The panic associated with the COVID-19 pandemic has forced you into ADAPTING how your business is run.
Only weeks ago, it was unthinkable that both our United States healthcare system and our economy would be under this kind of assault.
The good news is that this bizzare event has uncovered some things that will be useful to incorporate into your business strategies going forward.
Here are some tips & suggestions as you look ahead:
First, adapt your thinking about government based financial opportunities. If you've thought that government assistance programs were reserved for people looking for a free handout, maybe you'll adapt a new paradigm (way of thinking).
Many FXG Service Providers qualify as Small Businesses under the Federal Small Business Administration. Sure, red tape is annoying, but in this case, to ignore various SBA programs is a financial mistake. The department offers multiple services and expertise that may benefit your business.
Second, if you haven't already done so, apply now for the Paycheck Protection Program. It's part of the larger CARES ACT designed to provide assistance to businesses. The PPP provision will have an immediate impact on your cash flow. If cash flow hasn't been in your vocabulary, adapt now.
Pro Tip: Open a new checking account at your primary bank when you receive money from this program. It's likely that the IRS or SBA will audit the recipients of these funds. As an FXG CSP, you may be scrutinized more than other businesses since you continued operating as an essential business. Be smart. It's easier to prove how you used the money if you separate it into a different account on the front end, and then pay your forgivable expenses from it.
Third, if you don't already have a line of credit at a traditional bank in place, then find one somewhere else. Interest rates are extremely low. If you'd like, we can connect you to a lender who:
- is easy to work with,
- has a fast loan approval process,
- already lends to other CSP's,
- and offers a discount to eTruckBiz customers.
Fourth, if you've been lax about documenting employee absences, start doing it now. A lot of business owners don't like taking time to create a document filing system so they ignore it. If you fall into that category, then let us (or another platform) do it for you.
Absenteeism is going to be a big factor in the future. Rules are being put in place requiring employers to pay employees even when they can't be "on the job." Now that the genie is out of the bottle so to speak, it won't go back in quietly. As a business owner, you need robust documentation. Otherwise, you can expect to pay your attorney to be defending you more frequently.
Fifth, if you haven't been regularly recruiting, adapt now. More hard-working Americans are looking for employment with an essential business. Have you seen the record unemployment numbers lately? Is there a weak link on your team? Even if not, the American workforce may be more transient down the road in an effort to locate closer to family.
Finally, engineering your CSA, to flex as needed depending on volume, will be extremely significant in the future. You're already seeing what FXG was planning on as your area(s) fill with e-commerce stops. The pandemic has sped that up the transformation. Commercial ground delivery has dropped because retailers have temporarily closed their doors, but what happens when they re-open?
Shoppers were already comfortable shopping from home, and the shelter-in-place rules expanded it enormously. We foresee continued, vast volume swings in your stops and packages on a daily basis. Drivers will be going to homes that aren't regular stops. We don't have to tell you all the differences that e-commerce presents compared to traditional ground stops.
That's all for today.
We'll continue providing you with relevant information via our website, social media, and future blog posts. Plus, we encourage you to attend our twice-weekly web demo's. They're free and informative.