Coronavirus – What is the effect on Small Business?
Posted on April 12, 2020
The Covid-19 pandemic has sent national economies around the world into a tailspin. We are no different here in the US as businesses continue to be operating on limited hours and minimal staff if they are even open at all. What do we do now as we wait for everything to pass by us. This is a difficult time and we understand that your focus has likely shifted away from creating value in your business, to staying afloat, paying staff and overhead expenses, and planning to reopen if your business is closed. However, now is a good time to plan for the future when you have the time to do so.
This will come to an end and our government is committed to getting small business back on track to profitability again. I have been through the recession of 1980 when we had extremely high interest rates, 9/11, and the recession of 2008-2009. All of these seemed like the world was coming to an end, however every single instance proved that the entrepreneurial spirit of the business owner would overcome these challenging events. Every time we came back stronger and I feel that this is no different than those times. We will get through this and be as strong as ever.
Valuations of existing businesses may have been negatively affected on current businesses. Valuations will discount these events if the businesses come back to where they were post Covid-19. It is important that business owners be ready for this period. Marketing your business post Covid-19 has never been more important than right now. We have to get back on track and get our economy rolling as it was before this pandemic. If this happens values of businesses will come back to where they were prior to all of this.
If you have been thinking about buying a business, you are probably questioning whether now is the right time to do so. As we all know, the Coronavirus/Covid-19 outbreak is affecting the economy. It’s understandable that people are concerned about what the future holds. This is a good time to buy a business. Sellers are still motivated, interest rates are lower, and banks are looking to lend money. If you want to buy a business, please contact us to search out the business that best fits you. These times may bring some attractive selling prices and post Covid-19 will be the time to start looking. Call us at (407)403-4455 and we will schedule a time to talk.