Today’s guest is a business owner in the survivalist industry and an author of a new book called, “The Turnaround Gift.” His company, Survival Frog, provides information about emergency preparedness as well as a source for survival and outdoor gear (for times like the present COVID-19 pandemic). Several years ago, the survivalist industry experienced a downturn in sales and he had to quickly adapt to the changes. During this time, he learned invaluable lessons about how to make quick strategic decisions, scrutinize every area of operations to improve efficiency, as well as how to remain objective during a time when emotions are running high. And he came out on the other side of the downturn, confident that his company is able to weather any storm, economic or otherwise. Listen as Byron Walker, Founder and CEO of Survival Frog, outlines several suggestions for entrepreneurs currently struck with a massive downturn in business due to the COVID-19 pandemic.
We are all experiencing some sort of heartburn with the current trying financial times, I know I am. Whether it's a depleted stock portfolio, diminished 401k or your tenants not paying their rent (or all the above), things will get better. Let me say that again,
things will get better. Now is the time to start thinking about how to best capitalize on future prosperity in this dark economic environment. Alliteration aside, let's talk about the
unique real estate situation we find ourselves in.
The Fed has taken several monetary policy actions to buoy the financial markets and the federal government is in the process of figuring out the best way to help those most impacted by the sweeping unemployment effect of COVID-19. These measures will take time. Most CRE investors are in 'wait and see' mode, concerned about the now. The savvy investors view this period of uncertainty as a wealth creator. The question I've been getting over the last couple weeks is, 'where's the arbitrage'? The answer... capital.
Dear clients, colleagues and partners -
During these increasingly uncertain times, please use myself and my team as an immediate resource to
help save your company money on your real estate
. As COVID-19 continues to affect our city, businesses and lives, we are offering a no-cost review of your lease(s) to identify the best strategy to keep business moving forward as well as continue to have a viable space option. Things undoubtedly will continue to change, so please use us as your partner and sounding board as we learn more to provide you with updates as well as speak with your landlord to determine cost-saving options.
3. Collaborate as a team- Together we can develop a plan to engage and partner with your Landlord to discuss your potential options moving forward.
Steps to take now:
1. Gather documentation-Prepare documentation that demonstrates the impact that the municipal directives and economic climate, caused by the COVID-19 pandemic, is having on your business as well as projections for the rest of this year. Also, document a proactive plan demonstrating steps your business is taking to reduce the impact. This information may be important to share with your landlord and other entities you are contracted with.
2.
Review your lease- Let us review your lease (free of charge) so we can determine if there are any options available, specifically related to the
force majeure language. Unfortunately, it is unlikely that your rent payment can be abated, but there may be other creative options available.
3. Collaborate as a team- Together we can develop a plan to engage and partner with your Landlord to discuss your potential options moving forward.
Other Considerations:
Mitigate the situation-
While we are working to mitigate the financial real estate pressure, discuss and plan other areas where you can reduce the financial impact on your business. For example, contact your insurance company, banker, IT vendor, etc, to discuss any options they may have available for you. If you do not have those vendor contacts, let us know and we can put you in touch with our strategic partners.
If you are interested, we welcome a virtual discussion, whether via phone or zoom to review your situation further. To schedule a 15-minute call, please email
info@columncommercial.com
with your availability and we will coordinate.
Sincerely,
Matt Brower, Managing Broker
