A ‘Letter from a Business Owner’
Recently one of my colleagues forwarded an email to me with a “letter” supposedly from an actual small business owner to his employees. Being cautious about forwarded material, I decided to look into it more closely and found that this “letter” has been around since mid-2009 with several different names attached to it. But just because we can’t confirm that it even began life as an actual letter, that does not mean that it is devoid of meaning and importance. In fact, I find this one of the most succinct, straight-on explanations of what small businesses are faced with in the current political climate.
Treating people who have essentially given their lives to create a thriving company as if they were the enemy — or worse, an unlimited money tap — will only guarantee this Recession will not end any time soon.
Rather than give you the entire text of the letter (I am certain you can find it online), I would like to summarize the contents and give you my take on what the writer had to say. I hope that you will share your own thoughts with me.
The writer begins by addressing his employees about rumors that the company may be in trouble because of the economy. He assures them that the economy does not pose a threat, however the political climate does. He then goes on to detail his “back story” on getting his business started. Having worked with many small businesses – in both the start-up and growth phases – I know exactly what he is talking about. I did my time as a start-up company, and it was not the easiest time of my life.
According to the writer, “I lived in a 300 square foot studio apartment for 3 years. My entire living space was converted into an office so I could put forth 100% effort into building a company, which by the way, would eventually employ you.” He goes on to talk of existing on Ramen noodles, driving a beat up old car and staying home working while friends were out partying: “I was married to my business — hard work, discipline, and sacrifice.” This is exactly the type of experiences many successful small business owners go through as they are getting their companies off the ground.
For the successful business owner, it does not stop when the company is up and running. No, that is when the real work begins. As the writer explains, while employees can “physically arrive at the office at 9 am, mentally check in at about noon, and then leave at 5 pm,” the business owner is always on the job. For him or her, the company is constantly on the mind. Or as the writer puts it, “Every day this business is attached to me like a 1 day old baby.”
The writer acknowledges that he, as many successful business owners, has acquired the trappings of the “good life” through the fruits of his labor. But the point is that he chose to sacrifice the immediate pleasures for the long-term gains that a company can bring. He knows that “business ownership has its benefits, but the price I’ve paid is steep and not without wounds.”
At this point the writer goes into the real meat of the letter – the current political climate and its effect on small businesses. He points out that many people, who have not been as diligent as he has on planning and living their lives, seem to now feel they are “entitled to the same luxuries that I earned and sacrificed a decade of my life for.” He explains to his employees that “the economy is falling apart and I, the guy that made all the right decisions and saved his money, have to bail out all the people who didn’t.”
And how is our business owner expected to bail out these folks? Why, through taxes, of course. “I am being taxed to death and the government thinks I don’t pay enough,” he says, and then goes on to provide a list of the types of taxes he is expected to pay. According to our writer, he sent $288,000 to the U.S. treasury just in one quarterly tax payment. On top of that, he points out, he has to pay taxes for employing someone to manage all of these taxes. And instead of spending time thinking about how to improve the company, most of his own time is spent dealing with all of the government mandates and regulations.
Who actually stimulates the economy?
Returning to the subject of the economy, the writer has a pointed question: Who actually stimulates the economy? Is it, as he says, “the guy who has provided 14 people good paying jobs and serves over 2,200,000 people per year with a flourishing business?” Or is it perhaps “the single mother sitting at home pregnant with her fourth child waiting for her next welfare check?” He answers his question by saying, “Obviously, government feels the latter is the economic stimulus of this country.”
The balance of the letter is the writer’s explanation on how the current political climate is harming rather than helping the economy. He points out that if he had not had to pay that $288,000 in taxes, that money could have gone back into the business to provide better salaries and possibly hire more employees. “To stimulate the economy,” he explains, “you need to stimulate what runs the economy.” That would be small businesses. Instead, it seems that “the power brokers in Washington believe the mud of America are the essential drivers of the American economic engine.”
So where does this leave our business owner? Frustrated and fed up with the situation, to say the least. And what does he plan to do about the situation? “It’s quite simple. If any new taxes are levied on me, or my company, my reaction will be swift and simple. I fire you. I fire your co-workers…Then, I will close this company down, move to another country, and retire.” Now, I don’t believe that every small business owner feels this way, but the anger is out there. I see it every time I talk to owners who are trying to keep their companies alive amidst the regulations and taxes.
This economy is not improving, despite what Washington has been saying for the past two years, and it will not get any better until business owners are treated like the heroes they are instead of villains. What we need is people who know the top of a balance sheet from the bottom. We need people who understand the reality of the relationship between successful businesses and the economy. Treating people who have essentially given their lives to create a thriving company as if they were the enemy — or worse, an unlimited money tap — will only guarantee this Recession will not end any time soon.
Unlike the supposed business owner, I don’t plan to head to the Caribbean any time soon. There are too many good businesses out there that need someone who can help them through the process of finding money to grow and thrive, and that is something I am good at. I have been in this game for over 30 years now, and I enjoy what I do. But if Washington continues along the road it has been on recently, the Bahamas might begin to look more inviting.
Craig G. Francis is the owner of Francis Financial and The SBA Loan Store. He has been a top producer of SBA Loans since 1981, and has worked with Dun & Bradstreet and Bank of Commerce. Craig Francis has the expertise to steer clients through the often confusing rules and regulations associated with SBA Loans, having helped over 2,000 businesses acquire over a billion dollars in loans. He can be contacted through CraigGFrancis.com, SBALoanStore.com, on LinkedIn, or at 888-666-9722.
Category: Business
