Business Owners: Re-Opening for Business is Only the "End of the Beginning"

During WWII, after a long string of defeats at the hand of Hitler’s armies, the British Army routed Rommel’s forces out of Egypt in 1942. It was the first significant, positive military event for the Allied forces in the entire war. Just hours after news reached London, Prime Minister Winston Churchill famously said:

“Now this is not the end. It is not even the beginning of the end. But it is, perhaps, the end of the beginning”.

Business owners struggling to survive today should consider this perspective. It would be naïve to think that the “battle is over” regarding COVID-19, just because cases have “plateaued”, and it may be possible to re-open your business soon. WW II in Europe lasted for another three bloody years after that 1942 battle in Egypt. The business environment in the next 12-18 months here in the U.S. will, unfortunately, be “bloody” as well.

Business Owners today need to acknowledge the “New Normal”

Social distancing and travel restrictions will likely need to be a part of our business planning for the foreseeable future. Consumer acceptance of the “New Normal” is uncertain. There will not be a “return to normal” (i.e. – conditions that existed prior to March 2020), anytime soon.

If you own or manage a business today, you must quickly re-think every aspect of your business- your long-term strategic plan, your key supply chain partners, your capitalization, your 12-month financial plan and cash flow projections, your real estate footprint and relationships, and most importantly - your customers’ current needs and desires.

• You should expect that revenue will likely not immediately return to normal. Your employees may (or may not) agree to return to work, even if you try to call them back. You may (or may not), be able to collect your accounts receivable from your customers. Even if you were fortunate enough to secure a, SBA / PPP loan (which has been a great lifeline for many), navigating use of the funds and maximizing loan “forgiveness” remains a significant challenge, especially if you are in the restaurant, hospitality or retail sector, and you still have no idea when you will be permitted to re-open your stores.

• Despite all of these challenges today, some companies will succeed, and even thrive. In every crisis, opportunities may arise. Examples are all around us – restaurants turning to digital marketing and pickup/delivery; retailers expanding online sales, a hat manufacturer re-tooling to make PPE, GM making ventilators, etc. The key today is being “woke”, realistic and opportunistic.

Perhaps the most important thing you can do, is to not try to do this alone

At Turning Point Advisory Group, we are not ordinary “consultants” – we are CEO’s, CFO’s who have actually run businesses. We serve as strategic advisors to our clients on a daily basis – manufacturing companies, retailers, restaurant and hotel groups, entertainment companies, real estate developers, tech companies and many others.

We bring unique expertise and experience to help you successfully navigate today’s muddled conditions. We will become a trusted resource, and a key part of your executive management team – in surprisingly affordable ways.

by, Donald A. Nogowski, Principal