Why Small Business is the Key to America’s Comeback
The Impact of Minimum Wage and Cost of Living on Small Business
In 1980, the federal minimum wage was $3.10 an hour, amounting to roughly $400 a month. Back then, the average rent was $243, which took up about 60% of your paycheck. You still had enough left over for essentials like food, healthcare, and even some savings. But fast forward to 2024, and the situation looks a lot different. The minimum wage is now $7.25 an hour, around $1,000 a month, while the average rent has skyrocketed to $1,500. Today, rent doesn’t just consume every dime you make—it demands more. And we’re not even factoring in other living expenses like groceries, medical care, or child care.
This isn’t just a problem for individuals trying to make ends meet. It’s a massive economic issue that affects small businesses and their ability to thrive. It’s time to rethink how we approach our economy, and the solution lies in one word: ownership.
The Broken System: Who’s Really Benefiting?
Let’s get one thing clear: the way things are right now isn’t benefiting small business owners. It’s benefiting Wall Street and the corporate giants who have shaped the system to prioritize profits over people. When everyday Americans are struggling just to cover the basics, that money isn't getting spent on local businesses. It’s being funneled into corporate interests that prioritize shareholder returns over community growth.
The COVID-19 pandemic exposed the cracks in the system even more. During lockdowns, people stayed home and realized something: they hated their jobs. It wasn’t just about the paycheck anymore. The time away from the grind made many rethink the value of trading their life for a paycheck, especially when that paycheck wasn't even enough to cover rent.
Why an Ownership Mentality Matters
Here’s the shift we need: a nation of owners. People with an ownership mentality who aren’t just working for a paycheck, but who are excited to bring value to the market in a way that benefits everyone involved. It’s better for employees to be part of something they believe in, rather than just being another cog in the machine. It’s better for customers who receive a higher-quality product or service from a business that cares about what it’s delivering. And it’s certainly better for the economy because small businesses make up the backbone of economic growth.
The Real Solution Isn’t Bailouts
We’ve thrown trillions at bailouts and subsidies that often do little more than bail out corporate greed. But what if we created real incentives for local ownership and entrepreneurship? Imagine if the same resources were used to support small businesses, foster innovation, and create opportunities for young people who view a job as more than just a paycheck.
How many people between 17 and 30 years old see a job as valuable beyond the money? Many in this age group would rather work for something meaningful, or even create something of their own, rather than simply “working for the weekend.” Back in the '80s, pop culture already pointed out the cracks in the system. Songs like "Working for the Weekend" and "Take This Job and Shove It" weren’t just catchy tunes; they were social commentaries that still ring true today.
Reinventing Small Business: The Process Improvement Grid
The big question is: where do we start? How can small businesses reinvent themselves to adapt to the changing landscape? It starts with understanding the customer’s true needs and looking for ways to add more value. At Founder's Fire, we teach something called the "Process Improvement Grid" – a framework for evaluating your business through four lenses: add, remove, maximize, and minimize.
Add: What can you introduce to better serve your customers? Is there a service or product they need that you're not currently offering?
Remove: Are there practices or products that aren’t adding value? Maybe it's time to cut them.
Maximize: What’s already working well? Can you do more of it?
Minimize: Is there something you need to keep doing, but could scale back?
By asking these questions, small business owners can find areas ripe for reinvention. It doesn’t have to be a massive overhaul. Sometimes, it’s the small tweaks that make the biggest impact.
Building a Vision for a Better Future in Business
If we start making these changes now, we can create a future where hope, purpose, and optimism are the norm. Imagine a nation where Mondays aren’t dreaded, but embraced with enthusiasm. We won’t just be trading five days of work for two days of freedom. Instead, we’ll be living with intention, as grounded, healthy, and capable people. It’s a future where the American dream doesn’t feel like a distant memory, but a present reality that everyone can achieve.
What’s the Next Step?
The question isn’t “What can we do to change everything overnight?” It’s “What can we do right now, today, to start moving in the right direction?” Start with the next smallest step. Apply the Process Improvement Grid to your business. Think about how you can bring more value to your customers. Think about what you can add, remove, maximize, or minimize to make a real difference.
The bottom line? It’s time to reclaim our birthright. It’s time to embrace ownership, reinvent small business, and build a future we’re genuinely excited about.