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February 2011

Will President Obama's State of the Union Address Ignore Us?

When it comes to micro businesses the answer to image from www.whitehouse.govthe question is probably yes.

Susanna Kim, reporter for ABC News, Money wrote an excellent article that raised the point that small business owners are hoping President Obama will address their concerns in his State of the Union address this evening.

The article went on to say that their survey respondents on this issue represented 1,224 privately-held businesses, 45 percent of whom had revenues under $5 million.

That's great, but what about the estimated 26.4 million micro businesses that are completely ignored by the political institution?

While everyone is out waiting for small business to create jobs, micro businesses are putting people back to work NOW.

If the unemployed and under-employed had open resources available to learn how to develop a micro business of their own or knew about existing business models they could easily adopt, many of the current economic woes people face would be reduced.

If the goal is to get people back to work, micro business presents the quickest path.

While we've never had government support, it would be great if the people who don't realize that micro businesses exist could see a path to this solution.

An event like President Obama’s State of the Union speech could shine a spotlight on micro business. But it probably won’t.

Empowering people to become self-reliant is a key to curing the current economic woes. Micro business is one path to reach that goal.

But only a savvy few realize it.

The one question I'd ask President Obama is, "What will it take for you to see a new path to economic change, instead of continuing down the same path that has already proven to be slow if not completely ineffective?"

That's one question all micro business owners would love for President Obama to answer.

Photo courtesy of www.whitehouse.gov.


Small Business Loans Are a Bad Idea

IStock_000003927064XSmall Today, there was a story on AOMID News about small business lending called Small Business Loans To Drive Economy In 2011.

They indicated that unless government implemented effective solutions to inspire banks to lend more to small businesses, the economy will be hampered for years to come.

Some time ago, I wrote a blog post on the idea that it takes money to make money is dead. This idea is deader than ever today.

In fact, most small business loans are a bad idea. Here's why.

Many small business owners look for the easy way out to get a business running. In the past, that easy way was to get a loan.

Unfortunately, that idea didn't work very well since a lot of small businesses fail. This left the owner in deep debt for years or bankrupt and also hurt the lender.

The real secret word that makes small businesses successful is not lending. It's sales.

Proving the viability of a business concept by selling (or pre-selling) the offer first is a key to launching or growing a small business while minimizing risk.

Generating sales forces a small business owner to prove the concept first. Not on paper, but in the real world.

Once sales are established cash flow is created. Then the business owner can choose to invest a portion of the success they generated through sales back into the business to make it grow or use the sales track record to prove to a bank the business has an offer that clients will buy.


Copyblogger Showed Me a Free eBook Worth Reading

image from lateralaction.com One of the blogs I read regularly is called "Copyblogger". I enjoy their work because they broaden my perspective by presenting ideas I wouldn't think of otherwise.

Today they hit a hot button for me that I wanted to share with you.

Today's post talked about Freedom, Money, Time and the Key to Creative Success. Read the full post here >

Here's an small article excerpt on one point they shared that really hit me.

From the Copyblogger post: Without money, you don’t have much freedom, because you have to spend your time (and mental energy) chasing cash.

Without time off, money doesn’t buy you a lot of freedom.

And if you’re doing something you hate for a living, it doesn’t matter how big your salary is, or how much vacation you get. You’re still living in a cage.

So very true.

The eBook Copyblogger recommended is by Mark McGuinness and it's called Freedom, Money, Time and the Key to Creative Success.

Download your copy here >

I think it's a great read for any small business owner who wants to take greater control over their life in business.

I highly recommend it. You can also share it with anyone who would benefit too.