SEATTLE--(BUSINESS WIRE)--As COVID-19 continues to disrupt normal day-to-day operations of small-midsized businesses and nearly half of the U.S. workforce hangs in the balance, employers are taking creative measures to reset their go-to-market strategies and offerings. By changing their operations to meet the demands of their customers, businesses can not only stay relevant, but keep their staff employed and thrive in the new economy.
“This pandemic offers business owners, investors, and solopreneurs the opportunity to take a critical look at their overall business model, offerings and operations and reset the entire business structure, creating new opportunities to serve and prevail,” says Clint Coons, ESQ, small business expert and founder of Anderson Business Advisors. “This is the perfect time to explore new legal solutions to the most common business entrances and obstacles to help companies preserve and protect their brands and prosper for generations to come. There are great examples of resets happening within many industries.”
With the pandemic closing summer camps throughout the country, ACA accredited, Adventure Links, a 23-year old summer camp in Virginia, has found a way to replace its usual summer adventure camp programs with CampCloud TM, an experiential online alternative. The company is now offering its virtual camping programs to individuals and employers to assist employees working from home by keeping their kids engaged, learning and delighted all day from “virtually anywhere,”. The program is being offered to other camps as a customizable, online option for their campers.
Ensuring the health and safety of employers when stay-at-home orders are lifted, and business resumes is critical. Thanks to a team of entrepreneurs, Disinfect & ShieldTM, an FDA-registered, EPA-approved and eco-friendly disinfectant used in surgical suites for the last decade is now available to businesses worldwide to kill SARS-CoV-2, the virus that causes COVID-19 and other dangerous organisms. It works by creating a permanent anti-microbial shield, preventing the virus from attaching to surfaces where it has been applied without risk to humans, animals, or crops. With Disinfect & Shield TM, employees, customers, and visitors can feel safe knowing that their space has been properly disinfected and treated for optimum health and safety.
Clint’s financing and entity creation tips to help entrepreneurs and small business owners include:
- Know how to use loans before applying: CARES act loans have specific guidelines like having to use at least 75% of the loan within 56 days of receipt for payroll expenses. Concerned that money would dry up, many small business owners applied with no way of utilizing them because their business cannot reopen under the strict guidelines imposed on the industry.
- Alternate cash sources: Borrow from a 401(k) or IRA to keep businesses afloat, as it does not need to be paid back for at least 3-6 years. However, pulling money out of a retirement plan comes with some risk, such as if the business does not see profitability, then retirement funds were wasted on a failed business venture.
- Beware of increasing liabilities: Because insurance will not cover claims brought under COVID, reopening comes with risk and business owners are wondering how they will operate under strict COVID-19 related guidelines and still make a profit. Now is the time to pivot and reset.
- Consider restructuring: Set up your business in the right entity and state. Mistakes in formation or taxation can have a lasting negative impact on business growth and viability. Before starting a new business, consider the best structure for asset protection and tax minimization. For example, a limited liability company (LLC) gives business owners time to operate at a loss for the first few months write off the loss on their individual 1040 forms against other forms of income. There are different entity funding options with protection ramifications.
- Utilize Privacy Shield Protection by creating anonymity with trusts.
“COVID-19 has shown that many businesses aren’t prepared for worst-case scenarios and make common mistakes that can affect their ability to grow and borrow money,” adds Coons. “If approached strategically, small to medium sized businesses can take this time to implement changes and help their operations succeed and thrive.”
Anderson Business Advisors focuses on providing unique resources to real estate investors, stock traders, solopreneurs, and business owners for the best asset protection and tax minimization.