Getting back to business is more complex than opening the doors

Cracking open the economy and returning workers to their jobs isn’t as easy as walking back in the door and returning to the routine of two months ago.

Few businesses outside of global conglomerates have plans in place outlining the correct steps to take to return to work after a pandemic. Like many other things we’ve experienced in the economy over the past few weeks, getting back in the work groove is more complicated than it seems.

Organizations across the business spectrum, from the Little Rock Regional

Chamber of Commerce to the Arkansas AFL-CIO, are providing resource guides to help business owners think through the process and make sure they cover the basics — protecting workers and customers.

Federal agencies such as the Centers for Disease Control and Prevention, and the Occupational Safety and Health Administration are pushing the time-worn mantra: Safety First.

Protecting the health and safety of employees so they feel comfortable returning to work, and focusing on customer service and support, is top in the minds of businesses.

Return-to-work guides stress the importance of maintaining social-distancing standards in the workplace.

There are some basic recommendations with practical guidelines that can be implemented quickly and easily: create a touchless experience when possible for employees and customers; enhance cleaning efforts, and make hand sanitizer and tissues easily available; provide no-touch trash cans that are accessible to customers.

In a quick survey of local businesses, the Little Rock chamber found that costs can range from $500 up to $100,000 for companies to prepare a safe and healthy work environment just to reopen.

“There is a fairly wide range in costs, which appears to correlate to type of business and industry,” said James Reddish, executive vice president of the chamber. “Suffice to say there are real and meaningful costs associated with business reopening, and this doesn’t consider the additional ongoing costs.”

Barbershops, for example, estimate that their initial investment in disinfecting and cleaning will cost $500-$700. Restaurant owners are estimating from $8,000-$10,000 per location.

A 100-employee officebased business said it would budget $85,000-$100,000 for office redesign, office partitions, air purifiers, additional sanitization equipment, software for virtual collaboration, and personal protection equipment and other supplies that may be needed.

In a business-prelaunch guide sent out last week, the chamber took an interesting approach: providing communications and messaging tips to help owners spread the word that they’re again open for business. The 16-page guide notes that “businesses should shift their focus to engaging with consumers and keeping their brands top-ofmind.”

After ensuring that safety standards are implemented, it’s important that businesses provide the knowledge and comfort customers will need to shop and dine again.

The chamber pamphlet is a touch-all-the-bases approach and an important reminder not to overlook the fundamentals of communication with customers when restarting operations.

Some key points: Lean heavily on digital channels to spread messaging; pursue paid-media opportunities; issue a news release; communicate what’s not changing – customers like the familiar; and consider direct mail and paid advertising.

Persuading customers to come back is vital though small-business owners are not hopeful about a quick return.

A survey from the National Federation of Independent Business released last week revealed that small-business optimism took another dive in April. The organization’s optimism index fell five points last month and is down 14 points over the past two months.

Business owners said they expect the economy to continue to weaken over the next few months but they anticipate a rebound before the end of the year.

LEFTOVERS

Last week, University of Arkansas at Little Rock economist Michael Pakko predicted that the state’s unemployment rate could reach 17% this summer, fueled by job losses from the pandemic.

The projections used Arkansas-specific data in combination with national projections from IHS Markit that were released May 11. Pakko’s economic outlook forecast included details on employment, income and spending patterns.

There were some projections for personal consumption spending, which is now estimated to decline 13.4% this quarter versus previous expectations of a 9% decline. Bottom line: folks have become a little pessimistic about the overall economy and will hold onto their money a little bit tighter.

Some highlights:

■ Auto dealers are in for a rough go of it. Motor vehicle purchases are predicted to drop by 41% through the summer.

■ Total durable goods purchases — refrigerators, washing machines, computers, etc. — are projected to decline by 28%.

■ Nondurable goods purchases — food, gasoline, beverages, etc. — are forecast to decline by just 4%.

COMBINING FORCES

Several support organizations are teaming up to invest in entrepreneurs of color in Arkansas with “The BIG Pitch” competition in June. Prizes will be awarded to small businesses in three categories and range from $5,000 to $15,000. The application process is scheduled to end Thursday.

Each participant must be an entrepreneur or a chief executive officer of color and operate a revenue-generating Arkansas company that has been in business for at least one year. The pitch competition is scheduled from 3-5 p.m. on June 4.

Minority business operators often face challenges raising money to sustain their businesses, and the cash awards will provide much needed capital.

“The BIG Pitch is an opportunity for us to be intentional about catalyzing the sustainable growth of entrepreneurs of color in Northwest Arkansas and across the state,” said Venture Noire founder Bjorn Simmons. “As an underserved community, especially as it relates to the capital markets, we hope The BIG Pitch boosts the visibility and resources needed for selected business leaders in the midst of the spiraling uncertainties of today.”

The event is sponsored by the Walton Family Foundation, Venture Noire, the Venture Center of Little Rock and the Greater Bentonville Area Chamber of Commerce.

Go to venturecenter.co for more information.

TESLAR GAINS

Citizens Bank of Batesville is turning to another Arkansas company, Teslar Software of Springdale, to provide an automated platform to improve customer service and help cut costs.

Teslar will install its platform of automated workflows and portfolio management tools to streamline commercial lending and improve processes such as exceptions tracking, reporting and scorecards.

Teslar will integrate with the bank’s document management portal to reduce paperwork and end many manual, paper-based processes.

“Our goal was to make banking easier for our customers by streamlining operations; it turns out that Teslar will add many more efficiencies that are critical to our future growth,” said Pam Jones, Citizens Bank executive vice president in banking services and compliance.

Citizens, founded in 1953, has about 20 branches in Arkansas. Teslar provides software products and services for community banks.