Cris Alarcon, Editor of the Placerville News Wire
Making a “Social Statement” has a cost. Sometimes worthy, but most certainly with real costs. Mahatma Gandhi made a worthy statement of Passive protest, and that got him many years in a miserable jail. Many American Colonialists rejected British Rule went to war for independence and paid with their lives. On nearly every violent war from our own Civil War, to Iraq, to Afghanistan Americans have paid the ultimate sacrifice in blood. In less violent contests companies from Starbucks to Hobby Lobby have paid in Business Money to make Social Statements unrelated to their core businesses.
Some Enterprises’ core business is Politics or Social Issues so making “Social Statements” that are related to that Enterprise is part of that business. Other Enterprises make Social Statements at risk of losing, or gaining out-of-business-segment Market Share because of their stand on independent social issues.
Recently several El Dorado County businesses have made a high profile social statement resisting California Gov. Gavin Newsome’s pandemic-based restrictive ‘mandates” on business competition related to Person-to-person commerce. These “mandates” are more than burdensome to many businesses, they are oppressive! Many will say that they are unjustly inflicting hardship and constraint, especially on a minority or subordinate business group. That is another subject for another day as I am focusing on the predictable costs of making a Social Protest with a Business Enterprise.
A Business has no “Rights” as people do…. But they do have a general Right to a fair and level playing field with regulations applied equally across the board to all competition in that business sector. This means equal regulations and benefits with competition within the market area, and with such things as Tariffs on foreign competition.
A Business Enterprise has great potential to Earn big money, or to Lose big money. It is the RISK entrepreneurs take. In quest for financial gain entrepreneurs organize and operate a business or businesses taking on greater than normal financial risks in order to do so. Most often with their own money, family or friend’s money, or with debt acquired against their creditworthiness.
A normal part of Business ownership/management is adjusting to environmental changes, including regulatory changes.
For example, years ago I would do Business Plans with baseline non-skilled workers at $5 per hour and “Burden Overhead” at 50% of labor costs [base labor cost of $7.50 with S.S. & Unemployment taxes and such]. Those numbers have changed for many external factors to a base-line of unskilled workers of $12 per hour and Overhead burdened at 100% of labor costs [baseline workers cost calculated at $24 per hour in California.]
That is just one of the many ways that regulations and market variables change business operations. If you are in a “Dirty” business the regulatory costs are so high in California you might need to relocate to Nv or Fl. If Tax cost is a primary concern you might want to relocate to like Tesla has just done or to Wa as Microsoft has done. Adaptation to change is keystone to the bottom-line of every successful business.
That is what makes Capitalism work – harsh competition forcing efficiency to meet the constantly changing restrictions and consumer demands. Consumers are the primary beneficiaries of this difficult and constant dance that entrepreneurs must do to stay both competitive and profitable.
The “Apple Bistro” is such a BUSINESS Enterprise that chose to make a Highly-Public Political statement risking predictable consequences…. They made a public issue resisting the “Mask Mandate” being applied to nearly every person-to-person business in California. That is certainly their right, but they have no “right” to be profitable in this Capitalist business country.
In this case the owner’s rolled the dice of gaining or losing patronage… Now they are coming up with snake eyes.
In this case the Apple Bistro owner’s rolled the dice… Now they are coming up with snake eyes with staggering fines for not only refusing to enforce the “mask mandate” but flaunting their refusal in a way that could be described as “sticking their thumb in the Gov’s eye.” Every day of operation accruing another fine in addition to the prior fines.
Oh well. They knew the potential consequences of their act and chose to make a social statement rather than focusing on business.
Sounds harsh?
Business IS harsh as it should be! If an entrepreneur does not want to take that kind of chance to get rich, or poor, maybe they are better off getting an hourly job.
Result? They lost their bet, owe a TON of Cabbage & and will never get a California business license again until this [to the State via EDC] debt is settled. In the meantime they should endeavor to make as much CASH as possible until the doors are chained shut – and then opening will be a Criminal offense [a game changer]. So in the end they will sell to someone with a different name [carefully as title change in name only is an old game and well known to regulators].
Ultimately their loss [selling at a depressed value] is someone else’s gain. That is how business works
Want to make this kind of social statement with your business? Better have “F-Y” money as it has a real cost…
[“F— you money” indicates that you are financially independent, with multiple streams of income supporting your desired lifestyle. A very large amount of money, which would enable an individual to do pretty much whatever the fuck he or she wants.”]
STARBUCKS had F.U. $ and gave some to Liberal Anti-war causes – forfeiting forever many Conservatives while catering to Liberal leaning folks. Today they are a failing business…
Hobby Lobby took a similar decision to make a Social Statement with supporting Trump, forever losing patronage of many Liberals.
The chances taken in business decisions always has pros and cons, but the Bottom-Line is always the goal in meeting the Market Need. Interposing personal beliefs is fine if you are more concerned about your statement than the money in the Register. Other things are paramount to success in some consumer markets such as a Credit Card Processing ability, or a Liquor License for a bar. Acting in a manner that you lose something this critical to the success of the core business is imprudent, and sometime actionable if you have investors.
Best have F-U money as you will not find much sympathy from those that have struggled through the oppressive regulations and see you as taking unfair advantage of avoiding the obstacles others were forced into compliance for the sake of staying in business.
As a personal example I was friends with a wealthy man that had F-U money and was living in/owning the last Private Residence on Ocean Blvd in Santa Monica, Henry Wormsley. He used his “Big House in Beverly Hills for things like letting Studios use it for Filming. He had Plenty of F-U money but he had a hobby business of selling antique dog statues at dog shows. I watched people insult him and his rare goods on a regular basis [business is harsh that way].
On one occasion a man was finalizing a purchase when I suddenly heard Henry in a miffed voice say “Give me that back” and took the statue out of a guy’s hands. He said “it is not for sale! You are too stupid to own it!” The guy looked mad and walked off. I asked Henry what happened and he explained to me that the guy had earlier told him that he had bought a new Toyota truck. Then as he wanted to buy he haggled over the price saying he had just been laid-off from a Ford assembly plant. That is when Henry said, “it is not for sale! You are too stupid to own it!”
On another occasion I watched a rude customer give him Hell and then buy a costly rare antique dog statue. I knew Henry had a lot more money than most and asked him why he put up with that guy. He laughed and told me, “I know who I am and I don’t care what he thinks of me. I take his check to the bank and laugh all the way.”
Henry had plenty of F-U money.
Since Business and Politics mix about as well as Oil & Water, it maybe is better to make your F-U money before you start with the F-U’s to those that can tank your business, especially if that is your primary source of needed income.