Working Wednesday: Check Out Your Banking Account

The Great Depression (approximately from 1929 - 1939) in the United States is still something people discuss. It had such an indelible mark on American society and culture. Not just from a cash flow aspect, but left a lasting impact on how families and industry would work to stay alive and plan for their future.

That was definitely true in mine. My parents were children of the Depression and how my mother cooked our meals reflected the lessons she learned growing up in a kitchen where one used what you had available to feed the family. No supermarkets with their aisle upon aisle of various brands from items near and far came to her town or cities yet.

I was taught that a penny was just as valuable as a dollar because I was to save all my money not spend it. Needs were much more important than wants. I remember buying a record (CD equivalent) in my teenage years for the first and only time, and getting the discussion about how usually I was a level headed girl when it came to finances, so why would I buy such a luxury item like that?

Generally I am glad I grew up with this training. It not only came from my parents, but from my grandparents and their siblings. The stories they told about themselves, other relatives, and their friends painted a colorful visual of what it was like when the banks fell and how they lived during those trying years. Those times lasted even longer as they supported the WWII effort and the rationing that went along with it.

I have tried to live my life remembering what these generations have taught me. This posting is about one of those lessons. Let me bring it up to current times. Remember the financial crash of 2008? I can't recall all the institutions that collapsed beginning in August of that year, but some were Merrill Lynch, Lehman Brothers, Wachovia , Countrywide, AIG, and Bear Stearns.

They set off a domino effect that lasted for a long time and hit banks throughout our nation. This post is not to discuss the whys, but to prepare us for the next go round of the banking shut down. We have seen financial instability in other nations and with our federal government, the largest employer in the United States $16 trillion dollars in debt, we can expect changes.

Economists aren't predicting a happy new year even in the best of ideas. See: http://www.cnbc.com/id/49898014/Morgan_Stanley_s_Doom_Scenario_Major_Recession_in_2013

So after writing this blog, here is the bottom line for small business: look at where you have your banking accounts. When was the last time you compared and got price quotes just like you do anything else for your company? Some things to consider:
1. The generations' stories I heard discussed types of banks. Consider community v. national.

2. Remember how people used to have cash or gold on hand, even stories about "burying it in the backyard"? Consider a modern day version of keeping cash on hand.

3. Here is another reason for cash: remember Hurricane Sandy or another devastating disaster.
Electricity goes out, ATMs go down, banks and other establishments are gone/closed. Protect your investments, be ready to open as soon as you can, etc.

4. Interview your own older generations. What do they remember about the Depression? What lessons would they pass down? What do you remember about the Recession? What have you changed or want to change while you still have time financially?

5. Finances are different than budgets. You may be good at paying the bills, but may need help with  the other part. Have someone give you advice, hire a CPA, etc. to get you started. You may not need them constantly depending upon how big your business is right now. But see that you aren't too far down the road before you have to make adjustments and regret not getting advice sooner.

We can wait until we have another October 29, 1929,  August, 2008,  or......we can prepare. Either way, it's coming.

Alone in the Car: Now We Know The Direction

 

The United States of America has something special held each 4 years in November. It is an opportunity for men and women to vote for their president of their country. We have no violence in the streets. No military take-overs. I did not receive a bribe of any kind for voting one way or another. No one watches me as I make my selections. I can choose to vote different from my husband.

My husband and I take our privilege of voting seriously. We look at all sides of an issue, discuss its relevance, effectiveness, how it will affect us and our extended family, and then vote. This goes on for some time. Research is done, not completed through commercials or ads, but through serious sources of information. Likewise, we conduct the same process for people who are running for office and want to represent us. To me, the word "represent" is defined as: a person who can work on a daily basis in that capacity since I am too busy to do it myself.

The Presidential Election vote declared Obama to have 62,820,778 votes and Romney 59,274,599.^[2]
President Obama was re-elected for another 4-year term. In my view, the election was, relatively speaking, a close one. The results were not a mandate, but a majority was declared. As a sidebar, Congress saw no real changes either. The Senate chamber will still be in the hands of the Democrat Party majority and the House of Representatives will remain with a Republican Party majority.

If we were looking for change, we did not get any. The President, of the Democrat Party, also stayed the same. What we saw in the last 4 years of public service from both parties will most probably continue. However, for small businesses, families, and as just one person, this means plans and actions can now be put into place. You know what their past behavior was, can expect about the same behavior to continue, and act accordingly.

Here are some suggestions to think about:
1. Read the news. I read several news sources from around the country to get a comprehensive view.
You may also want to choose several types of sources. Then form your own opinion.

2. Families are something to cherish. No matter what culture, what era, what geographic location, this is what survives. Look at what you are doing to support physically and mentally your family. Remember the elders in your family as you grew up. What did you learn from them? Now it is your turn to return the favor. Find the time to teach the next generation how to be self-supporting.

3. Hope. It is a 4-letter word that doesn't get used very often. Or if you prefer a 5-letter word: Faith. Either one needs to be part of your life. You need Purpose which is really #2. It's partner is #3. Sooner or later, there will be a brighter time. We need to teach that too but After you believe it yourself. That I can't help you with. You have to find this yourself. I have found my path, so I know you can find yours.

Be informed. Know what is going on. Prepare your family accordingly. The hustle and bustle of our day is taking over. We have got to make sure our families know they are important. The sun will shine through. It may not be today, tomorrow, or the next day. But it will come. Every day I will do something to prepare for that first sunbeam that breaks through. For another will follow and soon the sky will be filled with precious light.

Working Wednesday: Just Waiting Now

I know I haven't written much about small business in the last few months. It's not that I have stopped researching or networking for my readers. I continue to read through as many sources as I usually do for new, updated, and/or interesting news to assist you in your small business success. Even though your sphere of influence may not be huge in your particular business sector, you still want to and need to know what is going on.

The years just preceding the American Civil War were hard. Those with clearer heads and minds still tried to keep the states united. But it became pretty convincing to most: what the Founding Fathers had tried to avoid in order for all states to agree to a Constitution was finally here. The conflicting ways of life and ways of conducting business in the Northern and Southern states were going to battle each other. Now it was just anyone's guess as to where the first engagement would be. Now we know it was Fort Sumter, South Carolina.

Do you feel between 2008 and 2012 you have been in a battle to stay afloat? Do you feel you have won? You may have seen some of your weaker comrades not make it through, and there may be those you know who truly tried their best but it just wasn't meant to be. I send my regrets and am sorry for their loss. I believe many of the small businesses who have made it thus far have changed their business plans, operations, number of employees and/or their training and/or job description. Many have looked at and ventured into new business sectors, conducted energy audits of their buildings, and gone "green". You have done so because you had to help/add to the bottom line. At the very least, small and large companies have been storing away funds. They are unsure of the future, waiting for what is to come next, as if the story still has one more chapter to write.

Like the years before the Civil War and this Recession, I too feel there is more to come. Could be because China, Japan, and Taiwan are fighting over several uninhabited islands with oil and gas deposits. China needs 10% growth per year in their economy or they go bust. The government must keep the masses concentrating on something else other than the economy or the government will be the ones to go bust.

Or will it be because Europe is bankrupt? Yes, not every country is bankrupt...yet. But the few strong countries can't keep floating all the bad ones. And right now, there are more countries in the red than there are in the black.

Or will it be because of the Middle East. The Middle East. The region of the world where for thousands of years NO ONE has been happy. They are always arguing, fighting, overtaking. Doesn't matter if it was before oil was discovered or not. It doesn't matter how many diplomatic missions have been sent or by whom. If you believe past behavior predicts future behavior, then don't you think thousands of years is enough to predict what is going to happen next?

This time it is with nuclear weapons. Will Israel strike before Iran has the capability of nuclear bombs? Will Iran decide the Jews don't deserve a homeland?

And then there is our American Presidential and Congressional elections. Probably the last piece of the puzzle. All has been quiet in the business world waiting to see who wins. Companies have been saving money, not investing in new employees, machinery, technology, etc. until we know who will submit for consideration, legislation and who will vote on the laws of the land.

We have all taken in a deep breath. We all have our lives and the way we make our living on hold. What are we waiting on? We are waiting on the big event that will change our lives. As stated above, I just don't know the location of the first engagement. Let us pray we are ready for it. Let us hope we can team together to solve it. Let us make sure we have the vision to endure it. Let us always, always turn around and grab the hand of the person behind us and pull them up.