Small enterprises emerge as one of the most vulnerable sectors amid the widespread socio-economic crisis wrought by the raging coronavirus disease (COVID-19) pandemic.
Undermanned and scrambling to save businesses, entrepreneurs are ill-prepared to wade through the tsunami of market and operational irregularities resulting from containment measures and protocols imposed amid the pandemic: workers staying or working from home; business customers and clients are restricted from shopping for all but the most essential goods and services; supply chains crippled, put to a halt or broken; markets, malls and other retail establishments closed down; and the list continues.
Befuddled, business owners and even starting entrepreneurs are caught flat-footed, without models to get guidance from.
And without sales to draw profit from, these people are hard pressed to keep up with rental and payroll commitments, leaving their workers on the corner.
With this as backdrop, Brian Suder, founder and owner of The Suder Company, one of the premier Beverly Hills real estate companies, has urged entrepreneurs to become “recession proof” amid an immensely trying time.
“Apart from this horrific coronavirus, what’s really getting to me is obviously the economic slowdown. I’m very concerned about people that will get hurt, not just financially, but it takes its toll on you physically, mentally, and ultimately, medically,” Suder said in an Instagram video posted recently.
Diversifying revenue streams
With businesses grappling with the crisis, Suder cited the need to be “recession proof” by diversifying revenue streams.
“As an entrepreneur, you should always have several diverse revenue streams to help minimize the impact of a recession. There is no doubt that there will be a lot of strain on the economy, so make sure you are shifting and adapting to what is going on in the world today,” Suder, a leading expert in real estate and mortgage industries, said.
Through maintenance of multiple streams of funding, Suder said entrepreneurs and organizations are able to prevent excessive dependence on a single revenue source.
This strategy, he said, helps stabilize their financial positions and eventually reduce the risk of financial crises.
“As an entrepreneur, the message today is when you do diversify your portfolio of revenue streams, make sure you always diversify to the point where you have one that is capable of dealing with something like this — a recession of this level,” he said.
Suder, also known as a former Department of Housing commissioner and leading loan modification expert, said weathering a financial crisis like the one brought about by the pandemic requires entrepreneurs to be on the lookout for new sales in order to build a solid portfolio of clients and customers.
Debt elimination program
Suder, meanwhile, cited the need for consumers to find the right deal on their finances, given that credit card debt has been a growing concern during the COVID-19 outbreak than usual.
According to a recent poll released by CreditCards.com, about two-thirds of Americans with credit cards express concern about being able to provide minimum payments in the next three months if the pandemic continues to rage on.
If costumers do not make payments on time, Suder said credit card debt can shoot up quickly and result in longer-term financial obstacles.
Americans, oftentimes, are advised to work with their bank and loan servicers to get immediate assistance to put off or lower their payments.
While many of the biggest credit unions and banks have put up hardship programs, which offer deferment of credit card payments, among others, additional action is needed once these assistance programs end.
Suder said once the relief program ends, customers may need to take further action given that deferment and forbearance programs will only last long and people need to secure their payments.
Suder cited the need to work with an expert who specializes in these concerns.
“These experts can help them eliminate their debts. And that’s important, especially that economies are crippled by the pandemic, and people need assistance with their financial challenges,” he said.
Whether customers plan to pay off the debt or lodge complaints, he said, they would need to contact a lawyer.
In these trying times, especially when consumers are placed in an extremely precarious position, a good lawyer will assist them in beating a debt collector in court or negotiate a fair debt settlement plan with their debt collectors.