by Matt Thomas
Like most small businesses we have taken our lumps in the past 30 days. After a strong start to the year, we anticipated a record-setting Q1 and were bullish that our momentum would carry into the second quarter. Then the stay at home orders were issued. And then came the first call. A local non-profit organization we have been working with for over a year needed to press pause. Bummer. We love these guys, the work they’re doing, but we understood. A few days passed and the second call came. A private equity group unsure how the virus would impact their portfolio canceled their engagement. Not a big surprise but concerning nonetheless. Only the bleeding hadn’t stopped. In the next two weeks, 36% of our monthly recurring revenue would evaporate. Basically any “non-essential” business we were working with went on a hiring freeze. Most pausing their engagements, a few canceling altogether.
I’ve watched as close friends have lost their businesses overnight. Most non-essential businesses in a poor cash position have taken debilitating blows, many will never recover. Some found their survival wholly dependent upon relief from the SBA in the form of a forgivable loan (I’m going to stay away from diving into the PPP and EIDL since it’s fairly fresh, there’s still quite a bit of unknown, and rollout has largely been a cluster). For the majority of small businesses, this virus and its impact on the economy have been a blood bath.