5 Tips to Survive the Crisis and Thrive in Recovery

These are hard and scary times for entrepreneurs. Our margins are shrinking if not gone. How and where we work have been turned upside down. Our customers and almost all segments of the economy are shrinking. There are people everywhere suffering and losing loved ones.

The novel A Tale of Two Cities, by Charles Dickens, starts with the line: “It was the best of times, it was the worst of times, . . . it was the spring of hope, it was the winter of despair . . . .” Call me an optimist, but I think that this challenging and awful time also presents some wonderful consequences and opportunities.

We are spending more time with our families. We are reevaluating our lives, what it means to be alive and happy. We are finding new joy in the small and simple things in our lives. We better understand the strength of the human spirit and our collective will to sacrifice for others. We see that there is joy in sacrificing some things now for a better future.

Back to business. So what do we do now that the world has been turned upside down? The first and most necessary thing is to survive. Once we have secured our survival, then we can focus on positioning ourselves to thrive in the future to come.

LET’S SURVIVE

Get Lean and Sacrifice

The first step to survival is to get lean and make the right sacrifices.

Take the time to evaluate carefully who you are as a business and what are your essential functions. You will need to evaluate and judge between which business expenses are necessary, which are nice to have, and which are no more than bloat and fat, left over from a period of excess. You need to eliminate the bloat and fat quickly. Nice-to-haves probably also need to go. Only the essentials should survive.

Now is the time to cut the fat and keep the essential. Many companies are now in a position to renegotiate terms and rates to encourage economic growth and recovery as soon as possible.

You should also plan on adjusting your compensation plans to ensure all of your needed people can survive. The businesses that fire and lay off much of their lower-paid employees and contractors may survive, but they are going to have a tough time taking the next step of positioning the business to thrive through an economic recovery period. That is why many leaders have been reducing their and their senior people’s salaries and compensation packages first.

Profits First

The age of easy investment and being able to count on future investment rounds to fuel future growth is likely over for the foreseeable future. Angel and venture investors are likely going to shrink the size of their investments and use more of the dry powder that they have to support their current portfolio companies.

It will be crucial to find ways to become profitable earlier and extend out burn-rates as long as possible. There are many examples of bootstrapped companies in all industries. Studying up on those companies is a solid investment of an entrepreneur's time.

If you need cash to cover expenses, take advantage of the PPP and EIDL SBA loan programs. Get or increase your lines of credit and apply for whatever bank and other debt financing that you may be eligible for.

At the end of the day, in this economy, the companies that can scale back expenses and quickly get back to profitability will be those that will be able to survive and position themselves to thrive moving forward.

Be Lawsuit Ready

Entrepreneurs need to be aware that periods of economic recession and recovery are times of increased legal disputes and lawsuits . The two actions that we suggest our entrepreneur clients take are: (1) to evaluate, and enhance if necessary, commercial liability insurance policies; (2) evaluate your contracts and limit liability moving forward; and (3) ensure that your business is going to protect you personally from liabilities and lawsuits brought against your company.

The first step is as easy as giving a call to your insurance broker. Bring them up to speed on your business and discuss whether your insurance package is comprehensive enough in scope to cover the many areas of liabilities that you may face and large enough to cover the costs of liabilities and lawsuits that may be coming your way.

The next step we advise is to review your customer and other 3rd party facing legal agreements and contracts and review and/or implement provisions that cap or limit your overall liability under those contracts to make sure that if you do have an increased number of legal claims and lawsuits on those contracts that they will stay within insurance limits and not put your business resources at risk.

The final step is to review your business structure and the level of formality that you have been operating your business legally under and tighten up any areas that might expose you as an owner to being liable for business expenses. The areas where we see the most mistakes made are the following:

  1. If you are a corporation, not holding annual shareholder and board of director meetings.
  2. Not having written meeting minutes or written consents to formally approve corporate actions.
  3. Not keeping proper books and accounting and making unreimbursed personal expenditures on a company account.
  4. Not making annual filings and state registrations and allowing your business entity’s good standing status to lapse.
  5. If your entity is an LLC, not ensuring that your operating agreement doesn’t expose the owners to any personal liability for the debts or obligations of the company.

NOW TO THRIVE

Get Flexible and Diversify Product and Service Offerings

Successful and thriving businesses have multiple revenue streams that support and drive to the sales of the key products or offerings of your business.

Now is the time to explore how you make money. Here are some things to ask yourself and explore:

  • Can you productize your service offering to sell a less-customized version of your service at a lower cost?
  • Can you offer professional services to enhance the product or technology offering that you sell?
  • Can you create an online course to teach your clients and potential customers about ways to receive your services at a lower cost per person model?
  • Can you create a successful YouTube channel and make a revenue stream from advertising revenue?
  • Can you promote and sell partner company services and products that support and enhance your services and products?

I’m not suggesting that you do everything, but that you are very strategic in how you link these different offerings together to strategically lead your clients to your most profitable products or services.

Play the Long Game

Look into the future regularly and make plans for how you see your company fitting into the future business landscape. Economic downturns and recessions are temporary. The key is to look far enough forward to see how the economic downturn is going to change the nature of your industry and business and start now to prepare your customers and clients to see you as a fearless leader in leading the industry into that new reality.

Build a strong foundation. In hard economic times, where there is more time and capacity, it is time to invest in your foundation. Invest in expanding your customer base and enhancing the loyalty of your customer base to you. Invest in your systems, processes, and core business activities to support the exponential growth to come with your expanded base when the economy starts heading back up.

Give back and support those on the front lines of the pandemic. Now is not the time for profiteering. Find ways to support your customers, your community, your family, and your friends. The better we all make it through this period, the quicker and stronger the recovery will be. Support your local food bank and homeless shelters. Be generous with your time, resources, and support the community who has supported you through the good times.

Let’s do what we can today so we can look back as a people at this time and say: “It was the best of times, . . . it was the spring of hope . . . .” We can get through this together!

Demystifying FMLA

By Adrienne Langmo • September 12, 2025
If you're working for — or running — a business with under 50 employees, the Family and Medical Leave Act (FMLA) might seem like a distant federal regulation. But for eligible employees and covered employers, it’s a powerful tool for balancing work and life during major health or family events. Here's what you need to know. 🧩 The What The FMLA is a federal law that allows eligible employees to take up to 12 weeks of unpaid, job-protected leave in a 12-month period for specific family or medical reasons, including: The birth or adoption of a child Caring for a spouse, child, or parent with a serious health condition Recovering from a serious health condition themselves Certain military-related family needs The leave can be taken intermittently, in blocks, or in one long swath. During FMLA leave, employers must maintain group health benefits as if the employee were still working. When the leave ends, the employee is entitled to return to the same or an equivalent position. 👥 The Who FMLA is mandatory for employers with 50 or more employees within a 75-mile radius. So, if your business has fewer than 50 employees at a given location, you’re not legally required to offer FMLA leave —but you can choose to adopt similar policies voluntarily. Employees must also meet FMLA eligibility criteria: Worked for the employer for at least 12 months Logged at least 1,250 hours in the past year Work at a location with 50+ employees within 75 miles *State employees may have additional benefits provided under state law. Here, we’re discussing private employers and employees. 🛠️ Employer Takeaways Treating employees appropriately during their FMLA leave and upon their return can present some hurdles for employers and coworkers, particularly when an employee has been on leave for some time and, e.g., projects or programs have evolved in their absence. You don’t have to navigate these situations alone; we can provide your team with the tools and information necessary to smoothly navigate the full FMLA process and avoid any sticky FMLA retaliation or interference claims. And, even if you’re not legally bound by FMLA, offering comparable leave can be a smart move. It builds trust, boosts retention, and shows you value your team’s well-being. Consider crafting a voluntary leave policy that mirrors FMLA protections, including: Clear eligibility rules Defined leave duration Job protection guarantees Coordination with paid time off or disability benefits For small businesses, this means you have flexibility—but also responsibility to communicate policies clearly. Want to overhaul those policies or craft great messaging to your team, give us a call! We’re here to make leave policies less painful and more practical. 📣 Employee Takeaways If you work for a small Utah employer, ask about your company’s leave policies. While FMLA doesn’t require you to use your accrued leave during your FMLA leave, it allows your employer to write into its policy a requirement that you do so. Make sure you read that policy! And, even if FMLA doesn’t apply, your employer may offer benefits similar to FMLA. If you’re dealing with a serious health issue or family emergency, document your situation, give notice as early as possible, and follow internal procedures. Need help understanding those procedures or your rights as an employee? We got your back! ⚖️ Final Thoughts FMLA is more than a legal acronym—it’s a lifeline for employees facing life’s biggest challenges. For Utah employers, understanding the law and choosing to offer similar protections can set your business apart. Whether you're an HR manager, CEO, or a team member, knowing your rights and responsibilities helps everyone navigate leave with clarity and compassion.

Moonlighting, Side hustles, and Non-Competes

By Adrienne Langmo • September 3, 2025
So, you’ve got an employee that wants to teach a night class? Drive for a ride share? Pursue a passion project on the side? That’s great…. Right? You can ensure it’s great for both you and your employee by entering a non-compete, non-solicitation, non-disparagement, and/or non-disclosure agreement and setting clear workplace boundaries . Non-Compete Agreements can help employers do damage control when an employee wants to branch out. Non-competes alone are limited, but when properly crafted and paired with the other agreements listed above, they can provide peace of mind and protection to employers. Utah law takes a close look at these agreements when it comes to enforceability, so don’t go it alone when it comes to crafting one. Boundaries Set boundaries with your employees on the use of their time, your equipment, and your company’s other resources like client lists or IP. And pay close attention with remote or telework employees where boundaries may be squishier. Here’s some examples where lines may get blurred: Can the employee use the office printer, or their allotted printing budget for their teaching gig? What if it’s just a couple sheets of paper? What if it’s their 100-page course outline? Maybe. Do you have an equipment policy that allows employees minor personal usage of the office equipment? Does it define “minor”? Might you want to update that policy if it doesn’t provide the clarity you need? We can help! Can the employee pick up a ride share client in the company vehicle while they’re out running an errand for the company What if it’s their personal vehicle? What if the trip is along the way, no deviation? Definitely not the company vehicle for insurance purposes of carrying a random person around. But otherwise, this raises the charmingly titled legal doctrine of “frolic and detour” where it is much less messy in terms of liability (for accidents, etc.) if the employee does not engage in personal errands while on the clock, when they’re supposed to be completing your company’s business. No double dipping. No frolicking, as tempting as frolicking sounds. Can they email one of the company’s clients with a question that’ll help them move things forward on their side project? Generally, probably not, especially if you have a non-solicitation agreement in hand. But, it may depend on more details than this scenario offers. When in doubt, talk about it with your employee, get an idea of what their end game is, and give us a call if you need a sounding board. Need help handling questions like these, updating policies, or putting together a non-compete agreement? We can help!

Beneficial Ownership Rules

December 28, 2023
Starting January 1, 2024, a new rule took effect requiring all registered legal entities, including limited liability companies and corporations, to report their beneficial owners to the Financial Crimes Enforcement Network (FinCEN). We wanted to give you a heads up about the rule and give you as much information about what it means to you. What is the rule? The rule, which is called the Beneficial Ownership Information Reporting Requirements (BOI Rule) , comes from the Corporate Transparency Act, which was passed by Congress in 2021. This law created the BOI Rule with FinCEN as part of the U.S. government’s efforts to make it harder for bad actors to hide or benefit from their ill-gotten gains through shell companies or other deceitful ownership structures. Under this new law, FinCEN will permit Federal, State, and local officials to obtain ownership information for authorized activities related to national security, law enforcement, and intelligence. When does the rule take effect? And when do I have to submit a report? The BOI Rule took effect on January 1, 2024 . If your company existed before January 1, 2024, you must file its initial beneficial ownership information report by January 1, 2025 . If your company is formed or registered after January 1, 2024, you must file its initial beneficial ownership information report within 90 days after receiving actual or public notice that its creation or registration is effective. If any beneficial ownership information changes, you will have 90 days from the day of the change to file an updated or corrected report with FinCEN. What if I don’t file a Report? According to FinCEN: “The willful failure to report complete or updated beneficial ownership information to FinCEN, or the willful provision of or attempt to provide false or fraudulent beneficial ownership information may result in a civil or criminal penalties, including civil penalties of up to $500 for each day that the violation continues, or criminal penalties including imprisonment for up to two years and/or a fine of up to $10,000. Senior officers of an entity that fails to file a required BOI report may be held accountable for that failure.” What do I need to include in the report? The BOI Rule requires that all entities report information about the company, each individual with substantial control over the entity, and each beneficial owner. What information is required to report about the entity? Full legal name of your company and any DBAs names; Complete current street address for your company's principal place of business (P.O. boxes will not be accepted); The jurisdiction of formation or registration; and Tax identification: IRS tax identification number (TIN) and employer identification number (EIN). What information is required to report about the controlling individuals and beneficial owners? The individual's legal name; Individual's date of birth; Individual's residential address; and A unique identifying number from an acceptable identification document (such as an unexpired driver's license, passport, identification document issued by a State or local government or Indian tribe) and the name of the issuing state or jurisdiction. Who is considered to have substantial control of the entity? Examples of an individual that exercises substantial control over the entity are: An individual is a senior officer (President, CEO, CFO, COO, Manager, or other office who performs a similar function); An individual has the authority to appoint or remove certain officers or a majority of directors of the reporting company; An individual is an important decision-maker for the company; or An individual has any other form of substantial control over the company. Who is considered a beneficial owner? A beneficial owner is an individual that owns or controls at least 25% of the entity’s ownership interests. This includes individuals that indirectly own or control 25% of the ownership interest. For example, if Joe is a 50% owner of Parent LLC, which in turn owns 50% of Subsidiary Corp, then Joe beneficially owns 25% of Subsidiary Corp (50% of 50% = 25%). What type of entities will be required to file a report with FinCEN? All domestically formed entities and foreign registered entities in the USA are required to file a report. Types of entities include corporations, limited liability companies, limited partnerships, general partnerships, and any other entity registered with a state Secretary of State or Division of Corporations or other similar office. There are some types of companies that are exempt from the reporting rule, and in general they are companies that already have to report beneficial ownership to another federal agency. The 23 exemptions listed by FinCEN are: Securities reporting issuer, Governmental authority, Bank, Credit union, Depository institution holding company, Money services business, Broker or dealer in securities, Securities exchange or clearing agency, Securities exchange or clearing agency, Other Exchange Act registered entity, Investment company or investment adviser, Venture capital fund adviser, Insurance company, State-licensed insurance producer, Commodity Exchange Act registered entity, Accounting firm, Public utility, Financial market utility, Pooled investment vehicle, Tax-exempt entity, Entity assisting a tax-exempt entity, Large operating company, Subsidiary of certain exempt entities, and Inactive entity. Can you help me with my company’s report? Yes! We are happy to help prepare and file your company’s BOI Rule report with FinCEN before the December 31, 2024 deadline. We offer a flat-fee service that is discounted based on how early you pay and submit your information. Sign up for our BOI Rule report service HERE. We also know that some situations can be complicated, so please feel free to ask us any questions regarding compliance with the beneficial ownership interest reporting requirements for your company by emailing teamjosh@freemanlovell.com .