Several of my close friends are small business owners.  They are in survival mode.  Hope has been dashed by expectations of yet to be discovered tax burdens and government regulations.  Hope has been dashed by decreased orders and contracts.  Change has been excruciating.

Those who have reserves (for example, declining equity in real estate) are recalculating the length of time they can stay in business on limited funds.  Any expenditure will be in the form of capital improvement or maintenance and protection of existing employees.  One can only defer first paying one’s employees for so long – until one needs to restock one’s own pantry.  Not one of my friends is expecting to hire this year.

On Monday, I spoke with a senior professional (engineer) out of a firm in Huntsville.  Last year their office had 24 full-time employees.  They now have three.  Some were laid-off outright.  Some were offered various versions of part-time with reduced benefits – and some of those quit.  All employees, top down, took pay cuts.  Why did he come to see me?  You know the answer.