Small Business Brief for 10/27

Your Tax Dollars at Work: Wall Street Bailout Money Going to Buy Other Banks

Taxpayers were told that the major rationale for handing over $700 billion to Wall Street was to save the American economy by making loans more accessible. Unfortunately, it seems that some of the recipients of our largess, such as J.P. Morgan Chase would rather use our money to buy up other banks. New York Times

McCain Versus Obama on Small Business Insurance Plans Republican John McCain wants to move away from employer-sponsored insurance, giving Americans the money to help pay for their plans of choice. Democrat Barack Obama prefers to subsidize health care for small businesses. Which one of these wildly different approaches do you think is best? CBS

Sometimes, Making Budget Cuts is Critical to Survival Economic hard times have been known to force many small businesses to cut their budgets but surveys indicate that small firms, so far, are are working hard to avoid deeper cuts in operations and staff by trimming expenses elsewhere, but the basic question remains: When is the best time to make these cuts? Sam Bornstein, professor of accounting at New Jersey's Kean University, answers that question by recommending the use of financial ratios to determine when it is time to cut costs.BusinessWeek

No Shot for the Pink Slip Epidemic

Bubbles burst and many jobs related to the burst bubble vanish with it. The problem today is not a bubble in a single industry, but across the entire economy. Lenders dry up credit, virtually every industry will feel the pain as the economy goes south since virtually every business relies on credit as much as they rely on customers. BusinessWeek

Recession-Proofing Your Small Business

Economists and pundits can argue about whether or not the U.S. is in a recession, but that doesn't mean you should wait to generate as much revenue as you can in spite of the economy. Here are some ideas how you can do that. Small Business Review

Keeping a Weather Eye out for Business Troubles

There are business barometers that can help alert you to the conditions of business activity, subtle signs that things are all well or that storms are coming. BusinessWeek

These 10 Mistakes Can Reduce Your Profitability

If you are having problems keeping your business in the black, you might be making one or more of these 10 mistakes, any of which can harm your bottom line. Learn what they are and how to fix them. Business Know-how

Interim Asst Sec Kashkari Testified on Financial Markets

Interim Assistant Secretary for Financial Stability Neel Kashkari testified before the Senate Banking Committee at a hearing on U.S. financial markets. Read what he had to say. US Treasury

Business Tax Breaks in Wall Street Bailout

The $700 billion Wall Street bailout includes more than $150 billion in tax breaks for individuals and businesses. This article will guide you through the tax breaks, including a one-year alternative minimum tax patch and a sales tax deduction. CNNMoney.com

Some Firms Do Succeed Despite Economic Troubles

Many small businesses are reporting record earnings this year. A recent survey indicated that 21% of the small-business owners are planning to make capital expenditures sometime in the next six months. The basis for this? Basic business principles: Efficiency, sound banking and customer relationships, and solid cash flow. Kansas City Star