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Name:	SeaRayMan -	Reply
Subject:	Possible future letter to Empl
Date:	1/8/2009 9:32:42 AM

To All My Valued Employees,
There have been some rumblings around the office about the future of this company, and more specifically, your job. As you know, the economy has changed for the worse and presents many challenges. However, the good news is this: The economy doesn't pose a threat to your job. What does threaten your job however, is the changing political landscape in this country.
However, let me tell you some little tidbits of fact which might help you decide what is in your best interests.
First, while it is easy to spew rhetoric that casts employers against employees, you have to understand that for every business owner there is a back story. This back story is often neglected and overshadowed by what you see and hear. Sure, you see me park my Mercedes outside. You've seen my big home at last years Christmas party. I'm sure; all these flashy icons of luxury conjure up some idealized thoughts about my life.
However, what you don't see is the back story.
I started this company 28 years ago. At that time, I lived in a 300 square foot studio apartment for 3 years. My entire living apartment was converted into an office so I could put forth 100% effort into building a company, which by the way, would eventually employ you.
My diet consisted of Ramen Pride noodles because every dollar I spent went back into this company. I drove a rusty Toyota Corolla with a defective transmission. I didn't have time to date. Often times, I stayed home on weekends, while my friends went out drinking and partying. In fact, I was married to my business -- hard work, discipline, and sacrifice.
Meanwhile, my friends got jobs. They worked 40 hours a week and made a modest $50K a year and spent every dime they earned. They drove flashy cars and lived in expensive homes and wore fancy designer clothes. Instead of hitting the Nordstrom's for the latest hot fashion item, I was trolling through the discount store extracting any clothing item that didn't look like it was birthed in the 70's. My friends refinanced their mortgages and lived a life of luxury. I, however, did not. I put my time, my money, and my life into a business with a vision that eventually, some day, I too, will be able to afford these luxuries my friends supposedly had.
So, while you physically arrive at the office at 9am, mentally check in at about noon, and then leave at 5pm, I don't. There is no "off" button for me. When you leave the office, you are done and you have a weekend all to yourself. I unfortunately do not have the freedom. I eat, and breathe this company every minute of the day. There is no rest. There is no weekend. There is no happy hour. Every day this business is attached to my hip like a 1 year old special-needs child. You, of course, only see the fruits of that garden -- the nice house, the Mercedes, the vacations... you never realize the back story and the sacrifices I've made.
Now, the economy is falling apart and I, the guy that made all the right decisions and saved his money, have to bail-out all the people who didn't. The people that overspent their paychecks suddenly feel entitled to the same luxuries that I earned and sacrificed a decade of my life for.
Yes, business ownership has is benefits but the price I've paid is steep and not without wounds.
Unfortunately, the cost of running this business, and employing you, is starting to eclipse the threshold of marginal benefit and let me tell you why:
I am being taxed to death and the government thinks I don't pay enough. I have state taxes. Federal taxes. Property taxes. Sales and use taxes. Payroll taxes. Workers compensation taxes. Unemployment taxes. Taxes on taxes. I have to hire a tax man to manage all these taxes and then guess what? I have to pay taxes for employing him. Government mandates and regulations and all the accounting that goes with it, now occupy most of my time. On Oct 15th, I wrote a check to the US Treasury for $288,000 for quarterly taxes. You know what my "stimulus" check was? Zero. Nada. Zilch.
The question I have is this: Who is stimulating the economy? Me, the guy who has provided 14 people good paying jobs and serves over 2,200,000 people per year with a flourishing business? Or, the single mother sitting at home pregnant with her fourth child waiting for her next welfare check? Obviously, government feels the latter is the economic stimulus of this country.
The fact is, if I deducted (Read: Stole) 50% of your paycheck you'd quit and you wouldn't work here. I mean, why should you? That's nuts. Who wants to get rewarded only 50% of their hard work? Well, I agree which is why your job is in jeopardy.
Here is what many of you don't understand ... to stimulate the economy you need to stimulate what runs the economy. Had suddenly government mandated to me that I didn't need to pay taxes, guess what? Instead of depositing that $288,000 into the Washington black-hole, I would have spent it, hired more employees, and generated substantial economic growth. My employees would have enjoyed the wealth of that tax cut in the form of promotions and better salaries. But you can forget it now.
When you have a comatose man on the verge of death, you don't defibrillate and shock his thumb thinking that will bring him back to life, do you? Or, do you defibrillate his heart? Business is at the heart of America and always has been. To restart it, you must stimulate it, not kill it. Suddenly, the power brokers in Washington believe the poor of America are the essential drivers of the American economic engine. Nothing could be further from the truth and this is the type of change you can keep.
So where am I going with all this?
It's quite simple.
If any new taxes are levied on me, or my company, my reaction will be swift and simple. I fire you. I fire your co-workers. You can then plead with the government to pay for your mortgage, your SUV, and your child's future. Frankly, it isn't my problem any more.
Then, I will close this company down, move to another country, and retire. You see, I'm done. I'm done with a country that penalizes the productive and gives to the unproductive. My motivation to work and to provide jobs will be destroyed, and with it, will be my citizenship.
So, if you lose your job, it won't be at the hands of the economy; it will be at the hands of a political hurricane that swept through this country, steamrolled the constitution, and will have changed its landscape forever. If that happens, you can find me sitting on a beach, retired, and with no employees to worry about....
Signed,
Your boss

Name:	MartiniMan -	Reply
Subject:	Possible future letter to Empl
Date:	1/8/2009 9:45:17 AM

My story is not exactly the same but there are many similarities and I completely, 100% understand the sentiment. Over the last two years when we have had to write huge tax payment checks my partner have seriously discussed calling it a day. We could sell our company today for $35M-$40M and could retire to a life of long-term capital gains, not more multitudes of regulations and taxes, etc. Unfortunately the best exit for us would be with a strategic buyer and 10 wonderful people in our corporate staff would lose their jobs as would a number of our senior leaders who would be redundant and expendable. So I will hang in as long as I can but if my tax burden gets any worse or there is a move to increase capital gains taxes I am done.

Name:	AUCATZ -	Reply
Subject:	Possible future letter to Empl
Date:	1/8/2009 9:45:52 AM

Sad, but true. Wish BO and all politicians, who have never worked a real 'job' in their lives - and live off government jobs, could see this and take it to heart.

Name:	lamont -	Reply
Subject:	"Atlas Shrugged" anyone?
Date:	1/8/2009 10:02:52 AM

Name:	Kizma Anuice -	Reply
Subject:	Possible future letter to Empl
Date:	1/8/2009 11:00:02 AM

with all of those good employees have you considered an ESOP? and its tax advantages.

Name:	Talullahhound -	Reply
Subject:	Possible future letter to Empl
Date:	1/8/2009 5:31:56 PM

What a lot of BS. Self serving BS at that. For everyone out there that sacrificed it all for their company, there are 100 more who overleveraged their companies and are facing bancruptsy now. This is a lovely story, but I'm not buying it. Sell the luxury home and the luxury car and start another company in another country with a more favorable tax situation for business. This is part of the problem, people want the success but once they get it they don't want to pay the piper. Maybe they wouldn't be paying so many taxes if their current President wssn't out spending money like a drunken sailor instead of investing it at home.

MM, you can take 35-40M out of your company, but you are only hanging on for 10 employees? Well, why don't you negotiate their retention for 5 years with a buyer? That's not an unreasonable point of negotiation. People do it all the time. That should give them plenty of time to find new jobs -- especially because they have been working for such a successful company.

Name:	Swimmer27 -	Reply
Subject:	Here is an idea......
Date:	1/8/2009 7:26:54 PM

You and feb both seem to hink tha running companies that actually employ people and make money and pay taxes is such an easy endeavor, why don't you two start a company and find out how the real world works. Learn what it is like to worry if there will be enough money to make payroll, or if your suppliers are going to cut you off, or if your employess will even show up to work, etc. etc. etc.

I have to give you credit for being somewhat intellectaully honest, but this is BS. Or even go and get a real job and learn how it feels on that end to worry if you will even have job next week. You are by far the sharpest of the two of you, but neither of you have a clue how the real world operates. I have been in both of these positions before and neither is any fun. Do you think one single guvment employee is worrying if their job will get cut? HeII NO. They are already jockeying for postion to get their BIL, SIL Aunt or whoever one of the new 'jobs' the messiah is gping to create.

Did you really think that the letter was real? That anyone would send out such a letter? It is called illistrating the absurb with absurdity.

Name:	Talullahhound -	Reply
Subject:	Here's another idea
Date:	1/8/2009 9:17:16 PM

I have spent the lsst 17 years listening to US industry complain -- about taxes, about regulations, about market conditions, etc. Day in, day out. The truth is they want the government to subsidize them. They want to be unregulated and untaxed. Yet every time an industry get deregulated, things get worse. They can't self regulate. Why shouldn't they pay taxes??? The truth is they like to carp and complain about how bad it is.
American business is some of the most successful business in the world. In the cases where they have lost world wide market share, they did it to themselves -- not by being overtaxed, but by not driving a hard enough bargain. So spare me. Yes, it's hard for them right now, but it is hard everywhere. Not just for them. And if they have to lay people off, I agree, it's a sad thing, but that is the nature of the market. It's a cold world. Businesses are money making endeavors, not your mom and dad.

You are correct, I spent my career in the government. But, I have a MBA and I also have advanced education in managmenet. So I'm not quite as isolated as you might think. And the last 20 years I worked, I was involved in an awful lot of highly competive acquisition competitions in the overseas makrets. And I was deeply involved in some very complex deals where foreign companies were buying US companies. And I made policy decisions that affected millions of dollars of overseas sales by US companies. I can't tell you how many times I was summoned to the NSC so some company could complain about how Commerce Department and Defense were trying to put them out of business. Funny, I'm not aware of any of them going belly up beause of government decisions, despite their predictions.

I don't claim to be an expert at running a business. But, I've been hearing these particular whines for a very long time. So pass the cheese, please.

Name:	lamont -	Reply
Subject:	Simple ? Hound......
Date:	1/9/2009 8:45:18 AM

During this past 17 year work history, were you salaried? Have you ever worked on straight commission? Please don't read anything into these questions, I'm just asking.

Name:	Talullahhound -	Reply
Subject:	Simple ? Hound......
Date:	1/9/2009 8:58:08 AM

I was salaried. No, I didn't work on commission. I've never been under the impression that the company officials I worked with on these projects were on commission either. Of course, I'm sure quite a few of them got a handsome bonus for their successful sales. And we already know what the hired gun (outside counsel) gets.

Name:	Talullahhound -	Reply
Subject:	Lamont.. Let me clarify
Date:	1/9/2009 9:15:32 AM

I don't want to leave you with the wrong impression. I'm not down on business. I have some good, good friends who work for industry and they are committed to doing things the right way and finding solutions. It was not easy for me the day I met with 6 company Presidents of small companies who sell night vision to firefighters world wide. These were smaller companies who sell strictly to firefighters and law enforcement and the world wide market is huge. Numerous small sales of this stuff (and it truly is a few devices here, a few devices there) would mean a lot ot their company. And here was some woman from the government telling that thse sales could potentially jepordize US soldiers. (BTW, we eventually worked this out, and they were able to make sales in markets that they wanted to do so. I truly believe lives were saved by these sales)

At an earlier time in my career, I ran a small program. I had a support contractor who had 6 employees. We were his sole contract. My program's funding was cut and I didn't have any money to pay them. Every Friday he called me and asked me if we had gotten any more funding, and I would have to say no and he would tell me who he had to fire that week.

So I'm not down on business at all. There are some gut-wrenching times. I have a friend right now whose company laid off 64 people. And they've cut back hours. And they've been told that people will continue to be fired and hours will continue to be cut, until they can survive.

Name:	lamont -	Reply
Subject:	"What the hired gun gets"...
Date:	1/9/2009 9:23:44 AM

That explains alot. The reason I asked is because I have worked both salaried and straight commission jobs. I presently own a small business. Unless you have been on this side of the fence, I really don't think you can understand the additional pressures involved. People in salaried jobs don't think tax rates are that bad because they have their 15%, 28%, etc., witheld in addition to their half of FICA, etc," and look forward to that income tax refund. For the most part, they aren't even aware of the additional State tax. As a business owner, on the other hand, I pay my 35% Federal tax, state tax, 1/2 of my employees FICA, health insurance, workers comp., and the list goes on and on. If you put the #'s to it, for every $ of revenue I bring in, I pay out over 60% and that does not include my income. I know, your probably going to say, "If it is that bad, go back to a salaried job." Well, regardless of all the above, there is a certain sense of satisfaction one gets from running his own business. I guess it is a trade-off between the security of a salaried job and the independence of being self-employed. I guess I am rambling on about this because there seems to be a certain stereoype about independent business owners as being rich, greedy, etc. All I can say is, before you criticize, walk a mile in their shoes.... That way, you'll be a mile away, and you'll have their shoes........ A little humor to end my rant.

Name:	MartiniMan -	Reply
Subject:	Here's another idea
Date:	1/9/2009 9:44:01 AM

Hound:

You have to live the life of starting a business it to really understand it and given your career in public service I can understand your inability to get it. I am also not surprised you had to spend all those years listening to businesses complain about the government regulations, etc. But I doubt you ever really listened. You see, the vast majority of our gross domestic product comes from private enterprise, and not from the government. I do very little government work because the cost of acquisition is too high, the regulatory requirements that come along with it are too expensive (i.e., Davis-Bacon for one), government is all about low bid while they place all sorts of requirements on you that doubles or triples the cost.

As for your comment about the 10 people losing their jobs, these are 10 people with 10 families. People with children in school, mortgages and all the things that come along with that. Why would you criticize me for making the decision to hold onto these jobs? And I am sorry, but your lack of experience in the business world is really showing when you suggest that I negotiate these jobs in the transaction. That is not something that a buyer is going to be interested in and as a buyer myself, I would laugh at someone that asked me to do that. It obviously is not the only parameter in my decision to slog on but it is a big one. I don't think I should have to apologize for taking that factor into consideration.

Name:	Talullahhound -	Reply
Subject:	Here's another idea
Date:	1/9/2009 10:00:08 AM

MM, believe it or not, I've actually seen it negotiated successfully -TWICE. Once when a foreign company bought out a US company, and once when a man who had started a company sold his company and retired. It can be done. And these are 10 experienced people -- not just some unskilled workers, who have a value added to the business. They are every bit an "asset" of the business.

Actually, I think I can understand, at least in part, about what it would be like to grow a business from nothing into something, without having actually done it. And I think I can understand what it is like to have a small staff that you care about as people. I see my BIL, who has his own law practice struggle with this. I've seen him worry about his long time clients.

You know, I understand more than I say about the frustrations of taxes. You feel like you are trying to contribute something to the economy and the government is taking your incentive. But, the government runs on taxes. It doesn't just go for regulator's salaries. I pay more in taxes a year than some people earn in a year. And it ticks me off to see it squandered by the government. One of my personal pet peeves is the $$$ that Carter negotiated for us to give to Israel and Egypt, not to fight anymore. Billions a year. And for what?
But, you can't just complain about it. You have to have a plan to propose to fix it.
One of the biggest revelations to me when I moved from the "field" to Washington is that the closer you get to the problem, the less insight you have in what the problem really is.

Name:	MartiniMan -	Reply
Subject:	Here's another idea
Date:	1/9/2009 12:36:21 PM

I understand it can be done, but I have been involved in dozens of transactions and the kind of people that lose their jobs are senior leaders like controller, CFO, accountants, human resources, legal, etc. In almost all cases these positions are redundant with the buyer's resources and usually someone loses their job. I think your experience is very much the exception and not the rule.

I agree that you can understand the intellectual aspects of starting and growing a business. What I don't think any person can learn from others is the emotional aspect and it is that aspect that drives the strong opinions and reaction to things like taxes, government intervention, regulations, etc. Until you have laid awake at night staring at the ceiling with all your credit cards maxed and payroll is coming up and you are praying that a client check arrives the next day you can never truly understand how we feel. Until you have spent nights and weekends worrying and working on something that you created that other people depend on for their biweekly paycheck you can't really internalize how angry we become when we hear some of the things that come out of Washington and state capitals. Its like I can never really comprehend the experience of childbirth no matter many I stand through (although my feet were killing me.....do I get any sympathy???.....no?!?!....I didn't from my wife either although I am still alive which is a testimony to her character), and I've stood through several. I really believe you can't really internalize this emotional experience by intellectual thought. It just can't be done.

Name:	Freshwater Bay Girl -	Reply
Subject:	It has been written.
Date:	1/11/2009 11:39:05 AM

Could not have written this any better. It was like I was listening to my husband on a Friday evening. I had to stop and read this to him. He was blown away. These are his exact words month in and month out after 48 years in business and the stress of taking care of 21 additional families. Sometimes there is a straw that will break the camels back. Remember that game? Now it's life! Thanks for the post.

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