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How much the current economic
mess is affecting your personal and business finances depends on many factors.
Some of these factors were in
your control while others weren't. There is no denying that you are hurting right
now. How you react to this pain and situation will depend on your personality,
how well you prepared for tough times and how you act right now.
Wage earners are probably going
to suffer the most because they have no real control.
Business owners may or may not
fare better than their waged employees. How adversely these business owners are
affected depends on several things.
- Your type of business. Luxury homes, high ticket
cars, boats and other items that aren't perceived as necessary will see a
much lower market share for awhile.
- Your business plan. If you built your business based
on giving and receiving credit to stay operational, you are almost
paralyzed right now. A business that has been built on a pay as you go
doesn't have the overhead others do and is more likely to have to borrow
money for the seasonal stock they need to conduct business.
For the last few decades, many
business owners have relied on 90 loans to get the money they need to buy the
inventory they need to have a successful holiday selling season. If you are one
of these business owners, you've probably found that the loan you need either
cannot be found OR the interest rate on your loan will be triple what it was
last year. Either one of these scenarios could put your business in or near
bankruptcy.
If you knew you needed this cash
each holiday season AND have it built into your business plan, you are probably
going to be able to negotiate some VERY good terms for your cash on delivery
purchases from suppliers that are hurting.
Online Businesses
Online businesses that sell
physical products will feel varying degrees of hurt depending on the niche. Any
item that is viewed as a luxury may be a hard sell.
Niches that, I believe, have an
opportunity to do very well in the coming weeks and months are those that teach
people how to make money.
A LOT of people are unemployed,
under employed or are afraid their financial situation will worsen in the near
future so they are looking for legitimate ways to increase their income.
It is your responsibility to
ethically point these people to programs that are good, ethical and will
provide real solutions.
Some business owners will choose
to promote businesses with ads and claims like:
But I
prefer to point desperate people to sites that TEACH people how to build
businesses rather than just make money fast. This is a perfect starting point
for ANYONE that wants long term success.
Neither approach is necessarily
better than the other. Some people will NEVER go into anything when they are
told they will have to learn something then take action on a consistent basis
before they have a chance at success. Others will ONLY buy into stuff that
sells the dream and they don't really want the details.
Your reputation is attached to
everything you promote so you'd better choose to offer stuff that you are
comfortable sharing with those in need.
Your business may be hurting,
your personal finances might be a mess but you, like many of us, have the
opportunity to take control of your financial future.
You can re-examine your goals,
business plan and your daily action plan to correct anything that needs
adjusting OR to start your own business online to create an additional income
stream.
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