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The main reason companies do not have two months worth of funds saved up in the rainy day fund, and what you can do as a consumer to save you local mom and pop stores and restaurants.

So a lot of people who are not part of the business community wonders why smaller companies do not have around two months worth of funds saved up for a rainy day like the Covid-19 Pandemic has brought on.

The reason for this is pretty simple actually, and we will explain it to you.

So if the company what ever business type it might be like a restaurant,bar, production company that is older than 15 years today.

They went true the 2008-2010 recession and what ever funds they had saved up for a rainy day, was used at that time.

And they have never been able to restore that rainy day fund again.

Many companies would have gone under without savings then.

So by using them then and also by doing so they kept a lot of jobs going in the US for a 10 year period.

Make no mistake about this fact, there are many business owners who works 80 hour weeks for very little pay to keep their business open even in the best of times.

So now when we have an even worse recession 11 years later, there is no safety net in play any longer.

No rainy day fund, no bigger credit line coming from the bank, it is all over, for a lot of companies in America.

Many will try to give it a last chance in June-August, during the summer, but in the fall starting in September we will see a tsunami of bankruptcy’s and failed business.

Many companies in the hospitality industry have in the best of times low margins a few % profit per year.

And the owners do not draw a proper paycheck from the company, because if he or she would have done so then the company would have been in the red, or even more in the red.

So be prepared that many companies in America and elsewhere will try and re-open over the summer and then in the fall they will close for good.

Then we have the other segment is the newer companies who have been forced to either buy an expensive franchise or to invest everything in a family restaurant or small business in recent years.

They have never been able to put much money aside at all for a rainy day, they needed to put it back into to the business.

So this is why so many American and companies all over the world will fail in the fall.

So the one thing you can do when you spend your money is that try and support your local stores the mom and pop stores even if the price point is a bit higher compared to the global retail chains.

We have nothing against global companies, but it would be really boring if we have no small shops and no small restaurants in our neighborhoods and towns.

So if 1000 people decide, that i will support my local shops the mom and pop kind, it will go along way in saving those jobs and that store or restaurant business.

Even if you only spend 15 or 20 dollars there each week ,it will go along way to save some of the smaller mom and pop stores and restaurants.

So we can all do what we can to keep our local business owners open for as long as possible and try to keep the jobs in our community in the process.


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