7/2/2010
Unless you have stressed about making a payroll you cannot with any true empathy understand just how truly difficult times are right now.
As a former Morgan Stanley stockbroker turned small business entrepreneur, I can assure you that I know from where I speak. When I began my journey into small business 5 years ago, I had an awareness of how good things were, and only a vague idea of how bad things could get.
I operate two small shipyards in Ventura County and employ a small crew of skilled and dedicated souls. Our facilities require massive amounts of capital to retain, operate and maintain. Through sheer will, improvisation and plain old gut instincts, we have managed to “stick it out” through an incredible business cycle with only our customers to thank.
Our bank contacts have not only changed, but have “run for the hills” in recent quarters. I am of the opinion that the only businesses banks will loan money to right now are the businesses who don’t need money at all. It was my understanding of a bank that it was an institution that receives deposits and lends money period. How can a bank exist if it makes no loans? True, bad loans are worse than no loans, but somewhere between a bad loan and a good loan is where we are talking about. Ceteris Paribus, there are no good loans based on current banking parameters.
I understand our “quick acting” congress is working on a law to assist local banks and small businesses. Excuse me for sounding jaded, but I would bet that the new legislation will be ill equipped to help people on the frontlines like myself.
So here we are, three years into a nightmarish business cycle with no help, unless you are a Wall St. bank, a government employee with a strong union or a recent lottery winner. To all the entrepeneurs out there, hang in there, make your own rules, love your vendors and love your customers more.
Andy Killion