finance

COVID-19 and Business Valuation Continuity Planning for COVID-19

It is an astonishing statistic that even in “normal” times, 98% of the owners of privately held businesses do not know what their business is worth.   At the same time, 78% of those same business owners say that they plan someday to fund their retirement through the sale of the business.  What does this mean, as we are clearly living through a special period in history? (read more) . . . 

In the past, business valuation has been a costly and time-consuming process.  That is probably why it has been pushed to the side by business owners involved in day-to-day operations and, in times like these, plain old survival.  Still, given the importance of the business in the financial life of most owners, there is a powerful argument to be made that every business decision should be taken with current and future valuation in mind.

So what should business owners be doing to maintain and grow value during this crisis?  A quick list might look like this:

  • Professionally audit your business accounts
  • Update projections continuously against ever-changing conditions
  • Think about new products, services or markets during the COVID-19 epidemic, which might be around for longer that we think
  • Watch cash flow projections, revising frequently
  • Stress test relations debtors and even more, your creditors
  • Monitor business expenses as closely as sales, and press for economies
  • Get a handle on the value of your business and evaluate decisions based upon how they might affect the value of the business in the short term and the longer term. 

Stonehouse is ready to assist you with getting a handle on the value of your business, as well as helping to connect you to government programs that are available and constantly evolving to assist small business owners.

Another area we at Stonehouse Insurance can help you is financial planning to make your company more resilient when the next crisis hits, through strategies that will build cash, grow it tax free, make it available to handle emergencies like the one we are going through today, protect you from market fluctuations and taxes and make it possible to preserve and transfer business value for you family in multiple scenarios, even like now when there are limited buyers in the market.

Call me at Stonehouse and let us show you how to navigate the current crisis and be prepared for the future, no matter what comes.  We can consult with you to create a business valuation document to guide your business decisions for the maximum business value growth.  What better way to spend a crisis . . . by making sure you’re ready for all the future crises?

<strong>Be Well, </strong><br>Tom Somers
Be Well,
Tom Somers

CERTIFIED FINANCIAL PLANNER™ at Stonehouse Insurance Services | 951.972.8100

0

covid19

Dear Clients, Partners, Friends, and Family,

Today marks our sixth issue of “The Stonehouse Report”. We want to take a moment and thank our valued readership. We hope that we are being an encouragement and an informative resource to you. If you are being encouraged by The Stonehouse Report, we would love to hear from you. Please pop us an email and let us know how we have been able to encourage you. [CONTACT US]

As many businesses are starting to scale back up, and are gearing up to hire on more staff, we felt that it would be important to discuss a topic that is very relative to owners and corporations as they are making those preparations.

We are putting on an educational workshop next Wednesday, that we have outlined below. We have invited, as a guest to our workshop, one of our partner firms, Nemecek & Cole Attorneys at Law. Michelle Ferber and Kenny Brooks will be joining us as they are specialists in their field on the topic of Wage and Hour claims, and defending business owners in those situations. If you are a business owner in the USA, CA, or out of state, we want to encourage you to carve out an hour with us next week. It will be well worth your time.

As we embark on this three day Memorial Weekend, in the midst of a war on COVID-19 that we are all battling, please don’t forgot to thank a veteran. While you do, try to have some fun! We have included a great article from ABC 7 below, discussing the scoop on where and how you can celebrate safely throughout California.

That being said, from all of us at Stonehouse Insurance Services, we want to give a warm thank you and God Bless to all the veterans near and afar! You are not forgotten. Thank you for your service, and all you do in sacrificing for us all!

We want to encourage you to visit our website for updates on COVID-19 resources.

<strong>Best, </strong><br>Joshua T. Emerson
Best,
Joshua T. Emerson

Agency Manager at Stonehouse Insurance Services | 951.760.9429

NEXT WEDNESDAY MAY 27TH, @ 12 PM.
JOIN OUR BUSINESS EDUCATION WORKSHOP HOSTED BY THE TEMECULA CHAMBER OF COMMERCE:


REGISTER NOW, FOR OUR WEBINAR NEXT WEEK. GET A CHANCE TO HEAR FROM MICHELLE FERBER, AN EXPERT IN HER FIELD OF WAGE AND HOUR DEFENSE CLAIM’S.

[VISIT MICHELLE’S WEBSITE]


“MEMORIAL DAY WEEKEND IN SOCAL: WHAT’S OPEN, WHAT’S CLOSED AMID COVID PANDEMIC”

Please read the below article for more information on the story and video


CALIFORNIA GOVERNORS NEW GUIDELINES FOR BUSINESSES

Governor Gavin Newsom released updated industry guidance – including for retail, manufacturing and logistics – on Thursday, May 7 to begin reopening with modifications that reduce risk and establish a safer environment for workers and customers. Click below to see the new guidance. “


STONEHOUSE CONSULTING

ARE YOU UNSURE WHERE TO GO FROM HERE WITH YOUR BUSINESS? DO YOU NEED EXECUTIVE BUSINESS CONSULTING GUIDANCE?

We have 40+ years of international consulting experience on staff. Our staff is ready and able to setup a ZOOM consulting session with you today. Please visit our sister company’s website below to make an appointment with a consultant.


FROM THE DESK OF:
TOM SOMERS – CERTIFIED FINANCIAL PLANNER™

Many business owners are struggling with what to do in this up and down financial environment.

Tune in to this weeks article from the desk of Tom Somers.
“COVID-19 and Business Valuation Continuity Planning for COVID-19”
…CLICK BELOW TO READ MORE…


INSURANCE REVIEWS

WE ARE SAVING NEW CLIENTS CRITICAL NEEDED MONEY $$$

Is your current agent reviewing your sales, and payroll during this COVID-19 pandemic, to help cut your costs? Ask us to help you review your sales, payroll, and property that may directly impact your current rates.

ASK FOR JOSH EMERSON.
JOSH@STONEHOUSEINS.COM
STONEHOUSE DIRECT 951-760-9429


0