The most common question that we are getting right now is “What should a small business owner be focusing on, given the uncertainty of ‘work from home’, social distancing, and fears of a looming recession?”
To help our clients, Seemore Hawk is going to send out an email with a couple of guidelines - things that are specific and relevant to the small business owner navigating uncertain times. We're going to try to get this out every couple of days over the next two to three weeks. The goal here is just to make sure that our clients are up to speed and have a place to go look to find relevant information.
First a couple of housekeeping items. Will be using HubSpot to send out these emails just to give you the ability to unsubscribe or cancel or manage these however you might want. Second, if there is enough interest, we can make this into short video clips instead of a blog-style – if that is your preference, please let me know.
Let’s get to it…
So the two main themes that we are suggesting everybody take time to spend time ASAP are Business Continuity Planning/Contingency Planning and Sharpening The Saw (as Steven Covey would put it). Over the course of the next couple weeks you can expect to see handful of items directing you through these processes.
These are things that everybody can work on from home, plus they are important activities that can be used as a remote team exercise. However, none of the exercises are meant to be busywork while we sit and wait for things to get better. Quite the opposite. These are things that we probably should have been doing all along, and we kind of know that we should have been doing all long. But now it has risen to be Urgent & Important, and we need to get better and we need to get better quickly.
Business Continuity Planning
Although this is a vital process and step for every business, I’ve found that if you try to Google it, you will be overwhelmed and never get anywhere. I'm not sure why this particular area is so lousy online.
But to break it down a little bit and simplify as we start just keep it in mind that BCP is making sure we have thought through processes and procedures for when emergencies of various sorts happen. (In contrast that with contingency plans which are primarily focused on if certain individuals are incapacitated or unavailable for some reason including health what is the business supposed to do in their absence.) We're going to march through the steps of pulling a BCP together first.
BCP – Phase 1
- Let’s keep this simple and relevant: draft the plan for a health pandemic like COVID-19. Our goal here is to be able to answer the question, “What would we do in this situation?”
1) List the core functions of the business that need to function (even with a 1/10 skeleton staff)
2) Document who is going to communicate to staff who should be fully engaged and who can take a furlough
3) Identify (and communicate to staff) remote working options such as cloud-based systems and Zoom/Skype video meetings. Be clear on who is going to communicate the move to remote-working, and clearly document expectations. If you expect them to put in 40 hours or certain hours, tell them.
4) Communicate with customers how your corporate office will be working during the situation. If you are working remotely, let them know. If you are working with a skeleton staff, let them know. Make sure the expectation is set and they know how to get ahold of you when needed.
5) We will have to consider financial planning but that is a new topic unto itself I will. I will plan a separate post about that in the next few days. (Teaser: be ready to answer what would trigger to you be truly nervous about your business…)
The Latest on Stimulus Packages
- The second stimulus of the past week is under way (another vote expected today). So far we know:
o $7 billion in low-interest loans through the SBA. Interest rates are OK (3.75%), but the key is this money is for businesses that don’t have credit available elsewhere. So it looks like we may first have to go looking and this can come in to play if we are unsuccessful.
o The IRS will defer $300 billion worth of tax payments for individuals and businesses. As of right now, corporations can defer up to $10 million and individuals up to $1 million for 90 days.
o Also being discussed, per a couple different outlets:
sending direct payments to U.S. citizens as soon as possible
loan guarantees for the airline, cruise and hotel industries;
eliminating certain taxes and fees for airlines;
financial assistance to hourly wage workers affected by reduced business;
increased access to small-business loans and grants;
extensions on estimated tax payments;
expanding a tax credit for family-leave programs;
tax extensions beyond April 15 for small and midsize businesses
These are uncertain times but help us help you by fighting against ‘general anxiety’. There are a lot of things we can prepare for and control – let’s focus there. As always, if you need some additional guidance, just shoot me a message or carve out some time on my calendar: https://calendly.com/bg-seemorehawk