Recently because of the COVID-19 global expansion and the U.S. stock circuit breaker, many people begin to feel anxious. Many different countries currency has been affected badly, also increasing the purchasing costs of the international business.
Enterprises worry about the future, don’t know how to get through the current situation.
Staffs worry about losing job, decreasing income and asset depreciation.
Then, we maybe begin to enter the “Dormancy period”. It means using the minimum energy to maintain vital signs.
We must be well prepared to go through the “Dormancy period”. If we survive, then it’s good time.
So, how to do that? Here we have five suggestions:
1. Cash is the first
No matter for company or personal, in the economy downturn, the cash flow is the first important.
Now if you have an order, buyer gives you high profit but longer payment period, I suggest not making this deal.
In the economy winter, receiving payment quickly is more important than the higher profits.
Pls note: Cash flow, Cash flow, Cash flow. Only the Cash flow is the first important.
If the cash flow into slowly, you need to control it flow out more slower.
2. Focus on the present
Making your cause on the basis of the business.
What’s the meaning?
If you sell products or service, then you can earn money, it’s business.
Now, if you sell products or service, not for earning money, but for long development, after 10 years earning more money, it’s Cause.
Under the economy winter, you need to put your Cause on the basis of the business.
Still need to focus on the long term development, but you need to pay more attention to the current business.
Long-term cause should have, but the current business also need to make money.
Note: when the economy downturn, every cent you can earn is very important.
3. Risk diversification
Enterprise should create the low relative Cash flow.
Try to make yourself cash from different products or service, even from different industries.
For example, for the International company, not only sell products, you also can integrate resource and sell the urgent products, such as the Mask, Protection clothes. Or you can have the business on the Service and training, etc.
Then, once the core business if affected seriously, from others can have the income to make some compensation.
Maybe these income few, but at least, it can keep the vital signs and promise the dormancy.
For personal also, try to make yourself or your family has different several incomes.
For a family, if the incomes from two different industries, even has two house can receive the rent, even if one income has problem, the whole family economy will not be affected seriously.
4. Prudent Investment
In the cold economy winter, there will be lower success probability of the high return.
So, if you are not a professional investor, you should be cautious and not give money out easily.
For 99% of people, the return from working hard to create value is actually much higher than the investment.
Don’t self-confident blindly, but to strive create value and improve your professional ability, this is the biggest shortcut for most people. Therefore, we should strive for excellence in our own field, and study how to invest if we have spare time. Don’t take out all your wealth, or even borrow leverage to do it.
Now, the most important is to keep the capital and make sure you don’t get out.
5. Study hard
Under the economy winter, for companies, optimize business model, products and service, company system and structure, also strengthen the training of employees;
For personal, doing the current working well, keep body good and study hard. These are the most important.
Only by continuously creating value and strong your internal skills, can we continue to cross the cycle and welcome the moment of the economy recovery.