This year has undoubtedly been challenging for everyone in one way or another, whether you all of a sudden became a homeschool teacher or you had to learn how to navigate the work-from-home life. Unfortunately, we saw many businesses close throughout the year and many more continue to struggle. Vernell and Veronica Beckum saw their fair share of challenges running their home preservation business during the COVID-19 pandemic but through perseverance, they managed to stay afloat.
The Beckums provide REO property maintenance as well as property preservation. With their list of properties they regularly take care of, they were able to continue business (almost) as usual. However, one of the major ways they were impacted was through state and federal mandates prohibiting evictions. With the rising unemployment numbers due to the pandemic, people were protected from losing their homes. Good for the homeowner or renter, bad for the Beckums’ business.
Many banks were required to allow forbearance on mortgages for property owners whose incomes were significantly impacted by COVID-19. With roughly seven to eight million people on unemployment, about half will have their homes approved for forbearance. Because the Beckums rely on maintaining foreclosed homes and preserving REO properties, their business suffered a minor setback.
With the slow pay, the Beckums had to adapt. They adjusted their payment schedule from 30 days to 60 days, and fortunately had some savings set aside that helped. Often a business doesn’t have major savings to fall back on when a pandemic hits.
“Most businesses utilize day to day or weekly revenue to manage their finances,” Vernell explained.
The unfortunate hard truth is that small businesses often live paycheck-to-paycheck, just like individuals. We are often told to have a three-month emergency savings plan in place for personal reasons, but no one thinks to do that for a business. Unfortunately, because of this, many small businesses failed throughout this year.
The Beckums are no strangers to operating a business during an economic slump. They began their own venture into the entrepreneur world in 2008, at the height of the recession. But in the middle of despair, they had the courage to start fresh—providing an encouraging story for others who may be in a similar situation now. If there’s anyone to look up to during these hard times, it’s the Beckums.
