One Man Band

Two stories in the news today:

• MasterCard profits are up based on credit use outside the United States. MasterCard’s customers here at home are spending more on stuff like gasoline and food and less on stuff like posies and sparklies.

• Despite an emergency Fed rate cut of three-quarters of a percent followed by yesterday’s further rate cut of half a percent, people want the rate cut further. Such a headlong rate cut does not make investors feel confident.

What does this mean to you as a small business person?

First, make sure your business finances are trim and ship-shape. There is no room for slack cost controls. Your customers won’t be throwing money at you.

Second, think through your marketing. If your customers view your goods or services as discretionary, you may want to figure out how to realistically reposition them as necessities.

Third, consider how you can put low-cost funds to work without undue risk. After all, the prime rate doesn’t drop below 3% very often.