Why has the TEA Party destroyed small businesses?
I started a building services company in 2005. We do floor polishing and waxing, we do carpet and upholstery cleaning, we do some daily janitorial work, but that is low margin work we prefer not to do. The high margin work we started doing in 2009 is water damage restoration, flood drying. This is about 20% of our total sales, daily janitorial work is about 10% of our sales. 70% of our sales is floor care and it represents about 70% of our profits as well. While water damage is only about 20% of our sales, it is about 25% of our profits.
Let's turn back the pages to 2005-06, I'd bid on strip and wax the floor in a public school, community college, or other state property. I used to do the floors at about 15 DMV offices. If the property was about 20,000 sf, we'd generally do something like this, $6,000 for the initial strip and wax (4 coats of wax) and at 6 months a scrub and recoat, less aggressive cleaning, then just one coat of wax for $2,000. The total contract for the year was worth $8,000 for a typical property. I'd personally make about 25% on all work. Those rates and margins evaporated in 2011-12.
In 2009-10, my business was booming at its peak. Federal Court House, numerous public and private properties at a reasonable profit margin, even with prevailing wage jobs...
Like a lot of small businesses, a significant portion of my business was done for the government. I can do it cheaper than lazy, union government workers. In 2011, my business took a nose dive. This year, thanks to the budget sequestration, then the pointless shut down, my business was in free-fall. My 2013 earnings are lower than any other full year in business, the only year with less is 2005, but that was only 7 months and a brand new business.
I have let 80% of my staff go since 2011 when the TEA Party got empowered, half of those the past 9-10 months. Yep, lots of unemployed people can say they worked for me 5+ years. For most of them, unemployment has run out and they can't find work. Thanks TEA Party.
Today a competitor and I discussed buying out my business. My assets, about 25% of the cost new. That's a little light, but not bad. Existing contracts? 50% of their value. Many of these are with local, state and some federal government agencies, for example HUD for the housing projects pays a lot of the bill, with federal cuts, local housing authorities can't pick up the slack. Because their future is so uncertain, they have no "future value" to anyone anymore. Sadly, the sweetest part of the deal is a contract for 1 year as a manager in his company, the salary? $28,080 ($13.50 per hour). I haven't worked for that little since Clinton was president.
Nope, started strong in 2005, survived the recession of 2008-10 fairly well, still had some growth. Since the TEA Party started causing trouble? A downward slide I can't stop. A lousy buyout and a sketchy, low salary job for a year. That's all I have. Thanks TEA Party. It is unlikely my kids will go to college, my wife and I retire, all that I worked for for 20+ years you smashed to bits. The worst part is you can't even admit the truth, you blame the evil Democrats, which simply is not the case.
- Apostasy PeteLv 66 years agoFavorite Answer
Sorry for what the TeaBaggers did to you. All they do is chant "USA-USA" and wave a Confederate flag.
- DeinoLv 76 years ago
So the sequester killed your business, and, after 2-3 years, you have failed to get enough work in the private sector to stay in business.
Essentially, you've been living off the government, and now the government, in an attempt to save money, is no longer supporting you. So you're mad at the Tea Party for that instead of trying to find work in and around the vast expanse of poorly carpeted and upholstered industrial areas of the USA?
Sounds like you got too comfy, failed to maneuver when you lost an account and then failed your business.
Now you're just looking for somebody other than yourself to blame.
It's a tough situation, obviously. I know what the stress of a losing business feels like, but if you can't roll with the changes in business, then it's time to move on.
And times do change. And then again.
- 6 years ago
The sequester was the brain child of the Obama administration and he would not permit it to be changed to be less painful. Now he takes credit for "cutting the deficit in half". Blame Harry Reid for not negotiating a normal budget since 2009. If he would use normal government protocol, we wouldn't be experiencing these issues.
- 6 years ago
So, when are you going to talk about how the Tea Party is responsible? Should we wait for the next chapter?
How about MY small business taking a nose-dive this quarter because the general public is squeezing tight every measly dollar left over from their new 'affordable care act' bill..me included.
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- Anonymous6 years ago
How did the Tea Party have anything to do with this? Nice rant buddy... Man o Man aren't you mislead. Maybe you should stop watching MSLSD and Rachel HerpesCowFace.
- ?Lv 76 years ago
Thank Obama he is the one overpowering businesses with regulations.Source(s): HO LE FOK SIX PEEPS SERVED!!!
- My AmericaLv 66 years ago
still blaming others
for Obama being an idiot
- Anonymous6 years ago
Maybe you do crappy work.
- TeenyMonsterLv 46 years ago
Wake up liberal!