Positive and Negative Effects of COVID-19 on the Business Market

Transcript

Andy and Jessica are talking today about COVID-19 and how it is already affecting the economy and small business, they explain what we can expect in the upcoming months in terms of the effects that the virus is having on the businesses. There are plenty of past data that can be taken under consideration, Americans have gone through 9/11, hurricanes among other natural disasters, the economic downturn of 2009, but this is a little different; disasters are usually regional while this emergency is worldwide. There is a lot of uncertainty and fear right now which leads to direct effects on the business market. Listen to this episode for a list of effects, positive and also negative, that COVID-19 will most likely have on the economy.

Listings of the week: Henry Ziff (UK). A business that could be run anywhere in the world. A technological system that sends handwritten notes to customers, every note is personalized and unique but the entire process is automated. Price: 1,000,000 pounds. Last year’s sales: 500,000 pounds. Great potential for growth. Contact Henry Ziff at [email protected] or call +44 (0)203 911-1059

Key Takeaways

[3:40] Institutions (banks specifically) get scared.

[5:48] The government can step in with special financing to help small businesses.

[6:27] Lower revenue in profits.

[8:00] Lower profits translate into lower prices.

[9:22] There are plenty of good businesses that are run badly.

[9:55] In difficult times, there are more sellers financing.

[11:33] When markets are shaky dealing with commercial real estate and landlords is much easier.

[13:18] If you are a buyer, get ready to see more businesses on the market.

[14:37] There might be less money available on the market.

[16:21] There will be some winner businesses during the crisis.

[19:48] Prediction: People will go back shortly to their normal lives.

[24:40] Deal of the Week: Henry Ziff (UK). Dental Practice running for almost a decade. Sold for 3 million pounds. Profit 500,000 pounds a year.

[27:43] Listing of the week: Henry Ziff (UK). A business that could be run anywhere in the world. A technological system that sends handwritten notes to customers, every note is personalized and unique but the entire process is automated. Price: 1,000,000 pounds, last year’s sales: 500,000 pounds.

Mentioned in This Episode

• The Deal Board Podcast
• Transworld Business Advisors
• Transworld on LinkedIn
• Transworld on Facebook
• United Franchise Group