Impact of The Accelerated Trend Towards Socialism on Small Business
Edison Avenue explores the potential impact of the trend towards a bigger government, higher taxes, and more regulation on small to midsize companies.
TAMPA, Fla., Nov. 9, 2020 /PRNewswire/ -- By 2009, "normal" traditional gas containers were outlawed across the United States, a result of the Portable Fuel Container regulations. The gasoline can law was a government regulation with the best environmental intentions. The intention was to reduce the spillage and evaporation of gasoline fumes into the atmosphere.
The gasoline container manufacturers reinvented the gasoline can to meet the new government standard. They did the best they could, and are still trying to create an easy to use container for consumer use. After 11 plus years of effort, the price of gas containers has increased three-fold and they function very poorly for their intended purpose. The flow rate of gasoline is dramatically reduced, requiring much more time to pour gas, and they have a trigger device that is difficult to hold open for any length of time. Massive amounts of gasoline have been spilled on equipment, ground, and water since this regulation passed. Why? The government regulations impeded the normal function of a gas can. The spout is often removed due to frustration as consumers seek to complete the simple task of pouring fuel into a lawnmower, boat, or engine. The intention was good, but the government regulation backfired and likely created a much worse pollution problem.
How does this apply to the trend towards socialism and it's impacts on businesses? When more of society views the government as the ultimate problem solver, more regulations and rules are likely to be implemented, which may have the unintended consequence of devastating small businesses that have small profit margins and limited cash reserves. Edward Valaitis, Managing Partner of Edison Avenue stated: "Having worked with thousands of business owners, the common thread is that they are almost all fragile. A slight change in leadership, personnel cost, loss of a few critical customers, profit margin shrinking, tax hike, or regulation change can be fatal to a small enterprise's future success."
Based upon the recent election results, the economic ecosystem for small business success appears much more uncertain as we move into 2021. Presidents of small businesses are operating in an elevated external shock risk environment and will have to plan accordingly. If one is seeking to sell a business and retire this change in environment should be seriously evaluated.
Edison Avenue specializes in selling quality businesses with commercial real estate with revenues of $1 million to $25 million throughout the US. #1 Trusted M&A Advisor Edward Valaitis stated: "Our passion is helping entrepreneurs to exit their business quickly, confidentiality and at a price that makes them smile." www.EdisonAvenue.com
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Edward Valaitis
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800-975-2114
SOURCE Edison Avenue
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