Real median household income is down 8% in the last seven years. Mortgage applications are down 60% in the last seven years. Wage growth is non-existent. Healthcare premiums are increasing at double digit rates. Food prices are skyrocketing. Savers get .15% on their money. But, the stock market is at all-time highs. And corporate profits and stock buybacks are at record levels.
Things are just so fucking great, it’s driving people to drink. No wonder the MSM is reporting consumer confidence is at a seven year high. Everyone they interviewed was drunk.
The Reason Small Businesses Are Disappearing, As Explained By A Small Business Owner
Submitted by Tyler Durden on 11/14/2014 10:33 -0500
Confused why despite endless daily propaganda that the US economy is getting better – after all “just look at the record high S&P 500” – fewer and fewer Americans believe the narrative, as the Democrats and Obama found out the very hard way in last week’s midterm elections? Then the following explanation written by the owner of a small business – the segment of the US economy that has historically led every single recovery but this time was left behind – should help answer some questions.
The reason small businesses are disappearing written by a small business owner.
I want to start out by saying that i am a 27 year old male with a small business in Sacramento CA. I started this business a few years ago with savings of 15k. With a lot of hard work and determination i have succeeded, but it sure as hell was not easy. I am a long time lurker and have never seen anyone go in depth about what its like to own a small business and the reason why they are disappearing. Without going into to much detail, i own a furniture store so obviously things are different then other businesses but a lot of the things are the same. I wanted to begin with the things that are killing small businesses. Also only my opinion.
Small Business Loans – Although they are not killing small business they sure as hell don’t help anyone. Unless you are opening a unique small business you are not going to get any funding. By unique i mean something along the lines of creating solar panels. According to a recent investigation by the SBA Inspector General (ill post the article if you would like), over 75% of SBA loans went to large businesses. So basically if you want to open a normal business you need a ton of collateral and a miracle to get a loan.
Permits and Licensing – In opening my specific business the first year totaled about $2000.00.
Advertising – Many small business’s cant afford to take out pages or flyers in the news paper or TV ads so they only have a few choices such as Yelp or the Penny-saver. (Don’t get me started in Yelp).
Street Advertising – While this used to be a good portion of how you get business it is now off limits. Code enforcement will not allow you to put anything outside. No balloons, signs, anything with your store name, window paint more than 50%, or any mattresses. Also delivery vehicles can not be closer than 50 feet from the curb. In my case that means behind the building.
Board of Equalization – Cant go into to much detail here but they sure as hell aren’t here to help.
Health Insurance – Now obviously with the people that have a large work force working full time they will be hit hard by obamacare, but i wanted to give you a perspective on a single person. The cheapest rate for myself and me only, and believe me i have looked around, is $250.00/month. Some might say oh that’s not bad, but let me explain what that covers, NOTHING lol. Basically if something happens to me i have to shell out 6K before insurance gets involved. Also 100 dollar co pay every time i go.
The economy – While many know that when the President comes on TV and says the economy is doing great, we all know it is not, some people don’t. Every month more people drop out of the Labor Force and the number of families on food stamps is sky rocketing. So for those of you who don’t know the economy is terrible because of all the top stories of Kim Kardashian and whoever else, lots of people in america are struggling.
Merchant Fees – This is for credit card processing machines. The machine itself costs 600.00 plus the percentages on sales and cards. Companies such as BofA charge once a year on top of the regular fees $150.00 to protect you from fraud (which they can’t even stop) and yes its mandatory. Paypal or Square seem to be the best options these days.
Fire Department – Yes even the Fire Department wants a piece. Starting last year you must do your own visual inspection and send them a check for 150! Basically if you don’t they will come to your store and give you a million violations for wasting there time.
Something to watch out for is people who check fire extinguishers in business’s. This is a huge scam where they come in without permission to inspect your extinguisher, get you a new one and bill you like 200 the following month. They have no right or permission to enter your business and jump all over you. You can simply tell them politely to get out. They dress like they are fire fighters but they are not.
* * *
The thread with the author’s Q&A continues on Reddit.
Thanks for your hard work admin.
If you look at many sites there are a lot of people who act like everything is great and Obama is doing a good job. I’m not sure if they are paid to do this or living in some fantasy world.
And the funny one of people thinking it will all be so different with Republicans in charge.
The small biz guy is right, but he doesn’t have employees nor try to provide them benefits, so even he has no idea the truth as to how bad it is.
The reason small businesses are closing is because NO ONE can live under the constant stress and pressure of the requirements of our ridiculous laws and regulations.
Trying to stay compliant eats away at your soul, day by day, rule by rule, leaving NOTHING left to use to make money.
For now the bigger guys are getting abatements, winks and passes on the rules (that the big guys lobbied into existence), but soon they are going to be eating the full force of the regulators they created.
Good. Serves ’em right.
Bad for the country and the working man, but we all know nothing is going to be fixed until it hurts. Bad.
So basically my decisions avoid venturing out among the sheep and to the make those ventures brief when they cannot be avoided, are good for my health and wallet. I remain smarter than I look!