Masonry Magazine December 2002 Page. 43
Prime plus one percent is 5.25 percent on November 15, 2002. Thus, Prime plus one percent is 5.25 percent, making many projects you might want to undertake a lot cheaper to do. This in turn may make the rate of return on investment particularly good for acquiring your competitor or expanding to the next state though acquisition. While regional banks are not aggressively making loans, even though a low Federal Funds rate helps them with liquidity, good projects will get funding. As you probably know, any kind of borrowing needs to be done carefully and with plenty of planning before you commit. However, with the lowest overall rates in 40 years, many of your fellow business owners are looking at ways to undertake their favorite expansion program. Where recessionary conditions seem to be prevailing in many markets, Warren Buffett of Berkshire Hathaway, known as the oracle of Omaha, believes strong business owners seize market share when competitors are experiencing dropping sales. Low interest rates are an invitation to profitable enterprise owners to gain and grow at the expense of faltering local competitors, or enter new geographical markets. Therefore, those of you who have had good revenue in the past two or three years could be poised to make profitable acquisitions, financed by the SBA or your regional bank. Normally the elimination of management salaries, personal deductions, and overheads from the prior owners will be significant to the amortization of debt and be easily carried by acquiring the new customer base.
In summary, lower interest rates are beginning to present opportunities that are significant. Which ones work for you is a personal analysis you will need to undertake. However, you may get help from your CPA or business advisors but doing nothing with this time of opportunity is probably the worst decision you can make.
Wayne F. Currie is Chairman and CEO of Incentive Capital Management, Inc. He has been a financial planner and investment advisor since 1970. Send your questions to incentivecaplikaol.com, attention Wayne Currie, CEO.
STERLING
The "TOUGH GUY"
# Brick-N-Block Carts
For fast, easy pack transport on the job.
Six models-phone or fax for complete information
# STERLING
HANDLING EQUIPMENT INC.
P.O. BOX 090438, MILWAUKEE, WI 53209
Phone 414-228-7728
Fax 414-228-9032
www.sterlingtoughguy.com
vip@sterlingtoughguy.com
STERLING
The "TOUGH GUY"
# Dual Handle
Rolling Mortar Tubs
Versatile design
7 cu. ft. capacity
Stationary and other rolling models available - call or fax for complete information.
# STERLING
HANDLING EQUIPMENT INC.
P.O. BOX 090438, MILWAUKEE, WI 53209
Phone 414-228-7728
Fax 414-228-9032
www.sterlingtoughguy.com
vip@sterlingtoughguy.com
CONCRETE, MASONRY
WALL SCRAPER
6' Handle Standard
# NEW MASONRY JOINT CLEANER
• 5/8" halfround slotted carbide/3/8" cutting slot
One side for vertical/one side for horizontal
• Remove excess mortar from block or brick
• Removes fins and burs from concrete wall form joints
• Less chance for injury while laborers work on scaffold
• Pays for itself in just one day
• Also available 6' extension handle that extends wall scraper to 11'
• Swivel head adjusts for easy use in difficult areas.
WALL SCRAPER
PAYS..
CARPAL TUNNEL
SYNDROME
"DOES NOT PAY"
Constructed from lightweight durable aluminum, it features a swivel head for easy use in difficult areas and corners. It has a durable 6-foot powder coated handle. The scraper uses a standard 7" rubbing disc as an abrasive pad. The disc holder is engineered for quick and easy disc changes.
FOR MORE INFORMATION CONTACT: SLIP INDUSTRIES, 115 W. STIEGEL ST., MANHEIM, PA 17545
1-800-722-8339-1-717-665-2139 FAX: 1-877-722-6339 WEBSITE: www.slipindustries.com
The Voice of the Mason Contractor
December 2002
Masonry 41