Small Businesses Breaking and Broke
Covid Over? 331 Million Americans Suffering, 33 Million Americans Infected, 600 Thousand Americans Killed, Government Gone Wild, Rust Belt Revival Risk
They Can Always Make It Worse
Have you noticed that our government is shoveling money out the door as fast as they can “print” it? Trillions (that is trillions, with a “TR”) of dollars have been conjured up out of thin air in the last couple years. How much is trillions? Lots. And lots. And lots. And then some…
Washington, D.C. Government computers humming along. Busily churning out all these brand-new dollars. Who needs a printing press? Besides, there isn’t that much paper on the planet.
Meantime, in the real world… I am sure you recall that place… the place with lockdowns, new normal, rules for thee but not for me… In that place, the economy tanked. Factories froze. Companies closed. Businesses busted. Hotels hurt. Restaurants retreated. Get the picture? If not, look out the window.
Let’s recap.
An Unbelievable, Incredible, Super Tidal Wave of Dollars.
Fewer Goods and Services. (Check out your local new car dealer).
Can you say, “Inflation?” I knew you could!
What is coming next? How can we deal with it?
These Truths We Hold To Be Self-Evident
If you are like me, you see the government as a monster that gobbles up tax dollars and spits out pot-holed roads. You and I do not expect good things from government bureaucrats, promises or programs. We wish they would just take the money from our paychecks and leave us alone. We cheered when Ronald Reagan said, “The nine most terrifying words in the English language are: I’m from the Government, and I’m here to help.”
Most of us middle-class folks who work for a living have enormous compassion for our truly disadvantaged brothers and sisters. Middle-class Americans, by far, are the most generous, charitable, open-handed people in the world. You can look it up. Helping strangers. Donating to charities. Volunteering time and effort. We do it. And we do more of it than anyone in the world. Authentic charity to solve genuine problems of our undeniably needy American family makes us feel great. Our hearts glow.
On the other hand, we are exasperated by government “social programs”. Huge sums dedicated to noble causes. Tiny dribbles of cash to those in need. Hard-earned dollars stupidly squandered on politically correct and tragically senseless schemes. Most of the money going to professional parasites, the Beltway Bandits. It is no coincidence that Washington, D.C. is surrounded by the richest communities in America. Tough job doling out your cash, but hey, somebody’s gotta do it!
Brave New World True Confessions
People like us cannot imagine that we would ever again see any of the money forked from our paychecks by government. Let others put their snouts in the trough. Just leave us enough to get by. We will figure it out. Frugality: beans and rice, rice and beans… Besides, it seems wrong that anything would come back to us… That is not how it works.
But pandemic panic politics has changed things. Can we deny the evidence of our own eyes? Radical reactions fundamentally overhauled our public policy. And economy. And our ability to plan.
None of us want the hand-out. Other folks got the gimmees, but not us. We play by the rules. Fairly. But what can we do when, in the middle of the game, they change the rules? Are we supposed to roll over and die? Go broke? Submit? No, thank you very much!
The World Turned Upside Down. Adapt Or Die… Or At Least Go Broke.
Many of us remember when expensive long-term care was unusual. Nursing Home Poverty was not a concern. Your grandmother did not have to sell the farm because your grandfather had dementia. Nor did your great-grandmother. Nor your great-great-grandmother. Regular people could save up, help the next generation. Not so much anymore. Failing to plan for long-term care in the 21st Century means, nursing home poverty, no choice, no legacy. Planning means security for you and your loved ones.
Just a short time ago, mere months, small businesspeople were riding high. Record numbers of women, Blacks, Asians, all sorts of ambitious entrepreneurs, were rolling up their sleeves and getting down to business. Sure, taxes, regulations, and competition were still big worries. But success was in the air. What do you smell today? Desperation. Confusion. Fear.
Government is pumping floods of cash to your competitors. Belly up to the bar! You cannot ignore the new reality or wish it away.
Truth And Consequences
Skilled care at $12,000 per month means you will need Medicaid. Broke or not broke, that is up to you. If you are like me, you will not like it. But it is not up to us. Our likes and dislikes are irrelevant.
Payroll Protection Plan, Economic Injury Disaster Loan, Employee Retention Tax Credit, Stimulus Payments. Just a few of the government programs dumping tons of money on small business.
The competition is getting this money. Other businesspeople have received and are receiving tens to hundreds of thousands. Direct from the money factory. If you are like me, you do not like it. Neither do I. But we cannot wish it away.
How can you say NO! to money that keeps your team members’ children clothed and fed, mortgages paid, and bills up to date? They made the rules. We must play by them or lose all we have worked for.
Paul Revere Rides Again
Inflation Is Coming,
Inflation Is Coming!
Gas prices at a 7-year high. Low interest rates. Sky high housing. Families priced out – cannot afford it! Factories shut down. Pipelines closed. Workers paid more to stay home than they could earn by working. Some prices have not changed, but there are fewer Cheerios, garbage bags, less laundry detergent in that box. More Money. Less Stuff. This is what inflation looks like.
How can local business survive? To get through this human-made storm, shouldn’t you take advantage of every opportunity? Including the uncomfortable, unavoidable opportunities provided by government programs? You did not ask for the money. You did not want the money. But the programs are here, your competition is taking advantage. You cannot afford to ignore them any longer. It is a matter of survival.
Most people, faced with disaster, will close their eyes. Hope for the best. And watch their business, life savings, and achievements of a lifetime evaporate like a snowflake on a hot griddle. Why do hard-working, prudent, frugal, middle-class entrepreneurs accept poverty? Most of the time?
Small Business Salvation – Employee Retention Tax Credit
Ten Things Everyone Always Gets Wrong (Mostly)
1. I got Paycheck Protection Program (PPP) money, I’m out!
False. PPP is irrelevant. Does not matter! Chin up… you can qualify whether your PPP loan was for Draw 1 or Draw 2, forgiven or not.
2. I did not qualify for PPP money, I’m a loser!
False. See #1, above. No relation between the programs. Irrelevant!
3. My business revenue did not decline, poor, poor pitiful me!
False. Is it a slam dunk if you had a revenue decline? Pretty much. But if putting in those 16-hour days means you kept the money coming in, we argue that COVID still fell on your business like a ton of bricks. Hundreds of pages of lawyer-talk interpret the law. It is complex. Do NOT jump to conclusions, bad or good.
4. I did not completely shut down, I’m sunk!
False. By soldiering on, you are a hero to me! Sure, complete shutdown is another (pretty much) slam dunk. But there’s more than one way to skin that cat!
5. My enterprise is an “Essential Business”, woe is me!
False. ERTC is supposed to keep people on the payroll. Being essential does not automatically disqualify you. For example, hospitals (pretty “essential” right?) clearly qualify. You might too!
6. I did not pay enough income tax to use a tax credit, I’m up a creek.
False. This is a refundable tax credit. If you can’t use the whole amount to offset tax, the government will shoot you a refund check. Also, as a payroll tax credit, your income doesn’t matter for eligibility.
7. Our FTE employment numbers are down, and our turnover is so high, I installed a revolving door! I’m down and dizzy.
False. Good News! The ERTC amount is based on the wages you paid to employees. It does not matter that they later left.
8. I managed to hire even more folks. I am doomed by my success.
False. Hey there hero! Not only can you qualify, you might even get a larger tax credit.
9. I was dazed and confused by the PPP process and this ERTC looks even worse. I do not want another migraine!
BINGO! The exception that proves the rule. ERTC is guaranteed to give you a splitting headache, halitosis, and the heartbreak of psoriasis. Or not. But payroll companies are asking their clients to sign liability waivers for messing this up. Our research and expertise will lighten your load.
10. My brother-in-law the accountant can do this. I am as confident in his abilities as I was in my electrician brother-in-law who burned down our house. Could have happened to anyone!
Well, maybe. We have heard too many accounts of accountants mistakenly claiming businesses would not qualify. Sometimes they are correct. Sometimes they just do not do the hard work of digging through the law. Go ahead, roll the dice on your future.
Not Chance, Your Choice
There is nothing inevitable about losing your independence and security. All of that is a choice. Despite what “everybody else” says. For thirty years, people have told me, “I’ve never heard of this before!” “If this is real, why doesn’t everyone do it?” “My lawyer / financial advisor / brother-in-law / accountant / tax person / banker / best friend / fill-in-the-blank never said anything like this…”
Well, here you are. Now you know. No excuses. You have the information, insight, inspiration. Now it is your turn. Ignore the message? Invite poverty? Or get the freely offered information. To make wise decisions. For you. For your loved ones.
No Poverty. No Charity. No Waste.
It is not chance. It is choice. Your choice. Get Information Now.
