The U.S. economy shrank 32.9 percent in the second quarter due to the pandemic, according to Commerce Department’s latest data. But Americans are actually spending more while earning less: In May, consumer spending increased 8.2 percent while personal income decreased 4.2 percent.
These trends add urgency to grow sales until the economy recovers. That’s easier said than done considering most small businesses (SMBs) have unreliable cash flow. According to an April 2020 Harvard survey, the median business has over $10,000 in monthly expenses but less than one month of cash on hand.
