What the Future Might Hold For Small Business
by Stuart Livesey
The danger of blue chip companies borrowing money - and how we little guys may suffer
Over the last 12 months Toni and I have been working hard to eliminate debt. Our credit cards have been destroyed (there is life without credit cards - and it is quite possible to do business on the Internet without a credit card) and our debts are being ‘retired’ and it really is working for us.
Meanwhile, down the street at the big end of town debt is rising at an alarming rate. Recently one of the largest brokers in the US suggested that corporate America should be doubling its level of debt and cutting its cash reserves.
Now how can any business survive if it does that? The more debt you have the more drain there is on future income and there is little value to a business in interest payments.
Any small business that followed advice like that would never survive - yet that is exactly what big business is being told to do. And sadly, small business ultimately relies on big business.
Queensland’s Sunday Mail today published an interesting piece about the private equity mania - it’s an interesting look into a possible future and it should send shivers down the spine of every small business person.
You can find Debt Bubble Worries Regulators by following the link.
