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Small Business Survival: Hospitality Company Develops Way To Stay Alive Amid Crisis
In Best Of, Featured, Guest, Interview, Latest, News Stories, Technology, The World, Top News, videosBy Neil A. Carousso
NEW YORK (WCBS 880) – A New York City-based events company forced to shutter its operations temporarily after eight years in business due to the coronavirus pandemic has developed new revenue streams from adjacent services.
“Everything was great, 2020’s a huge year for us, could not wait,” William Petz, founder of Quiet Events, Inc. told WCBS 880 of the upward trajectory for his business heading into this year. He has 120,000 people on his e-mail list and hundreds attend each event nationwide.
That was the sentiment across the business community before the COVID-19 crisis forced the closure of businesses throughout the country. The National Federation of Independent Business (NFIB) Small Business Optimism Index sunk 8.1 points in March to 96.4 – the largest monthly decline in the survey’s history – ending historic business confidence. The NFIB survey indicates business owners are bracing for further loss of revenue amid the rapid recession the global economy was thrust into with the fatal and highly contagious novel virus.
“You’ll have workplaces that will be filled with different types of reminders and postings designed to change behavior and to ingrain certain type(s) of safe approaches towards how you even navigate the office,” David Lewis, founder of human resources consulting firm OperationsInc, told WCBS 880 Business Reporter Joe Connolly.
Business owners are adapting and creating new services, some of which may be long-term offerings, as they struggle to stay afloat. That’s the topic on this week’s WCBS Small Business Spotlight focusing on small business survival, sponsored by BNB Bank.
Quiet Events hosts concert-like experiences with disc jockeys for people to enjoy their favorite genres of music in headphones designed by the company.
“You don’t have to fight about what club you’re going to tonight because all the clubs are in one,” Petz said.
If you enjoy pop music, but your friend likes country, for example, you can both enjoy each other’s company while listening to your music of choice from the DJ you prefer.
“You can enjoy having a meal or drinking with some friends or talking with them without hearing the loudness of the music behind you,” Petz said, adding, “But, then when you put the headphones on, you guys are just jamming out and you have your own personality.”
Petz said his company is called “Quiet Events” because it is a “fun night out” when you will only hear partiers singing along to the music in their ears, if you aren’t wearing headphones.
Hospitality businesses such as Quiet Events have been crushed by the coronavirus outbreak.
“We started to see the impacts already by getting the headphones manufactured in China,” Petz said.
He laid off 11 of his 13 employees and he stopped taking a paycheck three weeks ago.
Then, he developed proprietary software to host his Quiet Events virtually as people self-isolate.
“YouTube, Instagram, Facebook, it’s just one dimension. It’s basically, you’re watching content,” said Petz. “People’s attention needs to be engaged and you need to feel like you’re being social, so that’s what we created – a platform which is patent pending.”
The platform features a virtual “DJ battle” in which three DJs vie for attention and likes. Attendees can switch between the DJs and can see the percentage of people watching each performer. Petz said that creates the “FOMO” or “fear of missing out” that his company thrives on with its in-person events.
Quiet Events’ first promoted online shows were last weekend, but as Petz tweaked the virtual experience over the last three weeks, 500-1,000 people participated in each trial event. In the interim, the online events are free, but attendees are encouraged to tip the DJs.
“They don’t just play; they really do interact,” Petz said of the DJs. “They look at the chatroom. They do shout-outs.”
He hopes to re-hire his employees in the near future as he works on several adjacent services to bring in revenue while in-person events are banned to stop the spread of the coronavirus.
“We did this for ourselves, initially for the DJs,” said Petz. “Dell, before we even broadcast it out, somehow, they found out [and they said>, ‘Look, we love what you’re doing and we’d love to create an experience for our employees.’”
He then saw there was a market for leasing his software to other businesses and organizations to create corporate events on both the Quiet Events website and other companies’ sites.
“We have a partnership with Crunch Fitness to do fitness events,” Petz said. “Quiet Events also used to do something called Quiet Comedy. It’s three comedians battling it out against each other. So, it’s really three of anything battling and we’re working on making that so it’s not just three but it’s more or less.”
A traveling nurse company reached out to Quiet Events looking to hire it for a morale-booster as its staff fights its own battle on the frontlines of the COVID-19 health crisis.
He has also received interest from a charitable organization looking to compensate the DJs for performing for their audience while providing a way for participants to donate to the non-profit’s cause.
“It’s what entrepreneurs do,” Petz said.
Hear how entrepreneurs like William Petz are developing solutions and adjacent services to stay afloat and re-hire workers on this week’s WCBS Small Business Spotlight Podcast available on the RADIO.COM app.
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Brooklyn Gym Owner And Real Estate Pro Paying Workers Over Rent
By Neil A. Carousso
NEW YORK (WCBS 880) – The franchisee owner of children’s gyms in Brooklyn, who is also a real estate attorney, is choosing to pay his employees over his rent.
“I can’t pay both my employees and my rent at the same time,” said James Wacht who owns two locations of the global franchise My Gym Children’s Fitness Center in Park Slope and Cobble Hill. “My decision was to pay my employees and not pay my rent.”
This was a difficult decision for Wacht, who runs the activity spaces for infants to 10 year old kids with his son Evan, while also serving as president of Lee & Associates NYC, thus being on both sides of the tenant-landlord predicament during the COVID-19 pandemic.
He hired highly skilled trainers over a two year period and concluded it would be more effective and smarter to retain his employees and hope for leniency from his two landlords during a global crisis.
“Given what’s happened in retail the last two years, the likelihood that landlords will be able to replace a retail tenant quickly at the same rent they’re currently getting, is really unlikely, so I think landlords are going to be really hard-pressed to work something out with their tenants, Wacht said, adding, “Some of them are just not going to be able to survive.”
He highlighted restaurants and other small businesses with low margins that may not be able to bounce back from a months-long closure, even with government relief programs, as it will take capital to jump-start business operations.
He told WCBS 880 he applied for the Payment Protection Payment (PPP) Loan and the New York City small businesses loan for both gyms and a few of his other businesses. The PPP loan is forgivable if a company maintains its workforce. It can be partially used for rent payments. If accepted through his Small Business Administration-approved bank, he would be able to pay part of his monthly payment.
“What I’m hoping to be able to do with my landlords is make a deal with them saying, ‘Listen, my business got hurt, what I’m willing to do is: I will pay you some of the rent, but I want some rent forgiveness for the period of time that I couldn’t operate,’” Wacht said.
He is developing online classes for children as non-essential businesses remain shuttered through at least April 29 and he has been upfront with his landlords that he and his son are working on new revenue streams to stay afloat.
“I look at this as sort of a collaboration between me and my landlord. It isn’t me against them,” Wacht said, adding his mantra through this challenge is, “How do we solve a problem together?”
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Hackers Deploy New Tactics During COVID-19 Crisis
By Neil A. Carousso
NEW JERSEY (WCBS 880) — Scammers are out in full force in the middle of the coronavirus crisis.
“The most stimulating part of the stimulus is the fact that the hackers are out there in droves,” Adam Levin, former director of consumer affairs in New Jersey, told WCBS 880’s Neil A. Carousso.
Levin, co-founder of the cybersecurity firm CyberScout, said scammers are deploying new tactics to take advantage of people relying on the stimulus checks that could be direct deposited as soon as Thursday.
“While we have day jobs, we are their day job, that’s never changed. The intensity, however, has increased dramatically as a result of this virus and the disaster is the unemployment, and frankly, the terror that people are going through on two levels: health and economics,” he said.
Another 6.6 million Americans filed for unemployment benefits last week, according to the U.S. Department of Labor. Nearly 17 million Americans have filed jobless claims since the coronavirus pandemic forced the shutdown of businesses nationwide.
Levin warns people to never click on links that appear to come from government agencies. Scammers are looking to take advantage by pretending to be the U.S. Government and preying on one’s financial stress by offering a way to receive the stimulus check faster and get more money.
“Ransomware, which is where they freeze your files, lock everything down and demand to be paid or else your files will be deleted or forever encrypted,” Levin said of one tactic. Another one is by turning one’s computer or smartphone into a “keystroke logger.” “Your log on credentials are being transmitted to the hacker,” Levin said.
He said scammers, looking to install malware, are promoting phony links for COVID-19 tracking. If one were to download it, a hacker would be able to access files and bank accounts.
“(Federal agencies) don’t send links, they don’t send attachments that you can open, they don’t call you on the phone and they don’t text,” Levin emphasized.
He encouraged people who are concerned or have questions to go on government agencies’ official .gov websites and initiate contact with their inquiry.
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Difference Makers: Air Force Veteran Shares Why he Employs Fellow Vets and People with Disabilities
By Neil A. Carousso
NEW JERSEY (WCBS 880) — An Air Force Veteran Employs fellow vets and those who are disabled in an effort to make a difference in his New Jersey Community.
https://omny.fm/shows/wcbs-880-difference-makers/air-force-vet-employs-vets-and-disabled-workers-in
Captain Jack Licata served as a nuclear missile officer from 1984-88. One of his less glamorous jobs was taking out the trash, and he hated that duty.
He hated it so much that years after he left the Air Force, Captain Licata finally decided to do something about it and created BagUps, which is a patented biodegradable trash bag dispensing system. It’s like a tissue box for trash bags, so you do not have to stick your hand in the trash can.
His e-commerce business is taking off as Americans create more waste at home during the coronavirus pandemic.
When his then-fiancee suffered severe head trauma in a car accident in 1990, he saw first-hand how life can be disrupted and decided to hire people who suffer with disabilities, including fellow veterans returning home.“They love it,” Captain Licata told WCBS 880’s Neil A. Carousso, proudly. “This way they’re not identified by their disability, they are now identified by what they’re doing and what they can do, and the difference they make.”
Hear more from our “Difference Maker” today on the WCBS 880 Difference Makers podcast above and on the RADIO.COM app.
Difference Makers on WCBS 880 is supported by New York Community Bank and the NYCB Family of Banks, serving the needs of our communities, in good times and bad, since 1859.
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Small Business Survival: Brooklyn Navy Yard Business Ramps Up War-Like Effort to Make Face Shields for Hospital Workers
By Neil A. Carousso
NEW YORK (WCBS 880) – Businesses in the Brooklyn Navy Yard are invigorated with the same spirit and patriotism that defined the East River industrial complex during World War II when factories produced ships used to fight Nazi Germany.
Michael Bednark reinvented his design and fabrication company named Bednark Studio to make face shields as protective gear for medical professionals in New York who are treating COVID-19 patients. He told Joe Connolly on this week’s WCBS Small Business Spotlight Podcast focusing on small business survival, sponsored by BNB Bank, that he is surrounded by small businesses who are stepping up in the battle against the deadly virus.
“I’m looking right across the street right now to a very large manufacturer called Cyre Precision. They are manufacturing hospital gowns and other safety equipment for our frontline workers,” Bednark said, adding, “The building to my right, they’re working on a ventilator prototype.”
At the impetus of the coronavirus outbreak in New York City, which is now the epicenter of the pandemic in the United States, he was forced to layoff workers. When he started hearing reports about the lack of Personal Protective Equipment or PPE for hospital workers, he worked with his design team through a weekend in mid-March to develop a face shield prototype to protect nurses and doctors against the contagious novel virus.
Bednark was in touch with the New York City Department of Health and Mental Hygiene through the Brooklyn Navy Yard. He sent pictures to the Department late Saturday evening and scheduled a meeting at its Long Island City headquarters for first thing the next morning.
“We drove over there Sunday morning, we met with them at 9:45, and at 10 AM, they said ‘let’s go with it.’”
Bednark hired 160 workers and moved into a 5,000 square foot event space in the Duggal Greenhouse in the Brooklyn Navy Yard to maximize social distancing as advised by health experts to slow the spread of coronavirus. Bednark Studio takes employees’ temperatures when they report to work and it sanitizes the workspace every night.
He orders lunch to be delivered for his workers from local restaurants hit hard by the shutdown of non-essential businesses.
“Like most New Yorkers, we have a real sense of urgency,” Bednark said.
It’s a war-like effort to fight #coronavirus. Michael Bednark tells @JoeConnollybiz how he shifted gears and ramped up production of face shields at the @BklynNavyYard for frontline hospital workers. @wcbs880 #SmallBusinessSpotlight #DifferenceMakers https://t.co/F8Hd9HBsZj pic.twitter.com/8mj0QZ8SYP
— Neil A. Carousso (@NeilACarousso) April 8, 2020
He told Connolly his team is averaging 200,000 face shields a day. By comparison, hockey equipment manufacturer Bauer said its Liverpool, New York factory makes 4,000 face shields a day.
“We welcome anyone to come and start making anything they can, look at what they have around them, what they’re abilities are and figure out a product that they can make,” Bednark said.
Listen to the WCBS Small Business Podcast above to hear how small businesses are producing vital PPE equipment for hospital workers on the frontlines of the fight against coronavirus.
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