2020 Pandemic gives birth to….?
Usually, when there is chaos and businesses go under, especially larger ones, new businesses emerge.
War times are historically great for the economy, as manufacturing increases along with incentives for innovative technology. So at this point, many governments around the world are treating this pandemic like a war, and the call for new jobs may follow.
I watched an interview today between Brian Harrington and Corey Bishops, a regional operations manager of a series of Orange Theory franchises. Corey spoke about the closing of all of his gyms and how that may have a long-term effect on his business, like permanent closure of gym and lay-offs that have already occurred.
I’m sure Orange Theory isn’t the only gym suffering, as we have smaller ones in Southern California like Chuze and Crunch. Will these gyms go under and perhaps have the space taken over by a larger 24 Hour Fitness or LA Fitness, or will a new gym emerge from all this?
I would naturally opt to look at history to see what has been the pattern after war-time or other economic disasters like 9-11. With that, I think we’ll also have to monitor short-term and long-term effects. I think if an airline goes under and there’s no bailout, another airline will emerge eventually, or it may get engulfed by a larger brand.
I personally started Rugger Productions amidst the 2008 recession and it took a while to get going, but banks were open to giving me loans at low interest rates to get started, which allowed me to start. If perhaps the economy was booming, I would have had a harder, if not impossible, time getting a loan from anywhere to start a business.
What are your thoughts? What do you think the “next” brand to launch from this will be?