Page 25 - ARUBA TODAY

BUSINESS Friday 13 March 2020
A25

Coronavirus forces small businesses to rethink strategies

By JOYCE M. ROSENBERG South by Southwest film,
AP Business Writer media and music gather-
NEW YORK (AP) — Re- ing in the city scheduled
nee and Michael Brown to start Friday has been
planned to open a third canceled. Mamelak has
location for their coffee had patients request con-
company — and put their sultations via video when
plans on hold when the they're too busy to come
coronavirus hit. in. If and when the coro-
Sales at the Browns' San navirus spreads to Austin,
Francisco coffee shop, he expects to hear more of
Weaver's Coffee & Tea, those requests.
are down about 4%; while "People are afraid they
that's not drastic, the coro- could expose themselves
navirus outbreak in the U.S. coming to the office,"
is still in its early stages and he says. "Many of us feel
the Browns feel it's too risky that this is definitely com-
to make a big commit- ing and we have to have
ment. our avenues open to tele-
"We're safe the way we are medicine." After the virus
right now," Renee Brown was first reported in China,
says. "But what if it becomes many factories shut down
a pandemic where you in January or February to
can't leave your house?" In this photo taken Wednesday, March 11, 2020, Renee Brown, vice-president of Wild Card Roast- try to slow its spread. Some
As the coronavirus spreads, ers, poses by an antique coffee roaster at her cafe in San Rafael, Calif. Associated Press have reopened, but the
many small business owners flow of goods is weak,
are rethinking their strate- today." At some businesses, events and the suspension months ago, is pleased leaving some U.S. compa-
gies and adjusting the way the spread of the corona- of public gatherings includ- with how the business is go- nies struggling and their
they work. They're respond- virus is forcing owners to ing NBA games hurts com- ing but her growth is com- owners trying to decide
ing to a drop in revenue change the fundamental panies that provide food, ing from individual clients their next step. Yungi Chu
as customers stay home, ways they work. At Frac- equipment and services for — corporate clients have is worried that he might
cut back on purchases or chia & Co., a company hosts and event organizers, put their plans to work with have to cut his employees'
demand that companies that offers counseling and and these are often small her on hold. She in turn is hours. He can't get most of
help protect them from advice about professional, businesses. rethinking some of the in- the headsets he sells on his
the virus that has sickened career, marriage and rela- Business is down by near- vestments she was plan- website, HeadSetPlus.com,
more than 1,300 people tionship issues, staffers are ly half at Jet City Device ning for her business, such can't contact some of his
in the U.S. and more than now agreeing to clients' Repair's two Seattle-ar- as starting a new training suppliers and he hears that
127,000 worldwide. And requests for meetings over ea locations that repair program. "I'm watching my others are working with
some small manufactur- the phone rather than in smartphones and other spending much more care- skeleton crews.
ers and retailers, the first to person. That's something electronic devices. fully than I was just six weeks "Most of our factory orders
deal with fallout from the the Sydney, Australia, prac- "People aren't getting out. ago," says Braun, who's lo- are still on back order there.
virus as it stalled Chinese tice has not done in the They're choosing to live cated in New York. "I hate We have many customer
exports, are still struggling past. But nearly two-thirds with cracked screens," being part of that domino orders that are canceled
to get product shipments of the firm's clients have owner Matt McCormick effect, but the prudence due to no stock," says Chu,
even as China's factories asked for phone meetings says. He also has a store in feels necessary." whose business is based in
have been reopening. since the virus outbreak be- Chicago where business is The outbreak is prompting Redwood City, California.
Businesses are also feel- gan, and while co-founder down slightly. some businesses to accel- He estimates that his busi-
ing the impact of the eco- Danielle Fracchia has res- McCormick isn't cutting erate planned changes. Dr. ness is down by more than
nomic uncertainty created ervations, she's saying yes. his staffers' hours although Adam Mamelak, a derma- 10%.q
by the virus and the ensu- "Face-to-face is more en- business is so slow. But, he tologist in Austin, Texas, has
ing turbulence in the stock gaging," Fracchia says. says, "if this is a three- or considered adding tele-
market, which forced the "You can't be feeling their six month issue, we would medicine to his practice;
Dow Jones Industrial Aver- energy, seeing their body have to start." Some brand- that would allow him to di-
age down more than 25% language, picking up cues new entrepreneurs are be- agnose patients'conditions
since it reached a new when you're on the phone." ing forced to rework their using video. No cases or
closing high Feb. 12. The Some clients asked in strategies. Randi Braun, suspected cases of coro-
market turbulence has dis- the past to work over the who set up her executive navirus have been report-
couraged the Browns from phone, but "we haven't en- coaching company three ed yet in Austin, but the big
seeking investor money to tertained them for all these
fund their planned expan- reasons," Fracchia says.
sion. They're aware that The outbreak has forced
would-be investors are re- businesses of all sizes to ad-
luctant to commit money just — for example, business
to small companies amid travel is being canceled
unknowns like how wide- and meetings are held
spread the virus will be and via videoconferencing.
what damage it will cause But small businesses can
to the economy. be particularly vulnerable
"We need to wait until things to changes in spending
dissipate," Brown says. "I'm by consumers and other
probably going to focus companies. The cancel-
on what I can accomplish lations of meetings, social