Northwest Kansas business owners able to plan ahead, evaluate challenges and protect what they have built through the Innovation Center’s Business Services program
NORTHWEST KANSAS — Even the strongest business ideas need planning, structure and support to succeed over time.
According to recent summaries of U.S. Bureau of Labor Statistics data, approximately 20% of new businesses close within their first year. By the five-year mark, nearly 50% have closed. After a decade, roughly 65% of new businesses are no longer in operation.
For the Northwest Kansas Economic Innovation Center, Inc. (Innovation Center), those numbers reinforce the importance of early conversations, practical planning and trusted guidance for business owners across Northwest Kansas.
“Even a great business can run into challenges if the financial structure, cash flow or long-term plan is not where it needs to be,” said Monte Keller, Business Services Consultant for the Innovation Center. “The earlier we talk, the more options we have.”
The Innovation Center’s Business Services program helps business owners recognize warning signs early and think through their options before challenges become urgent. Through confidential, one-on-one conversations, the Innovation Center works with business owners to evaluate the health of their business, identify potential concerns and build a practical path forward.
Common warning signs may include:
- Strong sales but tight cash flow
- Frequent overdrafts
- Reliance on credit cards
- Shrinking profitability
- Growth that is putting pressure on operations
- Loans that may not match the purpose of the asset
- Uncertainty about how to transition the business in the future
“Sometimes a business has a lot of sales, but the cash still feels tight,” Keller said. “That may mean receivables, working capital or loan structure need to be reviewed. Other times, a business is growing, but the growth is starting to consume cash because the financing is not structured in a way that supports long-term health.”
Keller brings nearly 40 years of experience in banking, business finance and problem-solving to his work with the Innovation Center. He said many business owners reach out because they can feel something changing, even if they are not sure what the issue is yet.
“A business is a lot like a person’s health,” Keller said. “If you wait until there is a major problem, your options may be more limited. But if you step back and take a financial physical early, there may be more ways to strengthen the business and plan for what comes next.”
How the Innovation Center Can Help
Areas of support may include cash flow, debt structure, working capital, growth planning, succession planning and connections with trusted professional partners such as lenders, accountants and attorneys.
The Innovation Center’s Business Services program is not only for businesses in financial distress. The program also supports owners who are preparing for growth, considering expansion, evaluating new opportunities or thinking ahead to succession.
Keller said growth can be one of the most important times to ask questions.
“More companies grow broke than go broke,” Keller said. “Growth is exciting, but it has to be planned for. If a business is buying equipment, expanding space, adding inventory or taking on new production, the financing needs to fit the purpose. Otherwise, the payment plan can put too much pressure on cash flow.”
Succession planning is another area where early conversations can make a significant difference. Keller said many owners spend years building a business but wait too long to plan how it will transition to the next owner or next generation of leadership.
“We did not build a business overnight, and we usually cannot transition one overnight either,” Keller said. “A good succession plan has to be custom to the business. It needs to consider the seller, the buyer, the tax implications, the value of the assets and whether the next owner can realistically afford to take the business forward.”
In one recent example, a successful business owner reached out to the Innovation Center while considering a transition to a younger buyer. Rather than rushing the process, the Innovation Center helped the owner step back, review the financial structure and connect with professional partners who could help evaluate the tax, legal and financing considerations involved.
In another example, a regional manufacturer contacted the Innovation Center not because the business was failing, but because it was preparing for growth. The Innovation Center helped the business think through the financial structure needed to support expansion without creating unnecessary pressure on cash flow.
The Right Partners Make an Impact
According to Keller, the Innovation Center’s role is not to replace a business owner’s banker, accountant or attorney. Instead, the goal is to help bring the right people into the conversation and make sure everyone is working toward the same goal.
“The relationship between the business owner, accountant and lender is huge,” Keller said. “Everyone needs to be working together. Our role is to listen, ask questions, look at the situation and help the owner think through the best path forward.”
For many business owners, the hardest step is simply asking for help. Keller said those conversations are confidential and are often most productive when they happen before a situation becomes an emergency.
“Business owners should not feel like they are the only ones facing questions or challenges,” Keller said. “Every business faces changing seasons. The sooner we can sit down, assess the situation and talk through options, the better chance we have of helping that company stay healthy.”
Business owners interested in the Innovation Center’s Business Services can contact Monte Keller at monte@nwkeici.org or 785-874-5150. Learn more at nwkeici.org/what-we-do/business-services.
About the Innovation Center
The Northwest Kansas Economic Innovation Center, Inc. is committed to building a booming Northwest Kansas by advancing economic prosperity and population growth across the 26 counties it serves. The Innovation Center invests in the people, enterprises and communities of Northwest Kansas by providing resources, guidance and support that help turn vision into reality.