I have spoken to a few local biz owners who've been rekt by COVID. What I've learned is that these mom & pop shops aren't necessarily business savvy. The biz might have barely been paying them a decent salary. They didn't negotiate with landlords and now they're buried in debt.
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Yup. Unfortunately, there is not much one can really do for them. Their business depends on local patronage and if they are forced to shut down or limit capacity, they're screwed. They must negotiate with landlords, be willing to BK/walk away and start over without immense debt.
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We’ve never seen so many small businesses decimated — so there may be more than ever created over the next 1-3 years — this is crucial for jobs & the economy + large cos are overvalued
Combo of improved Reg CF & digital securities can play a big part in this capital formation
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Small biz owners: "well OF COURSE we gotta keep servicing our debts and obligations. Ugh, this is gonna hurt!"
Corporations: "effective immediately we will not be paying rent at the following 500 locations. Suck it."
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Yeah.. I have heard exactly that statement.
I'm like "but it'll take you 10+ years to pay that off, assuming everything goes back to normal immediately."
The small guys are going to take their nobility to the grave or live out their days as debt slaves to landlords.
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I own a small business and we pay very high wages and are currently fine. I think the key is basically, small businesses aren't financially stable (their owners suck at cash flow) and they don't evolve quick enough unless they're savvy and clever.
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It’s less about savvy, more about access to capital markets: large, entrenched businesses simply borrowed they way out of being rekkt through twisting the arms of policy makers, and/or directly accessing cheap loans through bond issuance
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