After thinking about the budget for the State of Illinois, I concluded that this is not all about a balanced FY 2013 budget. It’s “How much deeper can our state deficit get?” The figures are staggering: $9 Billion backlog of unpaid bills; $83 Billion in unfunded pension liabilities. We’re adding in interest payments on the outstanding debt and issuing new bonds to fund this year’s budget deficit at higher interest rates (due to our poor credit rating). In my opinion, the cuts in spending should be across all of our government’s boards, commissions, departments, systems, agencies, etc. in order to improve our fiscal status.
On February 14, 2012,
in Uncategorized,
by admin
After thinking about the budget for the State of Illinois, I concluded that this is not all about a balanced FY 2013 budget. It’s “How much deeper can our state deficit get?” The figures are staggering: $9 Billion backlog of unpaid bills; $83 Billion in unfunded pension liabilities. We’re adding in interest payments on [...]
On December 7, 2011,
in Uncategorized,
by admin
We have come though much in this past year in spite of the continued volatility in both domestic and global economic markets, the growing number of Occupy Wall Street and other civil-discourse movements, etc. We have definitely “come through” – because we have not quit. What’s not always reflected on the various news sites, written [...]
We have come though much in this past year in spite of the continued volatility in both domestic and global economic markets, the growing number of Occupy Wall Street and other civil-discourse movements, etc. We have definitely “come through” – because we have not quit. What’s not always reflected on the various news sites, written about in business or political blogs, or touted by the pundits is our continued resolve and sheer determination as Small, Mid-Market and Privately Held business owners to hold on, to make it, to thrive. Thankfully, as business owners, we do have the ability to choose to increase certainty and reduce uncertainty in areas of our own businesses. This extends perhaps most importantly to considering a succession plan for transferring a business ownership when the time comes. Never Never Quit. How do you or those who care about you feel about that? How can you make yourselves ready when the time comes? Make 2012 the year you put a Succession, Exit or Ownership Transfer plan in place for your business.
On October 25, 2011,
in Uncategorized,
by admin
Should all Americans over the age of 70 stop taking Social Security annual increases?
Can this senior generation set the example for the Baby Boom generation?
Shouldn’t legislators’ pensions earned from public service be dissolved?
Would government employees fare much better if they fund their own IRA’s to supplement their retirement years?
Should all Americans over the age of 70 stop taking Social Security annual increases?
Can this senior generation set the example for the Baby Boom generation?
Shouldn’t legislators’ pensions earned from public service be dissolved?
Would government employees fare much better if they fund their own IRA’s to supplement their retirement years?
On September 26, 2011,
in Uncategorized,
by admin
The popular perception that small businesses create most of America’s jobs has been the focus of heated debate for three decades. However given that the rise in unemployment has been nearly proportionate to the declines suffered in the small business sector, the “perception” is increasingly proving to be a reality.
The back story is that this [...]
The popular perception that small businesses create most of America’s jobs has been the focus of heated debate for three decades. However given that the rise in unemployment has been nearly proportionate to the declines suffered in the small business sector, the “perception” is increasingly proving to be a reality.
The back story is that this depression’s job creation crisis rests not so much on Government, but more so on the shoulders of family business owners. As a result we need to continue the viability of these small and midsize enterprises to create jobs and concurrently must support the new entrepreneur style business creation. This is imperative to job growth and spurring business innovation & economic recovery.
On August 25, 2011,
in Current Thinking,
by admin
What are the potential pitfalls of passing on the business to a son/daughter?
I want to pass the business on to my son/daughter. What are the potential pitfalls of this strategy, and what can I do to smooth the transition? Many. Here are my top three:
1. Sibling rivalry (those in business and those not)
2. A 50% split of ownership at the children’s level can lead to turmoil
3. The offspring most likely cannot run the business, or doesn’t want to
On August 11, 2011,
in Current Thinking,
by admin
When is the best time to start thinking about an exit strategy?
When is the best time to start thinking about an exit strategy? An annual goal setting brainstorming session may be a good time to start thinking about your plan.
On April 26, 2011,
in Current Thinking,
by admin
My step five of the 7 Steps to Succession Model concerns Sons and Daughters of business owners. I surmised that it was due to an ever-shifting, real-life daily challenge for young adults to fill their father’s shoes and never quite got it right. To make matters worse, their parents continued to place higher and [...]
My step five of the 7 Steps to Succession Model concerns Sons and Daughters of business owners. I surmised that it was due to an ever-shifting, real-life daily challenge for young adults to fill their father’s shoes and never quite got it right. To make matters worse, their parents continued to place higher and loftier goals on them and still continued to critique their actions. Both generations need to be cognizant of this. I recommend that the senior generation pare back some of its branches, pruning some of its responsibility, and allowing enough sunlight to reach the offspring so he or she can grow properly. This trimming activity might need to be a large wedge carved from the branches of the tree, allowing both generations to stand tall side-by-side.
On March 2, 2011,
in Current Thinking,
by admin
Planning in turmoil – both internal and external brings families to their knees. Prayer, perhaps, for harmony and peace as the year gets underway. Buckling under the fiscal policy weight of too much federal gov’t spending and outside pressure like law changes to income, employment, and death taxes.
Questions adding to the turmoil: 1) unemployment. [...]
Planning in turmoil – both internal and external brings families to their knees. Prayer, perhaps, for harmony and peace as the year gets underway. Buckling under the fiscal policy weight of too much federal gov’t spending and outside pressure like law changes to income, employment, and death taxes.
Questions adding to the turmoil: 1) unemployment. Which generation will end up on the fuzzy end of the lollipop? Gen X and younger with high tech skills yet limited or no experience in the job market; or displaced baby boomers on a perpetual job search using old methods.
2) Will the housing collapse begin to rebound in 2011? 3) Can this country increase GDP at a sustainable rate?
Enough about macro economic questions.
Quick comment on micro – The ultra rich should “give back” to the society which helped them create their wealth. Period.
More food for discussion…
What is a “knee bucking” strain on the family? Can Uncle Joe dig himself out of the financial mess he has gotten himself into without planning with siblings? Who will house him? Can he still contribute to the extended household financially?
So, now the oldest child has completed a bachelor’s degree. No job! How long can the parents provide a roof and food for the graduate? The grown up clashes are certain (both intergenerational and same generation). And don’t take Uncle Joe as a pushover!
Can I change the view a little? Should an outside consultant be utilized with all the mayhem? Who should the client relationship start with? Of course scope, focus and timelines can be discussed in “normal” advising assignments.
But these times don’t seem ordinary. Potential client families are in turmoil. The high divorce rate, adoption of children by same sex partners, high birthrates by welfare families with little means to support offspring, low birth rates for professional couples too busy advancing careers & not co-creating, – looks like – yep, turmoil. Get on your knees!
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