Macro Business Level
The number one thing that the shift to e-commerce has taught us is that with the huge amount of competition we face out on the market, if we want to have a chance at succeeding we need to specialize. Tackling a large niche is simply too risky, and you’re going to be facing so much competition that your consumers are going to walk away long before they know what you have to offer in favor of someone who clearly is going to be able to give them what they want.
An economic recession is the exception to the rule. During an economic recession people’s primary motivation is going to be to save as much money as humanly possible, and while that recession is gradually weeding its way through your competition you want to be able to step in and pick up as many of the pieces as possible.
What am I talking about?
Let’s say that your business specializes in providing transportation services between the Greyhound station and the local universities of a major city. Good work if you can get it! Then an economic recession hits, and people are beginning to find it more economical to either walk or hop public transportation as opposed to maintaining and parking a car or calling a taxi.
Suddenly you’re faced with a dilemma. There are literally hundreds of people every day leaving the Greyhound station for parts unknown in the city, and every one of those people needs a ride because they refuse to waste their precious money on private transportation. They’re not all college students, however, and they’re not going to be dependably heading between one university or another.
What do you do? Do you simply allow this opportunity to pass you by, or do you expand your horizons a little?
This is an excellent example of how an economic recession can help a business by subsequently driving to it a client base that it might not otherwise have had. There’s very little chance that any of these people would have been interested in hopping a ride to the local university unless they were headed someplace nearby, but if you were willing to spread your wings a little bit and provide transportation to various points throughout the city rather than simply the universities you could potentially open the door to quadrupling your profit margin.
Your business will grow because it will become more macro, less specialized and more generalized in a nod to the need of the people around you. This is in direct opposition to what you’ve been told regarding the development of businesses in today’s economy, but guess what?
''A changing economy = A changing business''
But you need to decide on what suitsyour business best.
If your business is going to survive this recession without lifelong consequences it can only do so if it is willing to change and adapt. Do you remember when we mentioned earlier about the need to become more diverse and put your fingers in more pies in your company in order to recession proof your job? Just because the quantity of providers decreases during a recession doesn’t mean that the need for the services go away.
In making your business more generalized you’re only doing on a corporate schedule what others have done on a private one-you’re generalizing and putting your fingers in more pies. A corporate accountant will stretch out to encompass the company’s investments and serve as a personal financial counselor to the CEO to help the company take advantage of the opportunities offered by the stock market in light of the recession. A shuttle bus driver will extend their services to shuttle passengers all around the city.
It’s all about becoming more macro and reaching out to markets that have previously been closed to you but which are now open due to a renewed need for the services you have to offer. The work is still there. The consumers are still there. The need is still there. The difference is that now you’re going to be the one to ride in and scoop it up.
If you have any experience in investing you know that the key to successful investing is to maximize your profit margin (your ratio of cost to sale) as much as possible. In other words, you want to buy low and sell high!
An economic recession provides you with a unique opportunity to do that, but you have to be a savvy enough investor to know what to do with yourself when you’re finished. One of the many downsides to an economic recession is that it inevitably causes the value of people’s assets to drop dramatically. Houses that were worth hundreds of thousands of dollars the year before will be lucky to sell for six figures. Stock prices will be down fifty five percent.
This provides investors with the golden opportunity they’ve been looking for. As the recession drives the prices on these investments down lower than they’d ever go under normal circumstances investors are given the chance to swoop in like a knight in shining armor, scoop up these investments and then-wait.
The biggest boon when it comes to economic recessions and business is that although it may take a few months (or years), sooner or later the economy is going to rebound. When that happens the value of all of those assets that weren’t worth anything during the recession is going to increase as well. At that point you’re going to be sitting on a gold mine!
These are ideas for you to think about. Dont give up on yourbusiness, run to the caves and hide....NO! Buckle up for the ride going through the rapids and take specific,focused steps and come up with new ideas to enhace your business. Let the recession bring out the creative, bold overcomer in you. BE STRONG!
An economic recession is the exception to the rule. During an economic recession people’s primary motivation is going to be to save as much money as humanly possible, and while that recession is gradually weeding its way through your competition you want to be able to step in and pick up as many of the pieces as possible.
What am I talking about?
Let’s say that your business specializes in providing transportation services between the Greyhound station and the local universities of a major city. Good work if you can get it! Then an economic recession hits, and people are beginning to find it more economical to either walk or hop public transportation as opposed to maintaining and parking a car or calling a taxi.
Suddenly you’re faced with a dilemma. There are literally hundreds of people every day leaving the Greyhound station for parts unknown in the city, and every one of those people needs a ride because they refuse to waste their precious money on private transportation. They’re not all college students, however, and they’re not going to be dependably heading between one university or another.
What do you do? Do you simply allow this opportunity to pass you by, or do you expand your horizons a little?
This is an excellent example of how an economic recession can help a business by subsequently driving to it a client base that it might not otherwise have had. There’s very little chance that any of these people would have been interested in hopping a ride to the local university unless they were headed someplace nearby, but if you were willing to spread your wings a little bit and provide transportation to various points throughout the city rather than simply the universities you could potentially open the door to quadrupling your profit margin.
Your business will grow because it will become more macro, less specialized and more generalized in a nod to the need of the people around you. This is in direct opposition to what you’ve been told regarding the development of businesses in today’s economy, but guess what?
''A changing economy = A changing business''
But you need to decide on what suitsyour business best.
If your business is going to survive this recession without lifelong consequences it can only do so if it is willing to change and adapt. Do you remember when we mentioned earlier about the need to become more diverse and put your fingers in more pies in your company in order to recession proof your job? Just because the quantity of providers decreases during a recession doesn’t mean that the need for the services go away.
In making your business more generalized you’re only doing on a corporate schedule what others have done on a private one-you’re generalizing and putting your fingers in more pies. A corporate accountant will stretch out to encompass the company’s investments and serve as a personal financial counselor to the CEO to help the company take advantage of the opportunities offered by the stock market in light of the recession. A shuttle bus driver will extend their services to shuttle passengers all around the city.
It’s all about becoming more macro and reaching out to markets that have previously been closed to you but which are now open due to a renewed need for the services you have to offer. The work is still there. The consumers are still there. The need is still there. The difference is that now you’re going to be the one to ride in and scoop it up.
If you have any experience in investing you know that the key to successful investing is to maximize your profit margin (your ratio of cost to sale) as much as possible. In other words, you want to buy low and sell high!
An economic recession provides you with a unique opportunity to do that, but you have to be a savvy enough investor to know what to do with yourself when you’re finished. One of the many downsides to an economic recession is that it inevitably causes the value of people’s assets to drop dramatically. Houses that were worth hundreds of thousands of dollars the year before will be lucky to sell for six figures. Stock prices will be down fifty five percent.
This provides investors with the golden opportunity they’ve been looking for. As the recession drives the prices on these investments down lower than they’d ever go under normal circumstances investors are given the chance to swoop in like a knight in shining armor, scoop up these investments and then-wait.
The biggest boon when it comes to economic recessions and business is that although it may take a few months (or years), sooner or later the economy is going to rebound. When that happens the value of all of those assets that weren’t worth anything during the recession is going to increase as well. At that point you’re going to be sitting on a gold mine!
These are ideas for you to think about. Dont give up on yourbusiness, run to the caves and hide....NO! Buckle up for the ride going through the rapids and take specific,focused steps and come up with new ideas to enhace your business. Let the recession bring out the creative, bold overcomer in you. BE STRONG!
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