Use your words
Use your words. . . My mom said it to me, I said it to my kids, you said it to yours. A few weeks ago the Los Angeles Business Journal did an editorial on the Cost of Regulations on Small Business (see September 30th post.) As an immediate response to a shortsighted editorial, the owner of our company, John DeWitt, whipped off a letter to the Editor. As John DeWitt shows us every day, we still need to use our words. Do not let other people determine how our country is run. Exercise your right to speak – to your friends, to your enemies and to YOUR representatives in government. Let them know what regulations cost your business, in dollars, in sense, in opportunity. Do you know?
My Best, Mary
By CHARLES CRUMPLEYLos Angeles Business Journal StaffAn official state report on the cost of regulations on small businesses in California was released last week, and it sure had some eye-popping numbers. The total cost of regulation was $134,122.48 per small business in California in 2007, the report said, and indirect business taxes not generated or lost were $57,260.15 per small business.My first reaction: Wow! My second reaction: Wait a minute.
Those numbers – the ones that ended with 48 cents, etc. – stopped me. After all, this is the kind of report based on all manner of broad assumptions and multipliers, so to somberly report figures so exact, so down-to-the-cent picky, implies a precision that simply doesn’t exist and shouldn’t be pretended. It’s an immediate red flag.
And if you read the report, what stands out is that it relies on data that Forbes magazine gathers to make its many lists, the ones that compare cities and states in terms of their business friendliness. Read full story >>
Re: The Comment column headlined “Serious Issue, Dubious Report” in the Sept. 28 issue:
From my personal experience, I would suggest that the reported cost of regulations of $134,128.48 per small business in California is understated. Our family-owned and -managed company spent 85 percent of its profit before taxes in one year on construction to meet mandated regulatory requirements, with no measurable environmental (or any other) improvements for our kids, employees, customers or the public. These numbers do not include ongoing costs of permitting, government inspections, record-keeping, loan costs, insurance and potential fines (up to $20,000 per day). This is for stuff that inhibits better customer service, and diverts scarce assets from improving operations and salaries.
John DeWitt
DeWitt Petroleum
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