Archives for October 2023

Are humans going to get help sorting out our problems?

October 31, 2023 by Jim Blasingame

Last week, we asked this question in our online poll: “Are you concerned about the increasing global instability these days?” We offered the following options, with your response percentages at the end of each:

No. These things ebb and flow – we’ll get through this. 8%
Yes. Because Middle East politics has now been exported to neighborhoods around the world. 23%
Yes. The Biden administration has weakened America’s standing and funded terrorists. 62%
No. We’re in the hands of a higher power with a greater plan. 7%

I envy our first group of responders. I wish I could be that philosophical about how things are going around the world.

Of course, we have to aggregate the 85% in the middle of our sample who allowed they’re very concerned. Being part of this cohort, at this point, I’ve moved from thinking about any one or the other areas of danger and base my increasing concerns on just doing math: [Continue Reading]

Five Financial Mysteries Revealed, Part III

October 24, 2023 by Jim Blasingame

This is the last of a three-part series covering what I call The Five Financial Mysteries. In the first two articles, the first three Mysteries were revealed about the relationship between cash, accounting, and profit.

In this article, I’ll complete my attempt to help you stay on the right side of the business survival/failure statistics. So, buckle up as I reveal Financial Mysteries Four and Five.

Financial Mystery Number Four

You can get squeezed between vendors and customers.

Vendors and customers are the prime entities every business deals with financially every day the business is open. Understanding your relationship between these two, (literally between, because your business is in the middle), is the key to cash flow management. The way to avoid getting squeezed is [Continue Reading]

Revealed: Two More Of The Five Financial Mysteries

October 19, 2023 by Jim Blasingame

This is the second of three articles on how to prevent your firm from becoming part of the increasing mortality statistics of U.S. small businesses. That’s right. The SBA reports that 50% of small businesses fail in the first four years, instead of five years, as they reported 20 years ago.

In this series, I’m revealing what I call the Five Financial Mysteries. Actually, they shouldn’t be mysteries at all – they’ve been around for generations. But with this much Main Street carnage – a 20% increase in startup failures – it’s obvious that a lot of people haven’t learned what you must be able to do to sustain your business: operational financial management.

If you think you’re an excellent financial manager, then you won’t find any mysteries here. But if you could use a little help with your financial management, then this series could be just what you need. Don’t worry, we won’t get too mathy.

In the previous column, the First Financial Mystery was revealed: Cash and accounting are not the same thing. Today you’re going to discover the Second and Third Financial Mysteries. [Continue Reading]

Business Financial Mysteries Revealed, Part I

October 10, 2023 by Jim Blasingame

This is the first article in a three-part series on how to prevent your operation from joining those who are driving the increasing mortality of U.S. small businesses.

One of the pillars of the American Dream is the ability of any citizen to start a business from scratch, build it, own it, and pass it along to their heirs. Research indicates that there are more than 25 million of these dreams come true in the U.S. Approximately eight million have employees, the balance are independent contractors, professionals, etc., and together they create half of the U.S. economy.

That’s the good news.

The bad news is [Continue Reading]

Has America Crossed Its Rubicon?

October 5, 2023 by Jim Blasingame

Last week in our online poll we asked this question: “Should the House of Representatives stand on budget cuts, even if not passing a budget shuts down the government?”

And we offered these four answers, with response numbers at the end:

Doesn’t matter. It’s just more GOP theater – either way they’ll lose. 23%
Yes, we have to stop spending ourselves into bankruptcy. 47%
No, because government shutdowns always cost Republicans more politically. 27%
Doesn’t matter. The U.S. is already too far gone on so many levels. 3%

Of course, as is the case in so many questions about our federal government, this week’s topic came loaded with associated issues: 1) the basic obligation of getting a budget passed; 2) the political leverage both parties try to acquire in the process; 3) the dysfunction of deficit spending; 4) our prohibitive national debt; and, of course, 5) the beautifully messy system we call a representative republic that doesn’t leave the minority without options, however limited. Our aim this week was to offer answer options that would cover these issues.

In America, there’s an entire court system and set of laws devoted to what happens to regular folks when their financial reality looks like that of our federal government today. It’s called the bankruptcy system. So perhaps we shouldn’t be surprised to see that[Continue Reading]

We Made The Experiment, And The Fruit Is Before Us

October 3, 2023 by Jim Blasingame

For more than 20 years in our online poll, we’ve asked our audience for their thoughts on a wide variety of Main Street subjects. Recently, we asked the following question with four response options, and results in parenthesis:

“Based on your observations, will younger generations – currently under 45 – be able to take full possession and manage the transfer of America’s business?”

• Absolutely. Just as well as any other group – maybe better (23%).

• Not looking great so far – high in entitlement and low in work ethic and critical thinking (26%).

• It seems they’re behind, but there is a minority – about 20% – who could save them (28%).

• Time marches on and each inheriting generation shapes their own future (23%).

In the hundreds of polls we’ve published, rarely has the tightness of the spread of responses been as noteworthy as the leading vote options. For now let’s set aside the 23% who defend the younger generations and the same group who equally defends humanity in general, and focus first on the leading responses.[Continue Reading]