Should Small Businesses Start Hiring Again Or Fear the Future?

Many small business fear expansion right now, they fear hiring additional employees, and they are completely worried about the future. Should they be? We know that community banks are worried and there are not a lot of small business loans going on right now. Indeed, as a former franchisor before retirement it is my contention that I wouldn’t pour money into a small business right now, much less touch it with a ten-foot pole. Let me explain;Why would you want to start a business where you had to hire people with all the new Obama administration rules, and this latest AFO-CIO appointment to the Department of Labor is scary too, it’s going to be really tough on small businesses. Not long ago, I was explaining all this to an acquaintance who was buying an existing business and considering the hiring of a employees to help her in her business and she asked me; “tell me more. My guess is that I would have a couple part-time women.”So should my acquaintance start her business and hire two part-time employees? Don’t know, no one knows what was in that darn Health Care bill, small business doesn’t know, information flow sucks, the Administration hasn’t said, it’s all vague and NO Small Business Person in their right mind would risk going into business right now knowing they’d hire employees. The President got on TV and made some vague inane speech about how this would help small businesses? No details, none forthcoming, terrible communication job. Terrible – and quite frankly it’s completely and absolutely un-acceptable.This group of leaders doesn’t know what the heck they are doing. We need a better team, and some common sense behind it. These people have never had to make a payroll in their lives, it ought to be a pre-requisite for public office, how on Earth can anyone believe they can run things without working knowledge of the realities of running a business? Now then, I was reading in some trade journals in various industries all the phase-ins for health care insurance law compliance, it’s a mess.Worse, it’s going to be an absolute hardship on small business, and medical costs are still rising, and rising, and rising. Over the last decade these costs have outpaced inflation by 10:1 and they just keep going? Hard to say what fuel they are using but we need that for the Space Shuttle – seriously folks, this is a disaster for the business community, and it isn’t going to help anyone, only raise costs.And people wonder why jobs are not returning? 75% – plus of our jobs are through small business in America, but the politicians are too busy coddling lobbyists of large corporations to even worry about it. It’s all a show, it’s all BS, and until things change, I’d be leery of the unknown or future business risk taking. So, you asked me to tell you more? There you have it. Am I the only person in this whole country that gets it? What the hell are they doing?The Small Business Administration director hasn’t a clue. My god, this dog and pony show never stops, WTH is going on. And the media hasn’t helped, what small businesses are supposed to go pay an attorney and accountant to tell them the new law changes? Sure, pay the professional parasites to tell you about the “new rules” I mean, do these legislators (all lawyers) even hear themselves think? And as the economy expands and gets back to normal, which jobs come back first? Legal jobs of course, what a totally screwed up system.So, the business people have to pay lawyers, accountants just to prepare for the law changes, scared out of their wits they might make a mistake and the big bad government is going to fine them, jail them, put them out of business? How do I know this is how it goes? Because I set up 187 franchises serving some 450 cities, I know exactly how small business works and how business people think. Meanwhile, we have a perceived “small business hater” president who never explained the comments about his “joe the plumber” gaf, and although it was blown out of proportion.That indeed, was a definite psychological hit to small business, one we still haven’t gotten over and we must to insure small business confidence, if we truly want those jobs – I am beginning to think they don’t by the actions of the Obama Administration, but don’t doesn’t understand and Obama’s PR team there is unfortunately too “unwise” to understand, so they laugh it off, and ramrod some BS health care legislation with a 2800 page health care bill, and then Pelosi is on prime time TV and says; “Well, you’ll just have to vote for it to see what’s in the bill.” You have to be kidding me?Why should small businesses have to contact a lawyer to explain the health care rules? And may I ask with what money are they supposed to pay the $2,000 bill to set it up properly so they don’t get fined? Small businesses have been battling this recession for 35-months now, they are barely hanging on. If you own a small business and “Need the Money” well, get in line, every small business does and there is nowhere to borrow it. No one, me included, or any bank would be foolish enough to take the risk to lend money now. And no one knows what this Administration or Congress is going to do next?They are unpredictable, perceived unstoppable and willing to shove any 4,000 page bill down America’s throats. And don’t you dare argue with me, next could be Cap and Trade, and energy costs will skyrocket and you’ll be stuck in a business watching your energy costs go up 45%! How about that? Then you can expect shortages and mandatory “Energy Ultra Efficient” equipment which will be required, above your already efficient units, air-conditioning system, solar panels, computers, along with new lighting, above and beyond what you have.If you don’t you will be fined or shut down. If you cannot or do not want the presence of an attorney one will be appointed, if you want to stay in business the SBA will give you loans, GREAT borrow more money, as they destroy your business, go into more debt, is their answer, interesting, that’s the problem in the first place, the government is broke, now they want all the businesses to be as broke as they are and pay for all their mistakes in higher costs, taxes, fines, and fees. Enough already!And if you think I am blowing smoke, it could easily happen in the next six to 18-months, and I wouldn’t put anything past this Administration or Congress, they are absolutely out of control. Do you think that if your energy costs tripled in your business you could keep your prices at the current level? Of course not, and if you double your prices, 30% of your customers will not come back, and the others will come less often, easily taking at hit of 40-50% in revenues? Well, think it can’t happen?It did in CA when the government imposed rules, raised energy costs, had shortages then black outs, and it happened twice one decade apart. Now tack on health care costs for employees, yourself – mandatory let’s say, because I don’t know, no one does yet, can you then really make money> NO, NO YOU CAN’T. And so you work harder, lay off your employees who stop shopping – no money – and other businesses suffer because unemployment is so high. See what’s happening? Where we are headed?You want me to tell you more? Sure, I could go on for 48-hours straight, with examples in the real world of what happens when government gets a stick up their rear-ends into what is supposed to be a free market economy like the USA. End of rant, end of article.Please consider all this.

Educational Wellness Seems Lost in North American Society – But We Can Get it Back

The personal philosophy of education, of the members of any society, is not something to be taken lightly. Do you have an opinion about how the public education system should work? Fifteen years ago, I was employed in a public, suburban high school that served grades 8 to 12 and as a result of that employment; I formed a very definite personal philosophy of education.   My belief is that the education system is failing and the parents, who depend on it the most, have become so disempowered, that it would take a major change in how people think about educational wellness to make any real change. The writing has been on the wall since the 1950s that things are not working that well.  Good stress management skills are learned very young in life. 

Because the public education system, most often, meets children, at the tender age of five or six, it has the best chance possible to teach young people, the life skills needed to function as well-balanced adults. Unfortunately, the school experience is often so negative and destructive that children today really don’t stand any chance. It’s time for real change.  

Just like every other institution in society, the public education system served a valuable function at a particular time in history, but that philosophy of education is no longer serving our society. It has to change! We now know that educating groups of kids all at the same age in massive groups of 30 or more per class just doesn’t cut it. Something has to change!  This model came into use after WW2 when the population grew dramatically in a short amount of time. Schools had to make big adjustments to accommodate the increased numbers of students and it wasn’t long before children became little more than numbers in a cookie cutter education system.

The system began to weaken and even though the system was being stretched thinner and thinner, the system still wasn’t interested in hearing your personal philosophy of education.  In the elementary classes, children still stayed with one teacher for the better part of each day but at the secondary level, the children were moved from class to class each hour like cattle on a cattle drive. Learning systems began to fail, drop out rates increased, violence and destructive behavior began to increase and today schools are some of the most dangerous places to send kids.

Educational experts tried all kinds of things to fix the problem and when school-based solutions didn’t help, schools began dictating to parents how to raise their children. They began offering sex education; death education; and they began forcing families to put their, so called, ADD/ADHD children on Ritalin. Not only was your personal philosophy of education unimportant but now your parenting philosophy was being challenged as well.  When I attended high school, I had a mandatory reading list that included two well-known books-”Lord of the Flies” by William Golding and “1984″ by George Orwell. The first book talked about the consequences of allowing a large group of same age, same gender children to be in charge of their own destiny. The results were not pretty. The second book discussed the effects on society when there is too much governmental interference and control. 

Again the picture was not particularly attractive. These two authors are considered by most to be some of the best writers of our time and yet we seem to have learned nothing from them. The individual parent’s personal philosophy of education is considered to be quite irrelevant as schools continue to dictate to families.  Will it ever change? Can it change? I like to think that we can put an end to this very destructive educational model. We do not need to be dictated to by governments and unions. We are capable of raising the bar for the public education system. Schools have the ability to change, but families have to demand it. Parents cannot and should not be replaced as the stewards of educational wellness in society. Educational wellness is far too important to allow it to fall into the hands of politically motivated people. We have to return the system to the way it began. It has to, once again, be about the kids.

Real Estate Auctions – The New Land Rush

On a sunny afternoon in Florida, an energetic crowd gathers on the lawn of a high end luxury estate. A loud and eager banter between an auctioneer, a group of bidders and bidder assistants fills the air. For several minutes the auctioneer asks for the next highest bid and the bidders respond. Suddenly the bidders grow silent. The high bidder holds his breath in anticipation of winning the auction. The auctioneer calls for one more bid. In a loud clear voice which rolls over the audience he says, “Fair warning, last chance” the auctioneer pauses, “SOLD!” And in less than 10 minutes another multimillion dollar estate has changed owners.

Successful real estate auctions like the one above are happening all over North America and the Caribbean. Recently real estate auctions have been on the rise, the increase in popularity is partly driven by growing inventories and fading buyer confidence. Properties that were selling in weeks using traditional methods are now languishing on the market unable to attract buyers even as seller’s lower prices. Many say the real estate boom is over but savvy buyers and sellers are profiting from real estate auctions.

Real Estate Auctions Work in Up or Down Markets.

Regardless of trends or market cycles, real estate auctions provide an open and transparent process for buyers and sellers. Properly conducted real estate auctions attract ready and willing buyers and motivate them to act now.

The auction method removes the “wait and see” attitude which serves to further depress real estate values. Buyers are always concerned about overpaying. Buyers gain confidence with their purchases at real estate auctions because they can see what others are willing to pay.

When market demand is high and inventories low, real estate auctions can deliver selling prices well above what a willing seller would have accepted in a negotiated private treaty sale. In good selling climates many property owners using traditional real estate methods; negotiating with one buyer at a time, leave thousands of dollars of equity on the table. During up markets real estate auctions are the best way to establish top market price.

Evaluating Your Real Estate for Auction

Not every property or seller for that matter makes a good candidate for auction. First of all sellers must be ready to sell now and for the current market value. Also a real estate auction will not fix problems caused by a downturn in market value of your property, if you owe more than a willing buyer will pay, be prepared to come to closing with your check book.

Properties that do well in real estate auctions have a high uniqueness factor. Ask your self, “What makes my property different from most others?” Maybe you own a resort property or high end luxury home, commercial properties and land do very well at auction. Real estate auctions thrive on uniqueness. If your property is like everyone else’s, the best thing you can do is offer the most competitive price.

Most importantly sellers must be reasonable about setting a minimum bid. A seller must look at the lowest, most current comps and price below that to generate the interest and urgency necessary for a successful real estate auction. Once the auction begins and qualified bidders start competing against one another you can watch the selling price increase.

Locate a Qualified Real Estate Auctioneer

Start by checking with the National Auctioneers Association, the best real estate auctioneers belong to this organization. These real estate auctioneers are well trained and adhere to a standard of practice and a code of ethics. Many attend the annual International Auctioneers Conference where the latest techniques and innovations in the real estate auction industry are presented.

Find out if the company you are interviewing is a full time real estate auction firm. Many real estate agents are getting auction licenses yet have no experience with the auction method of marketing. Conducting a successful real estate auction is nothing like (private treaty) traditional real estate sales. Go with a real estate auction pro.

You’re probably better of with an auction house that specializes in real estate auctions. There are many qualified auctioneers who have generations of experience selling personal property; furniture, dishes, lawn equipment and the occasional rare painting. Selling real estate at auction is a complex matter that should only be attempted by full time experienced real estate auction professionals.

Commissions and fees may vary, sellers must pay all marketing expenses up front and buyers typically pay 10% of the sales price to the auctioneer of which a share goes to participating real estate agents.

Types of Real Estate Auctions

Auctions are effective because they create a seller’s market. Professionally conducted real estate auctions create urgency, a reason to buy today and competition for the property. Terms and conditions of sale are established ahead of the auction. Real estate auctions will follow one of these three approaches:

Absolute Auction

The property is sold to the highest bidder regardless of price- using this process often returns the highest sale price.

Minimum Bid Auction

Seller agrees to sell at or above a published minimum bid price – this method is useful for internet auctions.

Seller Confirmation or Reserve Auction

With a reserve auction, the seller “reserves” the right to accept or decline any bids usually within 48 hours of the auction. Reserve auctions are used when there is a lien on the property from a lender or a court ordered sale with a minimum selling price.


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