In this weeks clients and friends of the firm broadcast we talk about innovation and break down a method for bringing big ideas to life inside your company.

The PPP program was rushed into execution faster than any major legislation in my professional memory and it has been a roller coaster. Nothing about the process followed the normal roadmap for new laws being rolled out into the real world. By and large when a new law goes into effect there is a very measured and deliberate process to make sure that there are no retroactive consequences. In other words, people know what they are getting into and have a chance to govern themselves accordingly. THAT DIDN'T HAPPEN with the CARES Act.

In this live training I walk Axiom clients and friends of the firm through our approach to constructing a revenue forecast, gross profit targets and overhead budgets.

Below are downloadable files referenced in the training:

This workshop on time and task management for teams was provided for clients and friends of the firm on Monday, April 20, 2020. There is a page full of resources in addition to a recording of the training session.

We recorded an open line call with Axiom clients and friends of the firm to highlight what businesses need to be doing to come out the other side of this stronger than they went in. It’s not easy, but with some intentionality and discipline many businesses will realize market share increases amid all the uncertainty.,

Update on 4/18/20: I’m posting the same update here as on our other post related to this matter containing our debt forgiveness forecasting tool. The issue surrounding whether loan forgiveness will be based on Gross or Net payroll still looms. I had not been able to find anyone calling attention to this or talking about it besides myself until I came across this article by Forbes contributor Tony Nitti. See point #6.

The following are key points from the conference call today with business owners and leaders facilitated by C12 of Southwest Florida.

Immediate internal actions

Determine your status as essential and capacity to service customers remote. Desantis is referencing the Homeland Security provisions embedded at the bottom of this post.

Two weeks ago we started sending out emails to client business owners and GM's pertaining to COVID-19 response. Those were being shared and forwarded and we made the decision to make them all public at axiomstrategic.com/blog. If you haven't seen those emails you can review them there.

A Google search for SBA Form 2483 turns up several links to the new application form, some on the back end of bank’s websites. Your particular lending institution will have their own links and loan package instructions, but this appears to be the standardized form you will be asked to fill out,

Update 5/19/20: The previous version of the tool has been superseded after the release of the loan forgiveness application. For the most recent version please visit the updated post here.

The video above is from on open-line call that I hosted with 2-3 dozen CPA’s from all over the country to collaborate and help each other help clients through the COVID-19 crisis affecting our business clients. During part of the call I introduced them to a tool we have been using to help businesses get some quick insights into how their cash flow will be affected for the remainder of 2020. A link to the Google Sheet containing the tool is available below.

The question of the day is whether to go about SBA loan applications and how.

There are lots caveats, but here are the broad strokes.

Legislation passed congress and was signed by Trump Friday

It provides for loans of 2.5x last year's average monthly payroll (up to $10 million)

It can be used for payroll and other essential overhead items like employee benefits and debt interest

Here are the main points for mandated medical leave and child care.

Beginning April 1st you must comply with the new paid leave mandate.

If you have fewer than 500 employees the law applies to you

Sick leave is for ten days (two work weeks). It covers someone under quarantine, self-quarantine or someone with COVID-19 symptoms seeking a diagnosis. These people get 100% of their regular pay, limited to $511 per day.

Some good news, we have been incredibly encouraged this week and last. The teams we have met with are grounded, in good spirits and are demonstrating great leadership. A couple of things have stood out.

1) A plan helps a lot. I’ve talked to a lot of business owners over the last three weeks. Our clients with a strategic plan, even a plan that is undergoing revisions as we speak are handling this much better than other businesses who don’t have a plan.

Video, Video, Video

The necessity to hold meetings virtually has seen teams adopting video platforms like Zoom. That's no surprise. But some of our innovative and creative clients are harnessing the power of video to record and distribute daily updates to teams. This is powerful. At a time when our teams are longing for connection more than ever video delivers in a way that text alone does not. As the leader it is your job to reassure, inspire and motivate your team. Use all the tools available. I have no shame in ripping off good ideas so true to form this message is also available as a video.

We are seeing some great examples of proactive communication, and it is working to put employees minds at ease. This is a time to lead and give those on your team an alternative to the fear and hand wringing they see in the media.

The most proactive leadership teams are meeting every day to stay on top of new information. Already we are seeing a shift in attitudes and approach. Here's what I mean. Last week all the focus was on "What can we do to assure customers it is safe to work with us?" Now companies are starting to ask "How can we make sure customers aren't going to get our employees sick." The shift is pragmatic.

There is a lot of information circulating on the coronavirus. This is not a replacement for that information. It is meant for our small community of clients and their top leaders. My hope is that we can share with you what we are learning from other businesses like yours, how they are responding, and what they are experiencing. Mass media is totally disconnected from the world of real small business owners, and little of the information they provide is helpful in making decisions.

With that in mind…

Want to make the new year your best ever? That sounds cliche, but if you’re ready to do the work it is imminently feasible.

The biggest difference between growing businesses and stuck ones is the amount of time they spend working ON the business. It' isn’t about filling customer orders or handling complaints. It is about tearing apart and rebuilding the order process and asking why the complaints are happening in the first place. It isn’t reducing overtime by hiring more people. It’s asking how many people are we going to need ten years from now and in what order?

Mark sat across the conference table from me utterly frustrated and ready to resign. He'd had enough. Running a $20 million company was not an easy task. He was responsible for four locations, 180 employees, and over 20,000 retail customers. The industry was under assault from Chinese competitors and low unemployment was making labor hard to find. His controller and right hand person was 70 years old and struggling with health issues. But it wasn't these challenges that had Mark on the brink of resignation. It was his family.

It is not uncommon for baby boomers to see business sale as the logical end game over the next 5-10 years. But there's a dirty little secret when it comes to getting your business ready to sell.

The same things you have to do to maximize sales price are the same things that make selling your business a terrible idea.

To understand where I am coming from let's start with how businesses are valued.