With the new normal becoming a reality for everyone, how can we prepare our businesses to survive and thrive during this unprecedented time? TGG Founder & CEO, Matt Garrett, and Stacey McKibbin, CEO of Consilio Consulting discuss the importance of the numbers in your business, and how to better understand how to come out of the COVID-19 pandemic on top.
The team at TGG has been working with National Cardiac for over 2.5 years and in that time, they have had some exciting breakthroughs that will change the way cardiac health is administered across the country. We recently interviewed the CEO of the company, Steve Kenney, about their current innovations and plans for the future. Here are some excerpts from that interview:
As we look into the second quarter of 2020, the question that remains on many business owner’s minds is: will the rules outlined in AB-5 stand in the face of coronavirus? Concerns around the new criteria for worker classification outlined in Assembly Bill 5 were common at the start of the year, and many business owners chose to reclassify large portions of their workforce as W-2 wage earners rather than their previous classification of a 1099 independent contractor.
Small and medium-sized businesses have historically had challenging relationships with traditional lenders. When these business owners are in need of more cash flow, they are the least likely to be approved.
If you’re a new business owner you’re going to find it difficult to obtain a traditional loan from a bank. In most cases, any of the following could prevent you from getting a loan:
You’ve been in business for less than two years
You have a credit score below 640
You want to borrow less than 250,000
The good news is that technology in the financial sector is revolutionizing the way lending is done and big banks are no longer the only option for SMB loans. Alternative financing in the U.S has tripled in size from 2014 ($11 billion) to 2016 ($34 billion)*:
As businesses grow and change, it is necessary to re-evaluate your relationship with your Certified Public Accountant (CPA) from time-to-time and assess whether that CPA is the right match for your business.
If your business has grown significantly since you hired your CPA, now might be a good time to look at that relationship. Here are questions to ask yourself and your CPA to better judge whether you are well-served and tips on how to find the right CPA if you discover that it is time for a change.
Research.
Liquidity is vital to riding our crises and times of financial uncertainty.
Business liquidity during times of instability is vital to longevity and ultimately, to survival. Having liquidity allows a business to continue to meet payroll and fulfill operating costs and expenses.
Here are a few ways to look for liquidity during this time of uncertainty:
Reduce Overhead Costs
In a world that is changing more quickly than ever, businesses need a plan when things go sideways. Companies like Cisco have taken the principle of “planning ahead” seriously, ensuring that they don’t have to be worried about the effects of the Coronavirus outbreak, they can calmly implement their Pandemic Response Plan. According to the document published to their website, Cisco has “well-established processes to coordinate our efforts during outbreaks like COVID-19, including our Global Business Resiliency (GBR) and Supply Chain Incident Management (SCIM) Processes.”
Business Resiliency programs centered on surviving unprecedented crises, like the coronavirus outbreak are the exception, not the rule, especially in smaller companies. Annual reviews and “fire drills” ensure that operations do not become so reliant on existing supply chains and processes that they cannot pivot in case of a crisis. For critical business operations, larger companies conduct audits and annual exercises to make sure their resiliency plan works to mitigate disruptions.
The SBA Paycheck Protection Loan Program has changed as of today, Friday, April 3, 2020.
Matt Garrett reviews the eligibility requirements, loan terms and fund allocations required for businesses who receive these PPP loans.
As soon as the statistics, predictions and hypotheses related to the economic fallout from the Coronavirus outbreak are put in print, they change. That stated, as of March 18, 2020, we, the team at TGG, want to share what we can with our network to help you structure remote teams in the face of great change.
It has been a little more than 10 weeks since the Coronavirus outbreak began to be reported globally. In the past 3 days, the U.S. has moved from banning gatherings of 500 or more to 50 or more and now 10 or more. Over the past three days, a ban on all gatherings of 50 or more individuals has expanded to a ban on all gatherings of 10 or more people at any time. Drive-through tests are being set up around the U.S. with the ability to swab sick individuals and provide results more rapidly than the current 3-day wait. Though at this time there are few stations to be found.
This is an article of financial strategies our CEO, Matt Garrett shared with Vistage. You can view the original article on the Vistage Website.
As the COVID-19 pandemic continues to worsen, finance experts say the global economy is spiraling towards a recession at best. Some also warn that a depression may be right around the corner with unemployment levels we have not seen for 90 years.
“This is 100% unprecedented,” says Matt Garrett, CEO of TGG Accounting, who has spoken to more than 600 Vistage groups about finance best practices for small and midsize firms. “We’re going to lose years and years of productivity. It’s going to present a massive unemployment problem…and a massive problem for the business community at large.”
Contingency planning for the 1 in 100 situations that can arise may seem like catastrophic thinking, a waste of time, or farfetched, until a widespread virus disrupts supply chains the world over. Having a Plan B can be the difference between dying in testate and losing all you and a partner had worked for and having the time and space to deal with unexpected crises knowing the business is taken care of.
Cash is king. Everybody knows it and yet businesses are lax in their cash flow reporting and forecasting. CEO and founder of TGG accounting, Matt Garrett explains why “cash is king” and what you can do to have more of it and move the cash you have more wisely.