The effects of the Covid -19 Pandemic have been real and apparent. GDP in the first quarter declined by 4.8% according to the Bureau of Economic Analysis and economists are predicting the American economy to contract by as much as 30% in fiscal year 2020. Brutal.
So what is there to get excited about?
Opportunities are laying in the weeds – that’s what.
Entrepreneurs of newly acquired businesses are aggressively moving forward in their business pursuits, predicated upon two newly emerging dynamics:
- Greater availability of resources
- Evolving customer needs
In the case of resources:
- Capital is more plentiful and interest rates are at historical lows.
- Commercial landlords are becoming more negotiable as vacancies and available inventory increase. The service industry – finance, human resources and internet – related – for example, are encouraging more office at home and shrinking their office building footprint. Leases of restaurants and other retailer brick and mortar retail facilities are being renegotiated on the basis of net useable, “socially distanced” square footage rather than the conventional gross square footage.
- The labor pool, with unemployment projected to be as high as 25%, is a growing resource for unskilled and skilled workers.
- Liquidated furniture, fixtures and equipment are available at discounted costs.
- Existing supply chains anxious to get back to business are offering better terms. Newly emerging domestic supply chains are developing and eliminating over-reliance on unreliable overseas suppliers.
As for customer needs:
Given the change in the social landscape as a result of the Pandemic, entrepreneurs are forecasting the future needs of a society that arguably may have more time and less space. Restricted travel and working from home, for example, may translate to a healthier environment and greater family life at the expense of travel overseas and large sports and music venues. I am reminded of my great grandfather who after World War I and the Spanish Influenza (and the Model T Ford) transitioned from the largest carriage making operation north of the Golden Gate Bridge to a successful tire and farm equipment dealership.
“If it works, don’t fix it” will be a hackneyed expression that will go the way of the buggy whip. Entrepreneurs will re-invest and re-tool physical plant, operations and labor resources to meet the newly evolving needs of their customers.
Opportunities await those who are inspired by optimism, gifted with vision, and empowered by hard work.
For further information contact Don Ross, 707-778-0210 or firstname.lastname@example.org.