Small businesses are doing everything they can to overcome the economic hurdles created by the COVID-19 outbreak. It is clear that every business will be impacted in some way, but restaurants and bars have been hit especially hard—and suddenly— by the pandemic.
While chains like Denny’s and IHOP have the cash reserves in place to pay workers—even during the shutdown—small, non-chain restaurants across the country were left feeling abandoned and desperate when faced with mandated closures. In response to the crisis, a slew of programs, grants, and resources have begun to take shape, along with a regularly updated Hospitality Industry Alliance COVID-19 Facebook group. Here are a few of the solutions we think will be most helpful for owners of restaurants, bars, and other small businesses:
Bonfire Chat: Is the Main Street Lending Program right for you?
At TGG we have started Bonfire Chats, webinars created to answer your questions surrounding today’s environment, and what you may need to know in the coming weeks. Last week, we discussed the Main Street Lending Program, and why it may be beneficial for you.
The Main Street Lending Program began in April, and has seen trouble gaining traction. Unlike the SBA PPP, the MSLP works with larger businesses and can provide funding for businesses in need during this uncertain time. This program could be one of the most beneficial programs for businesses today if used properly.
Productivity and Profitability: How They Fuel Business Growth
Every business owner wants their business to be profitable.
There are many factors that lead to a profitable business, including employee productivity. Naturally, when your employees are more productive your profit margins will increase.. Productivity and profitability are two sides of the same coin, you could say… they complete each other. Without productivity, there can be no profitability. So how do you make your business profitable through productivity? Let’s explore!
Sales Accountability
Hiring great salespeople is essential to the success of your business. These employees are dealing with the bulk of your business. The stats surrounding hiring salespeople are troubling. With 70% of hires in the sales field determined ineffective, and only last 18 months, it can be difficult to find great team members. Could your top salespeople be your worst salespeople? In this video, Matt Garrett describes how your worst salespeople may look the best on paper.
How Can Your CFO Can Move the Needle
Leadership is vital to a companies success, especially during times of crisis. Therefore, your leadership team needs to be prepared to make educated, quick decisions for the well being of your business. CFOs have a huge role in the decision-making as they understand your business’ numbers best. How can you CFO help your business move the needle post-COVID and beyond?
Here are a few ways:
Take Advantage of the Economic Stimulus Package
On March 31, 2020, Matt Garrett, TGG founder and CEO, helped small business owners and employers alike to understand the economic stimulus package. This bill is complicated, but also extremely important for small businesses during these uncertain times. Here are a few key takeaways from the bill, and how you can move forward with your business plan.
Mergers and Acquisitions in the Time of COVID
The Coronavirus pandemic has thrown a wrench into a lot of businesses’ future plans. Business exit plans have also been changed due to this economic crisis. Mergers and acquisitions have been among the many exit plan options that have been drastically affected by the crisis. While mergers and acquisitions have survived through other economic crises, like the 2008 financial crisis, this one seems a bit more drastic. Here are a few ways we can see the effects of the crisis on mergers and acquisitions.
How to Find the Right Customers and Boost Your Profitability
The right customers want what you’re selling! Finding the right people to sell to can be challenging, whether you are just starting as a business owner or if you have owned your own business for a while. Selling to the right people is vital to the success of your business, as these are the people who drive business back to your company.
SBA Loan Audit Criteria
In May, the Treasury Secretary announced that all SBA PPP Loans of over $2 million will be audited, and all loans under that amount may also be subject to an IRS audit. In the article below, John Milikowsky, the founder of Milikowsky Tax Law, breaks down what you can do right now to limit your risk of an IRS audit. The main takeaway is to get your financials in order right now. If you can track all of your expenses and prove where you allocated your funds, you’re already in great shape. Already applied for your SBA PPP loan? Download our TGG PPP Loan Forgiveness Tracker. Need a more in-depth look into your financials? Contact our team to help your business through this uncertain time.
Read the Milikowsky Tax Law Article here:
Small Businesses and the Post-COVID World
As state-wide lockdowns continue to be extended, we are just beginning to understand what reopening the economy will look like. Our recommendation? Small businesses should use this time to prepare their business for optimal operation.
Unfortunately, during times like these, it’s important for small businesses to prepare for the worst. If you understand where your business stands and the impact coronavirus will have on your operations, you will be well-equipped to plan for the future.
Managing Crisis Situations Like the Coronavirus Pandemic
As companies proactively adjust their business operations in the wake of COVID-19, there are few things to consider in regard to crisis management. All businesses should have a crisis management plan in place to assure their success regardless of the unforeseen circumstances that may arise. Here are a few steps to take to create success in tough times:
Fractional CFO vs Fractional Controller: What’s the Difference?
Let’s start was defining the word, ‘fractional.’ Fractional is defined as part-time and in this circumstance, the fractional CFO and/or fractional Controller working for you is doing so on a part-time or contracted basis. While it may sound like a fractional CFO and a Controller have very similar job responsibilities and you only need to choose one for your business, that isn’t necessarily the case.
Building Business Operations in the Face of Coronavirus
The coronavirus pandemic has created a need for businesses to become more focused than ever on their business expenditures and daily operations. The same can be said for the financial crisis of 2008 — when the economy takes a hit, organizations dial things in. Implementing the right survival strategy allowed many businesses to come out of the recession stranger than they were before. Here’s how they did it:
Client Spotlight: Hydrate IV Bar
It’s time for TGG’s Client Spotlight! We have truly enjoyed building our relationship with Hydrate IV Bar over the past 2 years. Prior to TGG, Hydrate IV Bar relied on a CPA firm to produce annual financial statements, but Owner, Katie Wafer found that she wasn’t getting the timely or accurate financial information she needed in order to make educated business decisions. Through partnering with us, Katie discovered the power of The TGG Way™ in getting her the critical information she needed to run her business by the numbers.
How Can the Fractional Staffing Model Benefit Your Business?
Many small businesses that are considering their future growth have considered hiring a fractional team to come support their everyday business functions. Fractional models offer many benefits to business owners that choose to go that route. These models can allow your company to get expert assistance at a lower price. Outsourced services are meant to assist and support your company as you grow and expand your business. How can your small to medium-sized business benefit from fractional services?
Need Help Planning Your Business Structure?
On July 11, TGG’s founder and CEO, Matt Garrett partnered with SBDC @ UCI Beall Applied Innovation to discuss the ways you can grow your business through entity structure and formation. Being a business owner is one of the greatest achievements in Matt’s life and he has created a business structure that aligns with his mission and vision for TGG. There is a lot of uncertainty surrounding opening your own business, how can you create a business structure that will succeed for years into the future?
Unlock the Hidden Value in Your Balance Sheet
Managing a company’s resources can feel like a daunting task for some business owners. The challenge becomes even greater for company’s with a high level of annual revenue and a large customer base to account for — without proper financial management, you could be leaving millions of dollars in value on the table.
Why Did the SBA PPP Funding Run Into So Many Problems?
As many small business owners expected, the SBA PPP loans have proven to be an excellent option for funding during this uncertain time. However, many small businesses were blindsided by how quickly these funds were depleted and became enraged after learning that large corporations like Shake Shack and the Lakers received these loans before most small business owners had an opportunity to apply. Here’s how that happened and what the SBA is doing to fix it:
At the beginning of the SBA PPP roll out, there was a significant amount of confusion surrounding what information was required from small businesses to apply, including what paperwork was necessary and what precisely that paperwork needed to show before they got the chance to apply.
Frequently Asked Questions Surrounding the MSLP
Navigating the MSLP loan requirements and details can be overwhelming for some companies. The FED recently hosted a webinar to help us better understand the program and the requirements behind it. Here are some of the key takeaways from the webinar:
Did You Receive the SBA PPP Loan? You Might Get Audited!
The SBA PPP Loan funds have been replenished recently and are currently being disbursed among many small businesses throughout the U.S. Recently, Treasury Secretary Steven Mnuchin announced that all SBA PPP Loans of over $2 million will be subject to an audit. That being said, businesses who take out smaller loans may also be audited, but every business that takes out a loan of more than $2 million can count on a visit from the IRS within the next few years.
Re-opening the Economy: Three Phases to Bring Back Business
As we begin to look beyond the coronavirus economic lockdown, the government gave us a plan to end lockdowns and stay-at-home orders within the next few months. President Trump has provided governors with a three-phase program intended to safely revive America’s economy, which is called “Opening Up America Again.”
WHAT IS A CONTROLLER AND WHAT YOU CAN EXPECT FROM THEM
Your Controller should not be doing data entry. The Controller’s main job responsibility is to manage the accounting department from a high-level. Compared to your Bookkeeper, Staff Accountant and/or Accounting Manager, the Controller is focused on ensuring the accuracy of the financial statements.
Timeliness: Your Work in Progress (WIP) Schedule is Incorrectly Forecasting your Cash Flow
A Work In Progress (WIP) report consists of an accounting schedule that’s a portion of a company’s entire balance sheet. In best practices, each accounting period has a calculated work in progress report that complies with GAAP principles. These reports are required on projects where the Percentage of Completion (POC) accounting method is used. The WIP report typically consists of current period and project-to-date financial metrics that explain each contract the company is working on, however, the format does change from company to company.
How to Know If You Have Hired the Right Staff Accountant
Staff Accountants are the backbone of any good accounting firm and handle the majority of basic accounting functions for your company. When you have great Staff Accountants, your business will run more smoothly, and your CFO will be able to make the best possible decisions. When it comes to accounting, every small decision matters in a big way for the company as a whole. Here are a few qualities to look out for when hiring Staff Accountants:
Oversight and Accountability- Have You Left Gaps in Your Controls?
Small businesses are among the most vulnerable groups to fraudulent activity. These businesses are more susceptible and face a greater risk of fraud because typically, they have employees working across many different departments as their job description, there is a closer relationship between the staff and owners, there are few oversight procedures in place, their accounting department has less expertise on financial functions, and there is a larger impact on the bottom line of a small fraudulent event.
How can you prevent fraud in your small business? Here are a few tips to help you keep your company safe:
How to Prepare for a Supply Chain Disruption in the Future
As the effects of COVID-19 continue to unfold, many companies have found themselves in a situation for which they were unprepared. Without implementing proper crisis preparation tactics, companies will continue to suffer, as businesses deal with future unexpected occurrences. Being prepared for a potential supply chain disruption, allows companies to work proactively rather than having to react without time to adequately consider their options.
SEC Relief for Small Businesses
On May 4, 2020, the SEC announced temporary conditional relief for small businesses that have offered Regulation Crowdfunding offerings in the past to allow them to raise additional funding through Regulation Crowdfunding investment offerings under more expedited and less strict criteria.
Restaurant and Bar Resources During COVID-19
Small businesses are doing everything they can to overcome the economic hurdles created by the COVID-19 outbreak. It is clear that every business will be impacted in some way, but restaurants and bars have been hit especially hard—and suddenly— by the pandemic.
While chains like Denny’s and IHOP have the cash reserves in place to pay workers—even during the shutdown—small, non-chain restaurants across the country were left feeling abandoned and desperate when faced with mandated closures. In response to the crisis, a slew of programs, grants, and resources have begun to take shape, along with a regularly updated Hospitality Industry Alliance COVID-19 Facebook group. Here are a few of the solutions we think will be most helpful for owners of restaurants, bars, and other small businesses:
Stacey McKibbin and Matt Garrett Discuss Risk Management in the Face of Coronavirus
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.
Financial Transparency for Complex Organizations
As a developer or private equity firm, it is important to streamline your accounting and forecasting processes—particularly when there is complexity involved—in order to ensure the greatest amount of transparency across your company’s financials. This becomes more complicated (and important) when you have multiple LLCs, a complicated ownership structure, and poor communication with investors. Here are a few ways to ensure clarity in the face of complexity:
Paycheck Protection Program Challenges
The Paycheck Protection Program has been created to assist small businesses during this unprecedented time. The SBA PPP program is only a part of the CARES Federal Stimulus package, which works to counteract the economic downturn related to the COVID-19 pandemic. Recently, the SBA PPP has run into several challenges while dealing with the delivery of funding.