Asked how a small business can make plans for expansion in the face of the uncertainties of pending health care legislation, cap and trade, taxes on both owners and their businesses and other parts of his agenda, President BO responded to Republicans at their "conference" with a lecture on what businesses need.Keep in mind that the President has NEVER run a business, did not study business at Harvard and has shown absolutely no understanding of business principles and practices.
Yet he saw himself as qualified to speak to Republicans, some of whom HAVE run successful businesses.
The President told the Republicans that they had the wrong idea about what was holding back small businesses from expansion. He said it was not uncertainty of the future but that they had not been able to get loans. He further said that now they can get loans for payroll, etc., and thus should begin hiring soon.
OK. Let me ask YOU to do this:
If you have EVER run a small business or if you run one now, at what point in your business operation did you decide to borrow money to make payroll?
Have you ever borrowed money to make payroll?
Did any business course you ever took suggest that borrowing money to make payroll is sound business practice?
If you can answer yes to any of these questions, please indicate so in my comments section. I would be interested in knowing how many have.
For liberal readers: Is it the belief of liberals that a business borrowing money to make payroll is either normal or a good option for a small business owner? You can answer in my comments section.
Isn't it normal for loans to small businesses be made on collaterally viable items such as inventory and real property rather than on an expense such as payroll?
I am astonished that our Lecturer-in-Chief would reveal how inept he is at business practices while in front of people some of whom have successfully done what he never has done.
If experience is the best teacher; if a business school education is the second best teacher and if theoretical philosophy is the worse teacher in the universe, where on earth does President BO get off telling anybody why businesses are reluctant to make plans for future expansion?
6 comments:
I had a boss who borrowed money to make payroll. He's out of business now.
shoprat: Thanks. That's just what I thought would be the case.
Joe, sorry to interrupt this regularly read blog for special bulletin on Global Warming. But a Republican Senator from Oklahoma has built Al Gore a new home in Washington, D.C. check it out at my link. selahV
selahV: That is very funny! Everybody go check it out!
Totally Clueless, on all matters of business.
Businesses use a type of loan called factoring, which may be considered a payroll loan. For those who might not know......... Factoring is taking outstanding invoices and getting paid a percentage in cash now to be used for business needs. The invoices are then paid to the factoring agent. If they are late additional charges will be rendered. You as a business owe the factoring agent the full amount of the invoice until it is paid by the invoicee.
This is as close as it gets to loans for payroll. Anything more then this is stupid at best.
Having no confidence in the future direction of the many programs you sited has more to do with the condition of the economy then anything else. Until they know how the government is going to take their money and waste it, they have to hold up all future plans.
ablur: Good analysis, good lesson and good conclusion.
Post a Comment