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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]

Mastering The Sales Discipline To Shut Up

September 21, 2023 by Jim Blasingame

Contrary to what you’ve heard, selling is the oldest profession, because “In the beginning” the serpent sold the apple to Eve. Everybody knows that. You might say she bought wholesale and then sold the apple retail to Adam. And as we now know, that was one expensive transaction.

A key characteristic that separates humans from the other animals identified in Genesis is ego. And while ego can be a beneficial motivator in selling professionally, in order to do that successfully, we must do something that’s in direct conflict with our ego — we have to let someone else talk more than us.

So, when you’re on a sales call – face-to-face with a prospect – what do you do? Do you unload the dump truck of stuff about products, pricing, etc. that your company installed in your head? If that’s your answer, your professional selling career is doomed. [Continue Reading]

Your Blockchain Close Encounter Of The First Kind

September 19, 2023 by Jim Blasingame

This is the third article in a series about Blockchain technology and its implications. The first, in June, was an introduction, and the second, in July, was how Blockchain works and its role in creating digital trust. This article is about your likely first contact.

As small businesses have increasingly become vertically integrated with Big Business customers, they’ve had to step up their Main-Street-Mom-and-Pop game to become more sophisticated while continuing to be nimble, quick, versatile, and efficient. With this integration, larger customers have notified smaller partners of their evolving expectations, as driven by macro events and trends.

Consequently, over the past 25 years, millions of small businesses have received letters requiring compliance with four of those macro markers: [Continue Reading]