UP WITH PPP

HOW TO BUSINESS MANAGEMENT BY ADAM BROWN

Up With PPP Impact of the Paycheck Protection Program for one shop.

Back in March, things were heating up for small businesses. The COVID-19 pandemic was in full swing, and the economic lockdown was relatively new. Understandably many of us business owners were staring down a whole lot of uncertainty.

Regardless of what you may think about the Paycheck Protection Plan (PPP), we are a poster business for this program. As we prepare for loan forgiveness, it’s become very clear how important this program is to the health of our country and our company.

Right On Target Currently we are right on target for 100 percent forgiveness, as the PPP has worked beautifully and has kept all our crews on the job.

Although the PPP process seems to be changing daily, every modification I’ve seen so far has been to our benefit. I believe the intent of the government is that it wants all of the loans to be forgiven; and if not forgiven, any fund balance would be at a one percent interest rate, which is almost unheard of anywhere.

We were a little bit more conservative with our application request amount, as we wanted to set ourselves in the best position for the approval. We also didn’t want to overborrow and take on too much debt. We’re especially grateful to Associated Bank for guiding co-owner Rick Rossetti and myself through the loan process and keeping us on the right track.

Our Top and Bottom Lines We, like many others, took a lump on the chin this year.

Because of the economic shut down, our sales were down about 50 percent in March and April due in part to customers holding back on purchases, but PPP allowed us to maintain our cash flow without having to send employees home.

We tightened our belt, but we did so in very strategic areas and were allowed to keep our team together.

I’m happy to report that our sales team exceeded our forecasts in May. Trending wise, looking at year-to-date sales revenue, we’re in a good position so far.

Our company goal is always growth, not survival. That means we’re targeting

STRAIGHT TO YOUR INBOX

SBI Update, Sign Builder Illustrated’s e-newsletter, delivers the latest hot topics and news from around the sign industry right to your email.

What’s the hot topic this month? Sign up at www.signshop.com to receive the newsletter and find out!

to invest money back into the system.

Money doesn’t belong under the mattress. We’ll invest in equipment and people. Some of those investment funds will continue to go into ADA signage manufacturing, replacing at least one machine and/or truck, upgrading our IT, and bringing another salesperson on by the end of the year.

Silver linings and opportunities through disparity is the philosophy. Thanks to PPP, these initiatives didn’t have to be put on the back burner.

Making History 2020 is going to go down in history, but my prediction is our overall economy is going to be much stronger when we come out of this.

Rick and I salute all the employees that kept working through the pandemic. Our employees are the biggest asset this company has. We set them up as best we could to help put their mind at ease with PPE, safety guidelines, etc.

I can’t say enough about how well the PPP worked for us, and I hope it served others as well. It allowed me to focus on what needed to be done managing the company through a crisis. It helped prevent a lot of stress for us not having to worry as much about cash flow.

Obviously concerns over a second and third wave of COVID-19 are real. Anxiety and uncertainty still present challenges. However, we’ve established how to manage the business better in these challenging situations.

The reality is, at some point, you must come out of the foxhole and move forward. As we can all imagine, it’s not easy coming out of a foxhole!

But you can’t stay pinned down forever. Determination supersedes fear. Our determination to move forward takes on a whole new momentum. The virus is a bully, and the PPP gives us business owners the tool to stand up to that bully.

PPP was the trainer during the heavyweight boxing match, and businesses like ours are in the eighth round of the fight—a fight we’re determined to win!

Adam Brown is the president of Sign Eectz, Inc. (signeectz.com) in Milwaukee, Wisconsin.

HELPING YOUR SHOP

GROW PROFITS!

Sign Builder Illustratedis the “how-to magazine” of the sign industry. Each issue includes SBI’s signature “how-to” columns and features with detailed, step-by-step instructions covering a wide range of signage. SBI’s website (signshop. com), newsletters, Buyer’s Guide, and digital edition keep you updated with timely news, recent projects, and upcoming industry events.