I’ve been selling Southern Oregon real estate now for nearly 30 years. Over that span of time I’ve been asked to list and sell many businesses and companies here in the Grants Pass and Medford areas. The first question I inevitably ask is “Are you making money?”

If a company is for sale and it is not turning a profit the next questions are always “Then what are we selling and why should anyone buy it?” Consider the obvious —-everyone wants to sell their business when it’s not profitable. That’s a lot easier choice than staying in it and restructuring to get it in the black. I always tell my clients that If you have a business enterprise that is not turning a profit or if it is making a profit that is about what you would be paid if you had a job doing the same thing then forget about selling it —- Liquidate it! That’s tough advice but the truth is a lot easier than giving someone the false hope of an entitlement to money that they’re never going to receive.

No matter where you live, if you ever find yourself in such a situation then you’ll have the same easy choice to liquidate, take your losses and go do something else, or the more difficult choice of staying in and restructuring. That may mean borrowing some money and then reinventing your company to make it profitable. I’ve seen the previous scenario play itself out dozens of times over the years in my Grants Pass real estate business, and with my social conscience I find it a lot easier to tell someone that their business is really no more than a pool of assets costing them money to run every month.

I always recommend that they go back to the basics and get their flawed business model repaired and made profitable. It then becomes very simple to sell a business that’s making money. At that point most don’t want to sell except for retirement. I want to draw a comparison here between unsuccessful businesses with flawed or outdated business models and our current economic situation here in America.

Not so long ago, we were the economic engine of the world. We were the envy of all other countries for our modern business practices, our progressive labor laws, and our tax structure. In short, we did almost everything right and as a result we were more successful than any other nation in the history of the world. There is a parallel here between our country and many long time surviving companies in America. Those that adapted to change and reinvested in their future continued to prosper while those that tried to continue to ride out formerly successful plans without adaptation and reinvestment failed. This is the exact same situation that we now find ourselves in here in America.

As I have already stated we have had tremendous economic success and added abundant revenues to our government over the past 200 plus years. And a lot has been accomplished. But for last 25 years our country has been like a great company that has no more vision for its future or economic survival.

Our leaders have promised us ever higher standards of living along with the promise that everyone has the opportunity to attain a piece of the American pie. Unfortunately, these have turned out to be hollow promises with no plan to deliver or be fulfilled since we did not reinvest in our future. Nor did we did promote and enhance new ideas and new opportunities for growth, jobs, and new industries. Instead, those in charge gave us gimmicks and punch lines such as reduced taxes on capitol gains and NAFTA. These were supposed to be the next rung up the ladder of prosperity when in fact we let entire industries relocate overseas or be bought out by foreign competitors. We did not offer incentives to keep high paying jobs at home or create ways to keep health insurance costs low to American employers. Instead, employers saw fit to outsource manufacturing to China where they have free health insurance and stable labor costs. That might be okay for low skill industries such as toy manufacturing but it seems we have turned everything over to those who once sought our defeat and demise. 50 Years ago we were the world’s greatest creditor nation and we used our wealth to promote democracy and well being for all. The Marshall Plan is an example of our benevolence.

Now, we are the world’s greatest debtor nation and we owe our economic future on borrowing money from Russia, China and the Middle East. What an amazing negative transformation. All because easy profit came before our long term well being.

But we are a great country with tenacious determination and there is something we can do. More about this on Part II of this blog dealing with selling Southern Oregon, restructuring America, and a return to economic prosperity.

Michael Masters

A Socially Conscious Real Estate Consultant

     

More on Topics: Economic Prosperity, Grants Pass, Grants Pass Real Estate, Medford, Medford Real Estate, Restructuring America, Southern Oregon

Tags: Economic Prosperity, Grants Pass, Grants Pass Real Estate, Medford, Medford Real Estate, Restructuring America, Southern Oregon

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