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March 5, 2013
Avoid These Money Mistakes

CHICAGO — Steer clear of these half-dozen costly miscues

CHICAGO — Smart people make dumb mistakes, especially when it comes to money. Why this is so has the experts puzzled, though there are many theories on the subject. Whatever the reason for this enigma, here are a half-dozen costly money mistakes that you need to avoid:

FAILING TO SEPARATE PERSONAL FINANCES FROM BUSINESS PERFORMANCE

Many business owners and professional practitioners keep a sharp eye on business performance while cheating themselves and their families by failing to manage their personal finances skillfully. That’s a poor idea. These are two entirely separate challenges; both need and deserve your best efforts.

There is no better time than now to review your personal financial health and your goals for a secure financial future.

FAILING TO PLAN FOR RETIREMENT

We humans tend to assign more importance to today than to tomorrow. While the concept of retirement seems to be undergoing some drastic revisions these days, for most of us, there comes a time when our working days will end.

September 22, 2011
The Numbers: Jobs, Mortgages, and Consumer Confidence

CHICAGO — Early September brought a new proposal—the Americans Jobs Act—from President Barack Obama, which includes incentives for small-business owners to aid in cutting taxes and adding employees.

The proposal cuts employer payroll taxes in half, offers a series of tax credits for companies that hire workers who have been unemployed for longer than six months, establishes an “infrastructure bank” to offer loans for private-sector projects, funds a variety of transportation projects, intends to modernize schools and vacant properties, extends unemployment benefits and subsidizes jobs training programs, pumps money into communities for teachers and first responders, and sets up a summer jobs program for teens.

The bipartisan super committee in Congress—tasked with finding ways to reduce the nation’s debt by December—was due to hear the president’s proposals on cutting debt later in the month.

September 15, 2011
Your Money: Inflation-Protected Securities

CHICAGO — Inflation affects us all. Even when it is coasting along at what might seem to be a harmless rate, it eats away at the buying power of the dollar.

When inflation hits 11% as it did in 1979, and then rises to 13.5% as it did in 1980, the world of investing, saving and spending is turned upside-down. That’s why some financial professionals are concerned about the most recent trend. After finishing 2010 at an average rate of 1.6%, the first five months of this year show an average of 2.64%, with the latest month in that period hitting the 3.6% mark.

Could this be the portent of sky-high inflation such as we saw in the 1970s? There is a growing amount of evidence that would suggest that possibility. The chief villain, according to many economists, is the Federal Reserve’s easy-money policy designed to support the government’s $2.2 trillion in stimulus spending. That, in addition to the rise in other government spending, has skyrocketed our federal debt.

November 17, 2010
Collect Every Penny You’re Owed

CHICAGO — Drycleaning is usually a cash business. But if you offer commercial or retail accounts, you’re also in the collections business. By my estimate, about half of all operators do some of this non-cash volume, on account.

On a recent plant visit, I got an earful about problems collecting money in a depressed economy. “My accounts are such pains,” the operator said. “They just don’t pay until you threaten to cut them off.

May 8, 2009
Equity Can Be Key to Expansion

Though these are tough economic times, many drycleaners still need to implement expansion and renovation plans. And for some, now may be the best time to do so — while the rest of the industry is hurting, and bankers are reluctant to lend.

One drycleaner recently told me that he wanted to replace his old equipment and remodel his main plant, as well as open two drop stores. Two competitors had just gone out of business, making it the perfect time to expand and try to establish marketplace domination.