7 key strategies we are advising our clients to do right now
Since the beginning of the Coronavirus pandemic, CWA has strived to provide information that is timely, accurate and, most importantly, focuses on concise recommendations and business strategies, when many other advisory firms were just describing the law.
When dental practices began to close their doors across the country, we felt it was critical to not only state the laws in the new relief bills, but also how our clients could strategically implement it in their practice.
We also believe it is important to allow the entire dental community to have access to this information and strategy. This pandemic is so much larger than our CWA community of practices and businesses, that we as leaders felt a calling to share what we knew with everyone. The feedback and support has been overwhelming. Our team is both humbled and honored by our client’s acknowledgement and the response of the dental community.
From the entire CWA team, thank you. We are stronger together and will all get through this crisis as one. You can count on us to continue to lead you through this ever-evolving time in our lives.
We know we have been giving you a lot to digest. Today, we felt it was most important to compile and review our recommendations into one concise to-do list.
CWA advises its clients to:
- Lay-off/furlough your entire staff and provided them with the office closure memo. Listen to the CWA & CEDR Webinar and access the memo.
- Have all staff and doctors apply for unemployment income (UI). Decide which staff will need to work a few hours a week for the office. They will need to report their income to unemployment each week. Most states allow individuals to earn up to 20% to 50% of their weekly benefit without reduction in benefits. The extra $600 emergency UI will not be reduced.
- Develop your 90-day cash plan. Visit our blog to access the worksheet. Review your business financials in detail to determine what expenses you will have each month in April, May and June, along with expenses you can eliminate or delay. Compare this to your cash balances and the financing options available to ensure you have access to enough cash for the next 90 days. Do the same thing for your personal cash flow for April, May and June, then compare to cash balances and financing available. Remember to defer loan payments, credit cards and other payments that are allowing a deferral at this time. Decrease your discretionary spending to a minimum. Having cash right now is essential.
- If you feel the extra cash would be warranted in your situation, apply for the EIDL Disaster loan. The application is online. You will need your 2019 financial statements for your gross revenue and cost of goods sold which includes dental supplies, lab and office supplies. You will also need your business EIN. This will get you in line for the $10,000 advance. If approved, you will receive funding later. We believe this will be 8 weeks due to over one million applications already filed.
- Gather the necessary information in preparation to apply for the Paycheck Protection Program (PPP) loan. Please note, that unless you have several staff members working for emergencies (mostly oral surgery or endodontics), our recommendation is to wait and apply for this loan once you are ready to reopen. This will provide the best use of the funds and the ability to have the loan forgiven while paying staff when your office is producing. We don’t believe this program will run out of money as evidenced by U.S. Treasury Secretary Steven Mnuchin in an interview with CNBC. Please listen to our webinar on this topic.
- Develop a plan to stay in touch with your staff.
- Develop a plan on how your office will reopen. CWA believes most office locations will be closed until June 1, if not longer. We also believe you will experience a ramp up period as patients begin to slowly come back to the office. This all needs to be considered over the next two months while your office is closed.
We know this is a stressful and trying time for all dental professionals. We will continue to travel this road with you as your guide. It is our commitment to you.
If you know someone who needs help navigating the financial side of their personal and professional life during this time, have them contact our team.