Doubling Profits in 2010

    Submitted by Anonymous (not verified) on Mon, 05/03/2010 - 12:39

    We Need to Identify Tracks in Our Businesses that Must Change if We Want to Generate Increased Net Income

    By Richard Henderson, Publisher of Home Business Magazine

    Home-based entrepreneurs face serious challenges in trying to generate more profits. They get myopic in focusing on two or three things to pursue increased net income. For example, cutting the cost of one or two major expenditures, or increasing sales of a main product or services. But a focus on increased profitability has to move beyond cutting major expenses and generating more sales. In a recession, it may not be possible to generate more sales, and we may have already cut major costs to the bone. So what do we do now?

    This is a good time to dust off our business plans and marketing strategies and update these for 2010. We need to break out of a psychological business rut that often plagues home-based entrepreneurs. We tend to work more independently than other business owners, with less personal interactions. This can cause some of us to get myopic, lost in a day-to-day struggle of business procedures. We need to start our own customized business brainstorming that will lead to identifying additional ways to double profits in 2010.

    The U.S. Senate recently increased the Federal debt level to up to $14 trillion, and the President recently proposed a budget with up to an incomprehensible $1.3 trillion deficit. I will hammer on this issue until something is seriously done about the fiscal insanity. This level of debt is not sustainable and is pushing the country into a depression. 

    I have received criticism about focusing on this problem without offering a constructive solution. The solution, however, is simple. We have to impose enormous spending cuts and tax increases, with specific goals such as eliminating the deficit within 5 years and the national debt within 15 years. It’s a generational challenge with enormous pain and suffering that cannot be avoided.

    But our politics have become so polarized and dysfunctional that solving the problem is likely impossible. One side of the political aisle refuses to seriously cut spending. The other side of the aisle says it wants to cut spending but then advocates for policies that increase spending, and offers little more than “cut taxes, cut taxes, cut taxes.”

    How “cut taxes” ever became economic policy shows the political dysfunction and economic ignorance that has thrown so much debt onto the backs of our children. If the governing process was functional, both sides of the aisle would FIRST make the tough political choices about how much to spend on government, and then, SECOND, make the tough choices about how to raise the tax revenue to pay for it. If you want to cut taxes, that’s fine, but start with off-set spending cuts first. The average person lacks these basic understandings of economics and governance, and politicians continue to cravenly exploit the ignorance with false promises.

    So we’re stuck with a dangerous combination of dysfunctional governance and a polarized and ignorant voting public. These factors will prevent the tough solutions that will keep the country from falling into a debt-fueled depression. HBM
     

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