American Prudential Capital, Inc.

Frequently when commentators talk about the powerful people in foreign countries they refer to them as “the Ruler of……….” as in the Ruler of Iran or the Ruler of Venezuela. In the United States of America we refer to these people as our Governor or our President, our Congressman or our Senator but never our Ruler.

That is because, as a constitutional republic, WE DO NOT HAVE RULERS. We have elected officials. It sort of takes the wind out of the positions, doesn’t it? And, it was designed that way for just that reason.

No, we don’t have Kings, Queens or Lords. What the people of the colonies said to the King of England in 1776 was that “We will not be ruled.”

What it means to be ruled is to have someone whom you cannot discharge make limiting decisions about you, your family, your possessions and your freedom. You are ruled when you cannot contribute to the decision making process. You are ruled when what you have is taken away from you against your will and given to one who has not worked for it.

We have never consented to being RULED. We have only consented to being GOVERNED. To be GOVERNED is to delegate limited powers to another for the sake of the common good. We consent to being GOVERNED so that we can organize and defend ourselves against foreign invaders, for example.

We also consent to being GOVERNED so that we can settle disputes among ourselves, establish laws for the peaceful transfer of property and the orderly flow of commerce. To be GOVERNED is to voluntarily and knowingly delegate certain personal rights to elected representatives for a fixed period of time, while retaining the ultimate right of rescission.

Often, as the GOVERNED, we have patiently suffered evils at the hands of our elected officials but because we are prudent and because we believe that government should not be changed for light or transient causes we have been slow to change those who govern us. The evil we knew was easier to tolerate than the evil we did not know.

But when a long list of abuses and power grabs by “the ruling classes” evidences a design to reduce us to absolute despotism we have the responsibility and right to hold our elected officials accountable and to defend our liberty, as well as our present and future security.

The history of our elected officials, no matter which party, is a history of repeated injuries against the GOVERNED moving the officials ever more closely to the class of Ruler and ever farther from their true position of elected representatives of the GOVERNED.

The right of the GOVERNED to representation in the decision making process, the right to be heard and to hold elected officials accountable is a right inestimable to the GOVERNED and a right which is formidable to the would-be “Ruling Classes.”

It is this right of the GOVERNED to elect and to “un-elect” those who govern that threatens tyrants in every generation. It is this God-given right that causes the GOVERNED to rise up ever so belatedly and cry out, “We will not be ruled…We consent only to be GOVERNED.”

Those who govern should take this seriously, especially in this election year. When those who govern in these United States of America cease to acknowledge that they derive their powers from the consent of the GOVERNED; when they create around themselves the mythology of a ruling class elite, they run head-on into the right of the GOVERNED to discharge them and to institute in their place representatives of the GOVERNED who will defend the Life, Liberty and Happiness of those who have consented to be GOVERNED.

The people of the United States of America are about to demonstrate again the difference between being RULED and being GOVERNED.

May God give us wisdom.

Brenda

APC Commercial

I am enthusiastically in favor of entrepreneurship. And, now is a great time to buy into an existing business.

So, how do you take advantage of the buying opportunities and avoid the pitfalls? Well, the answer is document, document, document. Get the right documents, read the documents, and question the documents.

Here is the “short list” of documents that are essential in looking at a potential purchase:

1. Corporate/organizational papers. Get the charter, the organizational certificate, the membership agreements, the stock ledger book with all transfers noted and the minute book of board meetings and corporate decisions. Ask if there are any copyrights, patents, trademarks or other intellectual property documents. Get copies of those too.

2. Financial Statements. Do not buy a business based solely on a redacted version of the financial statements. Get the most current “Interim” statements as well as the year-end statements for the past 5 years, if available. Have the owner and or the CFO sign the statements as to their accuracy.

3. Accounts Payable and Accounts Receivable lists. These should be system generated. If not, why not? If Payables are greater than Receivables, you need a good explanation. Check the credit of any account that represents 15% or more of the total Accounts Receivable. Check the aging of the accounts. If over 60 days old, find out why. Verify, verify, verify.

4. Check liens against the company. You can usually do this with the Secretary of State in the state in which the company is organized. You should also check liens in the state, in which they reside, are headquartered or do most of their business. Run a commercial credit report on the company for good measure.

5. Tax Returns and proof of payment of state and federal taxes for the past 5 years.

6. Licenses both state and federal along with any OSHA inspection requirements. If real estate is being sold along with the business, you have all the Phase One and soil contamination inspections to do. If you don’t know what is required, hire an advisor who will walk you through this part. You cannot afford to buy into a license or inspection problem.

7. Proof of insurance. Basic business liability insurance is essential but there is the matter of professional liability, health insurance, workers compensation, property, product liability, etc. Ask the seller for an organized spreadsheet of the carriers, contact numbers, agents, amount of coverage, and policy periods. Then get copies of the actual policies.

8. All contracts signed by a representative of the company. This will include leases both real estate and equipment, supplier agreements, sales contracts, employment agreements including union contracts, purchase orders, and purchase agreements.

9. Current organizational chart with names as well as positions. Along with this you will want to see a payroll. How often and how much are the employees paid? If a payroll service is used, these reports should be readily available.

10. Detailed Inventory list. If the company maintains inventory, there should be a readily available inventory list reflecting the age of the inventory as well as quantity and value.

But there is more to evaluating a possible purchase than these documents alone. There are policies, management strategies, markets, marketing strategies, locations, reputations, customer loyalty, pricing strategies, quality controls, business cycles, seasonal sales patterns, and possible product obsolescence. All these and more must be reviewed, analyzed, and evaluated.

Even so, do not be afraid to step out and consider the possible purchase of a going concern. Many seasoned entrepreneurs who want to retire will consider training the right buyer and even consider helping with the financing of the purchase.

We can help, too. Give us a call.

Brenda

Twice in my business career I have met someone who knew he was Number 2 and wanted to be the best Number 2 around. Today was the second time.

You see, I am an entrepreneur. By definition, I am number one. It just comes with the territory.

The problem is that so many times I have hired folks who really just want to have my position, they never seem to want my responsibilities, just my perceived power. But two times now I have met a person who knows he is Number 2 and he knows the importance of being Number 2.

Entrepreneurs are typically reactive and innovative action-oriented folks who carry a vision and a drive to “climb the highest mountain.” When you talk with them it is usually best to tell them what the “bottom line” is right away. They don’t do well with a long “lead-up” to the problem.

But the down side is that business is full of details. And details have to be handled. Processes and procedures, job descriptions, loan applications, human resource issues, manuals, insurance, work schedules, equipment, accounts payable, accounts receivable, financial statements and on and on. All are very detailed.

What the wise entrepreneur needs is a good Number 2. Sometimes these folks are called CFO and sometimes COO but I prefer the moniker Number 2. A discerning Number 2 knows that his or her job is to equip the entrepreneur with everything he or she needs to do their job.

If that equipping means that the Number 2 analyzes the processes and procedures and makes the changes necessary for efficiency and profitability, that is what gets done. If the equipping of the entrepreneur means that the Number 2 cleans up the financials and puts them in generally accepted accounting format, then it gets done.

You see, the one who is really a Number 2 not only takes care of the details but takes joy in seeing the entrepreneur shine as a result. This person has a Servant’s Heart.

Servant leadership is at the core of a professional Number 2. Any entrepreneur who wants to scale the highest peaks in his or her field needs to find the right Number 2. Since I have one extra, I will share with you this jewel.

His name is Steve A. Clayton (stevealanclayton@gmail.com). He knows and is known by trustworthy people who speak only great things about him. His references know his value and they are seasoned bankers and business owners. He has their confidence and I know them to be reputable citizens.

So, if you are ready to take your business to the next level or if you are ready to dress it for sale, Steve will get you there and you will wonder how you ever got along without him. Steve is the personification of the Servant Leader Number 2.

Blessings,
Brenda