With Wall St. losing two of its major investment banks as Lehman Brothers filed for bankruptcy protection and Bank of America's buyout of Merrill Lynch, the United States is witnessing another economic downturn. Over the last couple years we as the consumer heard about our own financial woes, how the credit industry lent out too much money and many institutions were unable to sustain themselves because of these practices, resulting in an uneasy industry with less loans and higher interest rates for many.
So now that we're being told the same thing is happening to the major institutions of money trade, what does this mean for the small business? Well one important item to consider is what your company invests in. Do you currently have a 401k? Does the company leverage part of its profits into the market? If so, what can it do to remain stable?
So now that we're being told the same thing is happening to the major institutions of money trade, what does this mean for the small business? Well one important item to consider is what your company invests in. Do you currently have a 401k? Does the company leverage part of its profits into the market? If so, what can it do to remain stable?
Obviously no one wants to be part of a sinking ship. I'm sure if you posthumously asked the band on the Titanic if they would have rather taken a lesser paying gig with untalented musicians on a smaller cruise ship they would have unflinchingly and unanimously said "yes." This is exactly the same principle as finance. No one wants to invest in a lemon. The entire point of making investments is for personal, financial security. We want to bolster what we already have, not slowly lose it and fritter away our savings. If that were the case I'm sure your average stock broker would be sitting at their local race track betting on a horse named "Fried Leverage".
The answer for small business is to do exactly what Wall St. is preparing for themselves: tighter control over your money. Make smart decisions as to what you invest in. One such decision is to reinvest in your own business. Ensure your survival by streamlining your processes. If your business is losing retail customers then give the store a makeover. If you experience less traffic on your website, perhaps it's time for a new design. Losing customers to other places who offer similar products or services? Do some targeted advertising. It's all about making you be the best you can be.
Wall St. may be experiencing an economic downturn but that doesn't mean it has to affect your business. It is the evolution of economics. Eventually the weak will die out, but fortunately for the market we have a conscious control over many factors that determine our strength. Don't forget you have that power and you should reap some major benefits.
The answer for small business is to do exactly what Wall St. is preparing for themselves: tighter control over your money. Make smart decisions as to what you invest in. One such decision is to reinvest in your own business. Ensure your survival by streamlining your processes. If your business is losing retail customers then give the store a makeover. If you experience less traffic on your website, perhaps it's time for a new design. Losing customers to other places who offer similar products or services? Do some targeted advertising. It's all about making you be the best you can be.
Wall St. may be experiencing an economic downturn but that doesn't mean it has to affect your business. It is the evolution of economics. Eventually the weak will die out, but fortunately for the market we have a conscious control over many factors that determine our strength. Don't forget you have that power and you should reap some major benefits.
Well written article.