There has been so much in the news lately about his financial crisis we’re facing here in the U.S.. And truthfully I’m a bit tired of it. Sure, I’m concerned about the housing market and the stability of the lending institutions. And to some degree and concerned about the markets in general.
I don’t buy that this election or anything that happens in Washington is really don’t have that much effect on my daily life. Sure, taxes will go up then things will cost more. And I think that’s going to happen regardless. You see, no one is really talking about are inflated dollar, are inflated home prices, and are inflated markets. Since our dollar and our prices are all inflated I expected a correction. And that’s what I think we are seeing with our current economic crisis.
So I’ll watch the larger markets. But truthfully they’re my secondary concern. The market that most matters to me — the market that I’m most focused on — is my niche market.
For me, it’s more important to focus on what I can do to increase my quality of life, pay my bills, and put food on the table for my family. In all reality, I have little control over whether my corporate tax is 36% or 39%. Either one of these is way too high. As Brad Shorr suggests our corporate tax rates are “already uncompetitive on a global basis, and it’s costing us growth and jobs now.”
So I’m not looking for the political process to help my business. Instead, I’m looking for me to help my business; doing so by refining my efforts to position myself effectively within my niche market. Regardless of the economy, solo business owners, service providers and the most small businesses need many of the services we provide. And even an economic downturn many businesses will still continue to do well. So my goal as a business owner and a marketer is to position myself in those business sectors that are still doing well and help them solve the problems they still face within the business.
In other words, I’m being responsible for the health of my business. I’m planning for tight economic times by being even more focused with my marketing. And I’m advising that all of my clients who run service-based companies do the same thing. Not out of fear but out of opportunity. Because it’s in an economic downturn that competition wanes due to the large number of small businesses who will shut down.
Knowing this you can position a business not only to survive but thrive during such times. And even if I’m wrong and we are not heading toward an economic downturn, a recession, or as some are saying even a depression, it is still a good exercise to refine your businesses purpose, positioning and marketing.
So, in a nutshell, I’m looking at myself to solve any financial problems in my life and in my business rather than waiting for a politicians in Washington or investors in New York to solve them for me. What will you do?
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Sparkplugging Founder Wendy Piersall is dang passionate about helping people start & grow a business while maintaining life balance (somehow). 
Easton Ellsworth is owner of 
On a national political level the financial crisis really highlights how financially illiterate our elected officials are. It is brutal listening to congress people on TV showing how little they understand about economics. And yet we trust these people to spend our tax dollars.
How do we fix the problem? Go back to college learn quantum physics, figure out time travel, build a time machine and go back 5 years and say “Banks, yeah you, don’t loan that person who only makes $45k a year $500k to buy a house. Trust me it will end badly!”
The real answer is an answer that if any official running for office said in public they would never have any chance of holding elected office ever again. The solution to the problem is
1. Time. Yeah it is going to suck big time. But time heals all wounds and financial crisis.
2. Higher interest rates. You want to take the log jam out of the credit markets? Raise rates to compensate the lenders for the risk they are taking. There are 2 sides to every transaction but everyone is only focused on the borrowers not the lenders. There is no shortage of people looking to borrow money to do stupid things.
About the corporate tax rate issue. I would sympathize with corporations a bit more if they paid the rate that was published. True on paper US corporations have one of the highest rates in the world. In reality what they actually pay is one of the lowest rates in the world. You can’t blame the corporations they are playing by the rules set forth by the government.
To quote one of my early mentors “If you are paying too much in taxes find a better accountant.”
@Bob Firestone – Great points, Bob, thanks.
The one thing I’d add is that I’ve formed a corporation around my single-person business. I don’t make $500K/year. Yet I am bothered by the tax level charged my business. How is it right to take nearly 40% of my business’ income?
And don’t even get me started on how much we’re all paying on our individual income tax.
Moreover, how many of us know the number of other taxes changed us other than income?
Dawud Miracles last blog post..Hate Selling? Well, You’re Doing It All The Time
Hi Dawud,
Love the tenor of your post and your really great points are applicable to those of us on the other side of the world in Australia.
The sooner we all realize that we have to be financially responsible for our businesses the better.
One thing I keep telling myself in troubled times is this:
“You don’t have to be the fastest gazelle…just don’t be the slowest”
Andee Sellman, One Sherpas last blog post..Webinar Thank You Redirect
@ Dawud
I totally agree that you pay too much in taxes. The tax code is a mess. Judging buy your comment you are in the sweet spot for getting hit hard by the tax man. You are making enough to get into the top tax brackets but not enough to take advantage of the loopholes.
This is why conceptually I am in favor of a flat tax. Close the loopholes and the tax rates that honest people pay can come down.
our corporate tax rates are “already uncompetitive on a global basis, and it’s costing us growth and jobs now
On the other hand your income taxes are far lower than most other industrialized countries and so are your fuel prices. I’m pretty sure that that’s pulling the equation the other way when we’re talking competition.
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Hi Dawud, It’s definitely possible for entrepreneurs to thrive in a sinking economy. I figure my market share is a small fraction of 1%, so there’s plenty of room to expand. Companies with large fixed cost structures have a tougher time adjusting to downturns and upturns. If you’re small and nimble you can take advantage of any market change. All the government can do is redefine the rules of the game and redistribute the rewards.
Brad Shorrs last blog post..How to Write a Business Letter
I completely agree about taking responsibility for your own business. After all, only you have your own interests at heart, not the government.
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