Economic advice in these trying times

Say a person is thinking of opening up some kind of storefront. What would this whole Coronavirus economic doomsday mean for it? Would rents be cheaper? Would banks be more willing to give loans?

Interest rates?

What would be the best way to capitalize on all this? Is there a certain time you’d want to wait for?

I know there are several members here who work in finance and real estate and I was just wondering what your thoughts are about all this. Any wider implications that people aren’t thinking about?

a reply to: underwerks

Some retail businesses will fail which will mean more vacancies. Some landlords will be feeling pressure from not receiving rents and thus may be willing to negotiate cheaper and more favorable leases.

You also have to think how things might change in the future. If anything, this event is showing how weak delivery options are for a lot of small businesses.

Banks don't like making loans in a weak economic environment, regardless of the interest rates. Rates may go down, but I guarantee that commercial / investment loans will be much harder to obtain.

Wife and I started a small business. We were just getting started when SHTF and everything got shut down. The good news is that we have have little overhead. We are just rethinking our business plan and approach. We will be ready once all this blows over. On the other hand, many of our competitors have a ton of over head and are starting to feel the pressure of no sales. I expect many will fail in the coming months.

Most businesses can't survive with out a month or two of revenue coming in. Like many people, a business often lives paycheck to paycheck. Even the billion dollar businesses so many of you love to hate on hence all the cries for bailouts.

a reply to: Edumakated

Thanks for the input.

You’re one of the main people I hoped would reply.



A friend of mine had just opened up a brick and mortar restaurant in Seattle after doing the food truck thing, and he’s completely screwed. Pretty much lost everything. There was a story in the Seattle Times about him. I hate it, because it was a weird mix of Asian and Mexican food and it was amazing.

I know a lot of people that this really screwed over. Luckily I hadn’t got that far yet.

originally posted by: underwerks
a reply to: Edumakated

Thanks for the input.

You’re one of the main people I hoped would reply.



A friend of mine had just opened up a brick and mortar restaurant in Seattle after doing the food truck thing, and he’s completely screwed. Pretty much lost everything. There was a story in the Seattle Times about him. I hate it, because it was a weird mix of Asian and Mexican food and it was amazing.

I know a lot of people that this really screwed over. Luckily I hadn’t got that far yet.

Yeah, many restaurants are screwed. A lot of the ones around here are doing delivery, but I doubt it is really going to make up for the lost sales. Some restaurants can adapt to delivery better than others depending on the fare.

We started a food business. Put up about $50k to start it. We had just won a few contracts to supply our product at some big events and things had started taking off. However, I doubt any of the big events we had planned for will be had this year now. We are focusing on delivery, wholesale, and retail now. We will probably do 1/4 or half the sales we anticipated this summer. We had plan to hire about 4 people. Now we will be lucky if we hire one person.

Fortunately, we don't have a ton of overhead so we can just ride this out till next year. We will make enough doing local deliveries/retail once the quarantine ends that will cover our overhead. The big suck for us is that the farmers markets, fesitivals, etc won't likely happen. Anything with big crowds is likely to be cancelled this summer imho.

A company we studied before starting our business does about $10 million in sales. I know they are hurting. What is ironic is that they started during the 2008 recession. The founder got laid off and just started basically a food cart type business that grew to $10 million. Now it looks like they are struggling because of this.

I shut the doors to my store and have given the business to my employees; they helped me with startup. I'll even pay for the LLC just to get them started after this cluster**** settles out, if it ever does. Frankly I see another agenda in the works concerning the US economy.

I've made fortunes and lost everything and was homeless. I love the free enterprise system!! But I wonder if the hit it will take from cov19, will it ever truely recover.

I have my solid union gigs and a few ideas for post-corona biz when the quarantine is lifted.

hint....420 infused beef jerky....sound good?

a reply to: olaru12

hint....420 infused beef jerky....sound good?

Now that’s an idea right there lol.

I’d never stop eating it.

Loans - unlikely unless you have 2+ years of income and plan on keeping your old job. Basically Yooo can qualify for a similar amount as you would a mortgage for a home, very similar qualifications - look up SBA loans they’re federally subsidized.

Regarding commercial rents - most landlords don’t like lowering rents or maintenance, but if there’s ever a time it’s now. In a renters market (what we have now) they’re more likely to offer tenant allowances for buildout. Always push for tenant controlled allowances - it’s like a cash advance to remodel for signing the lease - it’s your money. If improvements are landlord controlled, they will keep the difference between your budget and the total project cost.

Here’s one to think about: leveraged buyout using corona relief money. Restaraunts May be unaware of disaster loan programs, and you could use leverage to buy them out.

Say an owner would sell 51% of the business for $500,000. You could put up $50,000 cash, then use a disaster relief loan to finance the other $450,000 using the company’s assets - which you now control.


a reply to: underwerks

a reply to: Medusa18

Thanks a lot for the tips. That’s really valuable information.

a reply to: olaru12

Thc infused jerky that's going to be hard to make right

Oil+emulsifiers+meat+dehydration= one giant mess of problems

originally posted by: markovian
a reply to: olaru12

Thc infused jerky that's going to be hard to make right

Oil+emulsifiers+meat+dehydration= one giant mess of problems

They do have aerosol thc and cbd. I'd just buy the premade stuff and hose it down; Or just dip the jerky in a solution and hang it up to dry... This ain't my first rodeo, amigo!!!

Edibles are a thing now....and drinks...$14 Arnold Palmer Ice tea, Box of tofu 30bucks, $40 nasal sprays and my favorite Tiki Juice in salty dog.

Infused was the wrong word. You're right..but build a hip delivery system and they will come!! That is if the economy hasn't been totally f#*+@!

I'm also in development on a pair of glasses that can see thru womens clothes and a telephone that dosen't use wires; kindof a radio.

a reply to: olaru12

You could make it into some kind of flavoring the jerky was dipped in.

Or check this: 420 candied bacon..

a reply to: olaru12

I got my own concoction iv been working on more of a shot that should work in under 20 mins

I make ALOT of edables downside I dont really like them anymore lol but most of it's not for me

originally posted by: underwerks
a reply to: olaru12

You could make it into some kind of flavoring the jerky was dipped in.

Or check this: 420 candied bacon..

Yes!! I much prefer an edible delivery than the trending new thing among the younger folks....420/cbd suppositories.

What a world eh, underwerks.

originally posted by: olaru12

originally posted by: underwerks
a reply to: olaru12

You could make it into some kind of flavoring the jerky was dipped in.

Or check this: 420 candied bacon..

Yes!! I much prefer an edible delivery than the trending new thing among the younger folks....420/cbd suppositories.

What a world eh, underwerks.

Remember vodka tampons that's gota really burn

Shh nobody tell them thc dissolves in alcohol

a reply to: underwerks

I was just about to start a food business, I still will hopefully if and when things start returning to normal.

originally posted by: olaru12

originally posted by: underwerks
a reply to: olaru12

You could make it into some kind of flavoring the jerky was dipped in.

Or check this: 420 candied bacon..

Yes!! I much prefer an edible delivery than the trending new thing among the younger folks....420/cbd suppositories.

What a world eh, underwerks.

I’ll never understand why someone would want to shove something up there when they can smoke it, but whatever floats your boat I guess.

a reply to: hopenotfeariswhatweneed

I was thinking about starting a record store that also sells hemp, CBD and clothing. And has a recording studio in the back and maybe building a stage outside so it could be a venue as well and have bands and artists play.

I looked at a couple places on Thursday, but for now it’s just an idea. I’m getting a hemp farm going at the moment and I don’t want to spread myself too thin.

a reply to: underwerks

A hemp farm is a great idea, I'm a horticulturist and would love to do that but the laws here are too restrictive. I make some great oil though since I stopped smoking, it's last longer is good for you.

I bought a wood fired pizza oven which I'm setting up to be mobile, had gigs lined up but now were on hold, luckily after the initial expenditures there are no overheads.

If you want any tips on growing stuff, or have any issues feel free to pm me and hopefully I can help.

a reply to: hopenotfeariswhatweneed

Right on thanks.