Consumer spending in Phoenix decreased by 23.7%" reported by the Phoenix Business Journal.
U.S. Savings rate jumps to highest level in 39 years reported by MarketWatch.com
Lets take a minute and think about the impact the pandemic has on your business, consumers have changed their behavior, and now 45 days or so later that new behavior may be a habit that persists.
Fewer customers and consumer fear are two elements of new habits. Locally we are opening up again, but the new habit can be seen in the closed stores, the curbside pick up, the line of now drive through ONLY eateries, the fewer people driving, still no big events like sport, and travel has all but stopped. Which of these impacts your business the most?
Rental relief, credit card relief, increased unemployment benefits all of this is temporary and at some point in the future unpaid rents will need to be paid, but how and when?
All of these events are pushing our society in a particular direction, I am not a visionary nor will I dare to predict on a macro economic scale, but I can see some of the ripples that affect individuals, and business.
Bottom line:
Any 12-month budget you had is most likely useless at this point. For you as the business owner the initial shock should over, you have identified a way to survive, now is the time to look at the ripple effects and figure out how your business will adapt, change, pivot, systematize, improve processes so you can keep some employees, so you can keep your cash flowing, so you can be profitable.
How are you going to change your business to adapt to the ripple effects?
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