word on the street | august 2017
Client Spotlight: Children’s Aid Society
Next Street is currently working with the executive leadership at The Children’s Aid Society, which serves children, youth, and families at more than 50 locations in some of New York City’s most under-resourced communities, providing them with the tools and support they need to realize their fullest potential and achieve lasting success and independence. The Next Street team developed 5-year financial projections for the organization that provide clarity on long-term sustainability and flag key risks. The projections contain the ability to run scenarios and adjust key assumptions to evaluate the financial impact of programmatic and strategic choices. This work is critically important given the current uncertainty in government funding streams, which are essential to the stability of all social service providers.
“Our collaboration with the Next Street team is allowing us to quantify the future implications of today’s decisions across our portfolio of programs, facilities, and people. This work was a call to action for us. We can see and quantify the impact of each choice in ways that were never possible before. This type of strategic financial planning is absolutely critical to our long-term viability so that we can continue to serve children, youth, and families living in poverty for years to come.”
– President & CEO Pheobe Boyer
Many nonprofits do not have the financial tools to evaluate and translate strategic decisions into daily action, and social services providers are no exception. The ability to anticipate financial hurdles, opportunities, and decision points before it’s too late is often overlooked. With this challenge in mind, Next Street’s work has aimed to help The Children’s Aid Society standardize and consolidate their financial position, including capital needs, program offerings, operating budget, and cash implications, in hopes others will employ similar practices and to elevate the importance of this strategic financial management among social services providers and other nonprofits nationwide.
new on the street
Eastern Bank Business Equity Initiative
We are delighted to highlight the launch of the Business Equity Initiative!
Eastern Bank has committed $10 million over the next three years to support the growth of enterprises of color. Launched by the Eastern Bank Charitable Foundation in April 2017, the Business Equity Initiative (BEI) was developed to mitigate growing inequality by combining business growth, supplier partnerships, and community transformative development as a means of addressing growing wealth and income inequality in Massachusetts. The Initiative is focused on growing enterprises of color by leveraging Eastern’s networks and philanthropic dollars as well as providing targeted, customizable growth tools including embedded trusted strategic advisors, operational support, growth capital, and market access to enterprises of color positioned for growth.
The BEI matches top tier talent (former CEOs, successful former business owners, management consultants, strategists) and expertise to our entrepreneurs and enterprises of color to help them grow. Next Street is proud to serve as one of the strategic advisors to participating enterprises.
A kickoff event at Eastern’s Boston headquarters on July 12th celebrated the launch of the first cohort of ten businesses. Glynn Lloyd, Executive Director of the BEI, highlighted the need in his remarks: “when you look at more recent history, the strength, size and number of minority businesses, particularly black and Latino businesses in Eastern Massachusetts, were actually going the wrong way… we have less of these types of businesses than we did 20 years ago and that’s a problem.”
To complement the embedded advisory support, Eastern is working to expand market access and provide growth capital for participating enterprises. Eastern Bank has committed to increasing their spend with suppliers of color and is working with partners to catalyze similar commitments. Eastern has partnered with the Greater Boston Chamber of Commerce to form a partnership of Pacesetter companies that are committed to increasing their supplier diversity, in numbers of vendors and dollars. Eastern is also working to develop a growth fund, which will provide integrated capital ranging from debt to equity.
If you are an interested in learning more, please visit the BEI’s website, where you can find more detail on the program and application details.
NYC Business Pitch Final Competition
The NYC Department of Small Business Services recently hosted the Business Pitch Final Competition and Meetup. Next Street supported the development of the curriculum for the Business Pitch Education & Competition Program, designed to help business owners and entrepreneurs develop and tailor their business pitches to the wide range of audiences they encounter, including: investors, vendors, and prospective customers. On July 19th, ten finalists made their pitches to a panel of judges, competing to win between $2,500-$5,000 to help grow their business. Next Street is proud that two of the winners are clients of the NYC Business Solutions – Queens Center, which is managed by Next Street.
heard on the street
Next Street’s latest white paper, Innovative Approaches to Equitable Development in America’s Cities, is still available for download
As a precursor to the Opportunity Finance Network’s Small Business Finance Forum in Chicago, Next Street partnered with Community Reinvestment Fund to lead a presentation to 25+ CDFIs on Understanding, Assessing, and Acting within a Market to Effectively Serve Small Businesses
Next Street Partner Charisse Conanan Johnson spoke on a panel titled “Startup Death Valley: Fears of Financing” at Fear Paradox Summit in Chicago on July 28th
The Baltimore Integration Partnership provided an update on implementation of the inclusion implementation efforts of Baltimore anchors
careers at next street
Next Street is looking for a high-performing team members across offices, who will work closely with Firm leadership to support and lead engagements serving small businesses, non-profits, anchor institutions, and government agencies. Visit our Careers page to apply!