JANUARY 28, 2009 – The News That Matters To (Toilet Paper) Entrepreneurs

A Few Small Businesses Get Gov't Bailout Money

The News: The Wall Street Journal reports a couple of small towns offered low interest loans to struggling "pillar" small businesses. Both examples are car dealerships. Full report.

Why It Matters: If no one is buying cars, why does it make sense to take a loan to keep selling them? Perhaps a better use of tax payer money is to buy the town a private jet... oh wait a minute, Citigroup is already all over that (see below).

Painting Found In Trash Fetches $8K

The News: CNN reports a rare painting heaped with dozens of throw away items was donated to goodwill and subsequently sold for $8,000. Full report.

Why It Matters: What treasures are stowed away in your attic? Could be an unexpected source of funding.

Electric Bandages

The News: Fortune Small Business reports Vomaris is in the final stages of FDA approval for a bandage that facilitates faster healing by applying a small electrical current. Full report.

Why It Matters: Vomaris currently has 8 employees and approximately $500K in annual sales, yet they are innovating faster and better then the pharmaceutical incumbents. Another victory for the TPEs!

Government Bailout Funds Almost Used To Buy Citigroup A Jet?

The News: The San Francisco Chronicle reports Citigroup reversed it decision to buy a new corporate jet after the Whitehouse reiterated that it represents outrageous spending of tax payer money. Full report.

Why It Matters: Are you misappropriating your bailout funds that badly, too? Oh wait a minute, you didn't get any.

Turnaround Tips For Struggling Businesses

The News: Business Week provided a list of 11 "tips" to turn around your struggling business in 2009. Full report.

Why It Matters: Sell harder, work smarter and stay positive. There I summarized the whole article for you..

Compiled by Mike Michalowicz, Author of The Toilet Paper Entrepreneur

Want the (Toilet Paper) Entrepreneur News emailed to you every day? Just click on this, confirm you are a living human, and you're in!

http://barfieldmanagement.com Chase Barfield

I wrote that the bailout was going to open an endless round of “me too” handout requests. If you are fiscally irresponsible, more money will only prolong your demise. Vote bailout supporting politicians out of office, tighten the boots up and get back to doing what entrepreneurs do, innovate and overcome. The government helped get us in this mess, do you really think they will help get us out? Once again, it will be up to entrepreneurs and small business.
http://tomaszgorecki.com/blog tom

Another great reason why the bailout does not work. Handing money to morons who can’t manage what they have, does anyone there have common sense?
Anne K.

Here’s the dilemma – it’s our money, so do we want it to buy a plane? Maybe. I’m not for wasteful spending, if they don’t buy the plan, the manufacturer and all of it’s subcontractors may go out of business. Getting the plane made means lots of people have jobs including the guys who then fly it, service it, clean it, etc.

Or, we can NOT give them the money for the plan and 1 government bean counter can have the job for guarding the piggy bank. Crazy as it sounds, more people might get a job from this purchase than not. And, now that I’m writing this, can’t they just fly commercial once in a while like the rest of us peasants?
http://tomaszgorecki.com/blog tom

Well another question is where is this money come from?
The federal reserve is not accountable to anyone so they create money out of thin air literally, and then they put the government and its people in debt. Yes, in debt that does not exist.
Mike Michalowicz

@Anne – excellent point. This is clearly a trickle down effect. Purchases support jobs. But here is some push back on your comment… I believe a business purchase that doesn’t bring about productivity that more than pays for the cost of the purchase, it is a downward spiral. A continuation of the practice will cause a business to fail and the trickle down effect continues.

Now it can be argued that a private jet increases productivity – it surely elevates the mood (perhaps confidence) of the individuals who fly it. They arrive rested and ready. It is also more efficient time wise… really easy on and really easy off. On the other hand, the impression of a purchase like this will damage customer perception (even if it does bring tremendous value) and that causes a loss of customer confidence and they leave.

@Chase – Good call. It is me too fest right now. And why not? I mean how does anyone argue they “deserve it more.” I think it is a touchy subject, for sure.

- Mike

So the question is this. Of all the purchase possibilities, which brings about the MOST value at the lowest cost. That is where Citigroup should buy.
http://www.teenentrepreneurblog.com Shonika Proctor, Teen Biz Coach

Yup, yup. Better trade your dollars while they still have some value…our currency is going to be worthless.