[mililo4cpa]

Hi all, Will apologize for the length of this in advance

I run the consulting department for a company that specializes in small business management (typical clients are contractors, manufacturers, distributors, retails, etc. as small at $3M in revenues, generally around $20 - $30M / 30 - 50 employees on average, some companies much larger, but all privately held). our company has been around for 34+ years, I've personally been with the company for just under 7....

I will not specifically name my company here (to avoid sounding like I'm soliciting for business), but if anyone wants or needs questions answered, more info, etc., I'd be more than happy to answer anything as best I can. Additionally, our company has set up a free hotline for any business person to call for 100% free advice. PM me if you'd like more information on any of this.

In normal times, we help our clients will all aspects of their business (financial, operational, organization, sales & marketing). I can tell you definitely that there is nothing normal about these times. I don't have any specialized training for this contingency, other than I've personally spent hours upon hours researching the SBA, DOL, State sites, reading executive orders, etc., all in hopes of providing our clients the best advice I possibly can. To be sure, what I'm reading is no different the what anyone else has access to online, but I have noted that most of my clients have no idea where to go and look or simply don't take the time to educate themselves.

To start: What we've stressed with our clients is to protect the following three areas: Your People, The Integrity of your Operations, and your liquidity. To a degree, you have to focus on all three of these areas, as if you ignore any one of them, then it will be difficult to sustain during any shut down period, and certainly more difficult to start back up. Each of these areas then get more definition based upon the type of business. Since each client is unique and different, the specifics on the plan will vary, but there are some generic things that will apply to most (albeit "essential" and "non-essential" businesses will vary as well).

Some generic things:

Liquidity: Do a cash sustainability analysis. What does that mean? With current cash in hand and availability through your lines of credit, how many weeks can you survive given any cash in and cash burn week to week. This will go a long way into determining what you may need to cut in cash burn. And by all means, apply for the SBA EIDL and (if applicable) any bridge loans you qualify for (there has been some decent advice in this thread thus far). Even if you don't want them, or ultimately don't need them, get in the system now! otherwise, you will be in competition with hundreds of thousands of others vying for the same thing if you ultimately decide that you may actually need it. Also, make sure you are looking at state and local funding. We have talked with the U.S. Conference of Mayors, and there will be CDBG money likely coming available, and some states (such as FL and NH, sure there are others) already are funding their own bridge loans.

Next: Talk with your bank. demand that they abate monthly loan payments, or go to interest only for three - six months, with a payment plan to pay down principle for the next 6 - 8 months after the abatement. Talk with your landlord and defer rental payments as well. If need be, offer up smaller payments, then add remainder to later amounts. Make the point that you are not trying to screw anybody, but simply trying to survive. Make sure banks they can still service your business properly (EFTs, Credit Card transactions, loans, etc.) even working remotely.


Operations: Stay in constant contact with your customers and suppliers. If you are up and running, let your customers know that you are still alive and open for business, how you are maintaining the health and welfare of your people and cleanliness of your facilities. Offer up discounts to your key customers and those operating on the front-lines. But you have to be the aggressor, you customers may not be there thinking of you and buying. create call lists, and script out the dialog. With your suppliers, you want to make sure that (again, if operating) they can meet your demand and keep supply moving and offer any help you can if they need it.

Next: Make sure you have a handle on your inventory and you know exactly how much stock you have and potentially need. Again, in communication with you suppliers, make sure they can fulfill if necessary, and schedule out deliveries in line with cash availability.


People: The hardest part to discuss, since every state is different in regards to protection. But generally: Communicate with your remote and temp lay-off employees daily. Make sure you have a call tree with all names and numbers. Your sustainability analysis from above will give you insight on weekly payroll cash requirements, so you have to be real that people are going to be impacted. As best you can, arm yourself with all local, state and federal UI, particularly any new legislation (such as Family First). Most states are relaxing UI application processes, and offering more. You need to know how to direct them to these things.

Most importantly: everybody has some degree of stress, some very significant. But as a business owner, you have to be the leader. Your people are looking to you for answers, and honestly, at this point, there are not a lot of great answers to give them. But you have to be the "rock" of stability here. And please don't be afraid to get help!

Finally, with nothing by any means definitive, we believe that this is going to be 3 months of hell (April / May / June)....that's not to say that businesses cannot operate or do so under restriction for 3 months, but simply the next three months is a more realistic outlook than 2 - 4 weeks.

OK, I've written enough, and hope there are a couple nuggets you all can take out of this, Again, if anyone wants to ask any questions, I'll be monitoring this thread throughout the day, and PM me if anyone wants to talk more specifically on any situation they may need some help (again, my company also has a 100% hotline, answered by a person, that will help any business owner with their questions)