CLEVELAND, Ohio (WOIO) - The coronavirus has companies making tough decisions about their workforce. And, workers are trying to figure out how to survive without regular paychecks.
LaRese Purnell, a managing partner at CLE Consulting Firm, said it’s time for business owners and individuals to look at their budgets and “reset” for the future.
“The new table talk should be money. It should be about finances,” Purnell said.
CLE Consulting Firm works with numerous businesses in Northeast Ohio offering tax, management and marking advice.
“The biggest question we’re getting as accounts, is when am I going to run out of money? How long will I be able to sustain my employees?,” Purnell said.
He said some companies experiencing hardships during the coronavirus pandemic may not survive after being ordered by the state to temporarily close due to the health crisis.
Purnell is urging business owners and employees to sit down and hammer out an action plan to try and avoid a financial crisis now and in the future.
“Recession equals or means reset, and really, encouraging people to use this time to look at their finances, put a budget in place, create margin, cut out the things that are really impeding them from becoming fiscally stable,” Purnell said.
He suggests contacting every company you deal with to see what relief program may be available.
“This, I think, is going to make people restructure (and) downsize,” Purnell said. “Don’t be embarrassed because you have to downsize. Look at that as you being a leader. Then I’m also saying if you’re average at something, use this time to read and use podcasts to be above average in your industry, so when you come back now you looked and trained yourself to scale. So now you can be move competitive.”
Rashaunda Palmer is an independent contractor. She works as a hair stylist and is currently out of work due to the governor’s order to close non-essential businesses.
Palmer said decisions she made a year ago are helping to soften the blow of not earning a regular paycheck.
“I did a little bit more saving this year,” Palmer said. "So even though I’m closed, hopefully it doesn’t last six months (or) a year, so if I last a month or two, I kind of put myself in a position. So, I’m very thankful for that.
Purnell said any stimulus check from the government should be used wisely.
“Use that money to actually start a savings account. Use that to truly invest once the stock market bottoms out. It’s really to situate your family, so you can last through the next emergency,” Purnell said.
Palmer has this advice for those in her industry.
“I just want us to get more focused, figure out ways we can use this money to become one of those millionaires one day, (and) create some things to where our families can survive during another crisis.”
Palmer said she’s cranking up her social media presence and will soon be hosting online classes tackling a wide-range of hair topics.
Both she and Purnell said it’s important for people to support the small businesses that remain open in Ohio.
“Go to a small business that’s still open and buy a gift card,” Purnell said. “You may not use that right now. But go ahead and infuse that money into that business, because they’re still trying to survive.”
As with medical advice, when it comes to financial decisions its best to contact an expert you trust.