What do smart businessmen do during recessions?
There's always a business opportunity in a recession. Money doesn't really disappear. People simply begin to save and/or allocate funds to payoff the debt which created the good economic days before the recession. Understanding this cycle will help you tap in to the minds of consumers and how they think.
In this difficult time , if you have a software to sell , technology coungter is giving it to you for free , list your software online , and make your software count , during this pandemic this software recommendation platform is helping business to grow , and this is what most of the smart businessmen do to grow their business.
Smart Businessmen usually turn challenges into opportunities.
The biggest challenge that we are facing currently is COVID-19. Let's explore what all opportunities have been created due to the pandemic and how smart businessmen or entrepreneurs can make the best out of it.
COVID-19 pandemic has been severe on most businesses forcing millions of people to stay at home to stop the spread of the virus. Once crowded streets and stores are now deserted as governments fight to curb the spread. This has caused consumers worldwide to procure everyday items like groceries, medicines, etc., online.
i) Between January and March 2020, retail platforms recorded a 6% increase in global traffic.
ii) In March 2020, the eCommerce industry witnessed 14.34 billion visits globally, up from 12.81 billion in January 2020 according to Statista.
Rise in online shopping has urged entrepreneurs and brick-and-mortar retailers to invest in an eCommerce platform. Let's take a look at the top eCommerce niches where a businessman can invest:
1. Handcrafted Items Marketplace: Read https://www.yo-kart.com/how-to-launch-online-marketplace-like-etsy.html for details
2. Grocery Marketplace: Read https://www.yo-kart.com/start-grocery-delivery-marketplace.html for details
3. Fashion Marketplace: Read https://www.yo-kart.com/build-fashion-multivendor-marketplace.html for details
You can just wait and watch the market. Many business shutdown during recession or after recession. Just try to catch opportunity and there place.
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Thank You for your question,
As per your question smart businessmen do the Investments during recessions.
They are going to earn profit from different different aspects of Investments. They will not fear of loss from Investments in the Volatile market situation. Smart Businessmen are the high risk taker in the bad market situation which leads them to higher success.
They can invest in anywhere like in Real Estate, Gold Investment, Mutual Fund Investments and So on.
For more infomartion on this topic you can have a look on below article at - https://www.linkedin.com/pulse/money-doesnt-get-locked-lock-down-invested-deep-gajbe/?published=t
During recession economic theories takes time to yield positive results. At present it is worse than recession. So we survive by innovations and the internet has provided it. During a time of lack you turn what you have to earn in this case your laptop should be put into use. Borrowing to feed is a backward strategy of survival but earning is the ideal way.
There are some good online businesses you can start from zero and grow to enviable levels. If you want to earn income you can deploy your time, and plan to grow your investment. A business plan is ideal and you can get all that right from online business.
I suggest you try this home based income business. It has lots of training guides and easy ways to earn income, study it and plan your investment: Go to this link: https://www.sfi4.com/20358933.2111/FREE
Let me know your experience as you visit. You will see for yourself it is a global income resources.
They make sure they offer something that is fairly indispensable, that people need and have to spend money on regardless.
And they don’t freak out and start making cost-cutting decisions that are actually harmful, like cutting marketing that has been effective at generating revenue and awareness to save some money.
And those two things can go together. People always try to make it sound like your business has to either be really innovative or it has to solve a unique problem that no one else is solving. Really, you can kind of anticipate that a lot of your competition, if you have competition, will start to freak out and start cutting back on marketing and advertising and other costs. Just figure out what people will keep spending money on because they either really have to or they really want to, and keep making sure they know you offer it while your competition is not as committed to making sure people know they offer that same thing. You should be okay.
If you have a business that is naturally more of a luxury for people and it doesn’t make sense to mix it with something people need, then you have to get creative or start up a bit of a side hustle offering something that people need. In getting creative, you might want to figure out a way to convince people that either they do need your luxury offering or that indulging in that luxury offering will make them feel so good that it’s worth it.
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Smart business people create contingency plans. They build an emergency fund, are more proactive around taxes, have a team of advisors (tax, legal, financial), and keep business and personal finances separate. In addition, they avoid debt that needs to be paid back despite recessions, employ others, work with a business coach, and invest outside of their businesses.
I hope you are doing well. Here are a few supportive answers which might help you.
1) First of all, we need to take care of our employees in these tough situations make them feel that you are with them and with the help of all, we will overcome the recessions.
2) We need to look out for other opportunities in which your team is good at because in recessions we all have to find the main cause which is might affect your business.
3) Always try to put more effort into lowering your overhead expenses in this crunch and tight situations.
There are quite many things or actions any businessman can embark upon during a recession period. Such an interregnum in business activities can be invested into the under-listed actions.
1. You can use a recession period to restructure your business for effective and smooth running. By restructuring, l mean, looking into the functions of your employees and reorganize these functions for proper running.
2. Such a period can also be used to study your business performance activities like your sale, income, clientele, purchases, leads generations, marketing, etc. Because you are currently undergoing a lull in your business, there is ample time to look into these activities with your team members and possibly re-engineer your business processes for greater operations after the recession period.
3. Using this lull period of business to look into your financials and see how it relates to your business plans. Ensuring any divergence between what you are achieving as against your plans reconciled. These are some actions that can be taken at such lull times in business.