Small Business Failures in America - Cash Flow Issues

We are noticing an increase in the length of time it takes Large corporations to pay on their invoices to our team. Fortune 500s are tending to pay their vendors more slowly, which will hurt the already strapped small businesses in America. These same small businesses employ 2/3 the population and do a great service in supplying the needs of corporations.

At the company I run, The Car Wash Guys, has retail and fleet customers. Retail pay cash, which tends to offset the problems with the extended late payments from fleet accounts. It appears that the corporations are conserving their cash to keep earning up until the next quarter, however this will hurt their long term efforts in that the small businesses who provided real time services and parts will not be able to meet the real time demand and therefore cause cost overruns for the Manufacturing sectors. Therefore decreasing productivity and causing a problem with their efficiency efforts. Who will be hurt worst? Likely high tech non able to perform on time for their industries, and their stockholders in decreased valuations of stocks, which do not hit their earnings guestimatation or quotas. Also hurt will be the retail outlets who need items in the store on time to meet consumer demand. The biggest hurt in the long haul will be all of us in America due to increased small business failures of those operating on a shoe string.

Some of these weak small businesses should be weeded out thru abnormal free market factors such as this slow pay and others who are just working to hit ROIs and pay off loans will be hurt. This hurts interest rates because risk adverse banks stop lending to small businesses. It hurts SBA guaranteed loan programs and that affects all of us. It is serious and will most likely lead to unnecessary laying off of people who make up the largest percentage of American working people. Small businesses represent 2/3 of all American Workers. It think this problem will get worse as CFO look for ways to keep cash as long as possible, by stringing out their receivables. Phone companies, electric companies and other bills must be paid on time by the small businesses, whereas theses companies are notorious for slow pay in tough economic times. It seems to be the little guy who gets it in the shorts, such is life and an acceptable given, yet it also effects us as our customer base is decreasing.

What about the labor and layoffs? As small businesses are unable to employ the lion share of the masses, there will be fewer with money to spend on those items sold by larger corporations.

How does this occur and how are small businesses losing? Slow pay means slow payment of bills and adverse credit scores. Also the 60 days of cash flow in the bank will be used in the float. That float some small businesses can absorb, but some small businesses will be beaten down and become inefficient and cannot last that 60 days and neither can most of the nearly 28 million small businesses in this country that pay their bills, buy products and services and feed the families of their workers.

This is the most serious problem facing the US economy and it is still moving in the wrong direction as of first quarter 2001. This is not good. Historically Car Washing tracks the new car sales markets, so our particular company should be fine. Also as any small business will tell you they must be constantly adapting their methods of operations to those forces, which might be a threat.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.worldthinktank.net/wttbbs

best cleaning company Highland Park ..
In The News:

Smart home hacking fears overblown? Expert reveals real cybersecurity risks and simple protection tips to keep your connected devices safe from hackers.
MIT develops needle-free glucose monitor using light technology. Revolutionary device could replace painful finger pricks for diabetes management.
The ClickFix campaign disguises malware as legitimate Windows updates, using steganography to hide shellcode in PNG files and bypass security detection systems.
Researchers from Osaka Metropolitan University designed a 21-foot dome that combines aquaculture and hydroponics to create a self-sustaining urban food system.
The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.
ChatGPT data breach exposes personal info of users through partner Mixpanel. OpenAI confirms names, emails compromised in security incident.
Android rolls out Emergency Live Video for 911 calls, letting dispatchers see real-time scenes during emergencies. Great for holiday travel safety.
Malicious Chrome and Edge extensions collected browsing history, keystrokes and personal data from millions of users before Google and Microsoft removed them.
Google's new Call Reason feature lets Android users mark calls as urgent before dialing, displaying an urgent label to recipients using Phone by Google app.
Medical history made as surgeons successfully restore sight to legally blind patient using world's first 3D printed corneal implant grown from human cells.
Data brokers aggressively collect your holiday shopping data to fuel scams and targeted ads. Learn how to delete your digital profile before 2025 starts.
Scammers are sending fake MetaMask wallet verification emails using official branding to steal crypto information through phishing links and fraudulent domains.
Learn what background permissions, push notifications, security updates, auto-join networks and app refresh mean to better manage your phone's privacy settings.
Criminals test stolen data by applying for deposit accounts in victims' names to prepare bigger attacks. Learn why banks won't share fraud details.
New study of 10,500+ kids reveals early smartphone ownership linked to depression, obesity, and poor sleep by age 12. Earlier phones mean higher risks.
A phone phishing attack compromised Harvard's alumni and donor database, marking the second security incident at the university in recent months.
AutoFlight's zero-carbon floating vertiport uses solar power to charge eVTOL aircraft while supporting emergency response, tourism, and marine energy maintenance.
A new phone return scam targets recent buyers with fake carrier calls. Learn how criminals steal devices and steps to protect yourself from this fraud.
New Anthropic research reveals how AI reward hacking leads to dangerous behaviors, including models giving harmful advice like drinking bleach to users seeking help.
The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.
Holiday email scams, including non-delivery fraud and gift card schemes, spike in November and December, costing victims hundreds of millions, the FBI says.
Holiday visits offer the perfect opportunity to help older parents with technology updates, scam protection and basic troubleshooting skills for safer digital experiences.
Swiss scientists create grain-sized robot that surgeons control with magnets to deliver medicine precisely through blood vessels in medical breakthrough.
Researchers exploited WhatsApp's API vulnerability to scrape 3.5 billion phone numbers. Learn how this massive data breach happened and protect yourself.
Travel companies share passenger data with third parties during holidays, but travelers can protect themselves by removing data from broker sites and using aliases.

Venus Transit - and Small Business?

On June 8, 2004, the world witnessed what no one... Read More

Five Simple Software Tips for Small Business Owners

The start of a new year is a time for... Read More

Definition of Security: Small Business Owner

Yes, that IS security when nobody can downsize you because... Read More

Pressure Washing Heavy Equipment

One of the best ways to make money in the... Read More

Employee Email and Internet Use - A Small Business Guide

IntroductionIt is widely recognised that Email and the Internet is... Read More

Four Reasons Why Small Businesses Succeed (or Fail)

The American system of business management has been admired and... Read More

Online Search: Small Businesses Level The Playing Field

Seventy percent of US households use the web when shopping... Read More

Building Your Business for Success in 2005

It's a strange anomaly.Most people who set out to start... Read More

Mobile Pressure Washing and City Contracts

Many mobile pressure-washing companies turn to government contacts to make... Read More

How To Build Business Credit

Having their own business is something many millions of people... Read More

Why The Carwash Industry is Stagnant; What You Can Do to Change Your Field

Many years ago, I had warned the carwash industry of... Read More

Why Internet Shopping is the New Mall of the Future

Last year, trillions of dollars transferred hands on the internet... Read More

Small Business Marketing - How Important Are Your First Words?

"What do you do?" It just might be one of... Read More

Increase Sales in Your Home Business With These 10 Simple Ideas

Every home business has the same problem of how to... Read More

A Business Tail: Veterinarian Foams at Mouth, Chases Tail, Learns New Tricks--Case Study

Many self employed professionals find themselves overwhelmed, frustrated, and confused... Read More

How to Give FREE Advice and Make Money

When is advice free and when should you charge for... Read More

Recognizing Employees? Contributions Can Go a Long Way

Every employee would like to earn as high a salary... Read More

Start a Technical Writing Service

Technical writing services are employed to explain the details of... Read More

Who Does Over Disclosure Really Hurt In Franchising?

Costs of over regulation and over disclosure end up hurting... Read More

Pressure Washing Aircraft Hangers at the Airport

If you are looking for a way to own your... Read More

Look Out for that Great Accountant

There are many factors to be considered when you are... Read More

Starting a New Business in a Small Town

Q. I am a former pastor who left the ministry... Read More

Restaurant Operators - What Skills do you Need

A tongue-in-cheek look at the skills required to operate a... Read More

Where To Get Money For a Franchise Idea

How often have you thumbed through a business opportunity magazine,... Read More

The 5 Traits of Baby Boomer Business Owners

As a practitioner and student of Small Business Marketing, I... Read More

high-end home cleaning Winnetka ..