March 18, 2003
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Small business and government:
Relief in sight? |
By Courtney Tritch
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| Wealth is created by Americans - by creativity and enterprise and risk-taking. But government can create an environment where businesses and entrepreneurs and families can dream and flourish. | |
| - President George W. Bush | |
The suffering economy is creating a financial pinch for industries almost completely across the board. Small businesses-who make up 99% of all American businesses-have been hit especially hard and are having a difficult time finding relief.
Is there relief in sight? The bad news is that with the state deficit looming, Governor Blagojevich's aids have confirmed that at least $1 billion in business tax breaks and related items are under review for possible elimination or cutbacks in the 2004 budget that is currently being drafted.
With such propositions on the horizon, business owners must get creative in finding new revenue streams. When tangible assets aren't paying the bills, maybe it's time to look into using those intangible assets to your advantage. Chances are, ideas are what built your company, so now it's time to make your intellectual property work for you. More and more business owners are looking to increase their revenue through patents, trademarks, copyrights and the like. This is very good news both for the small business owner and the consultants and lawyers who specialize in intellectual property.
If you're still not impressed, you may be happy to note that small business will benefit from the reform of 30 regulations and guidance documents that are "high-priority" according to the Office of Advocacy of the Small Business Administration. Regulations and guidance documents identified as high priority by the Office of Advocacy ranged from "certificates of medical necessity" issued by HHS/CMS to a rule on "commercial mail receiving agencies" (private mailboxes) issued by the postal service. "By reforming these rules and finding less burdensome ways to meet their regulatory goals, federal agencies will have taken a step towards liberating America's entrepreneurs to create jobs, and boost economic growth," said Chief Counsel for Advocacy Thomas M. Sullivan.
President Bush has also made known what he would like to see happen in the area of small business. Small businesses are the backbone of the American economy. The President's agenda gives small business owners the jump-start they need to create new jobs, support their workers, and improve our economy. His agenda will:
| • | Provide new tax incentives to make it easier for small businesses to make important job-creating investments; |
| • | Give small business owners more power to provide health care for their uninsured employees, and improves the health care options for employees who already have insurance; |
| • | Tear down the regulatory barriers to job creation for small businesses and give small business owners a voice in the complex and confusing federal regulatory process; |
| • | Save taxpayers dollars by ensuring full and open competition to government contracts; and |
| • | Provide small businesses with the information they need to succeed. |
On a local level, Mayor Daley has also given his attention to small businesses, most recently, right here in Lincoln Park. In January, the mayor met with neighborhood and community leaders including Pete Nechipor, LPCC Chairman and Kim Klausmeier, President/CEO of the Chamber. At the meeting, Nechipor and Klausmeier inquired about what the city is doing to address parking and traffic problems in the area and encouraged the mayor to look into three ideas: revisiting permit parking hours around commercial streets, developing a trolley system for Lincoln Park and reestablishing the Clybourn bus route. The Mayor said that he would check with the CTA about establishing a Clybourn route and look into the other ideas. Mayor Daley also noted that the city may be trying diagonal parking on some streets to create more parking spots, but encouraged more people to start relying on public transportation.
The mayor also noted that the City has rewritten the zoning ordinance to improve the permitting process and to make information more readily available to residents about changes in the neighborhood. Other issues addressed include the mayor's commitment to open space, a clean city, new neighborhood developments and real estate taxes.
Unfortunately, despite the best efforts of local and national leaders, a recession still weighs upon American business people. Below are some general tips on how to keep your business afloat, compiled by Raman Chadha of Explorit Entrepreneurial Services.
| • | Keep capital expenditures to a minimum. If possible, hold back on making significant purchases even if you think they are essential. For example, many people are considering updating their computer or phone systems or moving into a new space. These types of decisions involve a large amount of cash and in most cases can be put off for another 6-12 months without serious impact to the business.
| | • | Focus on getting more business from existing customers rather than trying to obtain new customers. New customers may be wary about making new purchases but existing customers already know and trust you.
| | • | Take this time to pursue strategic alliances. As a result of the recession, your staff may be less busy than normal, making now a great time to link up with other businesses to cut costs.
| | • | Go back to the basics. Now is the time to rely on your best selling products and services. While trying new ideas might sound like a good plan, it is probably a better idea to rely on strategies that have been proven to work.
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