One day, the global pandemic surrounding the coronavirus will end, and countries and states will reopen. The question on every business owner’s mind, however, is when this will happen. Both small businesses and massive corporations are struggling through this global humanitarian and economic crisis, and there are a lot of unknowns about the future after this pandemic runs its course. Companies struggling to survive this crisis may wonder what their future will look like and how they can recover. The team at Dallas law firm, Ritter Spencer, is here to advise and support business owners as they work to strengthen their company after the coronavirus.
Make a Flexible Financial Plan
As Mike Tyson said, “everyone has a plan until they get punched in the face.” It is always a good idea to have a thorough plan for your business, but it is critical for it to be flexible. Reviewing your company’s financial situation and having a plan for a range of possible scenarios can help your business weather future storms and roll with the punches. As we adapt to the current pandemic crisis, businesses need to develop plans for changing times, rolling stay home orders, economic recessions, changes in tax structures, and other possibilities. No business wants to consider bankruptcy, but developing a reorganization strategy with an experienced commercial bankruptcy attorney is another step that can help your business remain prepared for any outcome. Especially with the business reorganization benefits included in the Small Business Reorganization Act of 2019, small businesses can more easily file for bankruptcy, reorganize, and recover under a 5-year plan.
Reevaluate Your Business Priorities
As difficult as this turbulent time has been, business owners can strengthen their companies during and after this pandemic if they can reevaluate their business priorities. Determining what is most important to your business at the time, whether it is maximizing profit, caring for your workforce, developing new talent, or making a difference in your community, can help you make decisions effectively in the coming weeks. Now is the time to prioritize your business goals so you can emerge from this crisis with a clear plan to help your company grow in the way that is most important to you.
Save or Spend Where You Have the Opportunity
Each day brings businesses closer to the moment when cities, states and countries reopen and people resume commercial activity. For many businesses, a worldwide shutdown is the necessary time to dip into your savings to cover your essential expenses, like payroll and rent. Businesses with capital can purchase equipment, real estate and other assets from businesses that are cutting operations or filing for bankruptcy. For instance, commercial real estate is expected to be down as tenants fail to pay rent. Many businesses in Texas, for example, are dependent on the oil business, and companies with excess cash may find bulk sales of equipment or other assets. Buyers may find opportunities to expand hospitality and travel-related operations, as those businesses are expected to grow after the threat of COVID-19 dissipates.
Government interventions are available to help some small businesses through initiatives like the Paycheck Protection Program. As the country slowly starts to reopen, businesses without cash must begin to replenish their savings and capital when possible. Many businesses may be able to use Subchapter V of the Bankruptcy Code as a way to grow their businesses. Each company requires a different amount in their savings or capital account, and it may be beneficial for businesses to work with a commercial business attorney or accountant to ensure expenses don’t threaten future operations.
This is undoubtedly a challenging time, and we understand the toll this pandemic is taking on individuals, families, and businesses across the country. But businesses in the United States are nothing if not resilient, and we are here to help companies come back stronger after this pandemic is over. Business owners who want to work with an experienced team of attorneys in Dallas, Texas can rely on the team at Ritter Spencer PLLC. Our team is ready to discuss your options and provide support throughout this difficult situation. Contact us to learn more.