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01:30Good morning, everyone.
01:44I'm Marquita Harris, the work and money editor for Essence, and welcome to our first ever
01:49virtual entrepreneur summit.
01:50This virtual event is a part of our Essence Benefits series to fight COVID-19.
01:57We have an exciting lineup of panelists, masterclasses, keynote speakers, and they're going to all
02:02be discussing various aspects of business, entrepreneurship, and just kind of digging
02:07into our work lives in these very unsurreal or surreal times.
02:11Some of the speakers today include master chef and restaurateur Marcus Samuelson, Honeypot
02:17founder Beatrice Dixon, also entrepreneurs Gabrielle Union and Dwayne Wade.
02:23And later on today, we're going to be speaking with the founder, business mastermind, and
02:28philanthropist Robert Smith.
02:30He's going to be giving a keynote, very exciting stuff.
02:33So we're also going to have a new voices and target accelerators pitch competition.
02:38And that's going to be a little later today.
02:40You don't want to miss that.
02:42There's some amazing black women with some super dope ideas.
02:45So that's just a sample of today's lineup.
02:48And I think you're going to want to pull out a notepad and a pen and prepare to get enlightened
02:54and hopefully inspired.
02:56To kick things off, we're going to have a chat with Chase about what black businesses
03:00need to know now.
03:02Good morning, Saku and Christopher.
03:05Are you guys both there?
03:07There you are.
03:07Yes, we are.
03:08Good morning.
03:09Oh, I heard the lineup.
03:10I didn't know that I needed to get up.
03:12I don't know if I belong.
03:13I mean, listen.
03:14We're in the wrong place.
03:15No, you guys are great.
03:18You're a very great company.
03:20I'm so excited to dig into this conversation about what black businesses need to know now,
03:25particularly from your perspective.
03:27So for those that don't know, can you kind of just give a brief introduction about who
03:32you are and what you do with Chase?
03:36Saku and Christopher?
03:39Yes.
03:40So I'm Saku Kalind.
03:41I'm the head of Advancing Black Pathways.
03:43I've been in finance for 20 plus years, last 13 years at J.P.
03:48Morgan in a variety of functions, private equity, fund services, et cetera, et cetera.
03:53Last five years in the investment bank.
03:55But this has been the alignment of my talents and my passions where I get to leverage everything
04:03I do to really focus on investing in the black community.
04:08Amazing.
04:09And Christopher, what about you?
04:11Yes.
04:12Christopher Hollins.
04:13I have a title of Treasury Product Management.
04:17What that basically means is that my team within the business bank focuses on either how you
04:23get paid, how you pay others, and how you move money between those two.
04:28So that's the simple version of it.
04:30I've been at Chase for about two years, spent a good amount of time in financial services,
04:34a lot of that time in American Express.
04:36You know, my passion here is focused very much around Saku's.
04:41I was very lucky to be offered the opportunity to lead this for the business bank.
04:46And I'm trying to assist him and his team around how you actually create opportunities
04:51for access to capital, primarily for small black businesses.
04:55Awesome.
04:58So, Saku, earlier you mentioned that you're pretty much leading the Advancing Black Pathways,
05:05that whole effort.
05:06Can you please kind of dig into what is Advancing Black Pathways?
05:10And, you know, how can we, I'm assuming, we can kind of benefit from that?
05:17Absolutely.
05:19So we just celebrated our one-year anniversary, so that's exciting.
05:22But JPMorgan Chase launched Advancing Black Pathways to focus on the economic foundation
05:29of the black community.
05:31And to do that, we're leveraging both our business and philanthropic resources to invest
05:36across three areas.
05:37That's education, career, and wealth creation.
05:40And so what's exciting about that, we're focused on our wealth creation, and I'll cover that.
05:45But with education and career, we launched a commitment to hire 4,000 black students in five
05:51years.
05:51So if you have son, daughter, brother, sister, cousin, send them our way.
05:56Financial help we're focusing on with students.
05:58But what's critically important for today's dialogue is what we're doing in the wealth
06:03pathway.
06:04And that's specifically financial health.
06:06We did partner with Essence to launch Currency Conversations last year to really remove the
06:11taboo of talking about financial services in our community and fundamentals of finance.
06:16And then the other piece, as Christopher mentioned, is our focus on black entrepreneurs.
06:22Black entrepreneurs have 12 times the net worth of non-black entrepreneurs.
06:26So we see entrepreneurship as a way to really preserve and grow wealth in the black community,
06:33and we'll talk about that today.
06:34Great.
06:35Great.
06:35Great.
06:36So I'm taking some notes.
06:38Earlier, you guys heard me say something about having your notepads out.
06:41So I'm taking notes.
06:44So speaking of entrepreneurship and, of course, our community, can we talk a little bit about,
06:52like, what's your perspective on the most urgent matter facing local black-owned businesses now
06:59in this era of COVID-19?
07:02Yeah.
07:03From my perspective, you know, I have the opportunity, at least before we put everything on travel
07:09restriction, to be out with a lot of businesses of all hues and segments.
07:15What I primarily see within the community at large is that the inability to have reasonable
07:23cash flow or to be liquid for more than a month or two is always the issue.
07:30But the problem is more acute for black-owned businesses, which in many cases don't have it.
07:35I think it's beyond 20 or 27 days.
07:38Sekou will correct me with the exact number, but basically it's less than a month.
07:44And for many of them, it's not because they are not generating the revenue.
07:49It's recognizing how you need to pay your suppliers and what you need to do with the
07:55money that you've earned so that you're creating a cash buffer so that you have the ability
08:00for, like, a rainy day fund if something goes wrong.
08:03Or if you end up having this fantastic employee that you need to pay, you know, $3,000 more.
08:09You want to be able to do that and make those good choices.
08:12And unfortunately, because people are so focused on what they're doing, what they have passion
08:16about, it's these financial matters that kind of get in the way of them being able to
08:21do what they want to do.
08:22But one begets the other.
08:24You can't be focused on your passion and your ability to have your own business at the same
08:29time not be minding the store about the money because that's what goes out the back door.
08:34And that's what, for most entrepreneurs who don't find the success that they're looking
08:38for, it's primarily because they don't have the cash flow that they need at the moment
08:43in time in which they need it.
08:45Got it.
08:46So, Christopher, and Saku could also answer this.
08:50While you were talking, you did mention that rainy day fund.
08:53And I think that's something that, personally, I do a lot of content where I'm talking to
08:59small, like, just beginning, starting out entrepreneurs.
09:04And I don't know, a lot of these discussions revolve around just kind of making sure that
09:10they're doing what they need to do with the capital in the very beginning, making sure that
09:14money is kind of dispersed where it needs to be.
09:17And on more than one occasion, I've heard them say that, you know, that rainy day fund
09:22that they should have had, that money wasn't there when they went through a period where
09:26their business, you know, wasn't in the greatest state.
09:30So, what I want to know from you guys is, what advice do you have for entrepreneurs trying
09:36to figure out, like, you know, how much that rainy day fund should be?
09:42Yeah, from my perspective.
09:45Yes.
09:45I think that you should always be planning for at least eight weeks.
09:52Ideally, you have three, you know, three months, that would be ideal.
09:57But it's very hard to build up to that.
09:59And it requires a tremendous amount of discipline, in terms of what you're buying from your suppliers,
10:05how you are working with your suppliers to ensure you're not paying a penny more than
10:10you should.
10:10And also being able to leverage the difference between and making certain that you're also
10:15getting money back from the people who owe you money.
10:18I know in many cases, you know, my dad owned the business for over a quarter century.
10:23And his biggest challenge was always getting the bills paid to him when people are for the
10:29services that were rendered.
10:30In some cases, people would be late by 10 or 15 days, and that adds up over time.
10:36So your ability to actually get paid on time and be able to squeeze those suppliers just
10:41a little bit more starts to build that fund over a period of months.
10:45And even on the personal front, like 40% of Americans don't have $400 in the event of a
10:55financial emergency.
10:56So really, it's critical to have liquidity in that rainy day fund.
11:00And even as you think about it in the business context, it should also influence your thinking
11:05around, let's say, growth and strategy.
11:07You know, perhaps you don't open the second store location until you're comfortable that
11:13you have that liquidity cushion, because if a downturn comes along, and you don't have
11:18that cushion to rely on, that's what helps you get through these difficult times.
11:22And as Chris said, it's difficult to obviously have three months of reserve.
11:27That's why you have to have the intentionality around a strategy of ensuring that you have
11:33appropriate liquidity as a buffer for the storm.
11:37Amazing.
11:38That's really great, really great advice.
11:40Thank you, guys.
11:41Um, so obviously this is an entrepreneurship summit, but of course, personally, I'm always
11:47interested in a little personal finance questions here and there.
11:51And, um, I have to ask, like, in light of the COVID-19 outbreak, what are some of the biggest
11:57mistakes that you've noticed people make with their money in general?
12:01And if you do, please feel free to share some advice about how to not make these mistakes.
12:06Um, I think I'll let you start.
12:11Yeah.
12:11Well, so one of the things I would say, uh, I'll focus on what people could do to not, you
12:17know, make mistakes in their money in the period where people are under economic and financial
12:22pressure.
12:23If you don't have customers coming in or reduce customers, clearly that makes an impact.
12:28So what I would first say in order to avoid making those financial mistakes is one, call
12:33your bank, call your creditor, call whomever, let them know your financial situation.
12:39If they do not know your financial situation, then you can have adverse implications.
12:43But when you let them know, you could better understand what flexibility exists.
12:49Can Chase, for instance, waive your fees, work on, on repayment.
12:54You can have those constructive dialogues, but you have to reach out.
12:59This is not a time for any of us specifically as it relates to finances to have the shame.
13:04Like, no, in these times we need to be as aggressive, reaching out, communicating, because
13:10then back to what Christopher was saying, if you understand that balance of where you
13:15could control your, the money that needs to go out, it enables you to make that sound
13:20wise decision without having adverse impact, you know, on your broader credit, which obviously
13:26credit is such a critical thing.
13:29So important.
13:30And Chris, did you have anything to add to that as well?
13:33Or that's great advice.
13:34And especially the point you said about no shame.
13:39No shame.
13:40What I can, right.
13:42And what I know is that, that Chase, much like I would imagine most banks, when you let
13:49them know your situation, especially in this unprecedented time, are going to try to work with you.
13:54They don't want you to go out of business.
13:55It's in their best interest to help you stay in business and to stay connected as, as a client.
14:02And more to the point, because so many black businesses are either underbanked or unbanked,
14:09you've got to get that help from someone that you know.
14:12Like, I know people have contacted my colleagues at Chase and because they're just friends and
14:19have asked that kind of help and support.
14:22Everyone needs support right now.
14:24And if you don't, if you're not in a place where you don't have the person you can talk
14:29to, like, say, you talked about, you still need to reach out.
14:32You need to reach out through public forums, start asking questions.
14:36Because if you're not asking questions and you're not asking for help, no one's going
14:39to know that you need it.
14:41And more to the point, given all of what's going on and the focus that's been so micro
14:46around you staying home, taking care of your family, taking care of your responsibilities,
14:51it's hard to remember to reach out.
14:54So if you're not doing that, no one knows what's happening with you.
14:57So you have to take care of yourself that way.
15:00That's the only thing.
15:02Just one thing I'll add to this is the importance.
15:05And I would coach people on this in their personal careers of having that network.
15:10So you want to, you know, know, like, who are some of the people and resources that are
15:15available to you so that as you're in a crisis, you're not trying to figure out who the call.
15:20So whether that's, again, as a business owner, it's easy to head down, focus on delivering.
15:26But whether it's your supply chain, whether it's other people that have insights and resources,
15:31whether it's what websites, you should have that together at any moment.
15:36So you can understand what's the disaster recovery plan, for instance, that I have.
15:41Disaster recovery is critical.
15:43So making sure you have these resources well in advance of an emergency so that it's, you
15:49know, you at least have a playbook or plan that you can rely on versus what's an overwhelming
15:54situation like this also having the pressure of figuring out some of the challenging financial
15:59decisions.
16:01Got it.
16:02Great.
16:02And Markita, can I add something to that?
16:04Yes, please.
16:06I'm taking notes.
16:07Yeah.
16:07Everyone has on their, whether they've got a Android or Apple phone, they've got their
16:15passwords located somewhere that is password protected.
16:19This plan that Sekou's talking about is the equivalent of that.
16:22It needs to be in the notes in your phone.
16:25You should be constantly writing things down as you're building your disaster, your disaster
16:30plan or your backup plan.
16:32And to his other point, you can't wait until the last minute for that.
16:36So these are the kind of things that wake you up at three 30 in the morning, put it in
16:39your notes, like start to pull those things together so that if you ever do need it, now
16:45you're not struggling to think about it.
16:47You know where to go and it's got all of your thoughts and who you need to contact for
16:51what reason right in front of you.
16:53It's just a practical way to think about it.
16:56Got it.
16:56I love that.
16:57Thank you guys.
16:59So I have to ask because I'm always interested in, you know, these, these roles that you guys
17:07are in, not just how you got there, but why you're so passionate about this work.
17:12And I kind of already had the feeling that you both had a personal relationship with
17:18entrepreneurism.
17:19And I wondered, it sounds like Christopher, you've talked about this a little bit.
17:23You have a background that has a, it sounds like you have some entrepreneurs in your family.
17:28And I kind of wondered, you know, just if you could briefly share what is your relationship
17:33with, you know, entrepreneurism and business ownership.
17:39Yes.
17:39So my dad was in an executive search firm that he created.
17:44It was in business for over 25 years.
17:47I have a brother-in-law who has a web design company in Chicago.
17:52I've got a number of friends that I went to college with and played sports with who have
17:57their own companies.
17:58In fact, I was advising them just two days ago on a couple of aspects of things that
18:03they need to do.
18:04So I feel like there's a, there is an ecosystem around me that gives me tremendous feedback
18:10about what Chase needs to do.
18:12They have their points of view on things.
18:14They talk about the struggles that they have, but it also makes me better understand and better
18:20connect with small business owners.
18:21The last piece I'll share, Markita, is I spend a lot of time with small business owners in
18:26the field. So I want to understand not only what they're doing, but what they're struggling
18:30with, how that, you know, connects to the geography they're in or the business environment
18:36that exists. So I feel like it's very much at my core and something I desire to know.
18:41Got it. Like I said, the passion, I can feel it. So what about you, Saku?
18:47Yeah. So for me, you know, I'm a simple country boy from North Carolina, but my parents at one
18:52time had, uh, what was one of the largest black owned transportation companies, uh, in North
18:57Carolina. And I saw the difficulty, uh, that, and I experienced the difficulty, uh, when they
19:02lost their business due to some factors beyond their control, but also, uh, their lack of
19:09understanding of banking and financial services. So that always impressed upon me. I wanted to run
19:14for office and, and help people. And so that was at my core. So anyone that knew me knew that,
19:20but what also shaped that is the challenges, you know, I experienced from a family business failing,
19:25you know, for working, you know, 75 hours a week in ninth grade during the summers and 30,
19:3035 hours a week during the school week. So, so I realized the challenge that business owners have,
19:36but also the challenges and level of discomfort. My mom still has to a certain degree with bank,
19:42we're going into the bank, et cetera. So understanding how you make that real and to focus my career
19:47on making sure we can get capital to black businesses. It for me, it's one of the most
19:51rewarding things I've ever done. That's amazing. Um, of course I want to keep you guys on here for
19:5830 more minutes, but, um, we've already hit our 20 minute mark and I'm so, uh, I'm so happy that I
20:06had the, I was about to say the best stuff. I had saved it for last. Exactly. Now we want to tell
20:12the real stories. Offline, you can take it offline and I'm like, you know, we're going to, we're going to
20:17figure out another way to connect later for sure. Um, thank you guys so much for the work that you're
20:21doing. Yeah. Reach out to JPMorgan, www.jpmorganchase.com forward slash ABP, advancing black pathways.
20:32Learn about our offerings, what we're doing across education, career and wealth. Our COVID-19 web,
20:37web page is launching on the same site. So it will have resources and insights for you there as well.
20:44Absolutely. Thank you. Yes. Thank you guys. Um, and I'm definitely gonna, um, I'll be reaching out
20:50too, cause I have some more questions for you and, um, I hope you remain in good health and please,
20:56please, please, um, continue doing this amazing work. And, um, it's thank you.
21:02Truly. No, thank you. Stay safe.
21:06Yeah.
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