3 Opportunities in This Recession
- It's a buyers market. Aristotle Onassis built a $500 million fortune in the shipping industry at the peak of the Great Depression by buying freighters at bargain prices, financed using other people's money. You can do the same thing on a smaller scale. Lower valuations in private and public companies create future profit opportunies. There are a lot of quality companies out there that are now "on sale." If you have cash, this is not a time to try and time the bottom-such strategies typically fail. Action will pay dividends. Last week I spoke with three developers and 2 realtors that reported they are seeing increased sales activity in their residential offerings. As a matter of fact, they sold more homes last month then they had the entire last quarter. Is it a sign that the bottom has hit? Who knows? Just remember that action WILL pay dividends.
- It's a great time to hire talent. Often a company can find great employees who bring with them their customers. This equates to your company adding customers for having the savvy to hire great people in a down market. People are your most valuable asset. People have intrinsic value, while material things have none. Focus on helping, building, and inspiring your best people. People who feel valued perform better.
- It's your time to shine! For stronger companies now is the time to sharpen marketing messages and consider taking market share while your competitors aren't in a position to do so. Many are using this downturn to aggressively market their companies. They are expanding their online marketing, increasing their social media presence, fine-tuning their search engine optimization, and improving content on their websites. You can and should do the same!
Those who create wealth in economic busts live the same principles as they do in booms, while those who thrive in good times yet fail in bad are often products of luck. Hard economic times provide excellent strategic opportunities. There is no need to panic when you have a plan. You must turn from the naysayers and be different. It may be the perfect time for you to increase the scope of your economy-businesses exist to solve problems, and during recessions there are more problems to solve.
For business owners who are struggling, defend your position vigorously and do whatever it takes to preserve and generate more cash. Surviving this period will pay dividends after the downturn turns up.
Thoughts For The Day
There are two pains in life. The pain of discipline and the pain of regret. Discipline weighs ounces while regret weighs tons.
Jim Rohn
Those who do today what most people won't, will be able to do tomorrow the things that most people can't.
Taylor Clark
I think if we were less afraid of our own brilliance and ability and power, we would have a lot fewer problems.
Suzan-Lori Parks
You will be the same person five years from now as you are today except for the books you read and the people you meet.
Charlie Tremendous Jones
Benchmark News
The tenant improvement for Gandolfo's was finished on Thursday April 2nd. They will be open for business on Monday April 6th. The new location is in a perfect spot to enjoy a fresh, hot sandwich. The next time you are in downtown Boise in the BoDo development stop in and pick up a sandwich and check out our work.
We will be starting the construction on a new Home Fed bank toward the end of this month. The new location is on Eagle road and Ustick in the Lowe's development. We will keep our readers posted with the construction development of that project in future newsletters.
New Perspective From Old Book
I had the opportunity of learning from a wise friend the other day during lunch. I was able to glean much wisdom from him. He is one of the most respected men in the Treasure Valley. He gave me a book, which was written in the 1920's that is as applicable now as it was then. It is interesting that true laws and principles never change. They hold true throughout the course of time. Below is a synopsis of the book, which has brought new meaning to the way I think about money. I had read the book 20 years ago but it didn't hit home then like it does now. I hope it will change the way you think about money too. It was written by George S. Clason and is entitled:
The Richest Man in Babylon
A part of all you earn is yours to keep.
The seven cures for a lean purse:
- Start thy purse to fattening by saving 10% of all you earn.
- Control thy expenditures. Study thoughtfully thy accustomed habits of living. List all your expenditures. Budget then thy necessary expenses.
- Make thy gold multiply.
- Guard thy treasures from loss.
- Make of thy dwelling a profitable investment.
- Insure a future income.
- Increase thy ability to earn.
Men of action are favored by the Goddess of Good Luck.
The Five Laws of Gold
- Gold cometh gladly and in increasing quantity to any man who will put by not less than one-tenth of his earnings to create an estate for his future and that of his family.
- Gold laboreth diligently and contentedly for the wise owner who finds for it profitable employment, multiplying even as the flocks of the field.
- Gold clingeth to the protection of the cautious owner who invests it under the advice of men wise in its handling.
- Gold slippeth away from the man who invests it in businesses or purposes with which he is not familiar or which are not approved by those skilled in its keep.
- Gold flees the man who would force it to impossible earnings or who followeth the alluring advice of tricksters and schemers or who trusts it to his own inexperience and romantic desires in investment.
Better a little caution than a great regret.
We cannot afford to be without adequate protection.
Where the Determination is, the way can be found.
20 years ago I read the book very passively. One of the lessons of the book is to not invest with family or friends. I know a lot of people who have learned this lesson the hard way, myself included. The allure of high returns is always tempting. You are always better served to focus on your security first before investing in high risk, high potential return investments. The rule of save 10% of everything you make is gold. Once your financial security is in place, don't touch the money! We've all learned in this market that CASH IS KING! Once your cash is in a safe, secure place, don't touch it. There is a lot of wisdom in the statement of saving for a rainy day. After you are secure you then can play with the higher risk investments. Don't invest anything you aren't prepared to lose. If you can't afford to lose the money then don't invest it. Let me know if you have any insights or comments regarding this synopsis.
