Read on Twitter
Tweetstorm on how while well-intentioned the 75% wage subsidy will not help any companies experiencing > 1% monthly growth 1/ a few #cdnpoli
So once the program announced that it would compare similar months from the previous year the jig was up. It's mathematically not possible to help any company that has experienced growth in the last year if revenue is consistent
Let's take a look at how this works. Please see attached a company that has experienced 1% monthly growth in revenue in 2019 and was planning to do so in 2020
This is relatively modest as an emerging SMB aiming for 12% revenue growth
In the crucial months for comparison revenue in
March 2019 = $10.20
April 2019 = $10.30
April 2019 = $10.41
Where revenue expected for
March 2020 = $11.49
April 2020 = $11.61
April 2020 = $11.73
March 2019 = $10.20
April 2019 = $10.30
April 2019 = $10.41
Where revenue expected for
March 2020 = $11.49
April 2020 = $11.61
April 2020 = $11.73
Let's apply the test of a minimum 30% drop in revenue based on OBVIOUSLY the last month Feb $11.38 - is as follows:
March 2020 = $8.05
April 2020 = $8..13
April 2020 = $8.21
March 2020 = $8.05
April 2020 = $8..13
April 2020 = $8.21
However guess what even though your revenue dropped compared to Feb- it only dropped 79% from last year:
You actually need to drop revenue compared to Feb 2020 of
March 2020- $7.14
April 2020 - $7.21
May 2020 - $7.28
This is a revenue drop minimum of 37% compared to Feb 2020 to qualify.
March 2020- $7.14
April 2020 - $7.21
May 2020 - $7.28
This is a revenue drop minimum of 37% compared to Feb 2020 to qualify.
So the bar if your company was growing I much higher then if your company was actually shrinking/failing from last year. Therefore punishing companies for success. not an ideal program @Fton_Chamber #CDNpoli #nbpoli
No one does the math? Or they did the math and figured out how to announce a program growing company couldn't use?
So to summarize. If you doubled your business last year you need a 65% drop in Revenue in March to qualify when the benchmark was suppose (or announced) to be 30%
@CFIB I did a bunch of math on how the wage subsidize won’t apply to growing businesses may be helpful to others. 30% not accurate for any business experiencing growth.
people double checking my math and DMing me
