Excess government spending will harm small business

This not a rant about any political party. Bush and the Republicans spent like drunken soldiers also. The Obama administration had a lot to deal with in a short time but they have gone way beyond what’s needed to fix the economy and have ended up in the deep end of the pool….where deficits harm everyone.

Small businesses need to be prepared. If government deficit spending isn’t curtailed we will face years, maybe decades of slow or no growth and high inflation.

What should a small business do now? Conserve cash…even if it means not paying down debt. Cash is your only protection from catastrophic events, either economic or political.

Don’t be fooled by the recent stock market performance, it’s based on hopes and dreams… not any reasonable expectation of low inflation and growth.

Conserving cash means passing up opportunities with risk to conserve cash and have more protection on the downside. Conserving cash also helps slow growth but growth is a macro issue and your financial well being is a micro issue.

Protect yourself first. You’ll sleep better.