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& #39;s mathematically not possible to help any company that has experienced growth in the last year if revenue is consistent
Let& #39;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& #39;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& #39;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
