COVID 19 will lead to Lay Offs

[Joe Marconi]

One of the toughest decisions we face with the COVID 19 crisis is how much staff we need.  When do we impose layoffs?  I have never in 40 years had to lay off an employee due to any economic crisis. But this time it's different.  Half my staff is layed off, primarily becuase sales have dropped more than half. 

To paraphrase Abraham Lincoln: "It's better to cut a limb to save the body; never sacrifice the body to save a limb."  

Believe me, it's tough, but we all need to make the decisions that we save your company.  

 

[xrac]

Joe, I will continue this week but beyond that I am not sure. I have to have the stimulus money to stay open. If I don’t get it with 10 days I will probably consider shutting down completely. This is a fine place to find ones self in at 67 1/2 years old. 

[Joe Marconi]

1 hour ago, xrac said:

Joe, I will continue this week but beyond that I am not sure. I have to have the stimulus money to stay open. If I don’t get it with 10 days I will probably consider shutting down completely. This is a fine place to find ones self in at 67 1/2 years old. 

Frank, at 65 years old, I feel the same way.  You are not alone. Most shops, and many small businesses, cannot continue without financial help. However, my fear is that it may not be enough, since the only way out of this is through sales, not a bail out.  And while a portion of the PPP loan will be forgiven, there are conditions to be met. 

The amount forgiven is reduced based on failure to maintain the average number of full time equivilant employees by June 30, 2020. So, does that mean we need to hire back to full staff, even though there is no business???? This would lead to using the money for payroll, but little help with other expenses. No Customers + No Sales = No Revenue.  0+0=0

Another question for the SBA and the Feds:  How does the PPP Loan help those businesses forced to close or must close due to no business?  Again, rehire staff? For what purpose? 

These are tough times, and while the Feds and the SBA want to help, at this point I really don't know the best way forward.

One thing is for sure: No customers means no sales and that means we cannot pay our bills. 

You will see many businesses throw in the towel, and sadly that may be best for them. 

Now more than ever, make each decision carefully.  Communicate and be honest with the staff. Face the brutal facts of the situation, and make decisions based on the long term future. For many of us, it will be like starting over. And that's ok.

Nothing is more important than life itself.  Let's keep that number one.  The rest, will work it's way out. 

I feel for you Frank, and for all other shop owners in this position.  I am in New York, not far from the epicenter, and it's not pretty.

Stay safe everyone. Hug your kids and your family. Facetime friends and family and Pray.  We are all in this togther, and we will prevail! 

 

[xrac]

Joe, if this continues another 2-4 weeks on shutdown I just don't see us ever being able to recover from it.  The government is leveraged to the hilt and hasn't got enough money to make people whole.  

[Joe Marconi]

1 minute ago, xrac said:

Joe, if this continues another 2-4 weeks on shutdown I just don't see us ever being able to recover from it.  The government is leveraged to the hilt and hasn't got enough money to make people whole.  

I agree Frank!  Nothing matters until people can move about and spend their money.  We need people going  to resturants, to the deli, to the hardware store and to us. This nationwide shut down and people ordered to stay home cannot be fixed by throwing money at it.

Frank, you know me a long time.  I am the most positive person around.  I am not going to fool myself or anyone, brace yourself and plan to rebuild your businesss. YOU and Me and every other shop owner will  need to accept this.  The alternative is to close. 

[xrac]

Joe, I may chose to close or at least pass the reins to someone else. 

[Joe Marconi]

1 minute ago, xrac said:

Joe, I may chose to close or at least pass the reins to someone else. 

Frank, in times of crisis, there are no wrong or right decisions. You have been on the front lines as an automotive shop owner for a long time. You should be proud of who you are and what you have done.  No one can tell you what is best for you and your family. If this is your decision, hold you head up high and enjoy life with the knowledge that you gave it your all for all of us to make the auto industry better! 

[xrac]

Joe you are a good man! I am privileged to have known you for these years long distance!

 

[JimO]

To Frank - I feel so bad that you and so many other people are being faced with such difficult decisions. This is certainly not a good time in our country and I hope that you receive your much needed stimulus money as soon as possible.

To Joe - Your comments to Frank are written from your heart and in a way that is surely helping us all. We all need encouragement, we all need to hear that what is happening is beyond our control and we all need to know that if we need to let go that it is OK. I applaud your efforts and ability to communicate your thoughts in a way that is so helpful to everyone. Thank you.

[Joe Marconi]

1 hour ago, JimO said:

To Frank - I feel so bad that you and so many other people are being faced with such difficult decisions. This is certainly not a good time in our country and I hope that you receive your much needed stimulus money as soon as possible.

To Joe - Your comments to Frank are written from your heart and in a way that is surely helping us all. We all need encouragement, we all need to hear that what is happening is beyond our control and we all need to know that if we need to let go that it is OK. I applaud your efforts and ability to communicate your thoughts in a way that is so helpful to everyone. Thank you.

Thank you for your kind words JimO! We need to remain strong and positive during this crisis, just as we, as a society, have done in the past.   Shop owners are tough. Look what we do when things are normal??? We are in the trenches each day, fighting the battles we were born into. Let's pray we stay healthy and when this is over, we will have learned so much and be better off than before!