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‘Staying Nimble’: How Small Businesses Can, and Do, Shift Gears ‘Staying Nimble’: How Small Businesses Can, and Do, Shift Gears
(1 day later)
The first week after Cristina McCarter closed her Memphis food tour company, a casualty of the pandemic, she had only tears.The first week after Cristina McCarter closed her Memphis food tour company, a casualty of the pandemic, she had only tears.
“It was a lot of emotions,” she said. “It was like going back to when I first started and everyone said I was crazy to give up my job to be an entrepreneur. I was like, this is what my granddaddy was talking about.”“It was a lot of emotions,” she said. “It was like going back to when I first started and everyone said I was crazy to give up my job to be an entrepreneur. I was like, this is what my granddaddy was talking about.”
But then, she had an idea. As Ms. McCarter saw restaurants in town reopen to serve takeout, she realized she could take her business, City Tasting Tours, virtual.But then, she had an idea. As Ms. McCarter saw restaurants in town reopen to serve takeout, she realized she could take her business, City Tasting Tours, virtual.
She could team up with the restaurants to create special meals that she could deliver to clients along with a link to a 30-minute video tour about the food, the chefs and Memphis.She could team up with the restaurants to create special meals that she could deliver to clients along with a link to a 30-minute video tour about the food, the chefs and Memphis.
“I realized we could focus on the local,” she said. “We’re so used to focusing on tourists, but now is the time to show the locals the richness of what you have.”“I realized we could focus on the local,” she said. “We’re so used to focusing on tourists, but now is the time to show the locals the richness of what you have.”
Like Ms. McCarter, small-businesses owners across the country are looking for ways to survive the coronavirus pandemic, even as they fill out paperwork for federal stimulus funds that they no longer believe they can count on. Instead, they are adapting their business models and innovating products so that they, and their employees, can get back to work.Like Ms. McCarter, small-businesses owners across the country are looking for ways to survive the coronavirus pandemic, even as they fill out paperwork for federal stimulus funds that they no longer believe they can count on. Instead, they are adapting their business models and innovating products so that they, and their employees, can get back to work.
“Small businesses are really great at staying nimble,” said Laura Huang, associate professor at Harvard Business School and author of “Edge: Turning Adversity Into Advantage.” “This is something they’ve been set up to do because they’ve always had to deal with adversity in some way.”“Small businesses are really great at staying nimble,” said Laura Huang, associate professor at Harvard Business School and author of “Edge: Turning Adversity Into Advantage.” “This is something they’ve been set up to do because they’ve always had to deal with adversity in some way.”
But it’s hard, too. The most recent Optimism Index, from the National Federation of Independent Businesses, fell 8.1 points in March — the largest monthly drop in the survey’s 34-year history. Ninety-two percent of businesses surveyed recently by the federation said they had been negatively affected by the virus; just 3 percent said they were better off.But it’s hard, too. The most recent Optimism Index, from the National Federation of Independent Businesses, fell 8.1 points in March — the largest monthly drop in the survey’s 34-year history. Ninety-two percent of businesses surveyed recently by the federation said they had been negatively affected by the virus; just 3 percent said they were better off.
The ones that succeed, Dr. Huang said, “understand that even though they are looking to do new, innovative things, they need to grow where they are planted.”The ones that succeed, Dr. Huang said, “understand that even though they are looking to do new, innovative things, they need to grow where they are planted.”
That means that small-business owners should not completely change what they do but find new ways to deliver their product, dust off old ideas, experiment with existing strengths, search for new customers or change their story.That means that small-business owners should not completely change what they do but find new ways to deliver their product, dust off old ideas, experiment with existing strengths, search for new customers or change their story.
Even before the coronavirus hit, Kevin Peterson and his wife, Jane Larson, were notably adaptable — they own a scent shop in Detroit that doubles as a bar. Each evening, the shop’s cupboards close, display tables become cocktail tables, and guests sip cocktails served with scent strips designed to enhance their drink.Even before the coronavirus hit, Kevin Peterson and his wife, Jane Larson, were notably adaptable — they own a scent shop in Detroit that doubles as a bar. Each evening, the shop’s cupboards close, display tables become cocktail tables, and guests sip cocktails served with scent strips designed to enhance their drink.
When the stay-at-home order was issued in Michigan, their shop, Castalia at Sfumato, was about to celebrate its second birthday. Mr. Peterson was finally feeling that the business had turned a corner: Their staff was stable, he wasn’t working crazy hours, and there was money left after they paid the bills.When the stay-at-home order was issued in Michigan, their shop, Castalia at Sfumato, was about to celebrate its second birthday. Mr. Peterson was finally feeling that the business had turned a corner: Their staff was stable, he wasn’t working crazy hours, and there was money left after they paid the bills.
That changed overnight. They temporarily laid off their four employees and went into creation mode, since Michigan is not allowing bars to sell takeout or delivery cocktails. In a week, Mr. Peterson had developed their new product: frozen juice cubes that allow home bartenders to mix a perfect drink. All they have to do is add the spirit.That changed overnight. They temporarily laid off their four employees and went into creation mode, since Michigan is not allowing bars to sell takeout or delivery cocktails. In a week, Mr. Peterson had developed their new product: frozen juice cubes that allow home bartenders to mix a perfect drink. All they have to do is add the spirit.
“The big thing for me was not thinking of a recipe as just the ingredients but also the dilution, aeration and temperature,” said Mr. Peterson, who went to culinary school and has degrees in physics and engineering. “That’s the big difference between drinks at a bar and drinks at home.”“The big thing for me was not thinking of a recipe as just the ingredients but also the dilution, aeration and temperature,” said Mr. Peterson, who went to culinary school and has degrees in physics and engineering. “That’s the big difference between drinks at a bar and drinks at home.”
The idea for a take-home cocktail cube had percolated when Castalia first opened, but the couple were so focused on getting people in the bar that they didn’t have time for extraneous products. Now they are making — and selling out of — 750 cubes every weekend. They would do more, but they are limited to the space in their home freezer.The idea for a take-home cocktail cube had percolated when Castalia first opened, but the couple were so focused on getting people in the bar that they didn’t have time for extraneous products. Now they are making — and selling out of — 750 cubes every weekend. They would do more, but they are limited to the space in their home freezer.
“I take solace in doing stuff,” Mr. Peterson said.“I take solace in doing stuff,” Mr. Peterson said.
Some businesses find themselves in a position to help fight the pandemic. Distilleries like Cathead Distillery in Jackson, Miss., are converting production to hand sanitizer, while apparel companies, like Simms Fishing Products in Bozeman, Mont., are making hospital gowns. Still others are making masks.Some businesses find themselves in a position to help fight the pandemic. Distilleries like Cathead Distillery in Jackson, Miss., are converting production to hand sanitizer, while apparel companies, like Simms Fishing Products in Bozeman, Mont., are making hospital gowns. Still others are making masks.
But all that product has to find its way to hospitals and homeless shelters. That’s where Garry Cooper comes in. His Chicago technology firm, Rheaply, specializes in connecting resources to the people who need them to reduce waste and overbuying.But all that product has to find its way to hospitals and homeless shelters. That’s where Garry Cooper comes in. His Chicago technology firm, Rheaply, specializes in connecting resources to the people who need them to reduce waste and overbuying.
He normally works with universities, government agencies and the world’s largest companies to help them better manage their inventories. When the pandemic broke out, he realized that there was no single place to go to find out who needed what — and who had it.He normally works with universities, government agencies and the world’s largest companies to help them better manage their inventories. When the pandemic broke out, he realized that there was no single place to go to find out who needed what — and who had it.
“This is a breakdown of Supply Chain 101,” Dr. Cooper said. “We are a climate tech company, and we have been thinking a climate crisis would cause what we just saw.”“This is a breakdown of Supply Chain 101,” Dr. Cooper said. “We are a climate tech company, and we have been thinking a climate crisis would cause what we just saw.”
In three weeks, his team built a stripped-down exchange — “a prettier Craigslist,” he called it — where people with masks could list them for donation or sale, and hospitals that needed ventilators could post their requests.In three weeks, his team built a stripped-down exchange — “a prettier Craigslist,” he called it — where people with masks could list them for donation or sale, and hospitals that needed ventilators could post their requests.
So far, 50 organizations have signed up for the free service, and Dr. Cooper is in talks with cities and states about developing custom options. He hired three more employees — and is looking for three additional computer programmers — to manage the workload.So far, 50 organizations have signed up for the free service, and Dr. Cooper is in talks with cities and states about developing custom options. He hired three more employees — and is looking for three additional computer programmers — to manage the workload.
Updated June 5, 2020Updated June 5, 2020
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement.
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study.
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April.
Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.Mass protests against police brutality that have brought thousands of people onto the streets in cities across America are raising the specter of new coronavirus outbreaks, prompting political leaders, physicians and public health experts to warn that the crowds could cause a surge in cases. While many political leaders affirmed the right of protesters to express themselves, they urged the demonstrators to wear face masks and maintain social distancing, both to protect themselves and to prevent further community spread of the virus. Some infectious disease experts were reassured by the fact that the protests were held outdoors, saying the open air settings could mitigate the risk of transmission.
Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.Exercise researchers and physicians have some blunt advice for those of us aiming to return to regular exercise now: Start slowly and then rev up your workouts, also slowly. American adults tended to be about 12 percent less active after the stay-at-home mandates began in March than they were in January. But there are steps you can take to ease your way back into regular exercise safely. First, “start at no more than 50 percent of the exercise you were doing before Covid,” says Dr. Monica Rho, the chief of musculoskeletal medicine at the Shirley Ryan AbilityLab in Chicago. Thread in some preparatory squats, too, she advises. “When you haven’t been exercising, you lose muscle mass.” Expect some muscle twinges after these preliminary, post-lockdown sessions, especially a day or two later. But sudden or increasing pain during exercise is a clarion call to stop and return home.
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people.
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks.
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days.
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.)
Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.Taking one’s temperature to look for signs of fever is not as easy as it sounds, as “normal” temperature numbers can vary, but generally, keep an eye out for a temperature of 100.5 degrees Fahrenheit or higher. If you don’t have a thermometer (they can be pricey these days), there are other ways to figure out if you have a fever, or are at risk of Covid-19 complications.
The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.The C.D.C. has recommended that all Americans wear cloth masks if they go out in public. This is a shift in federal guidance reflecting new concerns that the coronavirus is being spread by infected people who have no symptoms. Until now, the C.D.C., like the W.H.O., has advised that ordinary people don’t need to wear masks unless they are sick and coughing. Part of the reason was to preserve medical-grade masks for health care workers who desperately need them at a time when they are in continuously short supply. Masks don’t replace hand washing and social distancing.
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others.
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested.
That’s the type of pivot that Larry Downes, a senior fellow at Accenture Research, advises businesses to make.That’s the type of pivot that Larry Downes, a senior fellow at Accenture Research, advises businesses to make.
“Trying something new is relatively cheap,” said Mr. Downes, a co-author of “Pivot to the Future.” “It doesn’t cost a lot to quickly launch an experiment.”“Trying something new is relatively cheap,” said Mr. Downes, a co-author of “Pivot to the Future.” “It doesn’t cost a lot to quickly launch an experiment.”
An experiment may be the thing that saves Washbnb, a start-up in Milwaukee that was to open this month.An experiment may be the thing that saves Washbnb, a start-up in Milwaukee that was to open this month.
Originally, Washbnb planned to provide laundry service to Airbnb hosts. One of the company’s founders, Daniel Cruz, is a host himself, and he hatched the idea because he was always buried in laundry — and worse, fitted sheets — at the end of each week. His four Airbnb properties created too much laundry for his residential machines but too little for a lot of commercial laundry facilities. When he discovered that others had the same problem, he started planning to build his own facility.Originally, Washbnb planned to provide laundry service to Airbnb hosts. One of the company’s founders, Daniel Cruz, is a host himself, and he hatched the idea because he was always buried in laundry — and worse, fitted sheets — at the end of each week. His four Airbnb properties created too much laundry for his residential machines but too little for a lot of commercial laundry facilities. When he discovered that others had the same problem, he started planning to build his own facility.
But when the pandemic hit Milwaukee, all his Airbnb bookings dried up.But when the pandemic hit Milwaukee, all his Airbnb bookings dried up.
“At first, we were actually really bullish,” Mr. Cruz said. “We were talking about investing in another property to add more units. But then we took a week and watched our market evaporate around us.”“At first, we were actually really bullish,” Mr. Cruz said. “We were talking about investing in another property to add more units. But then we took a week and watched our market evaporate around us.”
Instead, he decided to find new customers. He realized that the elderly and people with compromised immune systems might not have laundry facilities or be able to go into laundromats. He and his two partners quickly started a sister company, Washhero, targeting those customers with a curbside laundry service. They offer wash-and-fold for $20 a bag, as well as pay-what-you-can options.Instead, he decided to find new customers. He realized that the elderly and people with compromised immune systems might not have laundry facilities or be able to go into laundromats. He and his two partners quickly started a sister company, Washhero, targeting those customers with a curbside laundry service. They offer wash-and-fold for $20 a bag, as well as pay-what-you-can options.
In the first two weeks, 22 clients signed up, and word got around to other businesses. Mr. Cruz received calls from restaurants doing takeout that need towels washed and an invitation from a new hotel to bid on its laundry contract. He has been so busy that he has hired three new team members and signed a lease for his laundry facility.In the first two weeks, 22 clients signed up, and word got around to other businesses. Mr. Cruz received calls from restaurants doing takeout that need towels washed and an invitation from a new hotel to bid on its laundry contract. He has been so busy that he has hired three new team members and signed a lease for his laundry facility.
“The Covid situation is accelerating our timeline, not only in how we give back but how we build out our own facility instead of relying on partners,” Mr. Cruz said.“The Covid situation is accelerating our timeline, not only in how we give back but how we build out our own facility instead of relying on partners,” Mr. Cruz said.
Sometimes, innovating is as simple as changing the story, or updating marketing to reflect a new reality.Sometimes, innovating is as simple as changing the story, or updating marketing to reflect a new reality.
“If you have a firm understanding of where your roots are and what your product delivers, then you can think really creatively about all the different ways your product can be beneficial and tell that story,” said Dr. Huang of Harvard.“If you have a firm understanding of where your roots are and what your product delivers, then you can think really creatively about all the different ways your product can be beneficial and tell that story,” said Dr. Huang of Harvard.
Wheelhaus, a maker of tiny homes and modular cabins, is trying to do just that. It is now marketing its smallest home — just 250 square feet — as a home office. It can be pulled straight into a backyard on a trailer and has all the amenities of a workplace.Wheelhaus, a maker of tiny homes and modular cabins, is trying to do just that. It is now marketing its smallest home — just 250 square feet — as a home office. It can be pulled straight into a backyard on a trailer and has all the amenities of a workplace.
“It’s kind of funny how these things kick you in the butt,” said Jamie Mackay, founder of Wheelhaus. “It’s like, whoa! You wake up and think outside the box. That’s key right now.”“It’s kind of funny how these things kick you in the butt,” said Jamie Mackay, founder of Wheelhaus. “It’s like, whoa! You wake up and think outside the box. That’s key right now.”
The company manufactures its line of homes in Salt Lake City and normally sells about 180 a year. Demand has slipped, but there has been enough work for Mr. Mackay to keep all 80 employees and subcontractors on the job. There have been seven sales of the $88,000 home office since the new marketing began, and Mr. Mackay said he expected higher demand for small home offices as real estate trends changed and businesses realized employees could work from home.The company manufactures its line of homes in Salt Lake City and normally sells about 180 a year. Demand has slipped, but there has been enough work for Mr. Mackay to keep all 80 employees and subcontractors on the job. There have been seven sales of the $88,000 home office since the new marketing began, and Mr. Mackay said he expected higher demand for small home offices as real estate trends changed and businesses realized employees could work from home.
The fact that Mr. Mackay is already thinking about that future pleases Mr. Downes. The biggest challenge facing businesses, Mr. Downes said, is the failure to look forward.The fact that Mr. Mackay is already thinking about that future pleases Mr. Downes. The biggest challenge facing businesses, Mr. Downes said, is the failure to look forward.
“One thing this crisis has taught us is that the distant future can show up fast,” he said.“One thing this crisis has taught us is that the distant future can show up fast,” he said.