Many small companies work very hard to get new accounts. Occasionally they try to get government contracts to supply products or services. Some small business people believe this will help them in case of recession, because the government has to keep going no matter what. They therefore seek a contract as a protection security blanket and guaranteed income to pay their own bills, make payroll and have the cash flow they need to survive at a time when over regulation and hostile litigation is taking its toll on small businesses.
What many small businesses do not understand is that the government pays very slow and often holds payments back due to their own budgetary mess. Often they will be in the rear some 120 days. Ninety plus days is very typical and should be expected for any small business doing business with any branch of government; city, county, state or the federal clusterfuck. I speak from total experience and out of frustration having run a 23-state wide franchise company; all of our franchisees of course, small businesses.
The government wants things, doesn't everyone? They have needs, which they are too inefficient to do themselves without blowing more taxpayer's monies inefficiently, so they seek the power of the small businesses to help them get the job done. In my experience there were so many jobs that the government, due to their inherent ineptness; needed from our franchises to service that they could have kept most of them busy full time, yet after such services they were very slow to pay. How slow, so slow in fact that any normal business would have been cutoff and put on cash basis from our accounts receivables twice or three times had they not paid. I can remember one account, which was 180 in the rears and they had claimed that they lost the paperwork, needed tax ID numbers, more information, even though all that information was on the face of the 110-page solicitation and actual contract. Go figure, the paper work whores lost their paperwork?
No small business should ever seek business with the government and if you think that the contract will protect you for quick payment you are wrong. Our contracts generally say "contractor will be paid no later than 30 or 45 days," often they say "2/10, net 30" and 1.5% per month on non-paid invoices. This is no guarantee of timely payments or interest on your money. There is no worse customer than the United States Federal Government, yet if you are in a business and they find a violation on your premises they will put you in jail if it is not taken care of on time. Cities and County even state governments are no better. Procurement officers, purchasing agents and buyers turnover is much too fast to develop relationships to get paid on time and it is worse than anything Dell, Wal-Mart or the atrocities of Sears pulled in years gone buy to stringing out vendors.
If you take on a contract with the government, you better have the cash flow for 4-6 six months and expect them to renege on their contracts in a similar fashion to Islamic Governments in peace treaties or Oil Mineral Rights royalties. The government is a horrible customer, does not pay its bills on time and is the most hypocritical parasite on the planet when it comes to their token gestures to small businesses in this nation. It is completely disrespectful of government agencies to treat small businesses this way when we are holding up the economy with 70% of the employment base, which pays the taxes into the system. I personally cannot figure out which is worse the ponzi scheme we call Social Security where the payments go into the general fund or deliberate drowning of small businesses in past due times ten accounts receivables for prior government purchases of goods and services. What a complete and utter sham. It is unconscionable for the government to tout small business and then abuse the hard labor of these mom and pop firms who built this great nation on the blood, sweat and tears.
If you disagree with this article you can go to hell, because I have proof thru reality based observation and experiences. Ask any company who does business with the government at any level. What a bunch of hypocrites and jerks, that hold themselves out to be helping our small businesses when they bend them over and screw them like this. What a complete fraud being perpetrated on the small business community. What a complete lie it is for the podium pusher politicians to promote themselves thru positive small business speeches and rhetoric when all the government ever does is use and abuse America's greatest assets.
Thank god we still have freedom of the speech and press to point out these lies, abuses and this hypocrisy to future upcoming entrepreneurs. God bless the little guy, the government, well they are busy blessing themselves with our money. Think on this, because it pisses off every time I do.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.worldthinktank.net/wttbbs
Chicago limo Skokie ..If you really want to earn more money with your... Read More
Why should you do informative talks to smaller groups?Informative talks... Read More
How do window cleaning franchise businesses start? It is a... Read More
Want your small business to flip instead of flop?! Statistically... Read More
When working from home, it is usual to find that... Read More
When starting a business, you have to determine the method... Read More
Think of your business as a living, breathing, organism. It... Read More
Ok, you have successfully accomplished your dream of being the... Read More
Introduction: This article is written as a general discussion on... Read More
In my previous article, Step 1, your challenge for the... Read More
So it's time to invest some finances into advertising your... Read More
Discover How Specialized Cost Containment Creates A New Win-Win Position... Read More
If you own a small business, you should know that... Read More
Most doctors never distinguish the difference between customers and patients.... Read More
The Service-Disabled Veteran-Owned Small Businesses (SDVOSB) is a program that... Read More
At one point or another, almost every business runs short... Read More
Articles abound advising the business community how to properly screen... Read More
Everyday, customers and business owners are bombarded with billboards, logos,... Read More
The Federal Trade Commission decided to sit down and revamp... Read More
"What do you do?" It just might be one of... Read More
You make the decision to go into business and for... Read More
You see it often in large shopping complexes. Customers seem... Read More
It has been discussed allowing Franchising companies to electronically disclose... Read More
Most businesses accept checks as form of payment for goods... Read More
Car Wash Crime in the Hood. Apparently not everyone is... Read More
limo O'Hare Bonfield ..Having their own business is something many millions of people... Read More
Your on-line success is based on your efforts and yours... Read More
Buying a franchise is not for everyone. This guide will... Read More
It is an American dream to own a business. But... Read More
BioTechs even with the latest news had shed over 1000... Read More
You only have so much time in a day right?So... Read More
10 Best Practices to consider as your SBIR negotiations approach... Read More
Your business is only as good as the number of... Read More
The air in my client's office nearly crackled with her... Read More
The FTC Franchise Rule maybe changed, as the Federal trade... Read More
Do you have a Business Plan? Congratulations, but you are... Read More
As a Boat Detailing Specialist, you may want to offer... Read More
Are you tired yet of all the books out there... Read More
Small business owners can relieve a lot of their own... Read More
You're a small business owner with a hot new product... Read More
Increase your profit potential by identifying ? and avoiding ?... Read More
When does your ego get in the way?Let's go back... Read More
If you are in the pressure washing business and are... Read More
Every business plan book tells you how the Executive Summary... Read More
You are selling your small business (business value under $1... Read More
You'd like to go into business for yourself, and believe... Read More
If you own a small business, you should know that... Read More
Here are some sound debt collection techniques that can be... Read More
If you're like me, you love accounting. It's so fascinating... Read More
The life cycle of the typical small business is short... Read More
Small Business |