Farooq M.

As more retailers shut their doors due to the COVID-19 pandemic, it’s clear that a lot of businesses are headed towards failure if they can’t re-open or pivot their business model quickly. In response to this threat, many lenders are offering easements and the government is introducing trillions of stimulus dollars.

But stimulus only works for some. Adequate data about creditworthiness of businesses and their ability to weather an impending storm will prove critical as property owners and lenders scramble to identify which businesses they should be lenient with and which businesses may be beyond sustainable support.

While it’s too late for a pre-emptive data analysis, here’s what business owners and property owners can do to collect and leverage data to make smart decisions about what happens next as the global economy navigates COVID-19.

Business owners need to understand their position The biggest thing that any retailer can do is to understand how the business performed historically. If possible, track back to any past crises, such as the 2008 Great Recession or an industry-specific challenge you weathered.

Collecting data will help with three key pieces to the pandemic survival puzzle:

1 - It helps make the case for assistance Unfortunately, pandemics and economic weakness will cause businesses to fail. However, having adequate and correct performance data is a buffer for any business that can show the downturn is a one-time problem to overcome, not a consistent issue of bad performance.

2 - Good data is directly connected to strong credit ratings The better your business’ credit data, the better position the business is in to take on support or access external capital to weather the storm. If taking on debt is not feasible for your financial situation, a good credit rating can still act as a barometer of trust when seeking leniency or payment deferrals from landlords, creditors, and other expenses.

3 - Adequate data helps with the move to e-commerce If you can no longer sell your goods in-store, there is still a multi- trillion dollar opportunity in e-commerce , and having adequate data about your top sellers and other performance metrics will help you prioritize your e-commerce activities. With in-person commerce all but frozen due to the COVID-19 crisis, moving to e-commerce could save your company.

For newcomers, e-commerce platform Shopify launched a full COVID-19 Response Resources page dedicated to helping entrepreneurs make the transition to e-commerce and thrive online even in a pandemic.

Property owners need to be as flexible as possible On one side, some landlords rely on rental income to pay bills, meaning they need to charge rent. On the other are people calling on landlords and governments to cancel rents indefinitely until the crisis is over. In the middle, people are calling for flexibility based on individual circumstances.

We advocate the middle ground where property owners do the most they can. If you can’t afford to forgo rents, consider these options:

Reduced payments for a period of time : Look at what would get you through at net zero, perhaps taking no profit for the very short term in order to keep and support your high quality tenants that are going through a rough patch.

Payment deferral : If you’re able to temporarily weather the storm but can’t lose the revenue long-term, consider payment deferrals. Tenants can then repay the additional rent over time, giving flexibility to the tenant and no long-term revenue loss for you.

Talk to tenants about custom arrangements : If your portfolio is relatively small, you may be able to work out a deal with tenants on an individual level based on what works for both of you. There’s even the chance you’ll find out some of your tenants can still afford full rent, putting you in a better position to be generous with those that need it.

Adjust payment terms : Instead of the usual fixed rental income, you could consider a royalty style payment where you take a percentage of revenues in the short term until the fixed rental rate is paid. That way, if the business has a down month then they pay a little less, but when business picks back up you can recoup temporary losses.

Look at how to reduce your own expenses : Many banks are giving mortgage payment deferrals or other relief. Utilities may be flexible on monthly payments. There could be grants or funds to apply for from governments or foundations to help you through the rough time. Any savings you realize can then be passed onto tenants going through rough times, meaning your net income would not go down, even with reduced rent payments.

Working together with data will avert the apocalypse When a crisis hits, fear is normal. Businesses live on revenues, so the thought of losing everything you’ve worked hard to build can be painful. However, there’s a way through this, and it starts with data. There are no great ways to determine the true quality of a tenant. Most judgements are made either on a qualitative and brand focused basis or on the basis of reported sales. Neither one of these are real barometers for quality in a climate like this. Using objective data sources to generate high quality insights can help property owners and property managers make sound decisions and help make the case for getting through this crisis.

Whether you’re a business owner or property owner, the impending retail apocalypse affects you. With high quality data and the desire to work together to survive, there’s a far higher chance that we will all survive - and be ready to thrive when this is all over.

You can check out a demo of our platform here .

Farooq M.

New York, New York, United States

4K followers 500+ connections

Organizations

San Antonio Police Department

Board Member

View Farooq’s full profile

Other similar profiles

Jordan Selleck

Bin Chen

Luvleen Sidhu

🔑 Vitaly Bahachuk

Nestor Hugo Solari

Michael Faye

Yinon Ravid

Ryan Williams

Jake Fuentes

Mario Schlosser

Scott Songer

Gib Lopez

Laura Kornhauser

Roger Larach

Varun Deshpande

Eugeny(Yevgen) Prudchyenko

Mordechay Radashkovich

Guillermo Vernet

Philipp Hecker

Joshua Motta

Explore collaborative articles

Others named Farooq M. in United States

Farooq M

Farooq M

Farooq M

Farooq M Othman

Farooq M

Farooq M.

New York, New York, United States 4K followers 500+ connections

Organizations

San Antonio Police Department

Board Member

View Farooq’s full profile

Other similar profiles

Jordan Selleck

Bin Chen

Luvleen Sidhu

🔑 Vitaly Bahachuk

Nestor Hugo Solari

Michael Faye

Yinon Ravid

Ryan Williams

Jake Fuentes

Mario Schlosser

Scott Songer

Gib Lopez

Laura Kornhauser

Roger Larach

Varun Deshpande

Eugeny(Yevgen) Prudchyenko

Mordechay Radashkovich

Guillermo Vernet

Philipp Hecker

Joshua Motta

Explore more posts

Explore collaborative articles

Others named Farooq M. in United States

Farooq M

Farooq M

Farooq M

Farooq M Othman

Farooq M

New York, New York, United States

4K followers 500+ connections