This is another emotional transaction in my life….but in the process of transferring the assets and liabilities of the parent companies of newyorkbarstore.com and newyorkbarstore.co.uk to shadstone hong kong company….
This parallel phenomena was the first company I incorporated… back in 2004 as a general partnership in new york city with my hometown friend and roommate Andrew Moran – which then turned into parallel phenomena, inc of New Jersey in 2005.
Did it fail in USA? Yes. Why? Of course there can be many finger pointing,, but the major issue was cash flow. Our company credit card program from GE was “bought out” by american express, and they determined this card program was not profitable, so gave all card customers 30 days (maybe 60) to pay it off in full. No equity partners were willing/able to finance a new one. A huge negative cash flow event, forcing us to be called on 10,000 usd of debt while also still needing to make normal business purchases of that same $10k, making an overall negative cashflow of -20k….rough for a small business with 1 fulltime usa partner. That combined with high warehousing costs, usa quarterly payroll tax, professional accounting tax, and other legacy technology costs….negative cash flow over many months. Cutting back on virtual assistants, other support teams and not able to pay for outsourcing. Then combine that with inventory suppliers cutting terms, warehousing / fulfillment companies cutting net 30….the stress is unbearable.
Sad part is, I reckon and hear this is a common story with usa small businesses……but usa government, dont u realize you are biting the hands that feed you.
- Small business brings innovation
- Small business brings job
- Small business brings healthy competition.
I remember a few months back screaming at bank of america about easing my monthly credit pressure….what did they do??? Note it on my account and when they saw an incoming balance transfer, block the transfer and shut down my credit facility….I called enraged, and they said some bullshit about it being bank of america’s new policy and they sent me some “fine print” letter in the mail stating this policy change! Screw you bank of america, aren’t you now owned by the usa government now? You are getting a nice free tax payer bailout to keep your damn doors open….but your small business customers, you will shut us down and throw some bullshit “small print” letter in the mail to justify destroying my 500k/year USA small business – that was paying us taxes to loan you the same money u used to pay your customer service reps to shut the door on me.
This is why i see USA going down the drain.
Save big banks, but screw the small guys
America was built on innovators, on entrepreneurs, on small businesses like me to drive jobs and tax income…
But now sadly, my USA business had to be bought out by my asia operation…If you can’t beat them, join them – as many Chinese and Asian companies are buying their distributors out in USA and Europe.
So after i build my business in asia and china, i will come back and buy usa assets for pennies on the dollar.
Sad, but that is the way the world works, and how life goes. Hope I can turn around new york bar store and make it bigger then ever….but things are definitely going to change.