Ten Action Items that Business Owners Need to Do Now – March 20, 2020

We are urging business owners to develop an aggressive plan to manage through this crisis. Below are ten important items to be considered in that plan.

    1. Stabilize sales volume and explore new sources of revenue for recovery. Focus on taking care of existing customers. Be creative and proactive to build relationships with new customers.
      • Review costs with a level head
      • Remain committed to fundamental business and management practices.
      • Review vendor relationships and payment arrangements.
      • Consider reductions in non-critical services.
      • Don’t make “across-the-board” cuts that will affect your most profitable and critical functions.
    2. Review your business’ cash needs.
      • Create a budget and conserve cash.
      • Consider refinancing loans at lower interest rates.
      • Consider the need to loan or contribute funds to the business from personal funds.
    3. Proactively communicate with your vendors and lenders now.
      Let them know you are still operating, how the crisis is affecting your business, and whether you anticipate difficulty with cash flow. Many lenders and vendors understand the importance of being flexible during the crisis.
    4. Get a handle on your personal income tax situation for 2019 and 2020.
      • The new IRS rules for 90-day deferral of payments.
      • The President ordered the IRS to allow personal income tax payments due on 4/15 to be deferred to 7/15.
      • The April 15 filing deadline has been extended to July 15.
      • If you’re expecting a refund, file your tax returns immediately.
    5. Employee/labor considerations
      • Carefully consider how your most valuable employees are affected and protect them. You will need them for recovery.
      • Unfortunately, you may need to consider reductions in employee pay rates and/or hours
      • Consider how losing employees to sickness could affect operations
      • Understand and implement the new paid leave requirements of the Families First Coronavirus Response Act (FFCRA). This is a critical piece of new law that can potentially affect your cash flow.
    6. Explore federal and state economic relief and financing programs. The Small Business Administration has programs for this purpose (SBA Disaster Loan Assistance). Locate and contact your local Small Business Development Center (SBDC) if you have questions about SBA COVID-19 Disaster Injury Loan Options SBA Local Office Locations.
    7. Review insurance policies for business interruption coverage. Consider contacting your agent to determine your coverage.
    8. Consider how you can reduce overhead by outsourcing administrative and back office functions.
    9. Stay up-to-date on the government’s response to the crisis and how it affects your business.

If you would like our help reviewing any of these items, please feel free to contact our office at (317) 571-8080. We are fully staffed and ready to work with you via telephone and/or web-based video meeting.

2020 is TMA’s twentieth year in business. Along with our small business clients, we’ve been through crises before and we’re committed to helping our clients survive this one and to thrive when it passes.