There is always a gap between present realities and future
expectations without which there wouldn't be any enterprise,
investment, credit, commerce, or currency. Whenever, at a certain point this
gap becomes enormous, it creates a vacuum. This brings the need for
readjustment, called recession. However, it is hard to find anything positive
in the current economy. Jobs are reduced, markets reacting from dizzying highs
to plummeting falls; debts are rising, inflation…there are myriad issues that
compel us to draw comparisons to the Great Depression.
But as the saying goes every cloud has a silver lining, economic
turbulence is no exception – common wisdom suggests that every crisis opens up
opportunities for innovation. Innovators who figure out different ways to solve
the problems in current will have opportunities to create new growth
businesses.
The good news is people are saving money again. The Bureau of
Economic Analysis reports consumers saved an annualized $297 billion in the
second quarter — more than 10 times higher than the first quarter, and the
highest quarterly savings since 1995. Saving in 2005 was worst than in 1933.
Saving went out of style because, at the rate things were going, few saw a need
to save but now people are scrambling to rebuild and replenish their personal
balance sheets by saving again.
Necessity is the mother of invention. With the hike in oil prices
people are opting for electric cars from Toyota and General Motors.
How does saving help economy? Countries, like people or business,
grow wealthier over time by saving money and investing it wisely. The result of
borrowing with little or no saving made our economy collapse. When an economy
saves money, it has the resources it needs to invest without borrowing from
someone else and hence, creates real wealth. Domestic savings creates money
which can be invested in investments in projects that eventually create jobs,
keep interest rates low, and push the economy along at a sustainable pace.
The bottom line is ‘work hard and spend less’ will make you
wealthy, ‘borrow heavily and spend more’ will make you poor.
During recession marketing budgets may also get slashed. But if a
firm has the resources and proper strategies then recession is the right
opportunity for a firm to generate revenue and build market share. Here are
three such strategies:
- Chalk out marketing
plans. A
marketing plan is like a road map, which includes goals and schemes
supporting the overall vision and strategic direction of the firm.
Coherent implementation of the plan greatly increases the chances of
meeting goals and outperforming.
- Build a sales team.
Hiring full-time salespeople and building a strong sales team works hand
in hand with marketing program will help achieve this goal.
- Implement niche marketing
strategy. Niche
practices help differentiate a firm and eliminate competitors hence focus
on a small niche market.
Along with the above strategies every company should focus on soft
skill training, regularly monitor client acceptance and retention policies and
have a transparent communication of policies and procedures throughout the
organization.
Though it creates an overall pessimistic outlook, here are few
benefits recession:
You will start thinking about investing in a more stable and
inflation-free investment options, which is a good move. And, oh, buy dollar
now.
Recession brings out the creativity juices in you which lead to
better productivity and more breakthroughs. Also you will think of creative
ways to lead a healthier and greener life. You will consider reducing
non-essential household power consumption, walking the pavement or riding a
bicycle instead of driving a car, more home cooking, more vegetable eating, and
many other benefits.
Recession is good for your personal finance management. You will
track every penny spent more vigorously than ever. Retail businesses will
usually offer you more discounts for a longer period to attract and retain
customers and visitors, which is good for you.
Recession will bring family members close and bring you close to
God. You will think of God more and seek for spiritual guidance more.
What comes down must go up – nothing better than a rebounding
economy. Recession will test and form your character and willpower. So be
strong and courageous.
With all this in mind as we venture into a new year, we must once
again look for a silver lining. The collapse of the stock and housing markets
will make way for a new social order. Though the bar for success is high yet,
there remain ample opportunities to be seized by those who don’t lose faith.
Recession is just a correction, for a better and sustainable future. A new day
is almost at hand.
Sandy Mason works as a SEO executive in Jobsbridge. For More Career Updates, stay
tuned and visit Jobsbridge.
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