PopConsumer

Announcing My New Adventure

Please check out my exciting news in my post My New Adventure on my business blog, Fizz.

Thanks!

What Have You Done Today?

Often, doing > analyzing.

Building something (like a company) is hard and I admire people who are.

We live in amazing times.

I am really 'effin privileged. (h/t Amy Gahran at Contentious)

Thank You, Recession

Interesting lessons from the Argentinian economic crisis earlier this decade. Plus thoughts on ways in which we can ride out the recession through community.

Credit Card Companies: One Way Or Another

They're gonna getcha, getcha, getcha...

Credit card legislation that is good news for consumers should be heading to President Obama's desk shortly. This is on top of already passed reforms that will kick in next year. Additional legislation was needed because banks are seemingly addicted to fees and practices designed to squeeze every dime possible from card holders regardless of how deceptive and unfair they might be.

The card companies, however, are a step ahead of legislators and are already gearing up to squeeze "deadbeats" (in credit card parlance: people who pay their balances in full every month and don't rack up fees and interest) with more unfavorable terms. And for the "good" customers, they are perfecting their data mining techniques (AKA unbelievably all up in your business) and psychological manipulation skills so they can better mess with the minds of customers.

The one bright spot in all of this is that at least overwhelming political pressure and will was brought to bear on our representatives so that they could no longer side with corporations and felt like they had no choice but to vote in the interest and with the desire of their constituents. It gives me hope.

Small Business Recession Realities

As a small businessperson, I am appreciative of President Obama's announcement of our "bailout" however I'm not terribly optimistic for what it will do for me.

The focus is on increasing lending and unsticking the frozen credit markets. There is evidence of thawing as some large businesses have informed the government that they will not need loans because they've been able, finally, to secure them in the commercial market. And there are many small businesses who will be helped by credit availability like those who buy equipment, parts, "ingredients" (e.g. seeds for farmers) and have to have cash upfront with revenues coming much later when the product is finished and sold.

For many of us though what we need is customers not debt. Loans to clothing manufacturers or coffeehouse owners so they can buy fabric and beans will do them no good if they cannot sell clothes and lattes because consumers have no jobs and no money with which to purchase what are now luxury items in this economy. And debt, as far as I can see, is useless for those of us in service businesses, like me. The only way the SBA loans and tax breaks will benefit me is if the businesses of potential clients grow and they can purchase the marketing services I sell.

What is really going to put entrepreneurs like me out of business is the cost of health insurance. I started my business at the beginning of 2005. It grew steadily until the recession hit full force last year in 2008. From the end of 2007 (my best year though not yet sufficiently profitable and steady enough to create jobs and hire employees as I'd like to be able to do) to the start of 2009 my revenues declined and my health insurance premiums increased. My premiums went up an anstronomical 62% in one year which translates to thousands of dollars annually. I have to increase my revenue by large double digits just in order to get back to 2007 levels so taking on and servicing additional debt does not seem like the smartest approach at this time. Read this awesome guest post by Karoli Kuns at Francine Hardaway's Huffington Post blog for more about how devastating health care costs are to small and large businesses and the economy in general.

Thus I am in the same boat as many American whether they are small business owners, employees, or among the rapidly growing ranks of the unemployed (and, oh by the way, my state, California, has one of the highest unemployment rates in the country - several of my family members included) - waiting for health care reform and for a tide to lift us all up.

Related Reading:

Melissa at MOMocrats: Is Health Care Reform Possible?

Massachusetts' struggle with cost containment to sustain their universal health care coverage program:

“Frankly, it’s very hard for the average consumer, or frankly the average governor, to understand how some of these companies can have the margins they do and the annual increases in premiums that they do,” Mr. Patrick said in an interview. “At some level, you’ve just got to say, ‘Look, that’s just not acceptable, and more to the point, it’s not sustainable.’ ”