October, 2020
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THE MONTHLY CEO TM ADVISORY OCTOBER 2020 VOLUME 1, ISSUE 10 Dear Friends, I am pleased to provide you with the October 2020 issue of The Monthly CEO Advisory™. This is our tenth issue and we continue to positively impact thousands of CEOs, Presidents, Business Owners and others at the C suite level. Hard to believe that we’ve all been operating in a pandemic for more than six months with no true end in sight. I encourage you to continue to work “on” and not “in” your business. Part of that is preparing your plans for 2021. Be sure and read my article on “Planning for an Uncertain Future.” Our monthly line-up of short (one page) articles now includes the following categories: • Employee Benefits • HR Compliance • Business Growth & Profitability • Commercial Insurance • Manufacturing Excellence • Information Technology • CFO Insights • Alternative Financing • Sales Management Enjoy the articles that follow. The Trusted Advisors that contribute to this publication are the best in their respective fields. If you need help, please reach out. Thank you for allowing us to be part of your continuing business education, growth and success. Stay safe. Sincerely, Ken Keller Ken Keller CEO STRATEGIC ADVISORY BOARDS 28494 Westinghouse Pl. Suite 204 Valencia, CA 91355 www.StrategicAdvisoryBoards.com My daily blog at https://www.linkedin.com/in/kwkeller/ Telephone/Text: 661.645.7086 Business Growth Opportunities to Consider in 2020 Business Growth & Profits | Ken Keller ........................................................................... Page 1 Tax News | David Stone ................................................................................................... Page 2 Commercial Insurance | Paul Palkovic .............................................................................. Page 3 Human Resources Compliance | Barry Cohn ................................................................... Page 4 Manufacturing Excellence | BJ Schramm ........................................................................ Page 5 Information Technology | Craig Pollack .......................................................................... Page 6 Company Benefits | Barry Cohn ...................................................................................... Page 7 CFO Insights | Chase Morrison ....................................................................................... Page 8 Alternative Financing | Kristy Melton ............................................................................. Page 9 We Can Do Better | Paul Mitchell ................................................................................. Page 10 Are You Ready to Plan, Perform and Grow? .................................................................. Page 11 The Monthly CEO Advisory is a publication for business leaders. Please enjoy the articles, send us any suggestions of topics you would like to see covered and pass this on to others so that they might benefit. Thank you. Ken Keller STRATEGIC ADVISORY BOARDS 28494 Westinghouse Pl. Suite 204 | Valencia, CA 91355 My daily blog at https://www.linkedin.com/in/kwkeller/ Telephone/Text: 661.645.7086 GROWTH BUSINESS & PROFITS PLANNING FOR AN UNCERTAIN FUTURE Since 2020 has been such a challeng- many business facing industries like. You may not be there now and you ing year, I want to share my thoughts (dining, car rentals, lodging, many never get there but you need to about how as CEO, you might want to conventions, trade shows, understand what it looks like and what conduct your strategic and operational events) you will need to do if you ever find planning process. • Various industries have seen yourself on the way there. No one can predict with any certainty dramatic changes and swings Second, I recommendation creating what will happen in the next 6 to 24 in demand, both up and down a two year, go forward revenue fore- months. Ignore both noise and distrac- • Government funding has dried cast. Start with the worst case, then tions; rely on your own leading trip wire up; it is uncertain if addition- create the best case, then develop the indicators for your company. al support will come and if it most-likely case scenario. First, I recommend planning for the does, how much and it what How do you do this? You first identify worst. Meaning, your first scenario form the key assumptions for each scenario. should be a worst case scenario. What • Companies are finding that, As an example, for my manufactur- does that look like? mostly, “stay at home” workers ing companies, I have recommended Assume that any loans you have from are more productive creating different plans based on the your bank will be called in; your biggest • Nearly 70% of our economy possible time frames that Boeing and customers drop you as an approved is consumer based spend- Airbus will turn on the growth spigot supplier; your customers drag out ing; some companies (hotels, again. payments well beyond acceptable pay- motels, bars, restaurants, retail, Following crafting the assumptions, ment terms; your key suppliers / ven- clothing, and entertainment) create building blocks of your different dors slow down shipments and require will likely go out of business as revenue streams. As you go through payment in advance before delivering; weddings, religious ceremo- this process you need to set “trigger and, key employees depart. nies, anniversary and birthday points” that will require additional I do not want to spread doom and parties, and even corporate actions if things happen, or don’t. To gloom but here are some interesting events become virtual if they make it easy, the trigger points can observations you should consider: are held at all be laid out in a “If this, then that …” • Airlines are down 80% to In short, uncertainty and volatility are format. pre-pandemic levels; that in- at extremely high levels and will remain Third, your future is totally depen- dustry is a leading indicator of that way for at least another 18 to 24 dent on your clients. Make certain that months. you have a clear and concise plan for A worst case scenario paints a picture staying in touch with those buying from for the CEO of what the bottom looks you. Ideally, you want to understand what their strategies are and what their Ken Keller forecasts look like. Focus on building I work with Business Owners, CEOs and stronger relationships. Presidents leading companies with 20 or more Finally, don’t forget about “new employees, providing advice to increase cheese.” In times of uncertainty there revenue, decrease costs and improve profitability. are opportunities to land new clients. [email protected] or Don’t be afraid to pick up the phone call 661.645.7086. and call prospective clients. 1 TAX NEWS BLOODY COMPLICATED In 2004, Stephanie Meyer sparked • Carlisle Cullen, patriarch of Ed- a bona fide cultural phenomenon with ward’s clan, turns him into a vampire David Stone her debut novel, Twilight, recounting in 1918 during the Spanish Flu. IRS Solutions Valencia, Inc. the romance between 17-year-old (Edward may not have been pay- www.FormerIRS.com schoolgirl Bella Swan and 109-year-old ing much — the 4% bracket didn’t We help clients in dealing with IRS “vegetarian” vampire Edward Cullen. kick in until the equivalent of about collection and audit issues of individuals (He only drinks animal blood, not hu- $85,000 in today’s dollars.) But turn- and small, midsize and large businesses throughout the United States. man.) The story spawned four books, ing him into a vampire by definition [email protected] five movies (because you’ve gotta means raising him back from the double up that final book to sell more dead. So should Edward even be isle’s $34.5 billion fortune is built on tickets and popcorn), and billions in filing a return in the first place? Or is 370 years of mostly tax-advantaged revenue. If you were a teenage girl at anything a vampire earns “income in growth. (His adopted daughter Alice any time during those years, or know respect of a decedent,” and better can see the future, which we imag- someone who was, you went through a reported on Form 1041 for estates ine helped avoid buying Theranos, Twilight phase. and trusts? the blood-testing startup that turned Last week, Meyer released a out to be a scam.) long-awaited fifth volume, Midnight • Bella and Edward get married in Sun, retelling the original story from the fourth book, Breaking Dawn, on • In the books, Edward Cullen has his Cullen’s point of view. While it’s too August 13. That means on Decem- own supernatural ability: mind-read- soon to know if the book launches a ber 31 they become eligible to file ing. Would he please tell us whether new generation of twi-hards, we can jointly. But can they, really, if Edward Washington is going to raise taxes be sure that millions across the country is undead? next year so we know whether to will eagerly return to Forks, Washing- contribute to traditional or Roth ton for the Twilight renaissance. If mov- • Should Bella file an estate tax return retirement accounts? ie studios can churn out a new Batman when Edward turns her into a vam- every year, surely there’s room when pire after she dies in childbirth? If you’re a Twilight fan, enjoy the new theaters re-open for more of Twilight’s book — and don’t worry about taxes. vampire clans and werewolf packs. • Vampires live a long, long time. That We’re pretty sure we’ve never worked We realize that when you hear the makes getting rich easy: the only with a real vampire before, but in the word “vampire,” you probably don’t thing more potent than vampire unlikely event that you get bitten, think “taxes.” But we do. (It’s either venom is compound interest. In fact, by all means tell us so we can help a sickness, or a gift — really, who the Forbes placed Edward’s mentor you work through these complicated heck knows in 2020 anyway?) But the Carlisle first on its list of the 15 rich- questions! (Unless, of course, telling books raise enough tax questions to est fictional characters, beating Jed us means you have to kill us, in which fill an entire law school exam. So pace Clampett, Tony Stark, Richie Rich, case never mind. yourself, and stay hydrated: and even Scrooge McDuck.