In This Episode
So what do you do when all the government money runs out? Over the past couple of years since the COVID-19 pandemic started there has been an unprecedented amount of “free money” being doled out to individuals and businesses alike.
On the business front in the U.S. there were 2 rounds of Forgivable PPP Loans (Paycheck Protection Program), refunds from Worker’s Compensation, and Payroll Tax Credit Refunds helping to line the coffers of businesses large and small. Is this a good thing? How do things look now that all of this funding is gone? Is your business struggling to maintain profitability and positive cash flow in the current situation?
In the short-term these funds helped keep the doors open at many of our local businesses. We can each share stories of local businesses who were really devastated by this pandemic and struggled to keep going during this time even with all of the “free money” coming in. So now that the free money is gone will many of these struggling businesses survive or simply go under? Did the government assistance help or really just delay the inevitable?
During the show today we chatted about some of our observations on this topic and provide some guidance for those companies that are still struggling to make profits in this post-pandemic world. It all starts with having a good cash forecast to lay out where all the money is coming in and going to.
People, Companies and Resources We Mentioned in the Show
- Paycheck Protection Program (https://www.sba.gov/funding-programs/loans/covid-19-relief-options/paycheck-protection-program)
- Arby’s (https://www.arbys.com)
- Wimpy from Popeye (https://en.wikipedia.org/wiki/J._Wellington_Wimpy)