Is your business in debt? Is there profit and success but no cash at the end of the month? The states are also having a shortfall of money. Where is the money? Someone has to have it. If the money is spent then who has it?
Two people are standing on the street corner. One is an apple farmer in business to sell apples and the other is in college thinking about his future. The apple farmer is getting creative and wants to get every dime out of his apple. The college student borrows $100 to buy an apple from the apple vendor. (He says they are magic apples that make you live longer.)
Then the apple vendor takes the $100 and goes to enjoy paradise. The new apple owner is happy to have the magic apple that will extend his life but he also still owes $100 to a loan shark. The loan shark says: "Hey, pay me my $100 by Sunday or you are dead."
As hard as he tries the apple owner is only able to raise $33. There is just not enough assets to sell or skills to work for the money he owes. (He does feel so much better from just carrying the apple around.)
Sunday rolls around and the loan shark does as he promised plus takes the apple, has it for breakfast, and moves on to his next victim. Even the magic apple could not save the apple owner from the debt. The $100 still exists. It is in the hand of the apple farmer. Many are borrowing to buy magic apples from the farmer who gets richer and richer.
If everyone begins to borrow (which is simply a promise to pay, as they are not borrowing in the same manner as they borrow the lawn mower next door), and there are more borrowing than money available? What happens then?
This is all just dialog to make each person pause and ponder. The magic apple may truly be magic but if you are borrowing money that you can't pay back, then it won't be just business success that you will miss.
Below is the great chart from the Wall Street Journal showing where the state budget deficits are. About $196 billion total for 2010.
If you sit in your chair saying, "That's OK, I will just sit here and wait until it gets better." Think again. It is time to adapt, shift, move, change, adjust. I don't mean just the butt in your chair cause it's getting a little sore on one side.
You can read all of the details state by state here.
In the meantime? When the government starts thinking hard, there are two things that can happen. Increase revenue or reduce services. Increase revenue means more taxes or create more economy and sales. Either way, the coming months and years will have spotty success. Get ready to innovate if you haven't already started.
Maybe we can get a little back from the farmer who seems to have high skill with marketing and growing magic apples? Will it be enough? Are they really magic? Then they are actually worth more than just $100, aren't they?