Dear, Reader and dear clients of Mrlifeadvise, we are so sad to say that, most of our predictions made back in March 2020 have come true now in the end of October 2020 for the small and medium sized business owners.
We hoped that we where wrong when we told our readers and clients what the outcome of the lock downs would be on many small and medium sized business all over the world back in March 2020.
So this is not a i told you so article, this is just our way of laying down the facts for our readers and clients.
And also trying to give some really sound advice, yes we are not advising we are giving advice in this article.
For you who understand the difference between advice and advise, is that as advisers we give you are opinion and we ask you to make the decision, now we are actually advising you (urging) you to look at these matters very close for your own business future.
So we told you that small and medium sized business will not survive more than a maximum of 90 days close down of their normal business practices.
Because many small and medium sized companies are living month to month, with almost no savings.
And what ever credit limit they had with banks or lenders, they have maxed out that inside a 90 day period.
Many companies/clients)asked us back in March and April what they where suppose to do with their empty restaurant or coffee shop, hair shops, and similar establishments that is built on physical walk in customers.
Our advice at that time was that be clear on that we are goanna see some support offers from governments, but many companies will not qualify for them, or even if they qualify for them they will not get the funds quickly.
So we told all of our clients that buckle down for at least 6-12 months of being shut down , or being able to operate at less than 50% of your capacity.
And we also told our clients that do not sign any personal liabilities for loans or credits and under no circumstance put your house/home up for collateral for the loans/credits.
Some people took our advice and let their business close in May/July and many of them will have the possibility to open up again a new business in the future.
But more than half of our clients, did decide to co-sign loans with private liabilities in April-July and they are now on the hook for several hundreds of thousands of dollars.
We are living in a world where air traffic is down over 95% since January, we have 95% empty hotel resorts and restaurants and coffee shops are closed for good.
The problem we have is that many tourist resorts are in big trouble as we speak.
So we know that we have a financial nuclear winter coming our way in 2021, so how do we know that?, it is actually quite simple over half of our small and medium sized business clients will not survive with their businesses.
So it means that half of Mrlifeadvises global customers will not survive passed December 2020.
There is an illusion by mainly politicians around the world that has never ran a business in their life that you can shut down the society and hide in the basement and then you can re-open your business again, and maybe shut down again and re-open again.
Every sane business owner knows that this model does not work at all!.
More than half of all New York’s restaurant’s, coffee shops and brick and mortar shops will not re-open again in 2021, what does that tell you?.
So we are now facing as a collective world a tsunami of debt that has already started to snowball down a very steep hill.
So now we have talked about the issues, what are the solutions for business owners about to lose their shirts?.
So here is a few things that you can do as a small business owner when you are about to lose it all!
If you know that you will lose your home to foreclosure within the next 3-6 months time, you need to to figure out where your family is goanna live for the next few years while you regroup and put your finances back together.
Nr1: Family?, can you as a 5 member family move into your grandparents or siblings.
Some might be able to do so if their family has a bigger house that can accommodate a 5 person family and maybe even 2-3 pets.
If you have a family that can help, but you are not on speaking terms, this is the time to visit them and mend fences and also swallow your pride, for the sake of your family.
Nr2: Camper?, so this option might be the best option for a 5 member family with two or three pets.
A camper will allow your family to have a roof over your head, access to a shower and a toilet, and most of all you can move around and work in different places, where there is work even if it is seasonal.
The few rules here to follow is that make sure that it is on finances or that a family member owns the camper, so nobody can repo it from you.
Also make sure that your pets have a www.tractive.com or similar GPS collar for your dog and for your cat, this way when they get lost you will be able to track them down in most cases, and find them again.
The cost is 50 dollars per collar and 80 dollars a year per GPS coverage per collar, and this is well worth the money to keep your family members(pets) safe, when you are living in a camper and moving around.
Second rule for living in a camper with a family of 5 is that you need to clean it every day for 30min, to make sure that you are living in a clean environment.
Third rule of living in a camper is that everybody works, including the children it can be a paper route it could be what ever minimum wage job they can find, before and after school, because everybody pitches in!.
We do recommend that if you stay put for a longer time in one area that the kids enroll into school , and if you will keep moving around that you home school the children in the camper.
Rule four is very important and that is that you stay together and you fight together as a family, true these tough times.
There is a few rules in life that you should take to hearth and that is that families stay together and business comes and goes, it is just the nature of the business of being a business owner.
So just because you lose your business and your home , you do not need to also lose your family.
Always remember when in self doubt, your children and your pets love you no matter what accommodation you live in at the moment as long as you stay together.
This is a sad article that we have to write today, but the cold heart truth is that we are goanna live true a tsunami of bankruptcies and foreclosures in the upcoming 18 months time, world wide.
So you will need all the friends and family you have access to and stay strong and never give up on your family or your pets, just because you go true financial hell!.
Take care out there.