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I'm afraid that coronavirus is already affecting my sales and profitability. Are there any emergency funding sources I can turn to?

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I read today that in Germany, the hospitality association -DEHOGA- plans to ask for reduction of the VAT (Value added tax) or other taxation in order to compensate for the losses. I do not know if the hospitality sector in other affected countries is proactively looking for funding . I would love to hear what is happening in other parts of the world!

Report Eleftheria's answer

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Rather than approaching for emergency funding, did you ever relook at the process you have currently? What is relevant and suitable in your current context?

Let me know if you need any assistance.

Cheers, Jen

Report Jennifer's answer

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First, take a breath, step back, and do your best to look at your sales number from an objective point of view. It is possible to know IF COVID-19 is affecting your sales numbers:

1) Are you a non-essential business that isn't able to operate? If so, then you know its affecting your sales and will for a yet to be determined period of time. 2) If you are an essential business, compare current sales numbers to your projections and determine if they are in fact down. If you don't have projections, compare current sales to the same period in past years. 2) If you're sales are not down, then there isn't an issue, however, if they are down, by how much (-1%, -10%, -20%)? If you were in business prior to 2008, look back to 2008/2009 to see if you see any similarities in sales activity. 3) If there are no similarities, dig into the details, what exactly is down and what could affect it, the industry, product availability, etc., etc.? If 50% of your clients/customers are in the Retail or Service sectors, you know why they are down and you know that amount of revenue will be down for an extended period of time. Emergency funding might make sense depending on how quickly you can get it and the terms of the funding. You might also find traditional sources offering funding that can meet your needs. 4) Once you know specifically where your sales are down, determine if there is anything you can do to change it. How can you incentivize your Clients/Customers to buy from you? Can you offer promotions? Is there another channel you can sell to/through? If you do a lot of face to face business, can you increase or stabilize your sales using video conferencing? Can you increase your online business, or start selling online?

Emergency funding will likely help some companies, but it will take time for the business to properly request it and to get it. That said, once you have your analysis from above, determine if its worth your time to apply for it, if your time is better spent working on increasing you sales by implementing new process/channels, etc., or if you can do both at the same time.

Hope this was helpful. Feel free to reach out if you need more assistance.

Report Jeff's answer

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Hi - if you are a small business, you should explore the payment protection program offered by the SBA - as part of the stimulus bill.

Report Shivang's answer

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I recommend reaching out to your current bank (for your business) and talking with your banker and seeing what kind of emergency loans and assistance the bank is offering. The next round of Corona Virus stimulus is expected to include and increase of funds in the PPP program which is meant to loan money to small businesses to help keep them afloat in these times. Updates on that program will be from the Small Business Administration who has a dedicated website about their response here: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources Good luck in these challenging times!

Report Nicolas's answer

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Report Miguel 's answer

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