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Business as Usual? Let’s see

A lot of businesses were affected by the Covid-19 outbreak. Unless, you are operating online like kaironlabs.com, then most probably you are in a “business as usual” status. But for the land-based counterpart, reopening after the situation may be a bit of a challenge. To overcome this, it will be necessary to place an effective communication plan in spreading the message among your customers.

As several businesses are preparing to reopen, among the biggest questions they are trying to figure out is how to communicate their plans to their consumers effectively? Business owners should not just update their audience on the availability of their product and/or service or about their hours of operation. It is imperative for businesses as well to explain new safety and health protocols that they put in place to prevent the spread of the virus even further.

Communication is the Secret

Communication ought to be done right. This is critical to the overall success of your business, especially during the post-pandemic that the world is experiencing. The reason for this is that, consumers are seeking for businesses that would make them feel secure and safe. So, if you are an entrepreneur and planning for a communication strategy of announcing about your reopening, then considering the tips below may help you out nail it!

Create a Unified Message for several Channels

Many communication experts do agree that whatever message is sent today must be relevant, considerate, timely and empathetic of the customer’s current problems and needs.

So prior to any announcements you are planning to make, meet with your staff to have assurance that everyone has thoroughly understood the message you are about to send out.

After having the core message in place, this is when you can start creating a copy as well as creative assets for the platforms below:

Website – you have to update your homepage so your protocols and plans for reopening are at the center and upfront when your customers start searching for you. In case your website has a live chat feature, you might want to set automated message that’ll pop-up recapping the most important information.

Social media channels – it is essential to create a series of posts for each platform that your business is using. This is going to be an effort on your end in consistently pushing the message leading to your business’ reopening. Providing frequent updates regarding your operations and staff shows that you’re back in business and proactively addressing consumer’s needs.

Travel Industry On The Abyss, Demands Protective Measures

The crisis is an existential threat for many companies – from the souvenir shop on the corner to the travel group. What protective measures can the government do so as not to bring the industry permanently into the abyss?

Government policy around the world to contain the corona pandemic is severely restricting public life. This inevitably brings travel and tourism to a complete standstill. Many countries have imposed travel and entry restrictions – including many tourist-relevant vacation countries. Many countries have issued a general travel warning. The tour operators, therefore, cancel package tours. As of today, trips abroad are no longer possible. It is now clear that this also applies to domestic trips.

Due to the dynamic spread of the coronavirus, the entire travel industry is faced with an unprecedented crisis situation which it is not responsible for and which it cannot influence through its own business decisions. From the point of view of the travel association, it is, therefore, necessary that politicians – in addition to the economic measures – put up a protective shield.

Suspend cancellation policies to protect business and consumers

Due to the currently increasingly necessary cancellation of trips, tour operators and travel agencies have an extraordinary need for liquidity, because customers have a legal right to reimbursement of the paid travel price or the down payment. The applicable cancellation rules in travel law are not suitable for such a major crisis. Therefore, we call on the federal government to compensate the commissions for travel agencies and the cancellation costs for tour operators as part of a grant. If this is not implemented in a timely manner, the immediate repayments based on the applicable cancellation rules must be suspended immediately to protect the company and consumers or replaced by travel credits will. For this, the travel industry needs the support of politics. With these steps, liquidity can be maintained in the entire travel industry. That protects consumers and the economy.

While the travel industry is presently suffering the measures to control the corona pandemic, taking out a loan may not be a good option but it is still a choice for many in the travel industry. The step therefore to suspend cancellation policies is a better option to protect the industry.

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When will this pandemic be over?

The question now is when will this corona pandemic be over? According to the Atlantic, The answer is straightforward: when more than enough of the populace — presumably 60 or 80% of the population — is protected from COVID-19 to stop the disease’s spread from one person to another. This is the objective, though nobody knows precisely how long it may need to reach the goal. And while governments are putting their heads together to constrain the virus, they are also putting their hands together to stabilize the already shaken economy.

San Diego City Council Enacts Eviction Moratorium

The San Diego City Council has enacted a temporary eviction moratorium that will bar property owners and/or managers from kicking out tenants who can show proof that they are facing financial difficulties because of the Covid-19 crisis.

The local emergency law though is temporary and limited in nature, as it will be effective until May 31, 2020 only and subject to certain conditions.

Limitations of the Eviction Moratorium Law Enacted by the San Diego City Council

The eviction moratorium can only protect those that can demonstrate or show proof that their income has been greatly reduced due to lack of business or employment engagements. Tenants suffering from financial stress caused by substantial medical expenses can also seek protection against eviction by presenting proofs of medical bills that they have to incur as a result of the health crisis.

The conditions suggest that tenants who are in good health and receiving compensation under a work-at-home arrangement, are expected to pay rent as they fall due even during the ongoing coronavirus restrictions. Otherwise, their landlord can enforce eviction order and force them to shelter-in-place in another location.

Business owners who continue to trade or render services through the Internet of things can also be expected to pay rent for their brick-and-mortar storefronts. Not unless they can show proof that their online business operation does not yield income that can sufficiently replace the substantial loss of sales suffered from the absence of storefront operations.

Such conditions required from tenants and lessors of commercial spaces aim to strike a balance in protecting the interest of both tenants and landlords. After all landlords and rental property owners are also entitled to seek protection of their business income to prevent unscrupulous individuals from taking advantage of the eviction moratorium.

State Government’s Lockdown and Shelter-in-Place Orders Do not Automatically Include the Eviction Moratorium

When California Governor Gavin Newsom placed the entire population of Calfirnians under lockdown and shelter-in-place restrictions, he also gave authorization to local governments to temporarily suspend eviction actions against residents and business owners. However, Gov. Newsom made it clear that the suspension of eviction laws can be enforced only if the local council had enacted an eviction moratorium law similar to the law enacted by the San Diego City Council.

This denotes that a San Diego landlord can proceed and pursue eviction actions against non-paying tenants in Bay Area communities that have no emergency moratorium laws in place. According to Governor Newsom, city or community councils must pass their own temporary eviction moratorium in order to protect their residents from unjust eviction orders during their Covid-19 trials.

SD Councilman Chris Ward Sees the Need to Come-Up with Long Term Solutions

SD Councilman Chris Ward said that

”The emergency eviction moratorium is necessary but they do not go far enough to provide tenants with long term solutions

Missed or delayed payments of rents will only add to the financial burdens faced by families and business operators even after the Covid-19 crisis ends. Although the San Diego City Council approved the financial assistance package recommended by San Diego Mayor Kevin Faulconer, he still sees the need to develop a strategy aimed at working with banks and lenders.

Councilman Ward specifically mentioned halting of mortgage payments that will burden individuals and landlords who suffered severe losses of compensations and business income in the wake of the coronavirus crisis. .

Otherwise, many risk facing bankruptcy once all delayed payment of obligations will be up for collection. Although one can seek legal assistance from a bankruptcy attorney san diego based lawyers can best help San Diegans get out of bankruptcy if there are related local laws that can immediately ease the financial demands on an individual’s economic resources.

Research Says Global Economy Heading for Worst

The latest Bank of America (BofA) Global Research indicated that global economy is heading for the worst.

The BofA report stated recession as “headwinds,” which in business means an economic circumstance affected by certain events or conditions that hamper economic growth. The analysis is that the coronavirus outbreak and several other factors are building up toward a global recession.

Recession is defined as a temporary economic situation in which industrial and trade activities continuously decline for more than a few months, to yield a less than favorable Gross Domestic Product (GDP) growth in two (2) successive quarters. As negative factors continue to affect global economic activities continue, the BofA report projects that the global GDP for the year 2020 is likely to slow at 2.8%; a reading that is similar to the sub-3% growth seen during the 2009 recession.

Factors Cited by BofA Study as Drivers of Potential Economic Recession

The coronavirus or Covid-19 outbreak is cited as the main driver of the current economic downturn. The global research said that several other factors, such as political conflicts and uncertainties, as well as trade war and weaknesses of some countries in handling cases of Covid-19 infections, are compounding the resulting impact caused by the coronavirus problem.

Ever since the Covid-19 virus broke out in China, disruptions in the country’s economic activities ensued. Touted as the “world’s factory,” the inability of China to produce goods that it normally supplied to manufacturers and traders across the globe, created a domino effect.

Not a few U.S. companies rely heavily on key goods supplied by Chinese manufacturers. The shortage in production has disrupted the supply chain, causing investors to panic and to right away sell off their stocks. The UK’s Financial Times Stock Exchange (FTSE) is already in the “correction territory,” which means the financial market are seeing a decline of 10% or higher.

Last week, the U.S. financial markets suffered a week-long blow from the massive sell-offs that transpired. If the trend continues in the coming week ahead, the U.S. financial markets will also go into correction territory.

The bad news is that the current main driver of an economic recession cannot be expected to go away soon. The Director of the National Institute of Allergy and Infectious Diseases (NIAId), Anthony Fauci said that

”Covid-19 is a brand new virus, and we do not know or can count on the possibility, if it will die out, or even diminish once the weather gets warm.”

Although Director Fauci announced earlier that human testing for a potential vaccine for the novel coronavirus will go underway in six weeks at the least if there are no hitches, it is only the first phase of a series of trials that will not be applicable any time soon.

Uncertainties posed by the forthcoming U.S. presidential elections, unresolved trade wars, uncompromising trade deal negotiations and forces of nature that bring major disruptions, are only some of the factors that create an outlook that points toward an imminent global economic recession.

Although some industries like tourism, hospitality services and rental businesses do not rely on products and raw materials supplied by China, they have likewise, been affected by travel restrictions and slow consumer traffic. That is why businesses are urged to take proactive actions, since a recession will likely result to business losses that would call for mass layoffs.

To ordinary folks, loss of jobs means inability to meet their day to day cost of living, including house rentals. This early, it would be wise for owners of rental properties to engage the services of property management companies, since they have the expertise in mitigating the impact of a looming, global economic recession.

Wage Transparency Advantages And Disadvantages

Any business with a corporate culture that suits you includes flexible hours, a training budget, and other incentives. All these play a role in choosing the best employer for your services. In any case, the wage remains decisive. We don’t have to bother about that. Everyone has to pay their bills and often even maintain a family.

It is, therefore, no wonder that wages are a topic that lives in the workplace. Certainly when colleagues who do the same job suspect each other that they will be paid less than the other. This influences the motivation and therefore the performance of your staff.

The benefits and risks of salary transparency

On the other hand, they might do their best just a little more when they know that they are being paid correctly, with the aim of receiving more compensation when they take big steps. In contrast, when employees are underpaid or not receiving their wages on time, this results in employee demotivation especially when they will have to seek other sources of cash (get a quick loan here) to bridge the gap in wages.

Not everyone is equally transparent, but some companies consciously choose to give their employees insight into the wages of their colleagues. Some employers do that partially, others fully. This naturally has disadvantages, but also benefits.

No transparency

More freedom, but stiff recruitment. Many employees feel that they and their employers are the only ones who know how much appears on the bill each month.

Advantage
  • Employees will feel more at ease because they feel their privacy is protected.
  • You pay each employee tailor-made, based on their skills, experience, and performance.
Disadvantage
  • Employees will doubt whether they will earn enough and as a result – consciously or not – will do their best less.
  • Wrong information about wages will circulate. If there are very large differences and someone comes to know this in one way or another, this can lead to major internal problems.
  • Wage negotiation is more difficult when the candidate does not know what normal wages are.

Bear in mind that sensitive information often becomes known in one way or another. Are there major differences regarding wages? Then that can cause problems at such a moment. The question then is whether the problem lies with the unequal wages or the lack of transparency about it.

Partial transparency

You can also choose to make wages partially transparent. We are then talking about wage scales instead of specific amounts.

Advantage
  • Are there colleagues who actually perform better than their teammates but currently earn the same? Then you can give them some increase without much ado.
  • This also applies when you hire someone. You have more resources to convince a candidate with something extra.
Disadvantage
  • Some candidates will immediately aim for the highest levels of the wage scale during the wage negotiations.
  • People can still suspect that their colleagues with the same position earns more and is therefore not 100% committed.

Full transparency

It is not common, but there are companies that give employees the opportunity to know exactly what their colleagues deserve. Sometimes the information even spreads outside the company. The disadvantages are easy to guess, but there are also interesting benefits associated with full pay transparency:

Advantage
  • No wrong information or gossip in the teams.
  • You do not create situations where the wages of people with the same duties and responsibilities differ greatly.
  • Knowing what managers deserve can motivate employees at a lower level to do their bit.
  • Much easier wage negotiations.
Disadvantage
  • There will be situations where someone who has been with the company for a long time and has a lot of experience with the way things work deserves the same as someone who is just starting out, which will not always be appreciated.
  • Someone who works harder or has more developed skills may earn better than someone who is on the same pay scale and does no more than is expected from him or her. You must adjust here if necessary. (calling on the less performing colleague or rewarding the hard-working employee)

Full transparency can certainly be considered because, since they will not be underpaid, they will be better able to concentrate on their duties. And knowing what managers deserve, they have a goal to pursue. You may encounter problems if there are too large differences between the performances of team members who earn the same.

Many Companies Will Not Survive The Corona Crisis

The coronavirus shocks the stock market and paralyzes the economy. Insolvency and restructuring specialist Lucas Flöther has been dealing with crises for two decades. The lawyer considers the Corona crisis to be a serious burden on the economy, which has been unprecedented in recent economic history. He expects numerous bankruptcies.

The World Is On Standstill Due To Coronavirus Spread

Companies that have kept themselves afloat in the past few years without a resilient business model and especially with the help of cheap debt are, particularly at risk. Many start-ups are on the brink. Even companies with a lot of equity are by no means secured.

New States that Passed the Cannabis Legislature

Just last week, good news have been fuming up the marijuana industry. To start with is the legislation of medical cannabis bills are passed in advance in Alabama and Kentucky. Meanwhile, in New Hampshire House, the bill to legalize the cultivation of cannabis for adults is already cleared. Moreover, the approval of the legislation that restrict non-residents from enrolling in the program related to medical cannabis is sending to the state government under Gov. Michelle Lujan Grisham this week.

New Passed Bills for Marijuana Legalization

Here are the other states that already approved the legislation and legalization of marijuana. Basic ideas of finance should also be considered by these states.

1. New Mexico

S.B. 139 is a legislation that would restrict non-residents of the states to enrol in the state’s medical cannabis program.

This has been approved by the Senate of New Mexico. Most of the bill followers are hoping for the reversal of the bill. They wish to have a change in the said state law allowing qualified non-residents to acquire ID cards for medical cannabis within the state. The S.B. 139 has been approved this week and sending its legislation to the governor of the state.

2. Iowa

The very first meeting of the year by the Iowa Medical Cannabidiol Board was held. It focuses on the rejection to qualify the conditions of ADHD and panic disorder under the state’s medical cannabis program. In the said meeting, they also recommends to put restrictions on the level of purchasable THC. The current law of the state approved a 3% THC level under medical cannabis use. Iowa Board suggested for a change allowing patient to acquire 4.5 grams of THC within a period of 90 days.

3. Pennsylvania

New legislation for the legalization of adult-use cannabis within the state has been introduced by Rep. Jake Wheatley. The House Bill 2050 is planning to establish a licensing program for the growers of cannabis including the processors and even the dispensaries. House Bill 2050 has a goal to reduce the initial application and the fees for its licensing which would make the cannabis market more accessible for businesses.

4. New Hampshire

A new bill was approved by the House of Representatives with a vote of 236 over 112. This bill is intended to legalize the possession and cultivation of cannabis in limitation. Moreover, this would be applicable for adults 21 years old and above. The H.B. 1648 is similar to that of Vermont’s legalization law and is now sending for consideration under the Senate.

5. Washington

The House Bill of Washington aims to resolve the racial issue within the state’s marijuana industry.

 

Understanding the Flow of Stock Market shouldn’t be Ignored

Businesses of all industries in the economy are impacted by the movement in stock market for a number of ways. In the US, there are around 5000 publicly traded stocks that could be divided into 11 global industry classifications or GICS. With the day to day movements in the market, each action could lead to a different result, which may either be a positive or negative effect on the business.

The Economy and Stock Market

The stock market is described as the market to which equity shares of public businesses are being sold and bought. It is the stock market that is used in measuring the aggregated value of the publicly-traded firms. Comprehensively, this could be represented by Wilshire 5000. But to be in generally, many investors as well as analysts are focused more on S&P 500. Both of the said indexes play an integral tool to gauge the health of overall economy. Sometimes though, stocks might be misleading.

Most of the time, the economic performance and stock market are aligned. Having said that, whenever the stock market performs well, it’s normally brought by the growing economy. Then again, economic growth is measured in various methods but among the predominant methods is through GDP or Gross Domestic Product.

Whenever the GDP grows, individual businesses produce more and oftentimes, expanding. With expanding business activity, it typically boosts leads and valuations to the gains of stock market.

How Consumer Spending and Stock Market is Connected?

In most cases, consumers are spending more time throughout bull markets because they’re benefiting more from strong economy. At the same time, they feel richer every time their portfolio increases in value. During bear markets though, the economy is spending recedes and thus, not in a good position. Simultaneous fall in the stock value can create the fear for loss of purchasing power and wealth.

Rising stock market on the other hand is aligned with growing economy as mentioned. This is also an indication of increased confidence among investors. With investor confidence in stocks, it results to heightened buying activity that helps in pushing the prices higher. As the stocks are rising, those who have invested in equity market is likely to gain wealth.

With the increase in wealth, it leads to the increase of consumer spending since consumers tend to buy avail more services and buy more goods. And when such thing happens, businesses that are selling these goods and services opt to sell more and produce more. Thus, reaping all the benefits in form of increased ROI.

Now, you have two options in this matter, it is to borrow against settlement and invest in your own business or learn and understand how the stock market works and invest on it.

Mortgage crisis: alarm on the stock exchanges

The central banks are pumping massive amounts of money into the financial markets. The shares continue to slide.

The US mortgage crisis is now drastically impacting banks and financial markets. For many observers, a “real estate bubble” is bursting in the USA, caused by cheap mortgage loans with houses that are becoming increasingly expensive. Since mortgage rates have turned and numerous US homeowners who no longer have credit ratings are no longer paying their installments, bank loans have become lazy. The Mittelstandsbank IKB was the first German institute to get into the “subprime” swirl.

Crisis On Wall Street: The Week That Shook The World

Investors have lost confidence in the stock market and are fleeing fixed-income securities. The financial crisis, triggered by the difficulties in the United States with mortgages to customers with low credit ratings, has reached a new high. At first, Düsseldorf’s IKB was almost bankrupt with ailing subprime loans. Now the banks suspect each other of previously unknown risks. Large banks such as WestLB and SachsenLB are also suspected of this. The industry distrusts. The bottleneck on the money market is a vote of no confidence that the institutions issue to each other.