Small Businesses Nationwide Still Struggle
By Joseph Maronski
With the nation still reeling from the effects of the COVID-19 pandemic and new effects occurring daily, small businesses have felt the brunt of the impact, in large part affecting small towns and desperate business owners.
While many large businesses were allowed to remain open due to the category of some items in their stores, other small businesses were forced to close for extended periods of time, leaving business owners stressed and in debt. Many questioned the guidelines for allowing stores like Walmart and McDonalds to remain open, but forcing mom and pop shops to close.
In High Point, North Carolina, DeBeen Espresso is a staple. The smell of fresh roasted coffee fills Lexington Avenue as a warm feeling fills customers hearts when they walk through the door.
Debbie Maier, the owner of DeBeen Espresso and Pure Light Yoga, opened the High Point location 23 years ago. Throughout this time, her customer base has grown and she says her customers have become her family.
“The relationships I have built over the past 23 years have been extremely important in building my business, as well as finding my place and building my family in a town so far away from home,” Maier said. “I’ve built awesome relationships and find myself working with some of the most amazing people as I ask for help and grow DeBeen.”
When March began, Maier expected business as usual, but she quickly realized that it would be anything but that. With local colleges shutting down, Maier said she suffered an immediate financial “loss of 36% within three weeks of the quarantine” and was forced to resort to curbside pickup and walk up service only.
Unfortunately, Maier wasn’t the only one facing these challenges. Brooke Rodd, the owner of three brick and mortar lifestyle stores in Santa Monica, California, was in a similar predicament. From clothing to candles, Rodd has it all in her stores, but she saw products sitting on shelves and no cash flow.
Rodd was forced to close her doors for numerous months, causing much stress and creative thinking. People were desperate to have some normalcy after a while. They wanted to feel normal and they wanted new things, said Rodd.
As customers sat in the safety of their own homes, Rodd became a human mannequin, trying on hundreds of dresses while FaceTiming customers. As the only one in the shop, Rodd kept her customers safe and her income stable.
As Maier and Rodd were forced to rapidly change their operating models, the Business High Point Chamber of Commerce, and many others nationwide, were ramping up their efforts to help locals. From lifting the community’s spirit to advocating for and advertising businesses, the Business High Point Chamber of Commerce was ready to do whatever it took to save local businesses.
“50% of our nation's GDP comes from small businesses, and dollars spent locally in small businesses stay and circulate in the community versus money going to profit centers outside of the city,” said Patrick Chapin, the Business High Point Chamber of Commerce President and CEO. “More importantly, our small businesses make up the fabric of our community. It creates a sense of place, an independent personality for a community and sparks innovation and entrepreneurism.”
The Chamber of Commerce worked diligently and were excited when the CARES Act, a $2.2 trillion economic stimulus bill, was passed. However, this excitement was quickly met with frustration when the initial guidelines were released.
“The CARES Act did help some businesses, but the original restriction and requirements on when and how the money needed to be spent was a hindrance to many,” said Chapin. These restrictions included a policy stating that 75% of all funds released to the business owners had to be spent on payroll. The issue presenting owners: many states didn’t let businesses open so they didn’t have payroll, but rather needed rent money.
Rodd and Maier faced both very similar and different challenges throughout the pandemic. While Maier dealt with a robbery at DeBeen, Rodd struggled to get employees to come back to work.
“Not only were we broken into, but our tip jar was stolen one afternoon as well. The break-in was rather odd. He had to work pretty hard to get into the building which came along with damage,” said Maier. “We were not able to begin serving coffee until the officers completed their investigation; which also caused more monetary loss.”
As businesses began to reopen, employees began to realize the worth of their high unemployment benefits. Rodd struggled to get employees to come back to work and although she explained to them they would be resigning their position and losing their benefits, they used one of the numerous loopholes to continue receiving their benefits.
Rodd said, “One of my employees said they lived with their grandma, one of them said their parents didn’t want them working. In reality, I know what it was. They just wanted to stay on unemployment.”
Rodd and Maier are slowly regaining their balance and seeing the light at the end of the tunnel. Their businesses are doing better and Maier is even opening a second location of DeBeen Espresso after 23 years in Winston-Salem. And at the end of the day, they both know that without their loyal family of customers, they wouldn’t be where they are now.
As Maier put it, “[I am] so grateful and thankful to everyone who has supported us through these times. We have one of the most amazing communities in this country!”