Are you wondering how to survive a recession? Any recession is hard for many and particularly devastating for entrepreneurs. When it comes to the economy, the question is always how to survive a recession.
Recessions are hard to predict. With the uncertainty of the economy, owning and running a business means opportunities become scarcer with fewer potential investors. So, if you’re a business owner, do you have a strategy to prepare for the worst? A strategy to make your business downturn-proof?
Since the current economy began its growth cycle, it’s not always going to be a bed of roses. When you think about “Recession”, the stories tend to begin the same way; loss of jobs, homes, savings or investments, and it’s been more than a decade since the “Great Recession” in 2007.
It was the longest economic downturn since World War II – December 2007 to June 2009. Its length of the peak in the economic growth will eventually lead to a recession and it’s a cycle. However, the length of life is a risk factor.
Even though there are no obvious signs of a downturn – it remains a worry, and if you’re reading this article right now, you must be thinking; how to survive a recession?
In my recent video on YouTube, Linda asked me a question…
“Dan, do you have advice on how to survive a recession?”
I’m going to give you more than one piece of advice. In fact, I’ll give you 3 pieces of advice on how to survive a recession.
If you’ve been around long enough, you see different cycles and a recession is a guarantee – it’s coming. The question is when? Especially now we had a crazy growth curve for a long time.
So, how do you prepare yourself?
How to survive a recession?
Put Yourself In A Cash Position
The very first thing is you have to put yourself in is a “Cash Position”. You want to accumulate cash so that this moment because if you have a business, things will slow down or maybe things that used to work no longer work.
In order to get through this period of time, you need cash. And if you have a job, you still need cash because you want to have the staying power. But, if you actually have excessive cash, this is the moment where smart wealthy people will buy.The key to surviving, and thriving in any recession is a strong cash flow Click To Tweet
They buy to take advantage of this opportunity when everybody else is suffering from the recession. On top of that, you will find a lot of people get incredibly wealthy during this period of time.
Now, what do they really invest in?
Fix Your Roof Before The Storm Starts
Recession is like a rainstorm. Although you can limit its impact once it rains, the best way is to fix your roof before the storm comes.
But before we get into how to survive a recession, what are the signs or signals accumulated? In a recent article by Forbes, traders continue to worry about fallout from the trade war.
And the Institute for Supply Management (ISM) U.S manufacturing index showed a decrease of 0.9% in December from November reading of 48.1% – it’s said to be the lowest reading since June 2009.
And guess what? The “Great Recession” began in December 2007 and ended in June 2009.
Although most observers put the blame on the trade war of this downfall, it’s said to be one of the signs of recession.
On the other hand, the Institute for Supply Management (ISM) had a recent price increased for the first time since May 2019 and it could be a positive 2020.
But… for how long?
As i mentioned in the beginning, recessions are hard to predict. So, having a strong strategy to prevent any downturn is essential.Recessions are hard to predict. A strong strategy to prevent any downturn is essential Click To Tweet
An asset’s volatility is a key factor when pricing options contracts. You’ll be more cautious about when and where to invest.
But what do they really invest in?
When it comes to investing, should you invest in real estate? Or keep your money saved in the bank?
Haven’t you thought about how to properly manage your money? This is one of the strategies if you want to know how to survive a recession because I believe that:
Now, let’s say, you have an excellent strategy and you’ve been a brilliant investor…
You would have the confidence to be financially independent and you don’t need to worry about the uncertainty of the economy or losing a business opportunity or even potential investors.
Am I right?
You’re reading this because you still have doubts about how to survive a recession.
Skill Set That’s Valuable In The Recession
Now, the second thing is having a valuable skill set during the recession period could also do better. It could be a valuable product or service that you’re offering to the marketplace in the recession period.
I call that, The Bartending Business – a metaphor which means that when time is good – people go for a drink (a beer perhaps) and when times are bad, people go for two drinks.
What does that mean? It means it doesn’t matter if times are good or bad. There are certain industry and certain sectors will always do well – In fact, they’ll do better when recession comes.
For example, my education business, when and if the recession comes, especially when times are tough – people look for alternative education that even if they have a degree, it doesn’t really help because everybody is downsizing during a recession period.
Let’s say you can’t get a job now but if you have a skill set that is not taught in school – you’re able to generate quick income from your skill.
That’s why my education business would do much better in times like this.The problem is, when times are good, people don’t think all that – people don’t think that far Click To Tweet
As a matter of fact, this is what they’ll think…
“I’ve got a good job, it’s fine, there’s no need to worry about that or other things”
When they get downsized or when something happens, for instance, the company they work for goes out of business, that’s when they’ll start to panic. Then they’ll start looking for a solution.
You see, having a business or a skill that’s recession-proof is crucial in times like this.
But does that mean you have to start only when a recession happens? So, to put yourself in a cash position and having a skill that is recession-proof are the 2 essential things you need if you want to know how to survive a recession.
Before I get into the third piece of advice, I want to share with you some recession-proof skills. These are skills that you could bring with you anywhere you go.
Before you hit the panic button – Nobody actually knows when the next recession will hit.
One thing for sure – when it goes down – it goes hard. And that takes time to build.
As I said earlier, we had a crazy growth curve for a long time now and with all the different cycles – It’s a guarantee that it is coming.Prepare for a recession even though we see the crazy growth curve... Click To Tweet
That’s the only thing that’s crystal clear.
Even though, we see the economy growing in the past ten years – eventually, it will lead to a recession.
And if we’re not prepared right now, it’s a risk to everyone, business owners, employees, graduate students and many more.
That’s why I want to tell you about how the rich think, invest, and handle their money. But before I tell you more about this, let me share with you some recession-proof skills and how to survive a recession with these skills.
Selling with your written words – persuading someone in print. This is a powerful tool to attract new clients or up-sell current ones. This skill can be acquired even though you have no experience or a degree.
Written persuasion is a powerful skill you can use in any career. It can help generate sales to a company with your written words, generate extra income to put yourself in the cash position and on top of that it’s a valuable skill.
As I shared earlier, about being worried that the uncertainty of the economy or losing business opportunities might partake during a recession period – with copywriting skills, you learn how to persuade and survive.
This was one of the next skills that I learned – consulting. Now, is this valuable? How to survive a recession with a consulting business? I became an expert who can solve the company’s problems, and they were asking for advice on marketing, which is the area of my expertise.
The question I would like to ask you is: “Do you have an area of expertise?” It could be a product or service. And consulting sounds like a service that is valuable in the recession.
High Ticket Closing
Having the ability to close sales is the most powerful high-income skill. With that said, you can combine your copywriting and consulting expertise with a high ticket closing skill.
It enables you to effectively communicate your message across. Closing skills are what you need to close your clients. Not only will you be able to write compelling messages to your clients, but you’ll also be able to retain your clients to constantly be on top of your cash position.
With these 3 added skills – top it up with your degree or any other skills that you already have, it makes your value higher and stronger in the marketplace.
Communication is the key to everything, closing is what makes all the other skill work – even in our day to day life. So, if you ask me how to survive a recession? I would say, communication equals wealth.
You need to communicate to get clients, and even if you want to invest in real estate – it allows you to negotiate better deals, and if you decide to be a consultant like me – in the recession period – you’re helping business owners generate more revenue.With increasing unemployment, it’s easier to hire skilled workers – Closing is a survival skill. Click To Tweet
Can you imagine how they would be so grateful to you for helping them survive a recession.
The Recession Doesn’t Last
Now, my third advice to you on how to survive a recession is knowing to survive in the recession, but also that a recession doesn’t last. In history, the period of a recession gets shorter and shorter… What does that mean? It means, if you have cash and the skill sets, it gives you staying power, and that’s all you need to do to be able to survive through that period of time.
Once you look back at history, you won’t panic as much. You get worried only when you’re so wrapped up into things and you’ll have all these thoughts in mind:
“How long is it going to last?”, “It feels like it’s going to last forever!”
In fact, as I shared in the beginning – The Great Recession lasted from December 2007 and ended in June 2009.
And then there was the recession before that. My point is, it doesn’t last forever but within that period of time, some people would suffer and struggle. That’s why you shouldn’t wait until you’re successful to start.
It can be investing in yourself with skills that I’ve mentioned or in real estate. A good investor should be making investment regardless of their size – the sooner you start, the better your cash position will be.
But what is the main question people have when it comes to real investing? Many people think they need a lot of capital, but the truth is, there are many high-return investments that don’t require a high capital.
That’s why I created the Millionaire Mindset Secrets Vault, a combination of four digital trainings to show the wealth management secrets of the ultra-affluent.
How To Survive A Recession Like Rich People
For some of you that have been following me, you would’ve known that I once couldn’t afford decent food or a decent place for my mom to live.
The worse part is when other people have to suffer with you. Most people don’t know that growing wealth is about more than just throwing money into the stock market. Building wealth is just as much about becoming the best version of yourself. Psychologically, when you have cash, it attracts more cash.
Although the main question is how to survive a recession. The question behind this is how do you manage your money like the rich and how do they stay rich?
If you know exactly what you’re looking for, you will throw out most of the investment opportunities that come across your desk.
In the Millionaire Mindset Secrets Vault, you’re going to learn how to review an investment before investing a single dollar.
I asked you if you have a strategy to prepare for the worst to make your business is downturn-proof. So, imagine if you knew exactly what you’re getting yourself into. Such as, what exit strategies you need to use and what you need to do to achieve your investment goals.The rich take risk and they go in knowing all the angles. Click To Tweet
And these are the kind of investments that are hidden from the general public and the best part about it is that it is recession-proof.
Right now, you’re probably thinking cryptocurrency or day trading. This has nothing to do with luck-based investment. Instead, you’ll learn about the tested principles and strategies making you a professional and sophisticated investor.
Best Kept Investment Secrets On How To Survive A Recession
Have you thought about your strategies to prepare yourself for when recession comes?
If you’re a business owner and if you take the time to make your business a recession-ready, not only you have a greater chance for survival, but also taking advantage of the opportunities.
You can take advantage of this opportunity when everybody else is suffering from the recession, and some people get incredibly wealthy during this period.
To learn more about how the rich think, invest and handle their money, get the Millionaire Mindset Secrets Vault now.