Behind the Hustle E.02// Asking small business owners how they are handling this pandemic

TL;DR

Brad Wolverton and Zach Crockett discuss a survey of small business owners who survived the Great Recession. The responses revealed a near 60/40 split between offensive and defensive strategies. Key survival tactics included severe cost cutting, pivoting to new business models (e.g., a high-end furniture designer becoming a general contractor), and doubling down on inventory (e.g.

Key insights

• The survey received a couple hundred responses from diverse small businesses (e.g., lotion makers in Scotland, farmers, car dealership owners in small-town Illinois, cabinet makers in Tucson).
• The split between an “offensive” and “defensive” approach during the recession was almost 50/50, closer to 60/40 offensive.
• Severe cost cutting was common, with businesses reducing monthly expenses down to $5–$10 and “redlining” budgets.