One of the firms that helped the Bureau come up with conclusions was Alignable -- a social network for small businesses. Eric Groves, chief executive of Alignable Inc., has been in constant contact with the company's social network of small businesses. He told me this week that in July, fear of another shutdown of the economy emerged as a bigger concern than payroll, rent, revenues or supply chains. “The uncertainty is brutal when you’re trying to figure out how to spend the little money you have." If you spend long on Main Street, you sense unease. Consider a business like Jon Hughes's Downtown Bike Shops in Detroit. It's busy, but not in a way that has Mr. Hughes swimming in cash. He's knee deep in repair work as Covid lockdowns have inspired many to get their bikes fixed, but lacks new inventory. It can take a mechanic a full day of work to equal the type of profit that can be earned in a single bike sale. “Right now, sure, there’s a boom in this industry, but it’s almost like a fake boom, and I can’t plan on that continuing,” he told me. The pandemic plays a cruel joke by creating a lot of busy work -- chasing inventory, improvising repairs, learning new skills -- but not delivering the type of profits that this busy work should result in. Mr. Hughes is scratching his head. “The uncertainty is brutal when you’re trying to figure out how to spend the little money you have. Do you bet on red, hoping red comes back around again, or do you just stand pat?” The Journal's Exchange section, published Saturday, tackles many of the problems facing small business as we enter August. To get an overview, check out our official survival guide. Put the WSJ's live Aug. 21 "Managing a Small Business in Crisis Q&A on your calendar by clicking here. — John D. Stoll, Business Columnist, WSJ Has your small business or the one you work for been impacted by the pandemic? We'd like to hear from you. Email me or fill out the form at the bottom of my column with details on what you've done in response to the pandemic, whether you expect job cuts later this year and your greatest challenges. What type of government assistance would be most helpful? |