Another year under our belts and we are still in business! Sales were a record (not tough at this point), yet could have been much better if the cash flow struggle had been a little easier.

We found some private capital, negotiated terms with our largest supplier and signed on hundreds of new accounts. 1995 sees us starting a new marketing campaign and developing some new products. We will be reducing manufacturing costs to get our margins where they need to be. We still are working on a new banking relationship.

With the hoopla still occurring over the beginning of the 104th congress and all the wonderful things they promise to do for the country, I wonder if some good will be done for the small manufacturers in this country.

A start would be to simplify the tax codes and reporting requirements. In addition, the penalty structure should be reviewed with and eye toward giving new companies a break -- at least the first time they (unknowingly) screw up. Penalties are very severe. If the IRS spent the same energy to coach and help new companies as they did computing penalties and sending letters, they would end up with more net revenue.

One of the problems of being undercapitalized is the lack of funds to pay for professional help when it is needed. Get professional help as soon as it is affordable. I've found that if your accountant believes in what you are doing, he may be willing to be paid last.

How is this for an idea to spur job growth? Give tax breaks to job creators. If someone's efforts and risks result in creation of x jobs and, therefore, x more tax payers, give that entrepreneur some personal tax breaks.

Or eliminate most federal tax bureaucracy for companies doing less than n dollars per year. It is hard for me to believe that the net tax dollar received from small companies wouldn't increase if compliance and reporting were simplified.

On the same note, I am encouraged by the proposals for a flat tax replacing the present unmanageable and indefensible income tax system we presently have to live with. Jerry Brown's proposal for a flat 13% tax rate was the only highlight of his 1992 bid for the presidency. With both Republican and now Democrats calling for income tax reform maybe, just maybe, some common sense will be brought to the system. Yeah, right!