Pretty amazing how this pandemic is killing our economy. I have my own thoughts on this virus but wont get into them here.
Instead I am more concerned about how this will impact our 3 companies as well as our employees.
We can Poo-Poo this virus till the cows come home but we only need to look at what is happening in our economy to know that if this virus spreads even a little more business owners could be in for some rough times. One only has to look to Europe ( namely Italy ) to see just how bad things could get for us. It doesn't matter if this is all hype brought on by the media or not. When they start closing the doors to events, schools, sports events, theaters, concert halls, shops, stores, restaurants and such and people avoid walking the streets like they are doing in Italy then you know things can get real bad for our economy. The trickle down effect can be a killer for many small businesses.
I have never been one to buy into hysteria and hype. But I am also not a fool. We have a lot of staff now and I am responsible to them and their families. I also have a huge responsibility to make sure our companies survive a big economic downturn. I held a staff meeting last week and talked with our employees. I told them we need to be prepared for a severe slow down in business and because of that I have instituted new policies which include no new expenditures. The only purchases I will approve are for essential items such as needed supplies. We are also going to reduce our product and parts inventories by not replacing sold items.
So why would I do this ? Because in a big downturn in our economy, cash is king. My biggest concern is paying our monthly bills but also ensuring we have payroll in the bank for several months. Our employees are highly trained and each one performs functions that are critical to our survival. I also have a boat load of money and time tied up in getting them trained to fulfill their duties. The last thing I want to do is lay them off and then 6 months from now start all over with new employees pouring hoardes of money and a years time in training.
My suggestion is to bank your money and let your cash reserves start building so you are in a position to keep going if the economy tanks from society being essentially shut down over this pandemic. While I may sound like I am crying wolf and over reacting, my personal feeling is we have only seen the start of how bad things will get.
I have seen all the comments about the ordinary flu and how it infects or kills more people but this virus is completely different. It is respiratory based and unlike the flu which requires IV fluids and an overnight stay for real sick patients, this virus requires patients being on ventilators and a few weeks stay in ICU. In other words our health system wont be able to keep up. The other problem we are facing is the craziness of society. The run on toilet paper and hand sanitizer is a perfect example. When fear and panic hit society they quit spending money on non-essentials and start hoarding cash. All of us here perform work that is non essential.
My advice, be prepared for even more craziness and hoard your cash. This entire fiasco is going to get much worse before it gets better and as business owners we need to be prepared to react to society and their purchase habits and ensure our businesses survive into the future. In situations like this, it really does not matter if we think this pandemic is a crock of shit. What matters is how we react to it and I have always been one to stay ahead of the curve and be proactive versus getting my ass kicked when panic sets in. Just something to think of.
Off my soap box,
It's hard to know what to believe or who to believe. It sounds like you're on top of it. All we can do is look at our personal situation and respond accordingly.
As far as all the hype, I see it as a good thing. It may depress our economy but because of all the precautions taking place the virus should be short lived. Another thing to consider about a slowed economy is all the uncertainty with the upcoming election. Hopefully everything will get back to normal (whatever normal is) after November.
Stay well Mojo.
Kody, I think "normal" will never be back. We will be back to our new standards soon. But the world has a very new normal. With or without the Corona Virus. This election is just following the last several and the misfits are growing at an alarming rate.
Back to normal - I don't see it happening in just about every dimension of life.
We (people like me) focus on our business more than the bigger picture, but there is a trickle down that
usually happens from our political leaders and economic world - that might help to keep eyes on.
Political leaders - hard to figure their next moves(s) - as mixed as they are. This is election year and
what are the voters understanding about the big picture? Voters and all the way to the top (highest
political levels) are going to work toward their advantage or at least what's in this for me attitude.
What is the best for our business levels (all) will be in their minds?
All this drives what will come out of our political offices (low to highest). Some don't understand the biggest picture and some don't - the smaller picture. Usually their respective talk is relative to what's in it for them? (big varieties when it comes to this).
Of course, in our class (very small business people) we have plenty to think about - making money to
pay our bills. But how we make our money is not by the same level of skills and prejudice of
higher ups (alluded to in this already).
Look at the stock markets, look at other investments - all this plays out in our political thinking when
voting - the big picture is at stake.
The deficit, look at how it has grown in just recent years - then what will the leaders propose going
I say, as a small business man, try to keep perspective on our business (do what is best for us),
but try to watch the leaders of the bigger pictures also. What are they doing/going to push for that
could adversely hurt us working class.
Good luck as we proceed.
For sure - it isn't too fun here in NY. First the National Guard comes to New Rochelle - one town away - and before you know it NYC has half the entire cases in the Country. The density of people in Manhattan and subway transportation are the leading causes. Although I have always enjoyed working in Manhattan - at the end of every day I welcome leaving for a rural county. The apartments in the last 3 years have gone from $ 500,000 to
$ 3,000,000 plus. All that money and maintenance plus upkeep to be on top of each other. From when I was a kid I always thought to my self if they keep knocking down 4 story prewar buildings and erecting 60 story sky scrapers and going from 10- families to 500 families in one foot print - the day will come when they can't provide services and protections - that day has long come and gone. Traffic doesn't move - parking is rare - general needs are three times the cost of everywhere else - yet the people are climbing over each other to find their ideal apartment. Go figure ?
Being central to the financial capital counts for something but to me - I'd rather come in to work than have residence there.
A garage, basement, and a back yard are my first wants. Restaurants, Broadway, and Museums are way at the back end.
Business for me has gone away - a job here and there but I'll be supplementing my bills from savings before this passes. How these gate keepers let this come here is beyond me. After Murdoff stole 60 billion before anyone noticed we should have begun than to be on guard and anticipate things better. Did anyone see the Bill Gates video from two years ago talking about how unprepared we are for a pandemic ?
Some Senators actually knew to sell their stocks before the virus hit - corruption always supersedes the peoples well being - I wish all of you well - I know we're going to get crazy but stay home until they have a decent vaccine or are well ahead of the curve - this group is an older group - be mindful friends
The phones been dead all week, Alachuia County is in lockdown but still plenty of cars on the roads. I started two chairs Monday and then Tuesday got hit hard by some bug. Between Rose cramming herbs and vitamins down my throat and preachers moms Chicken soup and tons of bed rest I made it back to the land of the living. Pretty sure it wasn't coronavirus but it was something pretty nasty. Thanks to Roses quick thinking it never made it to my lungs. 3 days in bed is enough for me, rest and relaxation for the remainder of the weekend.
It is encouraging that your health report is better.
You have a great nurse.
COVID-19 is here to stay