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A WORD FROM THE WISE
In the midst of COVID-19, it can be easy to lose sight of the bigger picture and to make quick, irritational decisions in an attempt to pull off a "hail mary" move. With so much of their revenue at risk, business owners run the risk of solely focusing on revenue and forgetting about long-term strategy. 

While short term cash flow is important*, so are things like customer service and establishing loyalty to ensure that business picks back up once this all dies down. 

Here's a poignant example from a friend of Imperial: I went to cancel my gym membership and was told that wouldn't be possible, despite being barred from actually going to the gym — I was told that instead, I'd have access to digital at-home workout content (which also exists en masse for free on Youtube among other platforms).

This is short-sighted thinking on behalf of the gym. Sure, they're retaining revenue now — but how many customers will be lost when this is over based on the decisions some businesses make? 


The loss of capital can be recouped, but a damaged reputation is a hard barrier to overcome. It's time to think strategically about the best financial tactics and decisions to sustain your income at this time without risking your business' future. 

*Reach out to isabella@imperialgrp.com and schedule a time to dicsuss your cash position, along with strategies to relieve cash flow stress! #plug 😜
 
A BRIEF GUIDE TO THE CURRENT STATE OF SMALL BUSINESS ADMINASTRATION (SBA) FUNDING
Paycheck Protection Program 

The Paycheck Protection Program (PPP) is directed towards business owners who are looking for capital to cover the cost of employee retention. Business owners who receive this form of cash-flow assistance are offered benefits including forgiveness of up to 8 weeks of payroll, no SBA fees, and six months of deferral.
So far, PPP has received two rounds of funding, and (as of Friday) roughly 61% second round capital has been exhausted.There is a talk of 3rd round funding. You apply for the PPP through your bank. 
Emergency Injury Disaster Loans

The Emergency Economic Injury Grant & Emergency Injury Disaster Loans (EIDL) provide small businesses suffering from the effects of COVID-19 with a loan of up to $2M at a 3.75% interest rate at up to a 30-year maturity. This cash infusion and can be used to cover expenses such as payroll, pay for sick leave, or paying business obligations (debts, rent, mortgage). 
Currently, the SBA is working through a backlog of EIDL applications, so new applications are not being accepted (except for farmers, but I'm not sure we have any of those on our subscriber list...). Applications on spa.gov will hopefully reopen shortly.  

Small Business Debt Relief Program

The SBA will make 6 months of payment on SBA-guaranteed debt. All loan payments — including principal, interest, and fees — will be covered by the SBA for six months. Examples of these non-disaster loans include 7(a), 504, and microloans. 
This program provides immediate relief to small businesses through non-disaster SBA loans. You do not need to apply for this benefit. 
The SBA has been offering entrepreneurs and business owners several options for financial assistance to fight back against the harmful economic effects of COVID-19. If you're interested in learning more about which SBA loans, grants, and programs are still available and may be best suited for your business, reach out to isabella@imperialgrp.com
 
 
TRENDS WE ADVISE YOU WATCH
Figures sourced from https://www.smallbizgenius.net/by-the-numbers/ecommerce-statistics/#gref
Now more than ever, your digital strategy matters. 
Are you prepared with a strategy to support digital growth?   

The shift to digital has been happening gradually for years, and what once was a clear competitive advantage is becoming a mere table stake for businesses. Those who want any chance of competing in the future will need to develop a supportive online strategy. 

And for companies who have been working with a digital strategy in place, competition within the e-commerce sector is increasing, establishing the need for companies to follow digital trends and adapt their execution accordingly. 

Online sales are unstoppable, and companies should be asking themselves how to secure a portion of this activity. While consumers were once wary of online purchasing, the convenience it offers and the trust that has been established over years prior has rid buyers of the worries and opened up the online marketplace to reach its full potential. 


In today's world, it's clear: an online presence is a necessity. To take a deeper look at what digital strategy and e-commerce practices may be best for your company, reach out to us via email at isabella@imperialgrp.com


IN THE NEWS
In the midst of a global pandemic, it seems that the airline industry is crash landing. 

The past few weeks have been tough for airlines, and all signals point to things only getting worse. Warren Buffet has just announced that the Berkshire Hathaway conglomerate has sold all stock in the U.S. airline industry. Buffet previously had major stakes in Southwest, American, United, and Delta. 

With a mixture of travel bans and common sense at play, demand for the U.S. airline industry has become essentially obsolete — travel demand is reported to be down 95% on the year. And while the long term prospects once seemed sustainable amidst short term cash flow issues, the future of the industry is growing increasingly questionable. 

As major airlines are struggling to make ends meet, they have been taking actions such as "slashing routes, parking hundreds of planes and urging employees to take unpaid and partial leave." And their efforts have been supported by government aid, as the industry received billions in grants and loans in April to support payroll. But with an uncertain timeline in motion, it's difficult to tell if all airlines will receive enough support to make it out of this pandemic on the other side. 

Read more about Buffet's decision and the current state of the airline industry 
here


HAVE YOU HEARD? 
It's cliche, but it's an adage for a reason: don't put all your eggs in one basket.

Business leaders have been forced to re-learn this lesson throughout 2020 as COVID-19 has caused worldwide panic. While early coverage of the virus focused on the subsequent medical and health implications being faced by many, there has been a growing emphasis on the economic effects of the disease, which has caused turmoil throughout the global supply chain.


But what can a company do when factors outside of its control lead to unexpected challenges? Diversify. 
Diversification is the strongest way to mitigate risks that are unknown (like the possibility of a worldwide pandemic). 

Here you can read more about the importance and benefits of diversification, as well as examples of how it can make or break a company during hard times.  
And if you haven't yet, it's time to start asking yourself:  "Am I diversified enough?"


CONTINUED LEARNING...
An Analytic Approach to Inventory Management ft. Bill Schoolman  

Interested in learning more about how excess inventory can be identified and turned into capital for your business? Check out this webinar featuring inventory guru with 30+ years industry experience, Bill Schoolman. 

TJE COVID19 Webinar Series: Finding Money for Your Business ft. Gershon Morgulis   

In this webinar hosted by The Jewish Entrepreneur, Gershon Morgulis discusses how to find money in your business, as well as how to receive free money from the government to improve access to capital. Check out this webinar to learn more. 

 
ABOUT IMPERIAL ADVISORY
Imperial Advisory is a financial consulting firm for enterprises and businesses. We provide clients with outsourced-CFO services, conducting & facilitating analyses to help founders, owners & CEOs better understand the financial implications of business decisions. We also consult on strategic and long-term business planning.
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Have a question about your business' financial strategy? Trying to understand the financial impacts of a large upcoming project? Contact us at info@imperialgrp.com to see how our outsourced-CFO expertise can help you. 
Copyright © 2020 Imperial Advisory, All rights reserved.

Contact us at:
info@imperialgrp.com

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Imperial Advisory · 260 W Sunrise Hwy Ste 303 · Valley Stream, NY 11581-1009 · USA

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