The US government is injecting $1.9 trillion into the economy. People have already started receiving their stimulus checks and its effect is going to be huge for your business in 2021.
As a businessperson, a slice of that huge pie is going to land on your plate. What will be the effect of the stimulus on your business? How do you position yourself to reap the benefits of the stimulus checks?
Round 2 Stimulus Checks: The Effect on Your Business
158.5 million households will receive a minimum of $1,400 per person. The effect of the first stimulus was a growth of 7.6% in retail sales in January. The effect of higher second-round stimulus checks is expected to be much larger.
Much of the round two stimulus checks are bound to be spent in March and April. Given that consumer spending is 70% of US economic activity, a good bulk of the money will offset the sluggish growth in February. US retail sales dropped 3% in February. This is attributed to severe winter and the fading of the previous stimulus.
Your customers also had to deal with higher prices. This is mainly due to lower supply. We all experienced heading to the store to pick up something that normally cost a few dollars, and the price had shockingly tripled. The coronavirus pandemic has shut down businesses and created bottlenecks in supply chains.
Restaurants have been allocated $28.6 billion through the creation of the Restaurant Revitalization Fund. It’s aimed at reviving the restaurant industry and saving millions of jobs in the process.
How to Capitalize on Round Two Stimulus Checks in 2021
First, get the basics right. You need to be ready when your customers get out their credit cards. There’s going to be a sharp rise in spending and you need to lay down the necessary infrastructure.
Here’s one simple and effective way to do this.
Get Your Business a POS System
The coronavirus pandemic is speeding up the transition from cash to card transactions. Your business needs to acquire a POS system.
Now, we understand that times are hard. You might wonder whether it’s the best time to be buying a POS system. In actuality, this is exactly the best time to do it. $1.9 trillion is going to be spent in the next few months and much of it will be on card payments. There has never been a more crucial time for your business to have a reliable and versatile POS system.
You might not have the money to buy a POS system outright, and that’s okay. At True POS, we provide affordable POS equipment leasing. Our systems are an investment in your future, not an expense. They have added benefits that increase your profits and reduce your business expenses.
Cashflow is everything in your business, even more so when the round two stimulus checks start rolling in. We offer Merchant Funding for your business based on your card transactions. No collateral, no hassle.
Things Only Get Better
Things are looking up. More people are getting vaccinated and experts are cautiously optimistic about coronavirus infection numbers. Remember, the stimulus checks amount to only 20% of the stimulus package. The bulk of the funds will be spent on unemployment relief. This boosts the total stimulus per person to $2,000, in some cases.
While the pandemic has put many (if not most) of us in a position where we need to pivot and adapt, know that you don’t have to do it alone. True POS is here to make this path easier for you and remove the unnecessary friction.
Invest in your success today and get your free quote here.