With the sweeping arrival of COVID-19, Marcelo Cortes, a former computer science undergraduate student, was quick to realize the devastating impact it could have on small, local businesses.
As chief technology officer and co-founder of Faire, an online wholesale marketplace that helps emerging brands and boutique retailers grow their business, Cortes recognized that more help needed to be offered.
In response, he and his team worked quickly to develop an online calculator that turns key financial details into lifespan projections for a particular business. The results can help owners spot inefficiencies to better prepare for the future.
“We immediately began doing research and mapping out various scenarios,” says Cortes. “We realized that Faire was well funded and would survive, but that many of our customers faced far more difficult situations? We asked ourselves ‘how can we help?’”
Listening
to
retailers
and
makers
Cortes
felt
the
first
step
to
helping
retailers
and
makers
was
to
better
understand
their
situations.
After
surveying
more
than
20,000
customers
about
their
COVID-19
preparedness,
Faire
worried
about
the
incoming
results.
Retailers
were
expecting
a
temporary
revenue
reduction
of
50
per
cent
or
more,
while
70
per
cent
of
retailers
surveyed
said
they
didn’t
have
sufficient
cash
on
hand
to
handle
this
type
of
crisis.
The impact calculator hopes to soften the blow.
Recognizing that a full understanding of a business’ financial situation is the first critical step to making informed decisions about how to respond, the calculator will act as an assessment tool as local makers and retailers look to the future.
Launched at the end of March, the tool has already been used more than 5,000 times, alongside a list that highlights the immediate steps retailers should be considering during the pandemic. It includes practical advice on reducing costs, finding financial relief and ways to increase revenue.
The future is (still) local
Beyond finances, Cortes is also emphasizing that businesses stay close to their customer base.
“Many customers care about your business and will be eager to help you through this difficult time,” says Cortes. “It’s key to engage with your customers and build a sense of community.”
Cortes says that Faire is currently focusing all of its resources on helping retailers and makers navigate this unprecedented crisis, with the online impact calculator just the beginning of more helpful tools to come.
“Our mission is entirely about empowering entrepreneurs,” says Cortes. “We depend on retailers and makers for our business and they depend on us. The whole ecosystem can only be successful if our retailers and makers are successful.”