Coronavirus, and the Impact on Small Business.
The Coronavirus has impacted many business owners across the nation. The U.S. economy is doing its best to hold together, though, last week’s stock sell-off slashed the Dow Jones Industrial Average and reported the single worst week on Wall Street since the financial crisis of 2008. Many sectors bounced back given the news on a bipartisan Coronavirus relief bill. Part of the relief bill lays out how businesses can take advantage of certain programs including one within the SBA. The SBA is offering “Economic Injury Disaster Loans,” to businesses affected by the Coronavirus. More information can be found here. How should you prepare your business during uncertainty? Remain calm, continue to operate as much as possible, and conduct general housekeeping items. We recommend following the guidelines laid out by the Governor and CDC. Many entrepreneurs made it through the tech bubble, 9/11, and the financial crisis of 2008. We’re confident the U.S. will recover quickly after this pandemic. You can also review information put out by the IRS regarding Coronavirus relief. Your business may be eligible for payroll tax credits or help with covering paid-sick-leave for employees. Find out more here. I was already considering selling soon, now what? We recommend that sellers gather financial documents, tidy up the books, prepare a recovery/growth plan, understand future capital expenditure requirements, complete succession planning discussions, etc. These items will not only make the forecasting and valuation process simpler but gathering this data will better prepare your management team for discussions with business intermediaries and prospective buyers. The best advice to any prospective seller is to continue operating the business in the way that made them a strong candidate for acquisition in the first place. Prospective buyers will quickly notice a well-prepared seller over an unorganized one. Where do I start? The best place to start the process of selling your business is to receive advice from a qualified business broker or business intermediary who understands your industry and the ever-changing economy. Reach out to us, your local experts, and discuss how your business can withstand the sale process through uncertain global and economic times. If you would like to learn more about the $2 Trillion Coronavirus Stimulus Package, you can see how it impacts the US here. Aaron Thom,