Are We Supporting America or Finally Pulling the Band-Aid!
When listening to the news I get fired up, however the Stoic in me says “some things are just out of my control”. Immediate control anyway.
The USAID concern really pushed some buttons, and the aftermath of ripples is what I would like to dive into. I get that deficit has to be handled. I know in my home we have to keep our budget in line and every now and again we have to cut some activities or some buying. These broad stoke orders however will hurt the business side of America in the immediate and I hope we are ready, WE as in business professionals.
For instance, I get we need to stop spending so much to help countries abroad, and with this I’m thinking about war efforts and funding the latest dictator. However, I’m talking about the Emergency Food that is said to be rotting on the docks because we cannot send it to the destination because it was funded by USAID. Again, I get it, rip that band-aid right off. But now we will be hurting the farmers when they have been selling to USAID. It was reported like 2 billion dollars will be lost in these crops. Now I’ve worked on farms and the price of crops will be affected by this over abundant supply of wheat (part of the crops sitting on the docks) Too much supply and prices fall, profits fall, and now we are also starting to grapple with the debt.
In our house, it’s hard enough to cut costs but to add that to paying down the debt, I for see inflation rising in the interim due to our dollar value fighting for the value of profits.
Image supplied by CNN - Be cautious about the looming bankruptcies heading our way. Business bankruptcy is a legal process for companies in financial distress to reorganize debts or liquidate assets. It protects against creditors while seeking financial stability. Bankruptcy can offer a fresh start for restructuring but may lead to asset loss and damaged credit ratings. Understanding its nuances helps owners make informed decisions during tough times, enabling recovery or an exit strategy.
For instance, JoAnne Fabrics and Crafts is reportedly closing 500 stores in preparations to a bankruptcy (CNN). The story that was shared is focused on right “sizing the footprint”. This is a trend that you will see continue as imports are limited by tariffs. This article is not about the USAID, the tariffs, or JoAnne’s, it’s about how men own 61% of businesses (Lending Tree). So how does this effect men as a whole? These next few years will be a hardship on businessmen all across the country. We will be putting in extra hours navigating supplier concerns, shipping, and other logistics to keep our businesses afloat.
So what should be done in the interim of limiting supplies and waiting for American manufacturing to catch up on production?
Start looking at your business credit. Thats right. Your business credit and health. I forsee bridge loans and payroll loans in direct future. Building your resilency to help bridge longer terms for paying customers and vendors will be the key. This can be accomplished using one of 3 tactics, or all 3 is great to:
Find a business health analyst that protects your foundation - this means that every decision should have with a positive return. Achieving the “low-5” rating should be the goal with all the business bank accounts.
Find a business health coach that ensures your company has the credit ratings needed to secure the maximum funding at the lowest rate. This means the payroll should not include profit bonusses, profits should be invested back into the business during these times.
Find a business health partner, or partners, that can work out any kinks with your website, content (including current written business plans, future product research, and inventory metrics), and email addresses. Repurposing older content and providing new content tells lenders that you are still fight and in the game. It shows a level of professionalism they are looking for.
Building business credit is, and will be, essential for any entrepreneur looking to ensure the longevity and growth of their business. Having a strong business credit profile can enhance your chances of obtaining loans and favorable interest rates, enabling you to invest in essential resources or expand operations. Additionally, good business credit helps protect your personal credit by keeping business and personal finances separate.
And this is important - do NOT bootstrap portions of your business. Men, as much as society has shifted the responsibility to a shared experience, which is awesome. It is so nice to have a partner while in business. We will be stressing over finances at home. Set up and build your credit with a professional. Know it’s done! Know it’s done right!
Improve your reputation with suppliers and partners, open doors for better terms and opportunities. In a competitive marketplace, establishing robust business credit is a crucial step towards financial stability and success.
