Small businesses struggling as sales plunge 8.7% due to pandemic

Daymond John, “Shark Tank” investor and author of “Powershift,” discusses his strategy for small businesses struggling to stay afloat.
4:08 | 04/15/20

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Transcript for Small businesses struggling as sales plunge 8.7% due to pandemic
We are back with the new retail sales numbers in March plunging a record eight point 7% in this pandemic and so many small businesses. Finding themselves struggling just to stay afloat here to offer a lifeline and share a strategy is shark tank investor and author of power shift. Businessman dean and John Damon thanks so much for being with us and we all know that small businesses are struggling to stay afloat but you have some tips. To help get them back on track so let's start with your first tip which is to check your inventory. Yeah I get a check what's what you're Mitchell what's your inventory so personal Savimbi prop beer Stapp and band. How much physically mature you have how much space do you have and more importantly. Your rollodexes would be able to do collaboration live and or using yet product out and what to do more business slits. Our and then you also say you need to check to see that if you qualify. For a stimulus package or any kind of relief program. Yeah absolutely you know there's another 250 billion dollars the most factors coming out but you know he apple recently evil bad day you're already doing business with because before you. Think about lane mall for cutting your staff but meaningless to you and high touch business you gonna have to make some. Hard this is inevitably coming to your door but you are bill available for this inspected. You have three months of course you know Bob be able to pay your staff to try to get through these signs. And some small business maven qualify for the payment protection plan which is all part of the care Zack relief package that congress just passed it was long is. 75%. Of the money is used for payroll they potentially have 25% available for other things so what should you do with that. So whether it's almost like everything else going Tommy taken funding our use extra money is forward even to Reeves. Number one you need more inventory. And not seek local production not more inventory to appetite to try to get more sales or. You need more machinery and machinery today to new software could be some reason that you need to be. One social media and door more quickened to get on social media. But you either use it or if you cannot keep up with demand whether you are selling navy work out of quit minced or at home delivered cook food or. More machinery to convert into me making PP products because you already were manufacture. And you know now more PP products are needed. They say also to invest in outlets to gain new customers. Because customers can buy anything if they don't know it's there. Yeah hundred sets so what if you were as somebody who was selling workout clothes and now you don't have the people to foot traffic going by. Watson a lot of people now do collaborations with people who may be go words selling you know natural juices or Barry good thing to say hey. Wealthier customers it's when he 5% all pull my products. And it's a win for everybody you get to move your product you cut the cost and customer gets 25% all alt something never would have gotten 25% on world. And the juice company now there's more value to their customers because sincerely me even more sorry it's a win for all three got to collaborate. Does a great idea and and we know obviously this is a tough time for so many businesses but sometimes you say recession can bring a silver lining. Your book you talk about a power shift that can apply directly to this situation so what advice you have to offer businesses along those lines. Yet many people and our board to work from home to find out they didn't need you know 100000 square feet and they're gonna find out also that some of the things that were really sells you never thought of was needed two months is all what three months ago is needed now. In the last recession you know here BNB. Who were. Square Pincher is stop on what's out all came out of the the last recession always. To ten so this is opportune time for those who would just sorting outs who have forward thinking visions in go out there and really become the next super large company. Yeah there are new needs now that we never knew we needed before Damon John. Thank you for those very important tips with early appreciated be well. Thank you.

This transcript has been automatically generated and may not be 100% accurate.

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