So we started our consulting business in 2006 and after the financial meltdown in 2008-2009, we had a lot of companies/clients that needed our advice on what to do.
The reason we call ourselves mrlifeadvise and not mrlifeadvice is that we want to offer our experience and and give good advise as advisers.
But we dont want to advice you what to do since it is your business and you need to make the decision yourself, we can not make them for you as advisers.
But like during the financial crisis years 2008-2009 , we have been asked by clients please take the wheel and be hands on advisers(meaning help us make the tough decisions).
Here is the cold hard truth, all these financial rescue packages are good, but they are being financed by your children and your children’s , children.
So we are just kicking the can down the road.
So simply put this is the reality for a lot of small business.
If you where on the brink of survival before the COVID-19 CORONA virus, you will not be able to re-open your business again!.
Being closed for 4-6 weeks will not allow you to re-open your business since you where on the brink before the COVID-19 SHOWED UP.
For some production companies it will be a tough year to get supplies from the supply chain on time this year.
After we helped a client of ours yesterday who has 50+ workers in a global production company, meaning this company buys and sells components globally.
He has been forced to close this week, and all workers are on 2 months paid leave, which the government will cover 90% of the salary for that period of time.
But he has made several large investments in machinery and tools over the past 2 years time and these bills for that equipment still needs to be paid every month to the leasing companies.
So we went over the numbers today and he is lucky that he has taken our advise to put a side a rainy day fund, but that will only last him for 3 months time!.
And then it is all over after that, if we are closed longer than 3 months or that he does not get cash flow in after 3 months time from customers.
We talked to all local banks today on his behalf and they flat out said no, they will not lend his company money if we runs out after 3 months time.
He owns a AAA triple A company meaning that he has had a really good credit rating for many years, but that does not mean anything in this current situation.
And if he loses his company, more than 50 families will lose a good salary.
The average age in his company is 53 years of age.
And it is highly unlikely that many of these 40 workers who are closer to 50 or over 50 both female and male, will find a similar paying job, or a job in the first place if he has to close his doors for good.
And because he is a smaller company on a global stage in a specific product market, nobody will take over(buy) his company if he closes.
So even if we see airlines, cruise lines, restaurants,coffee shops,bars and hotels are taking the biggest hit, there are many smaller family own businesses in production and other markets that will go under, if we do not open the world up again inside the next 20-25 days.
So even if the 0.5% mortality rate is horrible for the family of the deceased, the big question all experienced business people understand is at what point is the cure deadlier than the disease itself?.
Human life is valuable, but we have a larger issue at hand, how many lifes will be destroyed by depression and suicide when companies close and people lose their income/job.
No matter how hard it is to accept a virus like the COVID-19 , taking over our lives,because it truly has hijacked the world economy.
We have to move on and move forward.
And at some point we need to re-open our society again inside the next 3 weeks time, otherwise we have broken our world economy in a way that we can not undo!.
So we have to do a triage here do we accept a 0.5% kill rate and keep 99.5% with food on their table and a roof over their head, or do we sacrifice 99.5% of the population to save 0.5% of our population.
I think all sane people know the answer to this hearth wrenching question!.
So be safe out there and take care of yourself and your families.
Due to so many of our old/existing clients contacting as day and night at this point we are not gonna be able to respond to emails as fast as normal from new clients or clients who maybe wishes to join our community.
So please bare with us for the next 3-4 weeks time, and hopefully the world has opened again for business.
Thank you for reading.