Small businesses in the US suffer to the point of closing

Pandemic struggles: Small businesses in the US suffer to the point of closing

Small businesses in the US suffer to the point of closing

The pandemic is affecting different classes of people differently. The rich, the people with money and big businesses face fewer problems. And the people with small businesses, well, the story is entirely different.

Many small businesses have come to the point of shutting down. At the same time, many big businesses with large capitals are growing during the pandemic.

For example, Basic Fun Inc, a toy importer in Florida is seeing their sales sharply rise as Walmart and Target roll back into normal operations.

There is much demand for Basic Inc products, but they do not have 10 million dollars they need to buy merchandise to meet this sharply rising demand.

Olivia Colt

Olivia Colt’s life long dream was to build a catering business, and she did make her dreams come true. At the age of 27, she suffered and survived two strokes and went on to build her dream business.

In the next ten years, after surviving yet another stroke, her catering company Salt and Honey Catering Plus Events was thriving in Oakland like never before.

But the coronavirus has changed things drastically for Olivia Colt. She had to reduce the number of employees from 25 down to six due to cancellations of wedding orders and events.

She also tried to boost up her revenue by starting an online grocery business from the loans she acquired from the US federal program and Paycheck Protection Program (PPP).

Colt had expected these loans to get her through the pandemic. However, she is not seeing any end to her hardships.

Olivia is planning to shut her business down, saying, she has maxed out on her loans, credit cards and spent all her savings.

The Colts who immigrated from the Dominican Republic moved their kitchen to a small facility to cut down on rent costs. This, however, does not seem to help with the money problem.

Her landlord has been pressuring her to pay up the rent while her new business is not generating enough revenue. Her sales are third of what she had projected.

While hoping it never comes to this, Olivia is talking to her lawyers and accountants about how to shut down the business.

What do I do next?

Olivia’s business is just one of such small businesses that are reaching the point of no return. Unless the economy gets back to normal in the coming months, things are only going to get worse for them.

While some small businesses have managed to survive, some are reaching the closing point.

According to Reuters, millions of people have lost their jobs, and the competition for new jobs is higher than ever. Most of the people who have lost their jobs are thinking “What do I do next?”