Cope Corrales COVID-19 Business Survival Tips
Kenwood Management Company has launched a monthly lunch-and-learn webinar series that offers tips, insights, and helpful content focused on a variety of pertinent topics. Lunch-and-learn webinars have included human resources in the age of the coronavirus, and cleaning process best practices during COVID-19. In Kenwood’s latest webinar, Joe Cope and Luis Corrales of Cope Corrales Financial & Business Advisors shared useful advice for businesses trying to navigate the pandemic.
Cope Corrales is a successful wealth management company located in Washington, D.C. Founders and firm Managing Partners Joe and Luis joined members of the Kenwood team and Kenwood community members for an informative and engaging webinar event. You can watch the full webinar video below or read on for an overview of their advice for businesses navigating COVID-19.
Joe kicked off the webinar, stating, “We’ve designed this presentation for businesses that are bearing the brunt and the weight of a company in a changing landscape. This has been a big litmus test for our companies, employees and vision. In some ways, many of us have passed really well and there are some things we need some work on. It’s an interesting time to learn and reflect. Luis and I just wanted to share some of the reflections we’ve seen ourselves and what we’ve seen from our clients.”
Joe and Luis offered five tips that can help businesses survive and thrive during the coronavirus new normal:
Secure Emergency Funding and Banking Relationships
Securing Paycheck Protection Plan (PPP) has been critical for businesses as it has enabled qualified companies to secure up to $10M in potentially forgivable loans to support their payroll, mortgage interest and other operations for up to 24 months. For loans that aren’t forgiven, there is a 1% PPP rate and the loan needs to be paid back within just over five years. The Main Street Loan is another option Cope Corrales highlighted as well. See the webinar recording video for more specific details.
They added that having relationships with local community banks can provide more personal service than what can be delivered by large corporate banks.
Continuity and Contingency Planning
Cope Corrales also emphasized the importance of planning for the unexpected. Developing business continuity and contingency planning is essential to successfully navigating something like a pandemic, a natural disaster, health issues, or other unforeseen circumstances.
“There are certain things we can be late on but there are other things where we have to be on time or the consequences will be devastating,” shared Luis.
The business continuity plan can often grow out of a company’s articles of incorporation or the operating agreement that outlines the “constitution of your company.” Issues like ownership interest transitions, valuations and payment mechanisms are key components of dealing with unexpected events.
Establishing a clear, executable business continuity plan can be key to a business surviving a crisis. Companies without such a plan often fold when a crisis strikes.
Check out the webinar recording for a detailed business continuity case study to see how Cope Corrales handles such circumstances.
Recruitment and Talent Acquisition Strategy
Cope Corrales see recruiting and talent acquisition as an opportunity for businesses. Compensation considerations, career development pathways and retention strategies are more relevant than ever. Access to talent is opening up as larger companies start shedding jobs, making talent available to smaller businesses. It’s important to develop a strong mix of cash-based compensation (salary and bonuses), equity-based compensation (company ownership), and phantom ownership (stock-related compensation).
See the video for a comprehensive example of what your company can do to hire and retain talent.
Financial Security Outside of Your Business
“We tend to know what we know and feel really confident in this. There are two things to prepare for: a potential exit and to have a Plan B if there is no exit strategy. Creating financial balance outside of your business creates a tremendous cushion should things go astray at your business. Diversification of assets into 401(k), profit sharing, and purchasing rental and commercial real estate, for example, can balance having too much wrapped up in your business.
Peer Groups and Networking
Being an entrepreneur and a business owner can be lonely and stressful, particularly during an enormous public health crisis. At times like these, cultivating your business network or growing your web of connections may be a salve for business owner stressors, but it can also benefit your business by creating new leads and connections to support your company through the pandemic. Joining networking groups like Accelerent, Vistage and YPO, or other groups like them, can be a huge boon to your business and spirit.
Kenwood offers events such as this to its tenants on a regular basis. If you are interested in becoming a part of the Kenwood Community, contact us today: