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Upcoming Crisis

Many years ago my daughter drew a picture of a duck for me, with the following saying: “Always behave like a duck. Keep calm and unruffled at the surface, but paddle like the devil underneath!” The picture is framed and is displayed in my office. It serves as a reminder that we must be calm in our daily business efforts with our customers and staff, but we must work very hard to stabilize our business for unforeseen circumstances.

Our country and economy are at a crisis point. At the national level our government is spending money as if they have to get rid of it or else it will rot for lack of use. Our Country is broke and it appears that Washington hasn’t been told yet. The proposed health bill (which no body knows what it contains) is another possible economic blow to our economy.

In our local area, Phoenix Metro Area, we have an unemployment and underemployed rate, in my opinion, close to 20%. Many people counted on their retirement portfolio and the equity in their home to see them through their retirement years. We all know what happened, the stock market took a tumble and home prices dropped nearly 50%. The worst may still be ahead of us. There are more home owners that are delinquent with their mortgage than there are homes in foreclosure. Home values are still dropping and not only the unemployed or underemployed owners are abandoning their properties, but many who can afford the payments are “walking” their homes. They don’t want to keep losing money on a home that many never reach the amount that they owe on it.

So what does have to do with your business? The answer is, everything! Cash is king today and will be so for the foreseeable future. Grow your business with an awareness that a cash reserve, both for you and your business is of the utmost importance. Be aware of the needs of your community as you grow your business and never gamble all your assets on a dream.


“Savings isn’t just money. It’s a tool that’s critical for creating the kind of life you want to lead.”

Have a great day!

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