The Realities Of Owning A Small Business Right Now
By Justin Gardner | Related entries in Business, Economy, VideoThe New York Times covers three small businesses in the NYC area and it’s pretty sobering stuff. Whatever stimulus plan we see after Obama gets in better help these folks directly otherwise the economy simply isn’t going to pick back up.
Do you own a small business? How tough have things been recently?
This entry was posted on Thursday, January 1st, 2009 and is filed under Business, Economy, Video. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
January 1st, 2009 at 7:50 pm
So-called “‘small businesses” are America’s new middle class. This is where the original stimulus should have been applied, not to a bunch of CEOs getting to retire with massive golden parachutes. A “bailout” of small business owners in whatever form is going to have far more of a “direct stimulative” effect than the current “throw money at corporate America” and hope they use it wisely plan. They’ve already shown themselves to care only about themselves, not the American economy or people. It wouldn’t surprise me if a good chunk of this “bailout windfall” isn’t going directly to the subsidizing of foreign investment in which/by which more American middle class jobs are being siphoned off. America needs a bailout for the rank-and-file American, not these massive multi-national conglomerates that will survive the current economic crisis no matter what. What’s at stake is middle America. It’s ironic how quick corporate America is willing to use the “Socialist” word in a derogatory way but they sure do love their corporate welfare don’t they?
January 1st, 2009 at 9:58 pm
I have a VERY small business as a finish carpenter/custom cabinet shop and have operated as a sole proprietor as well as limited partnership with a small work crew employed. I have used the equity in my home to secure loans for investment purposes and recently have had difficulty obtaining funds which has caused a temporary shut down for the holiday season, which is often the slowest time of the year anyway. I have taken employment at a local retail home center so I don’t have to worry about the extra bills while things sort themselves out. We are also a 2 wage household which is the only reason we’re still OK. I can’t imagine how a family could get by without both earning a wage.
Although I agree that the Gov. should give support whenever possible, there’s no practical way we can all get ‘bailed out’. Business is both the problem and the solution and our leaders need to do a much better job insisting that business take more responsibility for doing the greater good for our society. Not for their moral goodness, but as the price of doing business in this country. If that’s too high a price to pay than take your business elsewhere. People also need to do a better job hiring their Gov. leaders and discriminate more on where they invest their hard earned money. Do we want to save a few bucks now to pay much more later?
January 1st, 2009 at 11:11 pm
If Obama can get a meaningful universal health plan in place that can help small business owners cover themselves, their families and their employees it will be no small help to them.
January 1st, 2009 at 11:27 pm
I am doing well, but I have never worked harder for the money I am making today. Despite the fact that I NEED to move to larger facilities, I am staying put to save on money. This holiday season turned out to be much better than expected.
January 3rd, 2009 at 10:01 pm
I own two small businesses – one that has been established for more than five years (an S-corp consulting practice with full-time clients) and another I just opened this past summer. I am a planner, but even my worse case scenarios for the year were miles off base. I’m trying to do the right thing – keeping my employees until I simply can not afford them any more. Thus, I have had to take out loans against our property. Just last week I found out my credit line had been reduced due to our new debt to income ratio. I’m officially scared – I’m now working 70 hour weeks and bringing in $0. I’m just a tiny speck of a business, yet at least a dozen people will be out of work because of (what I feel) my failure to adequately prepare for the changing economy.
We have a dual income home, but the spouse works for a financial firm, and layoffs are expected in February. We have suddenly gone from a debt-free, comfortable place to the very scary other side – all within a matter of months. I like to think of myself as well-educated, fiscally aware and a “planner” but I’ve been blindsided. And it’s pretty dreary and hopeless on this end (business-wise).
It is extremely frustrating that the financial firms that received the bailout began to purchase other firms, rather than filter the cash to business credit, as originally anticipated. Every time I hear of another buyout I cringe, knowing it means one less opportunity for survival of my businesses.