors in the process, Miller has dedicated herself to providing opportunities for students in low-income parts of Houston to learn about the startup world. Eight years ago, she founded Eagle Investors, an organization that provides a year-long program that culminates in a group of students participating as judges for the Rice Business Plan Competition.

"They spend a year learning about innovation, entrepreneurship, and investing by meeting local investors, entrepreneurs, and service providers. They go around Houston to get to visit and ... experience all of the ecosystem," Miller says.

At RBPC, the cohort of high school students evaluate the pitches and select a company to provide a $5,000 prize.

Miller herself has been a judge at RBPC for 20 years now, and she's had a front row seat for watching Houston develop as an ecosystem. She's seen the city make real progress, but has one major call to action.

"The piece that I am most aware of that I would like to see grow is activating more accredited investors who are interested in this asset class of early-stage companies and plugging in," Miller says. "They can also invest their time and knowledge to help companies in our region grow and scale."

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