The real battle has just begun!

A lot of things are going to change as a result of the coronavirus, and some things will change forever. For many business owners like myself, the real battle has just begun and it’s inevitable that many businesses will go under as a result. We could very well be one of them. Business owners are facing what can only be described as an unprecedented challenge, one that no one could have prepared for. When businesses fail, the flow on results in, among other things, people losing their jobs and when a family’s income takes a hit, all manner of problems can emerge. For business owners and families, the scenario that causes the problems is the same.

That scenario can be explained very simply. It’s when the costs associated with running a business or the expenses that families are faced with to keep their heads above water are greater than the amount of money coming in.

For those not familiar with how business works, maybe a short explanation of what many business owners are facing will be helpful.

Business A has a turnover of $1 million a year. The business has expenses each year of $900,000, these include staff wages, rent, buying stock to sell etc.

The owners of the business therefore earn $100,000 each year (profit) from their business.

Should Business A’s turnover drop below $900,000, the potential is there for the business owners having to work for nothing. Of course, a good business owner will then start to look for areas where they can reduce their expenses, just to keep their doors open and to continue to earn a living. Sometimes cutting staff is one the measures a business owner is forced to take. The point I’m making is that although a business may drop in turnover by say as little as 10%, that small amount may be enough to put extreme pressure on the business, enough to cause it to close.

During this coronavirus, many businesses are experiencing drops in their turnover far beyond just 10%, so it’s inevitable that unless there is a sudden change in the situation, many simply won’t be able to make enough adjustments to keep their doors open. The flow on could be devastating when many people lose their jobs. I think it’s fair to say no one is safe at this stage, the reach of the impact is still to be fully seen.

Right now, it’s hard to be positive about anything given what’s happening and at the speed things are evolving.

Like so many we’re still coming to grips with what we’re facing, and decisions are currently being made on where we go from here.

I’ll have more information for you next week but for now be prepared for some significant changes to occur in Orange City Life from April 1 as businesses, us included, respond to changing rules in society, as we take stock of reduced income (in our case – advertising), and how we go about still meeting community expectations, and so on.

For now, be assured that my wife and I are doing everything humanly possible to preserve our business, support our team and to keep bringing you your copy of Orange City Life each week.

Our Country needs outstanding leadership to help us through this, but we the community must also play our part by “loving our neighbour as our self” -  no matter what the circumstances, and even if it means we have to sacrifice something to do it.