We don't make light of the effect the Coronavirus is having on every business we speak with. The purpose of this page is to provide resources and ideas to survive, and then for getting through to the other side with as low an impact as possible.

We are in the risk business, and always took disaster planing seriously. Not that we were truly prepared for this kind of disaster. But the planning we did has helped us stay in business through all the disruption. Here are some resources:

Cash and Liquidity

If cash was ever king, it is KING in this environment. Hold it as long as you can. For all thee tactics, confer with your business accountant and tax / finance professionals. But here are the basics:

• Ask to extend all payables with suppliers and landlords
• Ask your bank or other lenders for deferred terms.  Get it in writing (including email)
• If you have a line of credit, grab it now.  Cash is KING.
• The IRS has deferred tax filings till July 15th.  Hold tax payments in a trust  / escrow account, after conferring with your accountants.
• Accelerate receivables, if possible.  This is the other end of your extending payables, but try anyway.
• Build a forecast of your cashflows: one week, two weeks, a month, three months.  Knowing your current burn rate will help prioritize  what stops getting paid first.

Zoom - Connecting your workforce

Zoom is an on-line video conferencing platform.  It is probably the top corporate platform.  You can include anyone working remotely.  If employees are using a laptop with video and microphone, you get to see everyone.  If not, others can participate on a conference call and see you (if you have a video & mic).  Also works from iPad and iPhone which have the camera & mic built in.  Easy to show and share documents too.  (Great for sales people).

There is a free service, good for up to (we think) ten participants, up to an hour call. We have a corporate license for about $150 a year which lets us go well beyond that.

We use Zoom for a daily meeting at 3:00. It’s our daily connection to each other, and has allowed us to pivot faster and help those who are struggling with this new paradigm. The social value cannot be over-emphasized. It's connecting our office. Connect yours.

Communicate - with your customers

Customers are the lifeblood of every business. Are you working? Are you working virtually? Offering new or expanded services? What's the best way to reach someone? Let your customers know you're in business - or not - and how you're staying available.

Insurance  Reductions

Different carriers are taking different approaches toward immediate adjustments of payroll and anticipated revenues, two larger drivers of cost (if your business is audited for these).   We can often amend payroll figures for workers comp, revenues for general liability (if your policy is audited, thus rated by revenues), and other adjustments. For more, see our blog on these techniques here.

Most carriers are permitting deferred payments based on case-by-case situations and where in the policy year you are.  Call billing offices directly and ask for the the best terms you can negotiate.  (See cash flow importance, above)

Vehicles no longer in use can be deleted altogether, provided there is not a lien (bank or leasing company) requiring coverage.  So if you own a vehicle outright and want to drop it, you can cancel the plates on-line at RMV.gov.  Send us the "plate return receipt" and we'll cancel the insurance.    Caution: Check the vehicle Registration cost first: the Registry will charge you a full term again when you re-register, making this not as good for a short-term solution.

Loans - The Payroll Protection Program (PPP)

The PPP program has run out of money as of this update.  There are plenty of other resources for navigating this program of dropping money from helicopters.

Develop written plans NOW for

• 1 week,  What is your staff hearing?  Who can you keep?  What are the technology needs for employees?  What are receivables? Will you be paid next week?  Which expenses can you cut now? 
• 2 weeks,  How many staff can your revenues support?  What is the burn rate vs cash available?  Are receivables growing?  Which further expenses must be cut?
• 1 month,  The is the new normal.  How has management changed?  Are your normal services needed?  Are there opportunities you have overlooked?

It is incredibly difficult to make long term decisions when we have such little grasp of short term solutions.  But think about extrapolating what we already know

• 2 months  This could be.  Are your tech resources still adequate for the demand?

It's also a good time to take stock of how your business will look when we all emerge from this.  This may be a once-in-a-business-lifetime opportunity to consider:

• Who do I want to sell to?
• What do I want to sell / offer?
• Which employees will we achieve these new plans with?
• Should we hire all of our laid of employees?  Or only the ones that help us achieve #3?

Cyber Threats 

Phishing ventures have increased with the deployment of so many people to less secure networks.  Ransomware is sure to increase, Data breaches, all cyber threats sure to increase.  When sending people to work from home, make sure your IT partner has reviewed, secured, and blessed the connection.  In the Pre-CV-19 environment, the term "BYOD - Bring your own device - was the bane of many IT departments.  This risk has exploded.  Secure your network and business information with their help 

Opportunities

Every year we do a SWOTT analysis with all our staff.  SWOTT is an acronym for Strengths, Weaknesses, Opportunities, Threats and Trends.   There may be opportunities to met a new market need that you would not ordinarily have time to explore.  But today, the demands for out of the box thinking may be the difference between survival or not.  If you see a market opportunity (restaurants -LOTS more pick-up), take it.   Cash is KING.

Stay Safe.  Stay Healthy.  Stay in Business.

If you have questions or would like to speak to an insurance expert,
call us at 800-649-3252

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