Are you a small business contractor who took a Paycheck Protection Program (PPP) loan of $150,000 or less? If so, you may see your loan forgiven so that you can focus on what you do best — serving the federal government and growing your company.
However, PPP forgiveness is only a short-term benefit to companies affected by the coronavirus pandemic. The long term solution for small business government contractors is a five-year plan which builds durability, can handle economic shocks, and allows them to scale. This pandemic may be the trigger you needed to put pen to paper on this type of plan that will pay dividends for your business well into the future.
One of the key components of success is having the right team. For example, a trusted financial partner, like the right outsourced CFO, can help you decrease taxes, increase revenue, and strategize about investing your money. This same partner will tailor a plan to your company’s specific place in the market and help you find and manage flexible, affordable, and growth-focused debt to increase profits and grow your company. Remember, “good debt” is the kind that helps you regain control of your cash flow, gives you flexible options that meet your changing needs, and helps you overcome shortfalls or missed payroll. Bad debt is the kind that costs you far too much, puts you further into debt, and “solves” short-term problems without preparing your company to scale.
From the week-to-week tactical assessment to your quarter-to-quarter and year-to-year strategies, the right financial partner will know your business — and you — inside and out. They will identify market differentiators to give you an advantage during awards season, advise you on acquisitions needed to expand your company, and find the right purchaser if you seek a buy-out exit strategy.
If you received a PPP loan, we urge you to explore forgiveness as an option. In the meantime, don’t forget about the importance of turning that forgiveness into the first step towards long-term success. For more on finding the right financial partner, see Parabilis’ own Ryan Huss in Federal News Network. And be sure to listen to Ryan discuss good and bad debt on the WTOP Federal Drive podcast.