Small business is dying...isn’t this a success story for big business and the current “government”? The more the many are dependent on the few the better for the few.
It really is sad to see where we’re headed. It wasn’t all that long ago when we seemed to be at the peak of The American Century.
I’m not saying the good ol’ days were always good, because sometimes they weren’t. I still remember my dad being out of work during the bad recession we had at the beginning of the 1980s. But you always knew that things would get better eventually, and that you had a fair chance to succeed if you worked for it, y’know?
The number of business deaths exceeded births in 2008 for the first time in US history and has gotten worse in the ensuing years. Since 2010, the rate of small business closures has increased ... In the 1980s, the number of new businesses exceeded those closing by more than 100,000 every year.
I suspect demographics has a much bigger role here than the author realizes. In the 1980s, the Baby Boomers were just hitting their peak earning years. In the mid-2000s they were starting to retire.
So who can open a small business in their community...who would want to?
lets see I could open a:
Hardware store ah right there’s Lowes and Home Depot
Office supply....nope theres Office Max and Staples
Hamburger stand.....In and Out, Carls, etc
Taco stand.....
Hot dogs...
OK I’ll just give haircuts.... Super Cuts
A phone store...oops Apple and ATT
OK a coffee shop... Starbucks
etc etc etc
Wall Street owns your Main St
I idled my "small business" this year. I started a business when I lost a job (the 2nd one in 2 years) in 2012. God was watching over me and my family because it took off and bridged the gap for us. I hesitate to mention what nitch it is because when I started, I had no idea the demand for the work for the particular clientelle. I will say it was a small maintenance and repair company (construction orientated). I (ME alone) did $40K in revenue in the first 3 months working full time (actually the 2nd and 3rd month mostly). I hired some help part time as 1090 work (1 guy from my church) for nights and weekend work, also a former small business owner. Then I got a big kid job and "we" kept the side business going for a couple years. In full year (2013) 1 we did $90K in revenue at about 15% net Profit (mostly on the side). In year 2 (2014), fully on the side, we did $100K at about 20%. It was a lot of work. So we worked out a business plan to see what it would take to go full time. We figured the revenue we would need, what we would need to pay ourselves and how many additional workers we would need and what it would cost to employ them. That's when we trashed the whole idea. As we drew the ROI curve to meet our income needs, we realized it was doable and, at the pace we were going we would be at optimum size for revenue, profit, costs and risk at about 15 employees in about 4 years. Then we discovered we would be in a regulated class for what we do. Then we discovered there were some things we couldn't affored to do because of regulations. Then the whole idea died. Between the EPA and some wildlife regulations with regards to legal drains and standing water, along with some emissions regulations from spraying PAINT, it was way too risky to skirt the rules. I still keep the company name and insurance and licenses paid up just in case. But adding 30 to 40 hours to a work week for an additional $10K to $30K at risk of breaking some previously unkown "laws" motivates me to forget it and keeping working for someone else.
It's pretty sad. I didn't mind working harder for myself. Hell I took my kids to some of the sites for help now and then. I liked it. But this is the end of the American Dream.
If the next Congress does not start repealing Government Regulations by the basket full then it will not matter. Small business will wither and die along with America. We have passed the point of no return and the EPA and their friends are determined to destroy most businesses it seems.
The best thing that the new Congress can do is start repealing laws. Wouldn’t that be a change (hoot)! Unfortunately, don’t count on it as both parties are of the same mind it seems. More National Government, less Individual Freedom.
By the time the media or the political class notices, it will be far too late.
...
Big Government and Big Business are getting exactly what they want. They are fully aware of what’s going on.
New tagline ...
Not good. Not good at all.
Great post; thread. Are there many opportunities besides fracking [BIG] craft beer [SMALL] to _______ [VERY SMALL]?
http://money.usnews.com/money/personal-finance/mutual-funds/slideshows/15-sectors-to-watch-in-2015/1
Here’s something that’s always growing…
debt enslavement BUMP!
I work in HR... you would have to be insane to try to go into business yourself in the U.S. today with the intent of ever hiring somebody else.
Boy oh boy...does this article ever hit home for me.
My parents were both 1st generation, born in this country. They believed in hard work, no credit, no mortgage, not wasting money on “new” things (keep things til they just wore out/fell apart).
College was NOT an option (unless I wanted to go to nursing school or become a teacher). I HAD to learn a trade in HS (hair stylist). My dream, to have my own little shop.
Well w/a large family (5 kids) I always worked and (salons/retail) and decided when my youngest went to elementary school that long days, standing on my feet for not much $ could be replaced, using my people skills, by getting a Real Estate license. I was (sort of!) finally working for myself (but w/an RE company). Well, the RE market went belly up; and (now w/kids in college) the uncertainty of commission as opposed to steady (but small) pay lead me to a retail job (managing a small store on the days the owners were not present). Worked in that small business for 12 years, and the business closed right before Christmas (Amazon is trully killing main street). So now I’m on unemployment, looking for a similar set up to what I had before. It’s too costly to activate RE license (and pay insurance fees etc); and it’s somewhat costly to revive my hairstylist license.
Due to unemployment regs, I check online almost daily; low/mid level retail jobs fill almost immediately and are ALL chain store related (minimum wage). There is a glut of experienced workers (like me) but the small businessss we worked in are closing rapidly. In the bldg my old store was located in, a 2nd business closed. Two empty stores fronts added to the dozens (big and small—a Walgreens closed last fall) of empty retail spaces.
But hey...the economy is on the mend, right?!?
My brother had to shut down his small business of damaging 0bamacare requirements.
Good Bye to the once great American middle class.
It’s harder for a fascist tyranny to control millions of small businesses than it is to control just a few very large ones.
Two year ago we lost 14 businesses in town and a major manufacturing firm in the county seat.
Last year the rate of business closings slowed considerably but being there are so few left this is not a reliable indicator.
We could have kept our businesses going by more investment and adding employees but with the Sword of Damocles/Obamacare hanging over our heads and all the other crap Big government is talking about we just didn't see the point. So we are winding it down and now it just gives my 84 year old Father a reason to get up in the mornings. He still enjoys the work but he was dead set against doing anything more than we are doing.
He lived through the Great Depression and he claims it is worse now because there is no feeling of the country getting better.
I know it has never been this bad in my lifetime and the Carter years sucked balls big time.
I know of no reason anyone would open a business around here. We have an epidemic of pillbillies and heroin addicts. I would gather over half the population is on the full government dole with most of the rest getting a government check of some sort. All our city schools are now on full Free Lunch. (Apparently once you pass a certain percentage they just throw in the towel and make everyone on the free lunch dole)
Its like I woke up one day and my town was gone and it was replaced by an inner city ghetto.
As someone who is struggling to keep my small business going, the biggest problem is that people lack disposable income and small business services rarely supplies necessities (things you can not live without) but luxuries (things that are nice but the lack of them will not kill you).
I posted this days ago, no one see's it or gets it (See link below).
My CPA friend is wigging, it will be a nightmare for them and small business and be barrier for even thinking about opening one...
bump