It never ceases to amaze me at how little people in government, who try to dictate how businesses are run, yet know little or nothing about how to run a business or how business works. The current Obama administration is a perfect example of this. He and those who advise him have no business experience and as it has been said before have never had to meet a payroll or manage and run a thriving business.
I had already taken business courses in college and had the educational knowledge to succeed. I did well with the man over a three year period increasing his Carpet outlets from 5 to 12 and doing over $500,000 in business a month. To do that my marketing budget averaged nearly $40,000 a month. I did business with many advertising outlets from newspaper, TV and yellow pages all the while increasing my knowledge about how business worked successfully.
Then I got back into the newspaper business as an advertising manager at a daily newspaper in the central coast area of California in 1973. The newspaper was losing money and going broke so I rolled up my sleeves and went to work. One of the greatest business principles is to make a sensible budget so you can gauge where you are and make adjustments along the way. I was told by the managers of the newspaper that you “just couldn’t budget for a newspaper.” So I asked the managers to humor me and pitched in with my planning. It took some time but business increased steadily. After a period of 8 years the family owned newspaper sold the property to a chain for 7 and ½ million dollars. That’s right. My work paid off and they did well.
I did the same thing at subsequent locations but the sum of what I did was gaining knowledge and doing planning that would succeed when implemented. This is just one example of what is a service industry. We had a product we produced daily, went out and sold advertising space in that product, produced it and delivered it to the end customer.
After so much experience I was running a marketing business out of my home near Sacramento, California in the early 1980s and in my contacts I made I was invited to speak to marketing classes at the local college. Same thing happened at a college in Southern California. I received letters from the professors thanking me for bringing real marketing experience into the classroom, something the students would not have experienced with the book learning. I might add, I did not have a college degree, just experience that qualified me for an MBA according to one professional I was friends with.
During that time I was hired by McClatchy’s Newspapers of Sacramento, California who had a 40% interest in Nor-Cal Cablevision in Yuba City, California. They wanted someone who could do a start up of a TV guide for the cable company that would be a paid subscription guide. I developed the advertising rates, the format and started selling the advertising. I was the only person working on it except for one of the office personnel who helped me with billing, etc. After 6 months we had nearly 7,000 paid customers at 40 cents a week subscription rate and advertising was generating nearly $1,000 a week. The first full year we grossed around $165,000 with a return of 30% net profit, all developed with the business principles I have laid out here.
In manufacturing most products start with an idea someone has. Name any product you want and it started out in someone’s brain cells. The following is simple but works in almost anything you want to name. After developing the idea of the product and identifying your customers you have to find financing to produce it. Then you proceed to set up a manufacturing process, delivery to your customer, usually a wholesaler, he in turn finds customers in retail, sells the product to them and they in turn sell it to the end customer at retail locations or today even online.
If at any time government steps in and starts to put in restrictions and regulations that are not necessary for safety reasons, the cost of the product goes up or maybe even makes it impossible to make and sell because of the costly regulations the government has imposed. Plus the government starts imposing senseless taxes that make the business shut down or relocate its manufacturing in China, Vietnam or numerous other countries you can locate on the labels on the products. I personally blame the government and the unions, as they developed and grew in numbers and demands, for driving much of our manufacturing and jobs overseas. After awhile you have unemployment sky rocketing and people go on unemployment or welfare because their well paying jobs have just disappeared overseas.
Now, in order to monitor all those regulations and collect the taxes they have imposed of course the Federal Government has to enlarge. That means much larger payrolls paid for by the money they are now stealing from companies and individuals. In summary we need to reduce all the effects government has on commerce, reduce the size of government employee pools and let the money stay with the American public and companies who can use it much wiser and more efficiently. The fools who are in government refuse to do that because as has been exposed many times by conservative writers, they figure out how to make millions of dollars going to their accounts off the knowledge and controls they have in place. In order to reverse the trend the whole structure has to be reset and only the informed voter can make that happen. Then America will be great again.