It is hard to believe, but we are four months into the Covid crisis. To me, it feels like four years. When this crisis emerged in March and Congress quickly passed the PPP legislation, the assumption was that this would be mostly behind us by June 30. Obviously that didn’t happen. Though no one knows when this will pass, it seems safe to say that we are in this for the long haul. What continues to echo in my head is the proverbial statement “the strong shall survive”.
What does it mean for an organization to be strong in this crisis? Of course it is essential for our companies to be financial healthy. As we grow our business, we need to always be maintaining strong working capital and liquidity, adequate equity, and manageable debt not only to absorb the difficulties that come with operating a business, but also to take advantage of expansion opportunities. The way things are going, this crisis may put even the heartiest of businesses to the test, as we look at the long road to recovery ahead. Of course, the level of challenge varies by the industry in which we operate, with hospitality and entertainment experiencing a hardship like none other. Though some businesses financially benefit from this crisis, most everyone is, and will continued to be, adversely affected. Therefore, it is essential to maintain healthy financial practices, and pay diligent attention to these factors as we see this play out. Clayton & McKervey has published a significant amount along these lines for reference.
What is every bit as important is the need to have a healthy culture and team. This crisis has certainly been a weight on most everyone in the workforce. There are no shortages of reasons for anxiety, including the economic uncertainty, health of family and loved ones, the challenges of working from home, the difficulties of educating your children under these circumstances, and the inability for many to fully unplug and recharge their batteries. And furthermore, who knows how much longer this will continue and how the long term wear and tear will impact employees. More than ever, a strong culture and spirit of the team is needed. We can’t change the fact that we are faced with this crisis, and we all need to dig deep to get through it together. However, as leaders, we also need to be empathetic, supportive, and encourage our staff to take the time necessary to be healthy in both body and mind.
In our business, the last four months have been a roller coaster ride like none other. We have been blessed and fortunate to play an important role in serving our wonderful clients as they navigate through this crisis as well as helping them with the PPP loans vital to their businesses. In addition, our team has quietly but brilliantly continued to focus on getting through the extended tax filing and financial reporting needs of our clients.
I am very proud of our team and their top notch commitment and effort in serving our clients; helping them navigate through this crisis. In the meantime, I wish all of you an enjoyable summer and hope that everyone is able to get a little bit of time to recharge.