The salvation of our economy is not the money being shoveled out the door by our feckless government.
And it’s not the politically well connected banks and declining legacy businesses scooping up all this ill-begotten money.
No. Our dynamism is a function of the vast constellation of small, entrepreneurial, family owned businesses.
This is the well that produces most of our job creation…and the vast majority of our cutting edge creativity.
I finally finished Thomas Friedman’s masterful survey of the changing global dynamic: “The World Is Flat“. Even allowing for the global downturn that followed the publication of this book, the lessons are still relevant.
And I’m more convinced than ever, that there was never a better time in our history to launch a family owned business.
Technology has shifted the balance of power to the extent that a start up business can compete on a level playing field with lumbering sunset corporations mired in bureaucracy and slothful habits.
Anyone with a well thought out business plan can create a global supply chain originating twelve time zones removed from their home office, and most significantly, can do this without ramping up overhead through adding employees and warehouse or office space.
Once you accept that virtual partnerships and teams can be assembled from like-minded colleagues functioning as vendors and freelance independent contractors…all linked electronically…you are only limited by the scope of your imagination and daring.
You could end up as a Power Seller on eBay, pressing FedEx or UPS into service as your distribution arm. You might have a niche application that could be marketed via iTunes, and even if you don’t have the skills to do the software design…someone…somewhere in the connected world has the necessary talent.
I know of a family that started selling mail order vitamins and supplements…using their basement and garage as their office and warehouse, and pressing their school age children into service to staff up at no additional cost.
Their hard work was rewarded when a global multinational giant ultimately bought their company….after several decades when the family business provided secure employment for all the family members.
Children growing up in these family themed companies absorb the work ethic and dynamic almost by osmosis…ensuring a smooth transition when control passes eventually.
Be an the alert for confiscatory taxes, as wealth is defined down by our revenue hungry government. Learn how to reinvest profits to grow the business, creating unrealized (and untaxed) gains going forward.
Live modestly and within your means…you can always harvest your gains when the time is right.
Now is not the right time…not with government intervention being glorified, while private wealth is under assault.
But this present drift towards mindless collectivism and dreary leveling will not wear well in a country bursting with entrepreneurial fervor and a robust recent history of individual freedom.
Read Friedman’s book as an antidote to the rampant idiocy and isolationism that now infests the chattering classes.