States are reopening but will businesses come back?

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It’s been a busy week for small businesses as states across the country announce their plans for reopening the economy and owners decide whether to resume operations at limited capacity or remain closed for the time  being. Driving the decisions are often external factors like demand for products, offsetting operating costs with potential revenue and convincing workers it’s safe to return. 

While some businesses are open and hoping to lure in consumers, a host of companies from Georgia, Texas, Oklahoma and California are expressing some trepidation around putting themselves or their consumers at risk as coronavirus cases continue to mount in the country. 

Meanwhile, the Paycheck Protection Program has entered its second week of accepting applications and the Small Business Administration has announced that half the funds have already been earmarked. Those who have received the funding are contemplating how and if to spend it. Many no longer have workers to pay as their businesses remain closed and others are struggling to navigate  the program’s opaque rules on how the money can be spent in order to be converted into a grant. 

The program continues to be scrutinized as more public or large companies come forward to return funding they received during the first round of lending, including Texas hotelier Monty Bennett. 

With so much uncertainty surrounding business owners, I caught up with Shark Tank investor and real estate mogul Barbara Corcoran during a live show to hear what advice she’s giving the small businesses she has invested in and what the future will hold for both commercial and residential real estate. See the full interview below:

Latest Developments

• Consumer spending, one of the economy’s key drivers, fell 7.5% in March, its steepest monthly decline since the metric started being reported in 1959.
• Best Buy is reopening its stores with appointments only, a model that others could begin emulating.  
• This startup is hoping to help local, indie bookstores take back market share from Amazon.
• Amazon CEO Jeff Bezos is being called before the House Judiciary Committee to answer questions over whether the tech giant uses its data on independent sellers to create competing products.
• Employees working at businesses deemed essential are increasingly demanding more hazard pay for putting themselves at risk of contracting the virus.

Conversations For You

• LinkedIn’s biweekly snapshot of worker sentiment found that small businesses are offering more perks like the ability to work from home or flexible work hours that many employees expect will continue to remain available going forward. Owners are weighing in on what benefits are most in demand and how they’re being implemented.
• California Gov. Gavin Newsom released the state’s plan for allowing businesses to resume operations and under current guidance, it could be months before most can reopen,  including hair salons and gyms. Those businesses are describing their experiences and their take on the state’s plan.
• Florida business owners are discussing the state’s plan for reopening businesses, which began this week, and what safety precautions they’re taking. 
• Freelancers and sole proprietors are sharing the creative ways they’ve found to break even in the hopes of relaunching when restrictions ease. 
• The oil industry is in crisis as prices and demand have  plummeted. What does that mean for producers and the network of companies that rely on them for revenue? Industry experts are sharing their insights.

Resources

• My colleague Natalie MacDonald in Australia sat down with a small business expert there to discuss managing your cash flow during this crisis, including how to handle a client who isn’t paying within a 30-day window and maintaining payroll. 
• The pandemic has caused many to think about the future  of their business, including a succession plan. Financial planner Doris Ibeh has a guide for why it’s important and how to go about creating one.
• While most companies are slashing marketing budgets, there is still some marketing that could be worthwhile and bring in new customers. Here’s a guide on which ones.
• The city of Chicago has created a new grant program for small businesses, giving out $5,000 to those that qualify.
• Salesforce has launched new software to help its customers reopen safely.
• South Boston is distributing $250,000 worth of loans to local businesses.

Something Good

• Corporations are getting lots of shoutouts for doing good amidst this pandemic, but often help comes from the unexpected places. This elderly woman ordered flowers from a local shop in Pennsylvania, and instead of just flowers, they brought a hot meal and bags of groceries because they wanted to make sure she was taken care of since she can’t go out. 
• If that doesn’t warm your heart, you can at least catch some sun in Sicily, which is offering to cover half the flight and a third of hotel costs from travelers who visit. I’ll see you there.