Not for sissies

Running a small business of any kind isn’t for sissies. Most small business ventures don’t make it past the second year. Many never get off the drawing board. There has to be a demand for your product or service and you have to figure out what it is. Make too little and you miss an opportunity, make too much and you lose money. Miss by a lot in either direction and you go away.

Any change in the costs of production is a burden on the small business owner. Any time material, capital or labor costs go up you have to decide whether to raise prices or cut your profit margin. No successful business hires more or fewer employees than they need to maintain their optimum production level. If you pay your employees too much it’s harder to compete.

If you pay them too little they might leave for better pay then you have to train someone new. Many businesses use part time employees to fill in because of fluctuations in their production schedule or for vacations and sick time for their full timers but there is also a risk that they won’t be available when you need them.

In the past raising the federal minimum wage has had little or no impact on hiring. It will have no effect on competition because it will fall, like the gentile rain from heaven, on you and your competitors alike. Raising the minimum wage and providing access to medical insurance won’t hurt the worker who has to hold two jobs to feed and clothe his family and is a broken arm away from living under a bridge.

Earnings in this range all go back into the economy so maybe after they feed their kids they will be able to afford some of those sporting supplies.

Richard Tobin


Submitted by E-Mail