Sorry John, I have and do own a business. I revise my business plan yearly and make sure that a profit margin is built in. If your friend's business is doing so poorly, my advise to him would be to close it down.

Ask the oil companies!

I have been selling commercial mowers and classic autos quicker in the lower cost categories. Brisk sales I might add. And I can buy outrageously well in a recession. Bought a late model GMC 4x4 extended cab Sierra Z71 loaded with extras...$5600. Should've been about $9000 in any other time I've seen. Sold a John Deere tractor, assorted commercial tools quicker than the really high-end machines of $7500 plus. Had a Ford 3600 (for guys who are curious) tractor which would've garnered about $7700 in good economic times go quickly for $5500. I buy correctly and price correctly to move merchandise, not to look at it. It's all about the "buy price". I can take smaller pieces of the pie and am ok with selling more volume over a calandar year. No problem with that at all. I'm a "big picture" thinker and seller...you've got to be in this environment.

My government contracts are bidding out lower because my competition is more desperate for work, thus, they will bid lower to secure a collection of contracts. They'll cut grass for less in order to win, and amass more total contracts and keep money flowing. I have noticed that. I'm one of the more aggressive bidders in the room and I've got to be on top of my game in order to win government contracts, control areas of the city, and at the same time...make a NET profit. I can be aggressive because I carry zero debt service into the deal. My only expenses are labor, fuel, typical insurance-type, and the occassional repairs. Most operators can't compete with "debt-free" bidding. And believe me...I'm not sending out crews just to keep myself busy. Here's a quick story...I just got outbid on a 600 acre per month, all summer long, suburban government mowing contract by 50%!!! I wasn't even close! Should've stayed in bed! My net profit on the contract would've been $4500 in my pocket at the end of the month. This guy is going to cut, trim, and blow 600 acres of city parks for $2250 net profit!! Tell me the economy isn't affecting what business owners are willing to work for...Geez! I can make $2250 cash money off CraigsList per month in my leisure time.

Mortgages are in the tank but the loan officers know that there's nowhere else to go...most have been put out of business. Three years ago it was about 1 in 15 applications you could close...now, it's 1 out of 100! You're working way, way harder to qualify folks now because of the lousy appraisals and equity positions of the borrowers. America is tapped out. Credit cards of the people are maxed...they've got shaky jobs. I've got money to lend...but only to people with strong credit scores, solid foreseeable job future, and down payment money. I'll be the first to say out loud that I'm not making near what I was in 2006. That's where my other business interests come into play. You could say that I "super-diversify" my financial life.

I've got other financial tentacles out there...but this gives you a good reference to ground level American business. It's a game. A big game. If you can roll with the punches, play the game on the fly when the rules change, you can win. If you stay entrenched in the "but, what about the rules that state, blah, blah, blah"...hey...good luck to you. Throw the financial rulebook out the window. I make the rules up as I go and always have my radar on...

In closing, yes, the economy is worse than they say. Unemployement will go double digits. Money is on the sidelines. Major companies will fold in 2009...names you grew up with. Small biz that were just hanging on...they will buckle. It had to end sometime...why not now? Really...why not now?