Topic: General Posts

Subject: Covid Business Strategies
Bob DeAngelis
Member: 2005
Posts:2
Submitted on 03-30-20 9:43 pm
Message:

Hello Fellow Members,


 


I hope everyone is being careful and staying healthy.


Would you share some strategies your organizations are using to conserve cash?  I am most interested in your strategies surrounding payroll i.e. fuloughs, pay cuts, pay deferrals, etc.  Are customers asking for concessions for paymnents?  Are you requesting concessions?  Lease payments?  Debt payments?  Any key reductions in operating costs?  What is your expectations of help from the government stimulus package? Anything you are willing to share would be appreciated.


We have continued with all our staff at this time. We have substantially reduced our non-personnel costs.  The majority of our revenue is linked to the tourist trade and conventions.  In that regard our revenue is materially impacted. We have sufficient reserves to continue with all our legal obligations along with maintaining staffing for some time, if we choose to. Building the reserves back could take a number of years.


Best regards,


Bob


 


 

 
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Replies
Dave Goldin
Member: 2003
Posts: 31

Subject: Re:Covid Business Strategies

Submitted on 03-31-20 7:53 pm.
Message:

Hi Bob. I work for an automotive supplier so when Ford/GM/FCA stop production, it becomes dicey. All three were scheduled to re-open assembly lines in April but now that has been indefinitely pushed further into the future. The Detroit region is going to be beaten up pretty badly because this is mostly a one industry town. If you don't make cars or parts, you are selling to companies that make cars or parts.


My firm had all non-union employees on furlough the last two weeks with many taking PTO last week and going on unemployment this week. I expect that there will be a 20% pay cut for at least three months with some suppliers suspending the 401(k) match. In Europe, the have moved to three day weeks. Also informed management of the CARES act allowing for the employer portion of the social security tax to be on delayed payment. The $5,000/employee credit for paying people when an operation has been severely affected by COVID-19 might also help.


 


What I am seeing is more interim positions as there are hiring freezes but the work still needs to get done. As with the 2008-09 recession, any type of compliance - financial reporting, tax comes out better than other jobs that while might be important are not as vital.

 
Phil Stayman
Member: 2008
Posts: 3

Subject: Re:Covid Business Strategies

Submitted on 04-01-20 4:56 pm.
Message:

Our stores are closed to the public, but are staffed by one person to take phone orders. Depending on the county we may let one customer at a time in the store.


We have asked all of our landlords for rent reductions, preferably abatements and reductions, but will take deferrals as well.


We do have employees with reduced hours and pay as well as time off due to Covid-19 issues. We are paying everyone and tracking these for possible tax credits under FFCRA and are reviewing the CARES Act for options for government rent and payroll reimbursements as well as SBA loan options.


Expenses that have become unnecessary due to reduced operations have been cut.


Phil Stayman


 

 
Bob DeAngelis
Member: 2005
Posts: 2

Subject: Re:Covid Business Strategies

Submitted on 04-02-20 6:02 am.
Message:

Thanks all for those posting suggestions and sharing your actions.  


 


Best regards,


 


Bob

 
Chris Barrett
Member: 2020
Posts:

Subject: Re:Covid Business Strategies

Submitted on 04-06-20 2:13 pm.
Message:

Hello,


We have remained open but everything is really day-to-day during the current environment.  We are stretching any payables to the furthest contracted extent, reducing overtime, applying for SBA loans, deferring non-essential maintenance, hiring freezes, no bonus payments or salary increasing, re-negotiating bank terms and being in constant communications with our partners and vendors on the status on a weekly basis to be proactive and highly communicative during this time.  Sadly, the impact is so diverse and it really seems as though different industries are hit uniquely in this, and not as much a traditional recession type slow down.  


 


Thanks!

 
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