Retiring From Your Small Business

Hockey hits back in billion-dollar bust-up

Hockey hits back in billion-dollar bust-up
Joe Hockey suggests the Coalition was double-crossed by Andrew Wilkie over a controversial $1 billion offer to rebuild the Royal Hobart Hospital.

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Please tell me if I correctly understand the Republican philosophy concerning “for profit” health care?

Please consider this real life situation and explain not only the ideological but the moral aspects of your defense of our current health system.
Please note that this question has nothing to do with people getting “free” or “government” health care at your expense but with the structure of the “free market” health care system and it’s implications for ordinary Americans.

My father owned a small printing company in Alabama, employing about 25 people and most of the equipment was paid for as well as the building.This has been a family business, the American dream, since 1923.
My father’s health began to fail a while back and his doctor advised that he retire from the business which he did. My brother agreed to move to Alabama and run the company.
My brother had an individual Blue Cross policy in the state of Georgia where he was living before the move to run Dad’s company. My brother had had cancer some time back but was in remission and felt good about his health and the move.
But, of course, as soon as he changed his address from a Georgia address to the Alabama address, Blue Cross cancelled him.
No problem. He just called Blue Cross in Alabama to purchase coverage but was told that Blue Cross is incorporated in such a way that their policies are not transferable across state lines.
They gave him the choice of purchasing another policy or adding him to the group at the printing company but either way, they were calling the cancer a pre-existing condtion and imposed a one year waiting period.
Unfortuately, Dad had transferred his stock in the printing company to my brother in case dad passed away and this would avoid probate and other legal problems. We thought,
But then the real trouble started. Before the one year waiting period that Blue Cross imposed, my brother’s cancer returned with a vengence, hospitalizing him and requiring extensive and expensive treatment. The doctor and hospital bills soon ran into multiple hundreds of thousands of dollars, overwhelming his ability to pay.
His medications alone were costing over $3,000.00 per month.

Dad pleaded with me to come back and run the company since neither he or my brother could. I did but it was too late.

Since Dad had transferred his majority stock to brother, the doctors and hospital sued and obtained judgements against my brother, seizing the company stock and laying claim to the printing presses, the building and the company’s operating capital.

I watched in horror as my family’s business which was founded in 1923 was auctioned off for pennies on the dollar to partially satisfy a debt to some doctor’s and a hospital.

Had the law suits that destroyed the business been due to negligence on the company’s part such as an uninsured delivery van, then we would have deserved this.

But this was a case where we tried to purchase insurance for my brother and could not do so due to an insurance company’s clever lawyers preventing us from transferring coverage. And then the doctors, hoospitals and drug companies charging so much they almost no one could pay.

This is but one serious issue with our health care system that plagues those of us who try to live the American dream of an “ownership” society, pay our own way and create jobs for others and to benefit our community.

I would appreciate if some of you “conservatives” can explain to me how and why we should allow our health care system to continue to operate in such an insane and immoral manner and destroy the lives and fortunes of people who have tried to do nothing more than to play by the rules and to contribute to our community.

PS My family moved to this country from Europe in the early 1900′s to persue the American dream and find freedom from social and economic injustice.

When our economy ultimately goes bust, will you be happy just to work in one of Obama’s forced labor gulags?

Taken from an Obama speech:
Today, AmeriCorps – our nation’s network of local, state and national service programs – has 75,000 slots. I know firsthand the quality of these programs. My wife Michelle once left her job at a law firm to be the founding director of an AmeriCorps program in Chicago that trains young people for careers in public service. These programs invest Americans in their communities and their country. They tap America’s greatest resource – our citizens.

As President, I will expand AmeriCorps to 250,000 slots, and make that increased service a vehicle to meet national goals like providing health care and education, saving our planet and restoring our standing in the world, so that citizens see their efforts connected to a common purpose. People of all ages, stations, and skills will be asked to serve. Because when it comes to the challenges we face, the American people are not the problem – they are the answer.

We’ll send more college graduates to teach and mentor our young people. We’ll call on Americans to join an Energy Corps to conduct renewable energy and environmental cleanup projects in their neighborhoods. We’ll enlist veterans to help other vets find jobs and support, and to be there for our military families. And we’ll also grow our Foreign Service, open consulates that have been shuttered, and double the size of the Peace Corps by 2011 to renew our diplomacy.

And we’ll use technology to connect people to service. We’ll expand USA Freedom Corps to create an online network where Americans can browse opportunities to volunteer. You’ll be able to search by category, time commitment, and skill sets; you’ll be able to rate service opportunities, build service networks, and create your own service pages to track your hours and activities. This will empower more Americans to craft their own service agenda, and make their own change from the bottom up.

We also need to invest in ideas that can help us meet our common challenges, because more often than not, the next great social innovation won’t be generated by the government.

The non-profit sector employs 1 in 12 Americans and 115 nonprofits are launched every day. Yet while the federal government invests $7 billion in research and development for the private sector, there is no similar effort to support non-profit innovation. Meanwhile, there are ideas across America – in our inner cities and small towns; from college graduates, to seniors getting ready to retire – that could benefit millions of Americans if they’re given the chance to grow.

As President, I will launch a new Social Investment Fund Network. It’s time to get the grass roots, the foundations, the faith-based organizations, the private sector and the government at the table so that we can learn from our own success stories. We’ll invest in ideas that work; leverage private sector dollars to encourage innovation; and expand successful programs to scale. Take a program like the Harlem Children’s Zone, which helps thousands of kids in New York through after-school activities, mentoring, and family support. We need to make that model work in different cities across America. And just as we support small businesses, I’ll start a new Social Entrepreneur Agency to make sure that small non-profits have strong support from Washington.

From no aces in 28 years to two in one day

From no aces in 28 years to two in one day
Where: Burnt Store, Pelican No. 3, Heron No. 5

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How to Conduct Inventory When Selling a Small Business

Inventory Issues When Buying Or Selling A Small Business – 7 Key Items

Have you ever counted 3,546 small plastic insects?

I have.

One of my first sales as a business broker years ago, involved a party store that was sold to a young couple by the long-time owner who wanted to retire. And since the deal called for the buyers to purchase the inventory at cost, it was necessary to count each and every item in stock–whether on display in the retail area at the front of the store, or in backroom storage.

Somehow, it fell to me to count the little items formed out of plastic to look like spiders and ugly bugs–the kind that people might purchase to frighten their friends as a joke.  What was frightening to me about it, was reaching the count of 3,437, wondering if I’d missed counting one of the green beetles, and thinking I might have to start over.

Here are some things you need to know, whether you are a buyer or a seller, about the inventory count that is conducted in connection with the sale of a small business, so you can complete this process successfully.

1. Part of the dollar value of the deal

In a transaction that calls for the goods that are held for resale to be priced and purchased in addition to the other assets of the business, the final count is a necessary part of closing the escrow. If the sales agreement pertaining to–as an example, a gift store or an auto parts company–specifies a dollar value for the stationery property (such as furniture and fixtures) and equipment, along with goodwill and other intangible assets, there invariably is a second and related part of the transaction by which the buyer purchases the inventory that will be needed to conduct the business.

2. Accuracy is important

And a general “guestimate” won’t do, as the buyer’s accountant is most likely going to insist on an exact figure, when setting up the books of the business, under its new ownership. For the buyer to determine how he, or she is doing in the first few months, it will be necessary to have accurate gross profit figures and, that translates to net earnings performance. It is difficult to make those calculations, however, without knowing the cost basis of starting inventory.

3. Physical count is needed

Actually counting the inventory is recommended, despite the assurance of some sellers that the “book” value of the inventory is accurate because of the inventory control software used in the business. Indeed, this technology is very useful. It maintains a count of inventory in its digital memory, and that inventory value can automatically be increased by the amount of the new goods brought in by suppliers–and logged into the computerized count, and decreased every time the scanner at the customer check-out station registers and item being sold-and in what quantity, so an appropriate deduction can be made in the computer.

4. Count everything

It is not just stock held for resale that needs to be counted and valued. Service companies which use materials and supplies, even restaurants that use quantities of eggs, hamburger patties and cola drinks, should be subject to a physical inventory prior to close of escrow.

5. Informal training opportunity

If buyer and seller have a good relationship, it is recommended that they conduct, together, at least part of the inventory count. That’s because a review–and the ensuing discussions– of the products being sold by, or used in the business, provide an opportunity for the buyer to begin getting educated about the business. Questions that will occur to the buyer during training, and subjects that the seller will want to explain at that time, can be covered while the two are engaged in counting and checking the pricing on items in inventory.

6. Splitting the difference

“Split the difference” is a handy phrase and a very useful concept to employ when conducting inventory. What should the buyer pay–actual cost or half-cost–for a product being counted which cannot be sold at full price, but still has a value to some customer? Split the difference.

How about an item that has been around for awhile–long enough that it’s current cost is higher than what the seller actually paid many months back, off an old price list, when it was added to inventory? Split the difference.

Will Your Small Business Have A Happy Ending?

There is no question that as a small business owner you have persevered and worked hard, dedicating your life to the success of your company. That being said, don’t you think a company you put all of your energies into, deserves the chance at having a happy ending? Have you considered the impact your death, disability, retirement, or even divorce could have on your small business ?

If you are the owner of a small business it is time for you to stop thinking of only what is happening now, and start focusing on what could happen in the future. Therefore, you need to put your priorities into perspective by protecting yourself and your business with a succession plan. A business succession plan is what you need to ensure that your business has a happy ending by remaining secure, regardless of what may happen in the future.

In particular, a succession plan allows your business the chance to be able to stand up to any challenges that may occur along the way. For instance, certain setbacks that you might experience may be entirely beyond your control such as divorce, disability, departure and death. But with a business succession plan you have the chance, as a small business owner, to ensure that regardless of what may happen to you, your business will be protected.

The following are a few aspects you should to take into consideration when creating a business succession plan for you small business:

How to Begin the Succession Planning – Since you need to make choices before you can really begin achieving your succession planning goal, you must first think about your long term business objectives and ask yourself important questions such as -

• Will I sell my small business?

• Should I set up a plan that allows me to transfer my business to one of my business associates or a family member?

• Does my business have public potential?

Of course, business succession planning begins with much more than simply deciding who you will be giving your business to in the event that you can no longer run your company, or wish to sell it. Additionally, succession planning is about keeping your small business afloat and successful to ensure that your absence will not devastate your company. Therefore, in order to maintain future control of your business, you will need to begin your succession planning by making choices that will concern things such as:

• ownership objectives

• asset protection planning

• taxation and transaction planning

• estate planning

You will want to keep in mind, however, that due to the fact that every action you take with succession planning will result in a reaction, you will require the assistance of experienced experts when developing your plan.

Understand the Dollars and “Sense” of Business Succession Planning – Like any type of business preparation, your business succession plan needs to be orderly and handled carefully if you don’t want to suffer the consequences of financial losses – or worse – the loss of your small business. That being the case, you need to know exactly what you are dealing with, and how you can achieve the most of your planning.

The one mistake you will not want to make is to overlook your business finances. You can help keep your business secure by properly using the following, and more, in your succession planning before problems occur:

• Life insurance

• Disability insurance

• Annuities

Furthermore, you will find that with an orderly succession plan, you will be avoiding the possibility of your business having to be sold to pay off the estate tax, in the event of yours or (if you have one) your partner’s death. It is no secret that estate taxes can claim up to 55% of an estate that is taxable, which is no mystery why so many businesses fall into debt, become bankrupt, or are sold due to the death of the owner or partner.

In addition, another aspect that needs to be considered is that clients are most likely to do business with other businesses after the owner or partner is deceased. However with the proper succession plan, your business should be able to maintain any regular clients – or if not – it will be better equipped to survive the possible drop in assets if a slow period should follow.

Know How to Write Your Happy Ending – Remember, when all is said and done, the outcome of your succession plan depends entirely on the choices you make regarding the future of your small business. It is imperative that you take the time to make the best choices that will allow you to implement a succession plan, which keeps you in control of the outcome that involves the transfer of your company. By knowing how to ensure the prosperity of your business future with a succession plan, is how you will write your happy ending.

Getting a Small Business Loan

Businesses need money to operate. Whether it is money for starting the business, money to finance an expansion, or money for working capital during a period of economic difficulties, your ability to find a small business loan can make or break your business.

Fortunately, finding lenders that make small business loans is not very difficult to do. There are not only banks, but other lenders that specialize in working with small businesses to help them qualify for financing. Depending on the amount that your business needs, the requirements may not be that difficult. If your business has been established and has a solid credit history, most lenders would be happy to work with you. For loans of less than $100,000, many times there is very little in the way of financial documents that will be required. As the amount needed increases, the requirements for supporting information will also increase. You will need to check with your bank for what the requirements are, not only do the requirements change from bank to bank, but banks make periodic updates to the requirements, so what was true last year may have changed this year.

If your business has not been in existence for very long, or if you have had financial and credit difficulties in the past, it gets much more difficult to qualify for a loan. Your businesses credit score may be too low to qualify for a small business loan through a bank or other conventional lender. The good news is, there are lenders that specialize in lending money to businesses that do not qualify with a bank. The loan will usually be structured differently, and the interest rates are typically higher, but there is money available.

One way to increase the likelihood of qualifying for a small business loan is to work with the Small Business Administration (SBA). One service the SBA offers is to provide loan guarantees for businesses that qualify. What this means is that the SBA will secure a certain portion of the amount you borrow. This SBA backing assures the bank that even if your business fails, they will get their money back. This guarantee makes it much more likely that you will get the small business loan you need. These SBA Guarantee loans can be used for anything from business startup to working capital to the purchase fixed assets. They are designed to meet any number of business needs that may arise.. Contact your local SBA, or schedule an appointment with a SCORE (Service Corps of Retired Executives) volunteer to find out what it takes to qualify for one of these guaranteed loans, and to get the process started.

Very few small businesses make it through their existence without the need for a small business loan. It is not an indication of a business in trouble, or of poor management. It is sometimes a necessary step to ensure the future growth and profitability of a good business that may need a little extra cash. Small business loans can be the safety net your business needs to increase the chances for its survival.

problem with a agriculture industry !?

Agricultural Engineering Limited is a small, UK based, company that specialises in the manufacture of a wide range of special purpose agricultural equipment, usually individually made to order for a diverse customer base. The previous owner, now aged seventy, wanted to sell the business and retire. Five months ago, four of the twenty employees borrowed money against their houses and bought the company. The previous draughtsman bought 35% of the shares and now acts as Company Director with the production engineer, now Production Director, buying 30%, the inspector, now Quality Director, buying 20% and the storekeeper, now Logistics Director, buying the remaining 15%. The fifteen production workers were employed in their existing roles with no change of pay or conditions.

Erfunden is a rural country relying principally on agriculture with thousands of small farmers each owning a patch of land that they cultivate, mainly by hand, to produce enough to feed themselves and have a little to sell at the local market. The country is technically a democracy, but several powerful families have undue influence on government policy. The minority (45%) government rules with a coalition made up of six out of the ten smaller parties with the opposition (35%) party constantly trying to split the coalition and form the government.
The Prime Minister of Erfunden, wants to bring his country into the twenty-first century by improving the current very primitive farming methods, amalgamating many small farms into larger, more economic, units and concentrating on cash crops. As part of this plan he wishes to place an order with Agricultural for three hundred of their patented automatic ploughs at £6,000 each for delivery within twelve months. The value of this order is more than twice their usual annual turnover.

With their current process layout and working practices, even concentrating exclusively on this order, Agricultural does not have the capacity to produce this quantity of ploughs within the timescale. The Production Director, however, believes that by concentrating exclusively on this order, moving the existing machines to form a product layout, buying a new 150 Ton press (which will require the existing floor to be locally strengthened and a new power supply installed) for £60,000 from a company in China, requiring the production workers to work more flexibly and working a six-day week they can meet the order on time.

I have to Prepare the BUSINESS CASE for the Production Director’s project presenting the arguments for and against, including a stakeholder and risk analysis and looking at alternative ways they could meet this order. On the basis of your analysis what would be YOUR advice to the company and WHY.

Assuming that they decided to go ahead: – i have to Prepare a detailed plan including a WORK BREAKDOWN STRUCTURE and RISK MANAGEMENT PROPOSALS for the Production Director’s project including all aspects, not just repositioning of the machine tools and the installation of the new press.
can any 1 able to help me out in this problem

Which Healthcare Plan do you like better, Obama’s or McCain’s?

Obama’s health care plan:

1. Fair & Stable premiums
2. Help Small businesses provide affordable health insurance to their employees.
3. Lower businesses’ health costs by lower premiums for employees.
4. Prevent insurers from overcharging doctors’ malpractice insurance.
5. Punish employers that do not offer coverage to their employees.
6. Mandate health insurance for children.
7. Unblock cheaper generic medicines from other countries.
8. Reduce health insurance costs for people with catastrophic illnesses

Will his plan bankrupt many Health Insurance companies?

McCain ‘s health care plan:

1. $2,500 for individual and $5,000 for families to offset the cost of insurance. Money would be sent directly to the insurance provider.
2. Insurance that follows them from job to job. Still be there if they retired early, does not change if they take a few years off to raise kids.
3. High quality coverage for those with pre-existing conditions (GAP).
4. Allow non profit corporation to contract Insurer to cover patients.
5. Reduce costs on disease management, individual case management, and health & wellness programs.
6. Lowering drug prices
7. Reduce costs on new medical technology and new treatment models.
8. Provide walk-in clinics in retail outlets.
9. Allow doctors to practice across stateline.
10. Create smoking cessation programs.
11. Give monthly stipend to seniors which they can use to hire workers & purchase care related services and goods.

I really like McCain’s healthcare plan. My mother and other old folks in my family could use monthly stipend. If we have eye doctor clinics at
the retail outlet, then we should have a walk-in clinics in retail outlets too. Why not? It sounds like a good idea to me.

Do you want Obama to force you to put health insurance on your children or do you want McCain to give you $5,000 to help you pay
for health insurance for your family?

Local Lewisboro cable station wins big award

Local Lewisboro cable station wins big award
Lewisboro Community Television recently announced it won an award for Overall Excellence in Governmental Access programming from the Alliance for Community Media. Henri Wolfe, the station’s cable coordinator and executive producer, answered our questions about the honor.

Read more on The Journal News