business-dressed man holding pen.

Can Your Business Survive An Economic Recession and Remain Profitable?

You ever hear of the War of Worlds mass hysteria?

The story goes that on a chilly Halloween night in 1938, a guy named Orson Welles broadcasted an adaption of H.G Wells’ classic book “The War of the Worlds.”

He somehow fooled an entire population to believe an army of terrifying aliens were invading planet earth. (Or so it has been reported)

If you pay close attention to the news, you might see some similarities:

“The RECESSION IS COMING”

“The Trade War With China Will Impact American Wallets”

“Forecasters Call for Weather on Monday!”

If you enjoy feeling dread and misery, I encourage you to read news headlines every day.

While this isn’t a comparison (or me trying to discredit the media), many financial “experts” are historically terrible at predicting a recession. Like the fake radio broadcast, we need to take several steps back when looking at things we don’t understand.

Yield curve inversions come to mind.

While many like to think yield curve inversions are the Nostradamus of an upcoming recession (they have not always lead to recessions by the way), we need to make strategic moves for our finances and especially our business.

Either way, if the financial experts are justified in their reports, it’s important to build our own fortified “doomsday bunker” for our business and money.

Here are some ways to protect your business & money during a recession:

  1. Know Exactly How Your Business Will Be Impacted

Do people get hurt in a recession? Yes. Yet, like a double-edge sword, some people also get rich. This means opportunity is available for those who understand what a recession means for THEM.

Companies running options will win. Real Estate opportunist will make a generous fortunate. The “Sin” industry (alcohol, sex-related industries, tobacco) will send people to church every Sunday. Understanding the semantics around your business is imperative to staying afloat in a downturn.

Higher prices mean you need to adapt. Simple things such as knowing where prices go on supplies and raw materials your business relies is key to staying ahead. With the right planning, we can help offset loss of cash reserves and unexpected financial losses.

  1. Market Liquidity Is Not Your Only Option

Stock Market is a long-term game. Frantically selling assets is a desperate man’s game. You can shift your portfolio to stocks that generally ride upward trends.

  1. Know The Value Of Money

For companies who don’t have a large portfolio, the best option is to open a line of credit. Additionally, knowing during a downturn the value of money can’t get much lower, you can save money in and repay lower interest rates.

If you want a closer look, I’ve managed to (desired result/achievement you’ve accomplished) and I’m set for any recession.

Categories