Business Plans are Essential

                      

Business plans never work out exactly as they are conceived. but they are most helpful.

Too many small businesses fail to create an adequate plan. For several reasons:

One, folks may be too lazy to put in the effort. It takes work and a bit of basic bookkeeping. Yet, all a small business man needs is a small calculator.

Secondly, after a start, many lose faith in its continued use. That occurs because business plans need to be adjusted as you go along. None of them are ever made in stone. The necessary adjusted figures are not a sign of

error or misuse of the plan.

The whole purpose of a plan, adjustments and all, is to guide the management of the business, It is not to exactly predict outcomes. It is to show trends, problem areas to be treated, and so on.

                       

You never need to have a fancy business plan. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Demonized Business Men and Women

                     

Why bother to run a business when the federal government has a Bulls Eye on your back?

                       

Example: There is a little-used federal anti-business law on the books. So as a politician, why not use it during a  recession when you say you’re creating jobs? And your deepest instincts may well be anti-business?

No, the feds will tell you they’re not anti-business; that they’re looking out for your interest. They’re not.

                                           

The government passed the Food, Drug and Cosmetic Act in 1938, with a provision that authorized criminal action against corporate officers. No evidence was needed that an officer knew a crime was being committed. Being connected with the company at the top was the guilt.

                       

You can see why this section of the law was not used, until the present administration got wind of it, with an eye on drug companies. How many top execs are willing to put their personal wealth and liberty at risk , to run a company of thousands of employees, one of whose transgressions would put that CEO at risk of jail? (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

ObamaCare’s Fantasy Cost Reduction

                     

We should always attempt to prevent illness. But prevention may actually increase costs not reduce them. So, spending must be cost-effective over the years.

                                       

Way back, in an Aug.7, 2009 letter to Rep. Nathan Deal, Congressional Budget Office Director Doug Elmendorf’s aide, said: "Researchers who have examined the effects of preventive care, generally find that the added costs of widespread use of preventive services tend to exceed the savings from averted illness."

"It is usually necessary to provide preventive care to many patients, most of whom would not have suffered that illness anyway." This costs money that would not have been spent.

                       

The study came directly from the respected Congressional Budget Office. And it refuted the Administration’s claim for savings that will flow from ObamaCare. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Ineffective, So-Called Job Training

                      

Good politics makes bad economics is an often used axiom. It’s especially fitting when it comes to the ruse by politicians when they hand out taxpayer funds for job training. It does sound good. People do lose jobs because of new technology for which they are not able to qualify.

                       

The unfortunate unemployed are told they can be retrained, as they should be, But in truth, the federally- sponsored programs usually are a bust. Private efforts have been more successful.

                       

A study as far back as 1969 showed that teens actually did worse in a federal jobs program once they started. Another study showed how tens of billions were spent on federal job training from 1961 through 1980 with no real success. Programs since then, with 1982 legislation, have fared no better for decades.

                       

But the charade still goes on. Promises of job training programs that sound good—the government is doing something. But nothing g is accomplished for getting skilled jobs. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

The Error-Prone Dodd-Frank Rules

                     

Politicians love power wherever and however they can get it. Unfortunately, this has become a habit in Washington. Especially when it creates a source of contributions to help finance campaigns to get out votes.

                       

The Dodd-Frank Act has investors over a barrel in so many different ways, through onerous regulation. Yet, this type of error can sometimes be as easy to make as it is for a baseball outfielder to occasionally flub a fly ball.

                       

While lawyers have gotten more advantages from all the new restrictions. Since Democrats get well over 90% of campaign funds from tort lawyers, guess why these messy tidbits are in the law? (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

Insurance Policy Cancellation Facts

                     

The administration has demonized insurance companies for dropping policies, much as it demeans other industries from time to time.

                       

I was a senior banking and insurance analyst in the past and keep in touch with the business. I wish top members of the administration were as informed.

                       

A policyholder can have his or her policy dropped for a number of valid reasons:

                       

One: Material lying about pre-existing conditions. No one should be allowed to buy fire insurance while a fire is in progress.

                       

Two: Fraud. Material misrepresentation which is so basic that the company would otherwise not have accepted the risk

                       

In one of the insurance companies independently studied, only 0.1% of policies or 20,000 cancellations were made. It sounds like a lot when politicians talk, but it’s a study from millions of policies over a 5 year period.

                       

On the other hand, our government does not tell you that it cancels about 7% of Medicare claims. Think of that the next time you consider truth in political advertising, especially when you hear about government health care. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)

The Codes Mishmash of ObamaCare

                     

Doctors and hospitals now use about 18,000 codes to indicate the procedures they use when treating patients.

                       

However, federal mandates will increase the number to about 140,000, And this is just the beginning, as ObamaCare is yet to be fully implemented.

                       

The idea is to describe every and any procedure a doctor may do for a patient.. I also see the road map for tort lawyers. (See the Earl J. Weinreb NewsHole® comments and @BusinessNewshole at Twitter.)