The Weekly: Edition #68 - October 23rd, 2020
Political Expectations 2020 Survey
In lieu of our regular weekly column, we put together a brief survey aimed at gauging how the SMB space is collectively thinking about the upcoming elections and how they will impact valuations, tax policy, hiring, the economy, and more.
This survey is completely anonymous and we plan to publish our results for the benefit of the SMB space. We'd love it if you took 5 minutes to complete our survey at the link below:
Permanent Equity's SMB Political Expectations 2020 Survey
A small business CEO's guide to uncertainty (Permanent Equity)
+ "Responses from industry giants will differ in scale and scope from those of smaller companies, but the core questions are similar. As a small company operator, you must still make decisions about key areas like contract terms, inventory, CAPEX, suppliers, product materials and design, distribution, pricing, and intended rate of growth as you look to 2021 and beyond. While overused this year, “never waste a good crisis” rings true. Our aim [in this essay] is to help break down what the research and data highlight, examples of corporate response, and frame a discussion that may be useful in making decisions about your small business’s future."
How Yeti survived a pandemic — and private equity (Cheryl Wischhover)
+ "Nothing about what Yeti sells should have poised it well for a pandemic-induced recession: Its signature product is a $300 luxury cooler, and its most profitable one is a portable insulated cup often used by commuters on the way to the office. The company’s most recent expensive bet was on in-person experiential retail. And it’s been backed by private equity, an arrangement typically saddled with debt that has plummeted brands like J.Crew and Neiman Marcus into bankruptcy or insolvency during this crisis.
But so far Yeti has managed to escape this fate."
The next economic crisis: empty retail space (Politico)
+ "Hotels and retail, which together make up 40 percent of the commercial mortgage-backed securities market, have been hit the hardest. Months after lockdowns lifted, 1 out of every 2 hotel rooms remains unoccupied. Urban hotels, which have some of the largest operating costs, are faring the worst, with just 38 percent occupancy rates. And retail, which was already struggling before Covid struck thanks to the rise of e-commerce, has seen its decline hasten. It’s not just small strip malls, either: The owner of the $1.9 billion Mall of America entered into an agreement with its special servicer in August to avoid foreclosure."
Zoom towns are exploding in the West (Fast Company)
+ "There has been a drastic increase in remote work since March, when the pandemic hit the U.S. Nearly 60% of employees are now working remotely full or part time, according to a recent Gallup poll. Nearly two-thirds of employees who have been working remotely would like to continue to do so, according to that same poll. That would seemingly give workers a lot more flexibility when it comes to where they call home."
The city center recession—and the resilience of suburban America (Forbes):
"The results also highlight the difference between the principal cities in the largest 25 metro areas and smaller metro areas. According to the Bureau of Labor Statistics, employment in the 25 largest metro areas was harder hit by pandemic-induced economic disruptions. That may be because the principal cities in larger metro areas are not only denser employment centers, but also major tourist and entertainment destinations. Also, workers in many of the largest metro areas rely most heavily on public transportation to get to principal cities’ workplaces. Therefore, they were more likely to avoid commuting to principal cities due to the fear of contagion."
40th semi-annual 'taking stock with teenagers' survey (Piper Sandler)
+ "Teen “self-reported” spending at an all-time survey low of $2,150, down 5% sequentially & 9% Y/Y"
The 40 best questions to ask in an interview for a candidate — how to go deeper than “what’s the culture like?” (First Round Review)
+ "Today we’re focusing on those moments when the interviewer turns to candidates and asks the inevitable, “Do you have any questions for me?” at the end of the interview. It's critical to come up with a slate of good questions to ask that uncover vital information about the job opportunity — and simultaneously serve up another chance to highlight your strengths as the ideal candidate."
A tech CEO suing his guide could change Everest travel (Outside)
+ "A March 27 lawsuit, filed on behalf of Zac Bookman, CEO of Silicon Valley’s OpenGov, alleges that Seattle-based guide Garrett Madison scuttled their September, 2019, Everest attempt because another of the expedition members was out of shape and quit the trip, which sapped Madison’s incentive to take his other clients to the summit. Additionally, Bookman and his attorney alleged in a January 21, 2020, letter that the Sherpas hired by Madison’s company, Madison Mountaineering, were, “clearly lazy and inefficient,” which may also have contributed to the cancellation. As a result, Bookman sued Madison for $100,000 for breach of contract and fraud."
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