Yesterday I noted some thoughts about the complexities of finance brought to mind by the incumbent’s ridiculous insistence on further taxing the “rich.”
In that regard, after further consideration, there’s another point to be made that experience taught me.
Most businesses in the nation are small and privately owned, with owners also operating them. For the most part, those owners also have or gain significant knowledge about what those those businesses do, how it’s done and why. And if those businesses prosper, owners usually become experts in their vocations and trades.
Ordinarily however, the majority of businesses have only sporadic need for additional equipment. It’s not a regular occurrence. Nor do they frequently require borrowed funds for the most part, except in cases where seasonal or spiking cash flow patterns may call for the use of accounts receivable financing or the utilization of factors.
Most businesses, therefore, don’t really have the need for sophisticated financial types on staff, and similarly, most owners and managers don’t have the time or inclination to gain top-level financial expertise themselves because it doesn't really serve a purpose. Thus, the answer for most is to hire outside experts, such as accountants or financial and/or tax consultants to step in and perform their services or advise when needed.
As for myself, it’s a constant concern that I proceed slowly and clearly when presenting financial alternatives for acquisitions to prospects, because the probability is they need education and considerable information in the subject before we can proceed to designing and structuring an optimum transaction.
Another consideration is that many experts in particular types of businesses, especially those where owners have advanced degrees in their trades, think themselves considerably more astute that they actually are in just about every subject. This makes things particularly tough in selling financing to them, because you have to patiently guide them along, set them on the right track and also accomplish those goals without insulting their pride or give them cause to dislike you and toss you out.
So, over time, folks that sell in our business come to realize that except for true experts, most businesspeople, and just about everybody else, lacks real sophistication in finance. Nor do they have the background and training required to truly comprehend this extremely complicated and constantly changing subject. Because, aside from the intricacies of the basics, every movement in financial markets changes just about the entire equation for everyone involved.
Therefore, if considerable expertise is needed simply to determine the best alternative to adding a piece of equipment costing perhaps between fifty and a hundred thousand dollars -maybe more, maybe less- how much financial acumen is needed to assess the budgetary situation of the entire U.S.?
Which brings me back to my frequent question of late, which is: How does someone who likely doesn’t even do his own taxes, nor have an iota of experience in any kind of finance whatsoever arrogantly take the position of determining the financial future of the nation?
Now, I don’t know about you, but to me having this happen is equal to letting a kindergarten class make decisions on nuclear fission. Because there's no way on earth that the incumbent has an iota of an inkling as to what he's talking about regarding our fiscal situation.
And along the same lines of people who don’t have a clue as to what they're talking about, I came across this article on Real Clear Politics, regarding NBC's Bob Costas.
Apparently, he told sports radio host Dan Patrick his anti-gun remarks on Sunday night were a mistake because 90 seconds wasn't enough time for him to "flesh out" what he meant to say so he was completely understood.
Now, as far as I’m concerned, since all Costas does is talk about things he’s never done himself, nor does he do anything but ride the coattails of others, I don’t know why it matters whether he “fleshes out” anything or not. Because aside from guns, I don’t see any need to completely understand anything this inconsequential parasite says about anything whatsoever.
That’s it for today folks.
Adios
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