In a recent post I left a reply about my business going under. Then that day, as I met with a bankruptcy attorney that my long time family attorney recommended, Phil Gramm made this statement:
"We have sort of become a nation of whiners," he said. "You just hear this constant whining, complaining about a loss of competitiveness, America in decline" despite a major export boom that is the primary reason that growth continues in the economy, he said.
"We've never been more dominant; we've never had more natural advantages than we have today," he said. "We have benefited greatly" from the globalization of the economy in the last 30 years. ...
"Misery sells newspapers," Mr. Gramm said. "Thank God the economy is not as bad as you read in the newspaper every day."
Here I was, losing my business, my dreams, my life savings and my pride over an imagined poor economy.
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I have owned business since I was 16 years old (I’m now 45) in some shape or form; a landscape business, a bird and reptile broker, 2 assisted living facilities, a private for profit nursing agency and this... my largest investment 2 car washes. By profession my wife and I are Registered Nurses, now for nearly 25 years. We have the ability to earn good income. In the past the business were hobbies that took advantage of the tax code and provide extra income until we opened the Assisted Living Facilities. The ALF’s did well for us, even though that industry is over regulated and difficult, we made a good income and faired well. My wife’s dream however was to have a car wash, something that brought he fond memories of her childhood with her father on Saturday mornings.
After nearly 5 years of planning, one year to write a business plan and another year to get SBA financing I built her a full service car wash. I used the proceeds from the sales of the ALF’s and savings over the years to build up the business. It seemed to begin, by year 3 and after adding equipment to cut labor and streamline production, to produce a return. But then, in November 2006 I saw a decline in sales.... That seemed to coincide with a slowdown in housing here in Florida.
I began construction in July 2001 of the car wash when the economy was in a slight recession. Then Sept 11th happened. Construction was already delayed 8 months by permits due to retention pond issues (what we have here in central Florida called SWFTMUD) so cost overruns hit me hard. But I weather it. Then in October I lost great Uncle (who resided in one of my ALF’s). In November my brother in law was found dead of an over dose. And in December, my father was diagnosed with lung cancer. Still I pressed on with construction of the car wash....in the mist of litigation with my partners (my wife’s sister and her husband) who were embezzling money and withholding my books from one of the remaining ALF that I had not sold. This was a very stressful time!
I opened the wash on Feb 7th 2002 and called it Ben’s car wash after my son. My father traveled his last trip to see it opened, he died 2 weeks later.
I managed to force a sale of the ALF from under my in-laws in a kind of "hostile take over" when I quit depositing cash in the business account. My partner failed to pay my corporate fees and it went into dissolution so I could not retained the license for the ALF under the sub chapter S. So I out of necessity opened a DBA and re-licensed the facility (without the partners as listed agents) and was able to sell the ALF and regain total control and distribute the funds from the sales (less what was owed in back taxes, fines, penalties). Through all of this, my wife became nearly incapacitated, showing signs of MS due to the stress of the strained relationship with her sister.
John McCain:
[A] lot of our problems today, as you know, are psychological — the confidence, trust, the uncertainty about our economic future, ability to keep our own home.
In 2003 the hurricane season here in Florida was exceptional. 3 Hurricanes passed within 30 miles of my home and business, one went directly overhead. Hurricane Jeanne destroyed my mother & fathers home (luckily I moved my mother to my county 6 weeks before the storm hit). Insurance rates rose, property taxes increased and Florida’s economy began it’s decline. My home owners insurance went for $500 to $1400 to $4100 to $8700 in consecutive years. Despite this, the Business had steady growth from 2002 until Winter 2006. But to pay for my homeowners and health care insurances, I went back to work in the local hospital in Feb 2006.
I’m not afraid of hard work. My wife and I have worked everyday for seven years, 12 – 14 hours a day to keep the business going and make the family successful. But that has come to an end.
2007 saw a 10% decline in sales at the car wash. So far this year sales are down 30%. Cost are up; insurances, taxes, payroll and chemicals. I haven’t been able to pull a salary in over a year. Three weeks ago, when we were behind in the mortgage on the car washes (I have a full service and a self service wash side by side) by two months, I cashed in a 403B that would carry me through the Summer and most likely into nest Spring. I have already invested nearly $400K of my cash into these businesses and this was nearly all I had left. I tried everything I could to increase traffic, but the economy and disposable income in the face of $5 gas prices and home foreclosures are too much. I sent my wife to the bank with a $50K check to catch up on the past due mortgage and the property taxes. The banker REFUSED to take my check! We have come to realize that it is time to stop putting money into the business and walk away!
I know I’m not alone. I know that many Floridians and Americans are suffering under this economy. And I’m pissed off. Before hearing Phil Gramm’s comment Thursday I decided that I was going to write Governor Crist this E-Mail:
Dear Governor Crist,
For the past 14 years I have owned businesses here in Florida. They have been, up until now successful and rewarding both to myself, my family and my community. Today, at 2 PM I see an Attorney to discuss bankruptcy (which seems unlikely under the new law) vs "foreclosure in lue of" on my 2 car washes. The loss of these business will cost me everything I have saved, my pride, jobs and revenue for the Zephyrhills community. Can it be from my lack of experience? No. Can it be that this State, Florida is no longer a "business friendly State"? A resounding YES!
I can not survive in a economy where growth has stagnated for over 18 months, gas prices over that time have increased nearly 100%, disposable income for Floridians is a choice between getting to work or feeding their families... certainly not washing their cars. And what have YOU and the Florida Legislature done for business owners like me? My property taxes have increased 30% in 2 years (both personal and business)! My property insurance has also increased until last year.... to the point where I had to go back to work to pay my home owners insurance (it went from $500 to $1200 to $4100 to $8700 in consecutive years!). Yet I live 65 miles inland and have never had a homeowners claim. Workers comp insurance rates have put many other Florida businesses under also. Many friends have chosen to leave Florida than to continue to operate business here.... I managed to go under in an economic down turn.
My struggle is not unique. There are millions of Floridians who are struggling to make ends met, thousands even ten of thousands facing foreclosures this summer. What will be the economic impact? What will be the future of Florida? How can I ever start another business here, with a Governance of incompetent leaders who let the insurance industry write policy a few years ago... lobbyist witting Florida policy? No wonder Floridians are now screwed and losing their homes and businesses? Am I culpable somehow for my business failing because of runaway insurance cost, property taxes and wages? Is it ok for GM to expect a FEDERAL BAILOUT in 2009 if the VOLT electric car fails? Or Bear Stearns to be rescued in a federal bail out... but thousands of small businesses... whose wealth, personal wealth add up into the hundreds of billions will be lost get no assistance.... not even the ability to file bankruptcy to relieve debt? Has our Government.... and your party... once my party, become FACIST that only prop up the multinational corporations and to hell with the little guy?
I just thought you should know, that you should be in touch with what is happening to the people in your State. Soon, in a few days, 14 employees will be out of work and on unemployment, WIC and food stamps. Some have babies, one a psychotic wife and others no education (that's why they work in a car wash). They will find no jobs this time of year in Florida. I'm lucky.... my wife and I are both Nurses and already have jobs in the local hospital.... but we lost our life savings (nearly $400,000) possibly our home, my car, properties I own. But I have time to recover, my staff are uneducated and have nothing to fall back on. What will happen to them? Will they keep there water turned on? Will the have air conditioning (it's 99 here today outside)?
When a business fails, the community as a whole suffers. Governor... you and the legislator have failed business and the Florida people.
Sincerely,
Shortly after writing this letter I decided that this wasn’t enough, so I called the Governors office to try to see him! I was driving to Tallahassee the next day to pick up one of my girls from FSU’s band camp and was going to drive right past his office. So I did... I dropped in to see the Governor!
My wife and I walked into the Capital building (we went into the old on first). Oddly if you look at Florida’s Capital Buildings for a distance down Appalachee.... the 2 dome building on each side and the tall tower in the middle are VERY PHALIC which among all the rumors of who’s in office seems very fitting! Walking around the Capital building after a small security check point (we have more in our local court house) no one stopped us from wondering around the Senate floor until I found someone to asked where the Governors office was. It was strangely empty.
My wife and I walked into Charlie Crist office.... Odd again... fake plastic flowers on the tables (on of my other jobs was in a flower shop). I signed the guest log with my name, address and business name and under comments "business closing due to poor economy" next to all the other comments; "congratulations on your engagement", "Hope to see you in the White House as our VP". I wanted to be sure that others who signed is saw the pain that I was going through! After filling out a form and waiting 5-10 minutes an aide to the Governor came down named Cole Hoopingarner.
Cole took my wife and out into the empty marble hallway near the round staircase to a row of chairs to hear our concerns. I started: "I think it’s important for the Governor and the Legislature to hear for the constituents. They sit hear, far removed from us in this stone building, out of touch with our pain". I continued "this week I will lose everything, my dream, my life savings, my pride and 14 employees will lose their jobs". Cole sat there and looked compassionate. He said "I understand", "I can’t really understand, but my father is going through something similar...he’s about to lose his business". Then I got upset; "Where is the Governor"? "Why don’t we see him more on TV, in my town or making statements about what is happening to our State"? "Yet he can spend time being groomed by the McCain campaign"? Cole said: "I understand" ,"he should be more visible", "I pass on your concerns". No...not good enough for me I got into the Phil Gramm comment: "Do you know how close Crist is to McCain economic advisor"? I continued: "Floridians are losing their homes, their business and can’t find jobs and Phil Gramm calls us WHINNERS"? I also continue with the oil drilling: "Florida has nothing left for growth, more people are leaving this State now that moving here". "And the Governor wants to talk Floridians into drilling in the Gulf"? "All we have left is tourism, we don’t produce enough citrus anymore"? "are we to be nothing more than a State of services and Nursing Homes"?
My wife speaks up about education and how we are funding our schools with lottery money... she begins to cry. Finally I tell Mr. Hoopingarner that I may have to come back as a representative. My wife’s uncle was a Governor and Ambassador and I had a Great great uncle who was a Secretary of Agriculture and Ambassador under 4 Presidents. We left feeling that we at least did our "civic duty" and made peace that we accomplished nothing. But I’m resolved that I will speak to my local city council, my State Representative and try to get a chance to address the Florida Legislature over how negligent our leaders have been, how derelict they have been and how incompetent to let the insurance lobby write policy for this State.
Charlie Crist left for Europe today. He can’t even address the issues within his own State to his own constituents! How do Republicans expect that he will make a good VP? Then again with the Republican track record of being derelict in time of chaos and when American’s really need them.... He’s one hell of a choice!