Crisis Management in the Livery Industry
During the NELA’s Quarterly Meeting on March 10, 2020, Brett Barenholtz of the NELA Board presented on managing a livery business during a period of crisis.
Brett stated that this isn’t the first time operators have had to work through challenges, citing 9/11 as well as the difficulties resulting from the financial downturn of 2008.
Here are some of Brett’s key points from Tuesday evening:
1. React quickly. Do not wait.
2. Reduce your costs - you need liquidity.
- Equipment Loans – contact your lenders
- Push back payments
- Defer payments
- Get extensions
- Refinance at lower rates if possible
- Interest-only payments
- Insurance
- If a big payment is due, see if it can be made in installments
- Would it make sense to take some cars off the road?
- Leased Space
- Call landlord(s) to see what they can do
- Manage work schedules
- We tend to staff for the heaviest volume – time to revisit that
- Can you reduce staff to a 4-day work week?
- Can you reduce hours per day?
- Certainly want to avoid OT
3. Calm your clients.
- Inform clients what you are doing to mitigate contagion
4. Even now, there ARE sales opportunities.
- If people were taking the train to NYC, offer a discounted rate in a private sedan
- For people taking short flights, for example to NYC, again, there is less risk of contagion from a private sedan than from a plane
