When it comes to speculating on the reality of an economic crash in this country, there is much to be said about preventative maintenance. Whether you are a business owner who needs to keep those doors open to preserve your quality of life, or you are looking at personal economic survival for you and your family, there are certain steps that you can take to ensure either of those goals.
During 2007, in a desperate (if not foolish) attempt to stave off disasters within the credit and lending markets, the central banks began injecting liquidity into these arenas. They were basically printing more currency and dumping it into the monetary system. This increase in the supply of money has a devaluing effect on the dollar. When you combine this with a stagnating economy, you have created economic stagnation that is fueled by an increase in pricing.
Conversely, the ray of sunshine here is that if you are an online entrepreneur in the internet business niche, you will most likely fare much better than most offline business entities will during this impending economic crisis. Whether you are an offline or online business owner, here are three critical steps that you should consider to keep your business alive and preserve that livelihood that you have grown accustomed to:
Step #1 – Even though you should have found this a long time ago, it isn’t too late to sell off your stocks. Once you have done this, re-invest your earnings into foreign currencies and/or precious metals. These have always been a hedge against economic and financial disaster in the past when the markets are suffering.
Step #2 – Start cutting costs within your business and pinching those pennies wherever you can. When inflation starts running rampant, the price of products and services often rise dramatically. Here’s a question for you. What kind of an impact do you suppose a 40% increase in operating expenses has on your business?
Step #3 – Look “outside the box” to preserve financial stability. As rising costs and operating expenses begin threatening your livelihood, consider the outsourcing of some of your business operations to prevent a total financial loss. The main aspects of your business that you can move from within the firm to an outside of it are content development, search marketing, and software development for starters. The one positive factor that will result from this coming economic crash is that businesses will recognize the importance and the value of outsourcing.
You don’t have to be a rocket scientist to see how erratic and unpredictable the economy in the US has been during 2008. Gas prices soared and had since come back down to tolerable levels, some areas of the country felt some minor food shortages, and housing prices rose to what I refer to as “nosebleed” levels. All of this came to a head in early October (2008) when the stock market took an unprecedented nose dive, the likes of which were considered more grave than what happened in 1929.
Given the seriousness of the current economic situation in the US, I suppose that if you were a Conspiracy Theorist, you would be serving up a pot of “I-told-you-so” stew, since what is currently transpiring in the US could be misconstrued as a contrived chain of events leading to the ultimate collapse of the economy. However, this is reality folks. You can’t click your heels together three times in the hopes of returning to Kansas because it ain’t gonna happen.