Taking out small business

Epic shut downs are dealing a death blow to small business

Sadly, we are starting to see the affect of the massive counter measures enacted to combat the initial projections of the corona virus challenge is having to small businesses in the US.

With the staggering numbers of unemployment and the wide spread economic shutdown, small business owners are struggling to keep their doors open. Being in the payroll industry, we have a unique perspective on what’s happening with the pulse of the economy. As we’re sure other companies in the payroll and human resource space are seeing, not only do we have millions not working, there are millions with reduced hours, too. While not technically out of work, these employees are unable to work normal shifts and work weeks. Even the introduction of the SBA programs through the CARES Act may not be enough to jump start some small businesses.

Some customers won’t be able to re-open their doors. One such customer, a restaurant, was dealt that death card. The typical restaurant operates on a 12% net income margin. Take away nearly three months of earning potential (at least 25% of the total annual revenue) without the commensurate relief of expenses – that’s a recipe for disaster. Imagine working your entire life to build a business that is now cash flowing. Then, one day, your doors are closed – not because your service was bad or your food didn’t taste good. You’re closed because of outside, uncontrollable influences – a pandemic declared state of emergency. After a few weeks, the bills pile up. There’s no known end in sight. Now, nearly three months are gone, and the revenue you lost is not something that can be made back… its lost forever. The height of your busiest season when you make the most revenue is a black hole. This was the time of year for you, as it is with retailers at xmas, that is the busiest season without which, your business fails. Your doors remain closed and families are without work.

Our hope is for our customers, friends, vendors, associates and colleagues to do more than simply survive. We hope for your prosperity. And, we sadly say goodbye to one of our own…

Leave a Reply

Close Menu