During the past seven to ten days I have observed a few strategies that might help your business.
First, I am now seeing landlords begin to work with their tenantsOwners of commercial property, especially retail, are aware that their tenants are being hit hard by the slow down in consumer spending and are aware corporate spending is slowing and are forecasting corporate spending will continue to slow into 2009.
The first potential solution is for you to ask your landlord to lower your monthly lease payment.
Many landlords are now working with existing tenants since they view it as its better to have some rent instead of no rent.
While some landlords are completely reducing rents, others are shifting the payments to the end of the lease.
Not as generous, but it certainly helps short-term cash flow.
Be certain to get any new agreement in writing, signed and dated.
The aforementioned strategy seems to currently work with commercial property, but is not currently working with leased equipment or residential property.
Still, it may be worth a conversation with your vendor.
The second solution for your business this week regards worker's compensation (WC) insurance.
At the end of the policy term a WC insurance audit usually occurs.
When payrolls are rising, the audits usually uncover the business owes additional premiums.
During a period of decreasing payrolls, which is occurring for many small businesses, the WC audit reveals a refund.
Instead of waiting for the refund, it may be a good time to which to a WC policy which allows you to pay as you go.
The WC premium is paid and audited with every payroll to ensure you are not surprised with owing or waiting for a refund.
If your business's payroll is shrinking, this may be a good short-term strategy which will allow you to have and use the WC refund in your business instead of waiting for the refund.
These items can be challenging to deal with.
We recommend getting your advisors involved with these decisions to ensure you are making the best decision possible for your situation.
First, I am now seeing landlords begin to work with their tenantsOwners of commercial property, especially retail, are aware that their tenants are being hit hard by the slow down in consumer spending and are aware corporate spending is slowing and are forecasting corporate spending will continue to slow into 2009.
The first potential solution is for you to ask your landlord to lower your monthly lease payment.
Many landlords are now working with existing tenants since they view it as its better to have some rent instead of no rent.
While some landlords are completely reducing rents, others are shifting the payments to the end of the lease.
Not as generous, but it certainly helps short-term cash flow.
Be certain to get any new agreement in writing, signed and dated.
The aforementioned strategy seems to currently work with commercial property, but is not currently working with leased equipment or residential property.
Still, it may be worth a conversation with your vendor.
The second solution for your business this week regards worker's compensation (WC) insurance.
At the end of the policy term a WC insurance audit usually occurs.
When payrolls are rising, the audits usually uncover the business owes additional premiums.
During a period of decreasing payrolls, which is occurring for many small businesses, the WC audit reveals a refund.
Instead of waiting for the refund, it may be a good time to which to a WC policy which allows you to pay as you go.
The WC premium is paid and audited with every payroll to ensure you are not surprised with owing or waiting for a refund.
If your business's payroll is shrinking, this may be a good short-term strategy which will allow you to have and use the WC refund in your business instead of waiting for the refund.
These items can be challenging to deal with.
We recommend getting your advisors involved with these decisions to ensure you are making the best decision possible for your situation.
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