Politicians, Fat Cats and Small Businesses

by | Oct 16, 2008

Small businesses owners are the engine of freedom.

Wow!  What a month!  The last 4 weeks have seen Hurricane Ike hit us here in Houston, a world wide financial crisis, the U.S. government’s direct nationalization of a big chuck of the mortgage and banking industries and two presidential candidates competing with each other for who can toss out the biggest bailout of U.S. homeowners.

Lots of money being spent!  Well over a trillion dollars by my count, not including the real losses in equity values of homes and stocks.

In the aftermath of Ike

I saw people driving through my neighborhood in Mercedes Benz automobiles to get in line to receive free ice, water and MREs.  In my area, there was running water but, many did not have electricity for up to 17 days.  Stores were open.  Businesses were open.  Yet, the local, state and federal governments were all there with free stuff.  And unbelievably long lines of people to load up on their goodies.

Politicians start talking about handing out billions of dollars to bankers to “free up credit”, then rush in to “rescue” huge banking and insurance institutions that are “too big to fail”.  And then we learn that executives from some of these institutions paid themselves huge multi-million dollar bonuses only weeks before they announced the dire financial condition of their companies.

Now the two presidential candidates just can stop talking about buying up real estate and handing out more “rescue” money to bankers.

Who’s money is it?  At this point its really our childrens.  The money is borrowed and the repayment will come years later.  But its every taxpayer that will end up with the bill.

In particular, its small businesses that will get the bill.  We are already carrying more than our share of the load.  Funny thing is the politicians claim its us they’re rescuing while they borrow against our future with our money.  How about letting us save ourselves?

Clearly the motivation in all this is for politicians to make themselves look good and keep their billionaire benefactors in business.
Have you ever read Ayn Rand’s “Atlas Shrugged“?  I’m not sure I see the difference anymore between the world Mrs. Rand described of “producers” and “looters” and this world we’re living in.

Its enough to make you pretty darned disillutioned isn’t it?

Well, never fear!  I have not lost heart nor should you.  In Atlas Shrugged, the protagonist leads essentially a tax revolt by the producers.

In our world, small businesses are the producers.  Small businesses are responsible for 70% of the job creation in the U.S.
I always knew I was destined to run my own business and my entire career has always been in small businesses that grew bigger.  Today, SalesNexus caters to small business people.

I love small business people because there very little room for error in a small business.  Small business people endure such stress to make payroll, ensure the quality of their product and risk their cash on marketing experiments.  The list of people with the desire to take on this role and stick it out through the lean times is short.  But the list of people that dream of running their own business is long.  Because there is no mistaking the achievment of making a small business successful.

The difference between a Fortune 500 CEO and a small business owner, other than the Harvard education and the difference in income, is the level of accountability.

CEOs at banks and energy trading companies can pay expensive lawyers, bankers and accountants to play games with the books to make things look better than they are and their cash flow is always based as much on PR as it is on sales results.  If your sales aren’t getting it done, then go raise some more cash from bankers and investors.

Small business owners have one option – sell more than you spend.  Sure, you may take out loans to finance expansion, etc. but, the home your family lives in is the collateral on the loan.

There’s no mistaking a small business owner when you meet one.  small business owners don’t have time for chit chat.  They get to the point and when its time to decide what to do, they don’t hesitate or call in a consulting firm.  Also, They are incredibly consistent in their ability to hold everyone involved accountable for their actions.  And know they will be and their success depends on their employees, partners and customers.

SalesNexus is in the business of helping small businesses be more efficient and effective and measuring the team’s achievements so that the accountability they demand is a click away.

At this moment in history, I could not be prouder to call small businesses my customers and my passion.

Thank you to every small business owner!  Whether you’re struggling or growing, you are the engine of freedom.