Planning, Planning and then more Planning

Planning, planning, planning.

To a great extent, that’s pretty much all you have been able to do, although states are moving to reopen. Hopefully, you are keeping a presence on-line, as well as traditional media.

We really have no idea when this is going to end or if it is going to end.  Do be aware that if this all clears, everybody will restart and/or enhance their advertising.

That tells me that when the demand increases, the cost of advertising will rise. 

You can pretty much plan on that. If you are a believer that this will end this year, you need to be ready to double your marketing budget.

History tells us that businesses who advertise during the crisis du jour, will do much better once the crisis ends.

Maybe this is the time to catch up on your marketing reading. Let me suggest you read the book Purple Cow, by Seth Godin.  Purple cows stand out!

Hbalfanz7@gmail.com

Planning in the Midst of the Crisis

Planning, planning, planning.

To a large extent, that’s pretty much all you can do at this time. Hopefully, you are keeping a presence on-line, as well as on traditional media.

 Truly, we have no idea when this is going to end or if it is going to end.  Do be aware that if this all clears, lots of companies (including your competitors) will restart and/or enhance their advertising.

That tells me that when the demand increases, the cost of advertising will rise. 

You can pretty much plan on that. If you are a believer that this will end this year, you need to be ready to double your marketing budget.

History tells us that businesses who advertise during the crisis du jour, will do much better once the crisis ends.

Maybe this is the time to catch up on your marketing reading. Let me suggest you read the book Purple Cow, by Seth Godin.  Purple cows stand out!

Hbalfanz7@gmail.com

Center for Disease Control guidelines

The Center for Disease Control has published reopening guidelines.

These are critical for business owners and managers.

Link:

https://www.cdc.gov/coronavirus/2019-ncov/community/reopen-guidance.html

Covid Liability

Among many political battles raging is the question of Covid-related liability for employers.

If you open your business and one or more of your employers are contract Covid-19 should you be liable?

(As an aside, how do we know if the employee contracted Covid at work or somewhere else? Do standard workers comp policies cover these illnesses?)

The Great Reset and Your Brand

This is the year of the Great Reset. Things will change, and you need some basic marketing tools to execute the Great Reset for your company.

 First of all, answer the question: what business are you in?

The  shoe store owner is going to say I’M IN THE SHOE BUSINESS.  Well, without being too negative, that’s not the answer. The owner actually is in the fashion business. Or the comfort business. You need to market your business to make it very clear what ‘feeling’ you want the customer to have.

When Charles Revson of Revlon was asked this question, his answer was that his company was in the hope business.

So—start here. What business are we in? What emotional needs do we want to fulfill?

Henry Balfanz, MBA

More Money?

The PPP plan may get more money today (4/21).

So far we have preliminary information on the first tranche.

1. big corps exploited loopholes to suck up the money

2. big banks may be corrupt

Any surprised?

Banking Blues

The federal payroll protection loan program (PPP) has gotten off to a rocky start.

Confusion and tech problems plagued the program. Different banks gave differing information about the program.

The Small Business Association was not geared up for such a massive quick program.

And the feds think they have run out of money, based on what data they have gleaned so far.

Before You Run to the Bank

Before you run to the bank for an SBA loan:

Nobody actually knows how the program works quite yet.

The software apparently is not ready.

The banks are confused.

So before you run to the bank have a conference call with your CPAs and figure out just where you are at and what are your chances for survival.

(Almost) Everything is Negotiable - Part 1

Rent is due, and you are short on funds.

First, do not dodge the landlord. Call the landlord and tell them your status. The landlord should have guessed already.

Some landlords have called their attorneys and are going to immediately send eviction notices. Besides being dumb many courts are closed or only during urgent matters so this is probably going nowhere fast. Forward the letter to your attorney.

Why doesn't your landlord really want to evict you?

1. finding a replacement tenant will be difficult
2. a replacement tenant will make lots of demands, given the crazy market
3.  every empty month guarantees funds lost forever

Should you make contingency plans to be evicted? Of course. Posts on "Preparing for the worst" will becoming soon.


Usual disclaimer: this is not professional advice, see your own attorney and CPA for professional advice
 

Mass Layoffs

Any employer contemplating mass layoffs should:

1. wait until the passage of the stimulus bill, analyze the bill with your advisors, and

2. consult your legal counsel about the federal WARN Act and any applicable state laws, also any other relevant contracts

Washington is Moving -Sorta

As of this minute the House needs to have a final vote and the President needs to sign the bill, and small business relief will be on its way.

Watch for detailed write ups and for links to better writers at this site. 

Best description - complicated.

Cash Flow Triage - Part II Making the Nut

Us old timers use a phrase for the minimum cash flow we need in our personal lives and/or business operations.

Making the nut.

Where does that come from? No idea.

What I do know is that we need to do a quick calculation of our monthly business minimum.

Some have already done the calculation. Some know it by experience and instinct.

If you do not have a very exact budget of your monthly "nut" you need to do it right now. Then you need to start thinking about what could be cut or delayed.

If you are lucky enough to be in some sort of essential business that gives you plenty of cash flow, you could relax. Or you could do this anyway in case the problems last a long time or even get worse.

Cash Flow Triage - Part 1

The first three concerns of small business are 1) cash flow, 2) cash flow and 3) cash flow.

With or without a federal government program this is going to be tough for a while.

So let's talk cash flow:

Some payments may be required to be paid promptly by federal and/or state law.

Payroll 
Withheld payroll taxes and other withholds
Unemployment taxes, workers comp premiums
Collected sales taxes
Fuel and other excise taxes due


When businesses get backed into cash flow corners it is not uncommon to skip or partial pay these payments.

Beware, there are stiff penalties and to the best of our knowledge those penalties are not being waived.

Tax Day Delay

Today (3/20/2020) the Secretary of the Treasury announced that 2019 personal income tax returns would be due on July 15th 2020. The administration had previously announced that 2019 payments would not be due until July 15th.

This may or may not be legal but Congress is preparing legislation to confirm the date.

More information to follow.

Check with your CPA or tax preparer for details and updates.