Thursday, April 30, 2020

Push to Reopen

Pushing for a reopen is currently a theme circulating around the world.  I get that.  Some income is better than no income.  The shock of sudden closure created a lot of panic for people and businesses alike.  However it is widely accepted that it won't be business as usual for a while yet.  For some, the real financial battle may just be beginning.

Business owners in my neck of the woods are starting to come to terms with the reality that a restricted opening with a maximum 50% capacity for what could be 3 to 6 months or longer could spell the real end of their businesses.  Especially when it's been already so difficult for many from just one month of shutdown.  Some were teetering on the edge in a good year.

How many of them will have the liquidity to be able to afford overhead and payroll when income may be halved, depending on the type of business?  Will they be able to scale things to maximize further in this new economy?  Is there enough credit available to make up the difference until the world normalizes?  Not easy but necessary questions.  

Consumers may be anxious to see their favourite restaurants, services, shops open back up without realizing the behind the scenes financial burden for the respective owners.  Many places will have to spend (ongoing) money to buy hospital grade disinfectants, put sanitization stations in place, equip their staff with PPE, just to be able to get back to work.

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