10-Point Small-Business Survival Plan for Dealing With the Coronavirus

It’s safe to say that this current crisis is like none other faced by small business owners in the recent past, and it’s certainly daunting trying to tackle all of the unique issues it presents. Regrettably, the predominant voice we hear hasn't offered a lot of specific steps to take or advice on how to save our business, let along come out on top.

Below are 10 issues to address with detailed considerations and action items that might make the difference in being able to keep your doors open and calm your employees and customers.


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Related: Emergency Webinar: Weathering The Storm As A Small Business Owner

1. Immediate financial triage.
The greatest concern for most business owners, at least initially, is how am I going to pay my bills this week, next week, and how long will this last. Of course, this is a very difficult question to answer and moreover, most business owners are facing a reduction of business owners. Here are some important steps to take on the financial front as soon as possible:

Create a cash-flow budget listing with fixed versus variable costs. Fixed costs will generally keep the doors open and must be paid. Create a list of priorities about which ones are most important and try to set money aside based on the timing of when they are due.
Analyze cuts to unnecessary costs that aren’t producing revenue or securing key business functions.
Layoffs, terminations or furloughs of employees. Remember, your employees can be one of your greatest assets, and if you cut too deep, you may not get them back.
Layoffs are considered to be a temporary request for an employee to take unpaid time off. These employees will most likely seek unemployment benefits, but our hope is to have them back as soon as possible.
Furloughs can be a variety of things and tailored to your situation. It may be that employees work at a reduced rate, maybe they don’t work at all and stay home, they may be paid a minimal amount, or might be paid fully at some point in the future. However, don’t ask employees to work for free — you will probably face problems for doing so under state law.
Terminations are just what they sound like. You’re letting someone go and they probably won’t be coming back. They’ll more than likely seek unemployment benefits as well.
Find additional financial sources of revenue. Be creative in your sales and marketing (more on this below).
Consider any savings or resources, including possible loans (more on this below).
2. Tax payments.
Taxpayers have an unprecedented tax payment extension from the Fed for 90 days, until July 15th. This is up to individuals and small business owners of up to $1 million in taxes owed, and up to $10 million for C-Corporations.

However, taxpayers still need to file their taxes or extensions. Still file or extend by April 15th. There are penalties if you don’t file, but again, no penalties or interest if you don’t pay (for up to 90 days).

Taxpayers might also be able to find some extra money by filing their taxes, because there’s a good chance they could have a refund. In 2015, it was reported that over $1.4 billion in tax refunds went unclaimed and were kept by the treasury department.

Important note: Don’t fall victim to thinking you can wait to pay payroll taxes. If you are an employer, those payroll taxes are considered sacred funds by the government. You’re playing with fire! Payment of these taxes is not extended and penalties and interest are significant for not paying payroll taxes.

3. SBA Disaster Assistance Loan.
The Federal government through the Small Business Administration has authorized loans to small business owners of up to $2 million. These are mean to be used for business debt, covering payroll, costs to operate the business. The terms can be up to 30 years to repay and a low 3.75 pe


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