I was just talking to a friend tonight and their family owns a small business and they haven't been able to take home a paycheck for 2 months! They own a granite counter and stone business and with construction stopped around here, that stuff isn't high on anyone's list right now.

I just can't stop thinking about them, it's terrible! The economy is so bad people aren't spending money, but people aren't spending money so the economy is bad. It's just such a spiral, how can we get out of it?! One part of me wants to go order new bathroom vanities and counter tops, but the thrifty side says put it in the savings account.


What's a small business to do? I'm sure a LOT of them are in trouble right now, big and small.

__________________
"A true friend is someone who thinks that you are a good egg even though he knows that you are slightly cracked." ~ Bernard Meltzer

I am so sorry for your friends. It's the worst part of this horrible tragedy. Capitalism I guess means big companies acting greedily and irresponsibly fore years then getting our tax dollars while hard working honest people like your friends get screwed with no vaseline if you know what I mean.

__________________
The political system is broke and it's a joke.

This is akin to my *how do we help our neighbors* post, this was one of the situations I was pondering. I'd like to do something to circulate cash and stimulate the economy, but I *know* we need to save as much as humanly possible and keep our stockpile of necessities well stocked should dh lose his job. While we are okay for now, we know we can't count on that.

I shop our local businesses as much as possible and can't help but think it's barely a drop in the bucket.

I rarely shop at big box stores anymore. A.) because we are far more cautious about purchasing non-essential things and B.) we are doing our best to support local small business owners.

Example:
I just took my treasured (smelly & dirty ;-) pair of Uggs to a local cobbler instead of replacing them with a new pair that I coulda afforded with a web store discount. The boots are a need, can't live without em here, they are a quality item. But I saved money by taking them to a local small business to have toe caps and heel plates put on em.

For the folks with the countertops biz, that's a tough one, cuz construction and supporting businesses always take a hit during hard financial times. The only granite and stone small businesses here that are doing okay are the ones making gravestones/monuments.

Also for the consumer it is very difficult to spend money on items like these. What if the company goes under before they finish my work? Then I am left holding the empty bag.

It is indeed a Catch-22. I still go to the big stores because although they may not be "local" businesses local people work there and the money supports a lot of the local economy. I am also thinking of the stores I would like to see stay in business.

__________________
The political system is broke and it's a joke.

Companies like your friends are doing okay here. People are "nesting" so they are spending in their home instead of buying a new home.

My small business is doing okay but lots aren't. 2 coffeehouses are going out of business this month and one went out in January. I feel it's because they always say "get rid of your latte factor" and they do....get rid of their latte. So, those mom & pops are out of business. Lucky for me, they don't want to go without their latte...they just want to spend less so my sales have been steady instead of the drop they usually have in Feb/March. We'll see how long that lasts

I think people need to stop feeding the fear. Am I banking money? Sure but I'm also spending it. Money is only worth what someone will give you or do for it. Our "Money" might be worthless soon and no better than the stockpile of toilet paper I have. I'm not going to get political here but I have LOTS of issues with our government and their "answer" to our "problem". I am doing my best to support those businesses I can while continuing to not give business to those I don't respect.

What is REALLY bothersome is the companies who are doing fine but because "everyone else is doing it", they are laying people off. Wal-mart is making money because in tough times, people like cheap cheap cheap. WHY are they laying off???? Microsoft is making $$$...WHY are they laying off???? I don't see all these companies giving huge bonuses because other companies are. Why do they feel they need to lay off workers to compete? I don't get that. We have a friend who works for a company that had record sales this last year. RECORD sales. They normally get a "bonus" of up to $40K a year (and it's an expected part of their pay since they have never not had it). This year, because of the economy, they are not giving bonuses except to executives. What? WHY? That chaps my hide. Use the economy as an excuse to not give a bonus when it was duly earned.

__________________
Proud to say I haven't shopped at a Wal-Mart since Sept 2003

I really don't see it the same way that you do. Even if a company is doing OK, part of why they might be doing OK is because they are making adjustments. Most companies that manufacture something or sells goods and services - and that would be pretty much most of them - are seeing decreased orders/sales. They have to make cuts in some areas to keep the others sustained. A smart company will do that.....to keep their own company afloat and NOT ask for government bailouts.

On the bonus topic, bonuses are often tied to revenue and/or profit, if revenue and/or profit...or whatever the formula for the bonus is....goes down, then the bonus goes down. I agree with you that bonus hand-out and cutbacks should affect all eligible ranks though.

cj/

__________________
I was walking home one night and a guy hammering on a roof called me a paranoid little weirdo. In morse code. -Emo Phillips

OP, I would have thought that you knew my family with your post! lol
Hubby owns roofing company and the same is happening here. Seems like most are wanting to just do minor repairs to get through, not actually a new roof. Luckily we save like crazy during the summer and since things were even slow last year, this is the first year in 6 years we aren't having to pay taxes, but actually get some back.

Smurf, while I see why the situations you outlined are frustrating, I do think cjs has a point - that they are probably doing what companies are supposed to do - look out for their bottom lines. They may have numbers showing that the next quarter isn't going to be profitable and that it might even be about to tank, or even that sales will simply be flat, and aware that their taxes are about to go up (let's punish the successful ones!) they are battening down the hatches.

While I do think it's sad when mom and pop stores go out of biz, I don't really even blame the big businesses. I blame workers and I blame the whole 'big picture'. People want insurance benefits and retirement pensions and have a mentality that it's the duty of an employer to provide it. Employers play into that and offer those things that Mom and Pop simply cannot. Mom and Pop have a hard time finding help because nobody wants to work for them, given the lack of benefits.

And yet, everyone also wants to badmouth the larger businesses that do offer them.

Nobody can win!

The people running those big companies probably have mortgages and debt to pay off and don't want their own financial pictures to go bust, so they operate their businesses like... businesses. That means cutting positions when the going is tough in order to maintain a profit margin.