Croc Blocks, Cash Flow Fixes, and are Holiday Toys in Trouble?
The Weekly from The Liquid Lunch Project, Issue No 140 | November 1, 2024
It’s that time again, folks! The big day’s coming up. (No, not the day your clients finally pay on time.) Here’s a quick check-in with the sharpest minds we know (yep, that’s you): Who do you think is taking the win next week? Because let’s face it, this poll is probably a better snapshot than anything on the news right now. Cast your vote and let’s see where the real experts stand.
ON TAP THIS WEEK
💸 Don’t Let Cash Flow Be Your Kryptonite: Six tips for small biz owners.
🙃 Congrats! You’re Still Paying Taxes… just slightly less…
🧸 Big Toys, Bigger Problems: Hasbro and Mattel face a grown-up world.
📉 From Green Goals to Pink Slips: Volkswagen’s tough lesson in energy policy.
👟 So Ugly, They’re Dangerous: Why schools are setting a Croc-block.
🦃 Thanksgiving Gets Saucy: Rao’s joins the parade lineup.
🔓 Credit Scores Holding You Hostage? We’ve got a FREE solution for you!
🌐 And from Around the Web: Bronze Poop, Lost Cities, and Why Your Insta Looks Like 2005.
THE CLASSROOM
Cash Flow Fixes: How to Keep Your Business Thriving Without Losing Your Mind
by Luigi Rosabianca
Running a small business? You know cash flow’s that annoying whack-a-mole you can never quite catch. Between late invoices and sneaky expenses, it’s easy to feel like you're one financial headache away from chaos. But don’t worry—managing cash doesn’t have to be a dumpster fire. From invoicing hacks to trimming the fat (bye, unused software!) and getting cozy with smart debt, these tips will keep you out of the red and into the green. Ready to get your cash flowing right? Click below for the full breakdown!
HEARD ON THE STREET
💸 Planning is Taxing
The IRS released its annual inflation adjustments for the following year to tax brackets, the standard deduction, estate- and gift-tax thresholds, and more. Tax rates stay the same, but tax-bracket inflation adjustments mean it will take more income to reach each higher bracket threshold. For example, the threshold for the top federal income-tax bracket in ‘25 will climb by about $20K next year for a married couple filing jointly. That 37% income tax rate will apply to income above $751,600. For individuals, that top tax bracket will start at $626,350.
The standard deduction for ‘25 rises to $15K for individuals and $30K for married couples filing jointly. Combined with the new income ranges for each tax bracket, this means someone who earned the same income would likely owe slightly less in taxes, though the difference may be a few hundred dollars in many cases. Inflation adjustments to estate and gift tax thresholds can save some taxpayers hundreds of thousands of dollars. These numbers are more important than ever for tax planning as ‘25 is the last year under the 2017 tax-law regime. Many individual tax provisions are set to expire at year-end 2025, including the doubled standard deduction and the doubled estate-tax exclusion. Moreover, the old top rate of 39.6% is set to reappear.
The standard deduction rises to $15K for individuals in 2025, up from $14,600 this year. For married couples who file jointly, it is $30K, up from $29,200. Most filers save money by taking the standard deduction instead of itemizing deductions for charitable donations and medical expenses.
Capital gains tax rate thresholds are also indexed for inflation. Some taxpayers can sell appreciated stock, resulting in a 0% capital-gains tax rate. For ‘25, the 0% rate applies to single filers with taxable income up to $48,350 and joint-filing couples with incomes up to $96,700.
The federal estate and gift-tax thresholds – the amount an individual can shelter from estate taxes - is $13.99M for deaths in ‘25, up from $13.61M this year. Individuals can make lifetime gifts, outright or in irrevocable trusts, up to that amount without incurring federal estate or gift tax. The giver owes tax only if the amount goes over the threshold.
Feeling dizzy from all these tax updates? Don’t worry—Credit Banc’s partnership with Kevin O’Leary’s Tax Hive is here to help you make sense of the madness. Let the pros handle the numbers (and maybe save you a headache or two). Because navigating tax laws shouldn’t require a PhD. Schedule a FREE consulation with them today!
🪀 We Don’t Wanna Grow Up…
The past two years have been trying for the world’s largest toy companies. Industry leaders Hasbro Inc. and Mattel Inc. have contended with a sharp slowdown in sales of G.I. Joe action figures, Fisher-Price’s Clack & Quack Goose and other colorful Made in China paraphernalia. Parents desperately loaded up on toys during the COVID-19 pandemic to keep children occupied at home, buoying the earnings and market values of the toy sellers. Then demand waned as families reemerged and redirected their spending toward experiences such as overseas travel and concerts.
Retailers were then stuck with unsold inventory, and a slate of Hollywood films that were less “toyetic” than usual failed to boost the relevant intellectual property. It’s taken the toymakers longer than anticipated to return to form, as Hasbro just lowered its full-year revenue forecast for the division that includes toys. Mattel followed suit by cutting its full-year revenue forecast, with strong sales of Hot Wheels miniature cars not enough to offset lower demand for Barbie dolls during the first nine months of the year.
Toy manufacturers hope the coming holiday season helps stuff stockings and their pockets. This should be led by toys and dolls based on potential blockbusters, including Moana 2 from Walt Disney Co. and Wicked from Comcast Corp.’s Universal Pictures. Hot Wheels cars, which have been boosted by the series Hot Wheels Let’s Race on Netflix Inc.’s streaming platform, along with new American Girl and Fisher-Price products, are also expected to be big. Consumers usually plan to shop for toys during Q4, and most toy shoppers are looking for evergreen, well-known brands, which bode well for Mattel.
The picture is more complicated at rival Hasbro, which faces a tougher holiday season without the same ties to big-budget movies. Hasbro struck a deal with Disney’s Marvel to bring its superheroes into Hasbro’s Magic: The Gathering game beginning in 2025, and in April, Hasbro signed an agreement with Playmates Toys to produce and distribute its first Power Rangers collection, also starting next year. With demand for toys softer in recent years, Mattel and Hasbro have sought to tap into other revenue streams. Mattel co-produced the blockbuster Barbie movie last year, and Hasbro focused on growing its digital gaming division, including the popular Monopoly Go game.
The holiday season usually accounts for about a third of these companies’ annual sales. And, in a tepid industry, Mattel and Hasbro will compete ever more aggressively for their share of stocking space. The big-toy space is a cut-throat game.
🏭 Side Effects
When governments sneeze, businesses catch a cold. Volkswagen plans mass layoffs and plant closures. This week, Volkswagen autoworkers in Germany left their jobs for an hour to protest the major restructuring announced by their employer. The plan includes closing three German plants and mass layoffs for its workforce of about 300K. The company is currently negotiating new contracts with workers, who have threatened to strike if a deal isn’t reached by December. Volkswagen’s works council head told employees, “Management is serious about all this. This is not saber-rattling in the collective bargaining round.”
For decades, the German government (G7 member and Euro-powerhouse) has followed erratic energy policies focusing wholeheartedly on wind, solar, and alternative sources. Wet your feet before jumping into the deep end, kids. The resultant higher energy costs create less disposable income for consumers. Less money, less purchases. Fewer purchases, less manufacturing, less manufacturing, fewer jobs. This spiral continues until Germany’s largest companies are waving the white flag.
Additional bad news for Germans with both Mercedes-Benz and Porsche vowing to step up cost-cutting measures after posting profit drops on a weakening Chinese market. German carmakers also fear being caught in the crosshairs of a trade war between the EU and China, with hefty EU tariffs on Chinese electric vehicles set to come into force this week. Americans, please take note. We love solar panels. We love nuclear energy—all in moderation, folks.
🐊 Croc Block
Apparently, wearing Crocs (the shoes, not the reptile) has increased visits to the school nurse. Elementary and middle schoolers are falling down in their Crocs so much that schools are banning them. Though popular with young wearers for their colors and ‘jibbitz’ customization variations, kids who run around all day generally trip more in Crocs than closed-toe shoes. Crocs reported a 1.6% rise in sales in Q3 but is struggling with slumping sales.
Fortunately for Crocs, they diversified their product offerings by acquiring Hey Dude, the footwear brand it acquired for $2.5B in 2022. Lessons learned here are that diversification in business is essential and that you shouldn’t mess with the school principal! Bueller. Bueller. Bueller.
🍅 Bloated Feeling
The sauce brand Rao’s Homemade is getting its own float at Macy’s Thanksgiving Day Parade. The Campbell’s Co. is looking to enhance the Rao’s brand, which it acquired last year in a $2.7B deal, into a $1B brand with a bit of help from the iconic holiday event. 28.5M viewers tuned in last year. Will a 30-foot-high pasta knight wielding a cheese-grater shield and slaying a dragon help solidify Campbell’s as the go-to soup + pasta sauce company for kids?
THE MONEY MINUTE WITH MRM
Tired of Lenders Giving You the Cold Shoulder?
with Matthew R. Meehan
If you’re tired of lenders shutting doors because of a low credit score, it’s time to take control. As featured on Yahoo Finance, Credit Banc’s free Business Credit Builder course is here to help you boost your business credit without the usual obstacles. This no-cost course breaks down every step, from reading credit reports to taking actionable steps for improvement. Finally, you get the chance to build credit that opens doors to better funding—and a smoother path to real growth.
Ready to unlock stronger business credit? Enroll now and take the first step!
AROUND THE WEB
Art Imitates... Well, Poop: Washington’s latest art installations come with a twist—bronze statues celebrating some of D.C.’s most, let’s say, controversial moments. First, a poop-smeared Pelosi desk and now a tiki torch, both slyly mocking January 6th and Charlottesville. It’s a masterclass in dark humor, sparking plenty of double-takes on the National Mall.
No Views, No HD: Posting on Instagram but your video looks like it was filmed through a potato? Turns out, it’s not your phone—it’s Instagram. Head honcho Adam Mosseri admits video quality takes a nosedive if your post doesn’t pull in views. Translation: no views, no crispness.
Accidental Archaeology: A grad student casually scrolling through drone data accidentally uncovered a massive lost Mayan city hidden in Mexico’s jungle. Thanks to LiDAR tech, thousands of ancient structures and pyramids were revealed, making archaeology look as easy as online shopping.