A Small Business Owner's Take on COVID-19

Exactly two weeks ago, I was celebrating the purchase of our second coffee shop with my team. Excitement was high, the future was bright, and we were ready for the next challenge. However, nothing could have prepared us for the real test that would come seven days later.

My wife and I founded Three Tree Coffee Roasters in 2014 by roasting one pound batches of coffee in our backyard. (Honestly, at that time we had no clue how to roast coffee.) Since then, our business has grown rapidly, evolving into a team of 28 incredible people working four separate departments: wholesale roasting, retail coffee shop, mobile coffee ‘Trolley’ and the above referenced acquisition of The Front Porch Coffee House. Thankfully, over this time we also got better at the craft of coffee.

Over the past six years, we have learned so much about business, life, and people. And though these years have had their stressful moments, we’ve always persevered with teamwork, critical thinking, and faith. The mountains of challenging moments were simply obstacles in the way of our next triumph. The journey may be difficult with an unclear path, but the end was visible and the victory was inevitable.

Last week did not feel like the next peak to summit. We weren’t presented with an obstacle to overcome or a mountain to climb. Instead, we experienced an earthquake that shook the fabric of society, and with it the health and financial security of my team and family. This had nothing to do with advancing in our quest and it had everything to do with a crumbling foundation. The onset and reaction to COVID-19 was so swift that we saw a 40% drop in sales overnight. I had an emergency meeting with my team the next day, and most of the decisions we had made became obsolete 24 hours later as the situation continued to shape-shift. Never had a situation seemed so fluid and unsure.

Over the following week, sales continued to drop dramatically as ‘social distancing’ became more stern. First it was don’t gather with more than 50 people for the next 2 weeks. Then, it was don’t gather with more than 20 people for the next few months. Now, it is don’t gather with more than 10 for the foreseeable future. If they go any smaller, I may need two houses for my family of 5…

Have you ever had to choose between two so very important outcomes that it seemed impossible to make a decision? I remember a time like this back in elementary school while perusing the aisles of Media Play (yes…remember Media Play?). The choice was between buying a Star Wars action figure and a graphic design computer game. My parents said I could only get one, and the internal debate was agonizing. Choosing one means I have to live with it, but more importantly, it means I have to live WITHOUT the other. Typically, we find indecision safer than commitment. I encountered this tension again many years later when choosing between UGA & Georgia Tech. Clearly, I chose the right one there. (Go Dawgs)

The Coronavirus & the response to it has created two mutually exclusive options for thousands of small businesses: 1) protect the health of our teams and community by closing our shops, or 2) protect the jobs and financial viability of our teams by staying open.

Please don’t think I discourage or despise social distancing. The evidence is clear how important it is to ‘flatten the curve’ and slow this pandemic down. But I hope this gives a better glimpse of how small businesses are literally being pulled in two opposite directions, with many sadly ripping right down the middle.

Many of us have heard about COVID-19’s death rate, which is the percentage of people who die because of COVID-19. Do you know it’s unemployment rate? In other words, how many people have lost their jobs because of COVID-19?

There is not much data out on this yet as changes to unemployment are typically measured monthly. However, we get a glimpse from China’s February data. In China, there were 81,008 cases of COVID-19. Of that, 3,255 died meaning their death rate is roughly 4%. Another result of the virus is that an estimated 4.67 million people in China lost their jobs, and many believe that is a conservative number meaning the true number could be far worse.

Obviously, matters of life and death are more important than that of jobs and unemployment. But I hope this sheds a light on the economic unraveling we are experiencing and the impossible decisions small businesses are having to make.

Do I let my staff go?

Do I stay open and risk their health?

Do I pull the plug on the dream I have invested years of time, money and tears into?

One of the psalmists once wrote: “Has the Lord’s lovingkindness ceased forever? Has His promise come to an end forever?” It would be dramatic to say I could relate to such strong statements…but I have prayed similar things this week.

“God, have you forgotten your promise? Do you care? Do you still provide?”

I am sure many people have lots of questions right now. I sure do. And I know many small businesses are bleeding, failing, doubting, struggling, crying and screaming. My encouragement to all, including myself, during this trying time is to be patient with one another and to have faith.

The one thing we need in an earthquake is a sure foundation.