Keys To Surviving Hard Times

In recent times Nigeria is facing severe economic recession. Oil prices have plummeted, there is rising unemployment, soaring inflation and the Naira has seriously depreciated in value. Analysts are predicting that it may take time to recover from this doom and gloom. I agree that it’s tough and rough, but opportunities for building […] The post Keys To Surviving Hard Times appeared first on SME Digest!.

Business Nov 6, 2024 0 1 Add to Reading List

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Advertise on doacWeb

WhatsApp: 09031633831

To reach more people from NGN1,000 now!

In recent times Nigeria is facing severe economic recession. Oil prices have plummeted, there is rising unemployment, soaring inflation and the Naira has seriously depreciated in value. Analysts are predicting that it may take time to recover from this doom and gloom.

I agree that it’s tough and rough, but opportunities for building wealth still abound. In 2016 some people will still honestly create wealth for themselves notwithstanding. According to Mary Kay Ash, “There are three types of people in this world: Those who make things happen, those who watch things happen and those who wonder what happened.” It is those who make things happen that are likely to thrive in these austere times.

I want you to know it’s possible to be “recession-proof,” seeing what is going on around you yet not experiencing any of it personally. Here are twelve keys to help you thrive in periods of economic downturn:

Increase your capacity to earn as an employee or business owner

To be recession proof will require you to earn more – whether as an employee or business owner. Employees must get better equipped so they can get a higher paying job or move to higher paying careers, while business owners must invest in upscaling their businesses to attract more customers who will have to pay more. This is the time to repackage and rebrand yourself so as to increase your earnings potential. The good news is that customers and employers require quality service and staff respectively, and they expect that a period of recession means they will have to pay more for both.

Build a second and even a third income stream

Money needs to enter your life from more than one source in order to be recession-proof. I encourage you to actively seek for ways to earn money from additional sources. Today’s individual cannot afford to depend on earnings from just one source to make ends meet. Start something else and effectively utilize your spare time running and building multiple streams of income flowing into your life.

Explore daily money making opportunities

What’s much better than making money on a monthly basis? It is making money on a weekly, or even on a daily basis! Making money daily means getting paid something every day of month. There are several opportunities that cost very little by way of an investment, which could fetch one daily income. Daily turnover from one or more income streams is highly essential.

Protect your assets and avoid losses

Recession normally brings along with it an upsurge in crime, so please protect your property from theft and other associated perils. This may be a tough period but you must take out some form of insurance so if anything occurs it will be much easier to get back on your feet. You don’t want something to happen and you don’t have the resources to start from scratch. It’s also advisable to take calculated risks with scarce resources.

Network

This is the time to socialize, meet more people, attend events and functions, and generally build your network of contacts and associates. Your network is your networth, thus requiring that the more quality people you know the better your chances of becoming recession-proof. It is people who help others climb the ladder by providing opportunities. Don’t pass up on the opportunity to meet people and add them to your network.

Dollarise your hustle

In other words you need to explore ways by which you can earn money in foreign exchange. Earning a significant portion of your income in forex makes you immune from the fluctuations and depreciations in the value of the Naira. Your foreign currency brought into the local market will translate to a higher value of local currency in your pocket.

Embrace cash flow investment strategies

Your investment strategy at this time should be anchored on accepting to invest in assets which generate a positive cash flow, enough to produce a long period of income/inflows rather than investing for capital gains such as buying a house you want to live in and expecting the value to increase. A house you are occupying cannot produce any cash flow, but a house put up for rent can produce a positive cash flow. This period requires liquidity.

Use Tough Times as a Springboard for Learning and Growing

The greatest innovations of all time have occurred during difficult times, and many great businesses have been born. That’s because it is human nature to move away from pain and toward pleasure, and painful times induce action. The ones who find effective ways to do that can, and often do, build empires around their discoveries. Recessions always bring unwelcome change, upheaval and problems—and also opportunities. Even if your business and cash flow have slowed down, you shouldn’t. Now is the time to leap into action. Staying on the cutting edge is important in any economy and critical in a poor one. You can keep your crucial edge by continuing to learn and grow.

Research and invest in industries that boom during a recession

No matter the economic situation there are industries and business opportunities that thrive, even in recession. The key is to do your homework and find out these opportunities and invest in them. For example fashion, luxury goods, food and confectionery, cosmetics, alcohol and tobacco have proved to experience growth and if properly managed can withstand recession.

Stay focused

The more difficult the economic environment, the more important it is for you to focus on opportunity, rather than problems externally, and on core competencies, passions and values internally. This is a winning combination. When you are focused on possibilities, possibilities are what you find. When you are passionate about what you are doing and that passion aligns with your values and complements your core competencies, you are almost unstoppable. So, while others are pointing out problems, find the possibilities. And, while others are trying anything and everything, hoping something will pan out, stay focused on what matters.

Create value and don’t forsake quality

A recession is not the time to jettison quality and value on the altar of resource scarcity. Instead these 2 pillars of excellence must continually be sustained in order to become recession proof. Exceed expectations whether you are an employee or a business owner and you will remain in the forefront of being successful in these times.

Eliminate bad debt but keep good debt

Bad debt is simply taking a loan or using borrowed resources to pay for things which do not generate cash flow, while good debt is using borrowed resources to invest in assets that produce enough cash flow to even pay the debt with more inflows to spare. A recession’s not the time to carry unnecessary debt which dries up liquidity. Instead seek for good debt which adds more liquidity to your accounts and increases the value of cash you have in the bank.

Recessions come and go, and this one will be no different. Application of these relevant tips will cause you to thrive by becoming recession-proof. Becoming part of the elite club of recession-proof individuals who create wealth is not difficult once you know how.

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