Method~of~Solutions » Recession

Every Recession Cloud Has A Silver Lining

Shakti Singh Dulawat — Wed, 18 Mar 2009 19:54:00 +0000

Knowing we are in a recession is reason enough to go into panic mode. But should we? Hope still springs eternal, and there are ways to circumvent recession trauma.

Read Other Best article on Recession:

How can we even start to imagine life that will get us back on course, if we are constantly being bombarded with so much headlines screaming “recession”?

Some of us are even in denial, thinking that this is just a marketing gimmick to get our money out of the banks (or wherever) and start panic buying because prices will skyrocket.

Guys, the recession is here. It’s not just in the United States, it’s everywhere – in every country that has any kind of trade link with the US. Prices are increasing, jobs are being lost, opportunities and investments are fast disappearing. If your property used to be worth over $50,000, it’s value may have gone down by as much as 50% if your house is located in one of the sensitive areas that have been struck by the subprime mortgage issues of the past year.

How do we find any silver lining on such a dreary forecast when one of the first to be hit in a recession is job security?

Believe it or not, there are jobs that will never be hit by a recession. For instance, if you can speak a second language fluently, you have extensive knowledge on something that is in demand right now, like marketing and computer programming, then you will probably be able to find a good paying job as an expatriate in a different country.

Other industries that are not affected as much have to do with education, health care, environmental causes, energy, and security.

These are basic needs that more than 80% of the population need, and businesses in these industries will not be inclined to reduce workforce. We need doctors, medical assistants, therapists, pharmacists, and nurses. We can’t live without them. In the same manner, teachers are vital to our growth, and the government together with the families will make sure that their children get sufficient education, at least to the secondary level.

Finding alternative sources for fuel and energy is a project that will continue to grow. Why? Only because we have no other choice. It has to be done.

Green issues and projects on sustainability is another new industry that needs to grow, and the governments of the world are doing their best to sustain this.

Finally, security is going to be one of the top industries in the world. People need to protect their property and interests. Security and security equipment will be one of the most sought after necessities in the world that is fast succumbing to a world-wide recession.

You could also start looking for part time work that will allow you to keep your day job. Anything and everything counts. Don’t knock the “cheap” jobs, those dollars can add up easily.

Stop worrying about what tomorrow will bring. Just try focusing on fixing the problems of today. You will not gain anything but worry lines if you keep focusing on things that are beyond your control. What is within your control is how you conduct yourself, find a second source of income, and cut back on expenses.

That’s what going to get you through this recession. If you want to know more about recession and its effect on our economy, visit www.time.com and see how changes in the world’s economies are affecting our economy.

Quote of the Day:
“The risk of layoffs will grow and the number of layoffs will grow. That means often you can get caught without a job through no fault of your own,” – John Challenger CEO of Challenger, Gray & Christmas

Best Reading:

Conclusion:
It’s not about being turning your back to the facts, but facing them and seeing more than the gloom and doom prophecies of annoying “experts.” Remember, there are always two sides to a coin, and it’s your choice if you would rather spend your recession days in despair, or in an exciting race to find your niche and maximizing on it.

Do you have suggestions for improving the blog, or types of content you’d like to see more of? We’re all ears, so please feel free to leave us a comment below. It’s a brand new year, and we’re ready to get started!

Manage Downsizing during a Recession

Shakti Singh Dulawat — Mon, 16 Mar 2009 06:39:00 +0000

Making sure that downsizing is the right decision for any company is more than a difficult decision, especially during a recession. Knowing about alternatives might help a business keep its valuable employees intact, and still create an atmosphere of positive changes for the company.

You know, there are two ways to handle downsizing – you either are compassionate about it or you just want to get the nasty business done and over with. Which one are you going to choose?

It’s really simple. Do you want to create enemies, or have people despise you for the rest of your life, or build a stronger bond between you and the people who have stood by you all these years in your business?

Downsizing is really a heart-wrenching experience, but it is a real issue with many businesses today. So, here are some tips on how to manage a downsize.

First, you have to establish a communication line between you and your staff. Would you want to be hit by your clients suddenly just dropping you without warning? That’s the same principle with your staff.

In fact, if you make them aware that there are problems, and get their cooperation to try to pull the company out of this recession period without too much damage, then imagine what a great team you have! Not only do they care about their jobs, they are willing to work better and more efficiently to keep their jobs.

The worst thing you want is to have rumors spreading about lay-offs, and retrenching. This is really just a useless activity. Your employees are worried, and on top of that, they are not productive.

Also, if you give them the “pink slip” on the day of their lay-off, they will have to manage to summon enough nerve to even walk out of your office with head held high. You will be branded to be some kind of horrible executioner, and then the rest of the staff in fear of their own jobs.

Instead, what you can do, if there is no other option but to lay-off some employees is to prepare them with a safety net.

You could have separation packages, seminars on financial management, career planning, and even recommendation files.

For the employees you plan to keep, you must also prepare them for the rough road ahead. First, you need to assure them of your need for them, and provide them with your business vision. You need to deal with their anxiety over the changes and the re-organization.

Some of your valued employees must decide to jump ship when they hear about your lay-offs. If you communicate with them your plan, they might be willing to stay, and help you get through this period.

Finally, communication is still the most important tool you have when dealing with employees. Some of them may even be willing to work shorter hours, get a smaller paycheck, decrease benefits, or not receive overtime or differential pay, if they can get to keep their job.

Your leadership during times of recession is what will keep your business alive. This not only means making difficult decisions like lay-offs, but also encouraging your staff to strive for more success. As the leader of your business, you need to keep an upbeat and realistic attitude about the economic crisis.
Other Best article on Recession:

Quote of the Day:
“When change is not handled well, additional loss of jobs can occur. In addition, demoralization of the work force; increased worker turnover; decreased cooperation and teamwork; and increased levels of stress, anxiety, absenteeism, illness, and mistakes can follow.”- Morton C. Orman, M.D.

Best Reading:

Conclusion:
Downsizing has its perils, and all you need to do to avoid them is to care for your employees and how their lives will be affected by sudden changes.

Making Money During A Recession

Shakti Singh Dulawat — Thu, 12 Mar 2009 13:44:00 +0000

Anyone who can plan ahead, organize himself, and have enough disciple can make money, even during times of recession. Actually, making money should be part of any adult life. How else can you survive independently? If you think that income becomes more difficult to earn during recession times, then you are a defeatist. You need to go out and be more positive about life. Being in a recession just means that less money is going around, but it does not mean there is no money.

The trick is finding that money, and getting some of it to go your way.

If you listen to the gloom and doom news that keep churning out everyday, you’re risking losing your sanity. You read about banks collapsing, firms closing shop, hundreds of people losing their jobs and homes. Does that follow then that there is no money? Nope! It’s just not going to the banks, to some businesses, and to paying credit.

If you read the papers religiously for the past 3 to 5 years, then you know that a recession was looming. If you were smart, you would have a considerable amount tucked away somewhere.

Now’s the time to get into the stock market, or buy up some real estate. The prices are rock bottom, with no where else to go but up in a few years. This means that when the economy does a complete turn-about, you’re holding on to some very lucrative assets. You’ll be awash with cash!

Here are some other ways you can make money. Find a gap, and plug that hole. It could be a home service business or home made quality products like meals to go, or starting an exercise class in your local neighborhood. You could also go online and find a good job placement website that advertises lucrative jobs.

Your skills and talents will come in handy right about now. Use them wisely. You could have a goldmine right there in your very own hands, and you don’t see it yet. Ask friends and family what they think is your talent and skills, and if you agree, then go for it!

However, above all, since you are marketing something that is personal, you must remember that it isn’t just a product, but also your name that is at stake. If you value your reputation, you will make sure that you do not get involved in any shenanigans. Evaluate your opportunities and if you plan to have a partner, make sure you get along, and agree about priorities.

With the recession, you will also be able to enjoy lower ad rates. Take advantage of that and advertise. Just make sure you place ads targeting your market. Do not just place the ads anywhere. This is not a case of hit or miss.

Most start up secondary businesses that make it only do so because they get pretty good reviews and referrals. This means giving value and quality to what you are offering. During recession, you need to address the needs of your target market, and price your goods or services appropriately. Don’t price yourself out of the market.

There is money out there, all you need is a little self motivation, a dose of intuition, a spoonful of wisdom and a lot of perseverance and guts.

Other Best article on Recession:

Quote of the Day:
“Recession can be a very threatening state in the business field. However, although times of crisis come and go, this doesn’t exactly mean that you would have to go with the flow and be affected with it every time it comes around.”- Kevin Tyler Smith

Best Reading:

Conclusion
Don’t be afraid of losing everything during a recession. Your worst enemy is fear, and if you can switch to a positive attitude and know that there are opportunities waiting for you to grab, then you will find yourself breezing through the recession easily.

Strategies during a Recession

Shakti Singh Dulawat — Wed, 11 Mar 2009 10:23:00 +0000

Before we talk about Strategies during a Recession, read our last post What is Recession.
The best way to deal with a recession is to face it. Trying to avoid the facts will only make things worst. You have to make your moves now, and prevent possible closure. Dark clouds of doubt? Savings dwindling fast? Your business going down the drain? These are just some of the signs of a recession.
If you have an ongoing business, and you are not a major corporation that will affect thousands of jobs, so the government is not even looking your way to provide a bailout plan, then you need to work the problem out on your own.

Try these strategies:

Protect your core business. This is the business that is earning money. For example you are in the business of trading cars, but the cars are not moving. What is making money right now is your car accessories and car repairs. This is the business then that you should take care of.
During a recession, repairs and maintenance will take an all time high priority because people cannot afford to buy new items, especially if they are bought on credit or require a huge cash out. If you are the most reasonable repair and maintenance service in town, your business will experience a boom, with the right ads.
Let go of cash draining activities. If you have a client who has had a bad record of paying you on time, or in full, drop him. Your resources are better off in providing quality service to your good clients. Also, look for new clients instead. Imagine, your stocks will be held hostage by a bad client plus you do not get paid properly. That makes you a double loser.
Find your weakest links. When a recession happens, you need to re-think your SWOT – that’s your Strengths, Weaknesses, Opportunities, and Threats. The whole face of your business will change because of a recession, and unless you make adjustments, you will face closure or bankruptcy.
Start an account profitability analysis. Review each account and each department in your business. Are they bringing in the profits or is another section of your business covering their losses?
For instance, if your business is trading cars, and your sales personnel is bringing the sales. That shouldn’t be a problem, right? Wrong. You need to start doing a performance review on each member of your sales team. The over all figure could just be masking people riding on the coattails of one or two successful sales members.
Cutting non-performing people may be a difficult thing to do, but if you give them sufficient warning, then the ball is on their court, not yours. You could look at each of the non-performing staff, and think of re-assigning them to a different job. It may mean a pay cut for them, and having to start all over by being on probation, but if that’s what is needed to be done, you need to do it.
Look at the bigger picture. If you continue to let some employees slack off during times of recession, you might end up with no business at all.

Finally, look at your other fixed costs, and see where you can lower overhead. If your company holds annual bashes, you could opt for giving your employees a bonus instead, since cash is a prime commodity; or you could hold your annual party at a less expensive location – like your office building.

There are many ways of using your imagination and creativity to lower costs and increase profits. Get your main team together, and get them involved in the planning process.

Quote of the Day:
“Stay focused. Every decision, every cutback, every improvement you make now must be beneficial not only in the present but more importantly in the future.”- Collin Almeida

Best Reading:

Conclusion:
It isn’t about recession, it’s how you handle recession. It’s all a game, and unless you have great strategies, you might fall under the radar, and not be able to maximize your full potential to make money.

What is Recession

Shakti Singh Dulawat — Tue, 10 Mar 2009 04:31:00 +0000

Knowing what recession is will help us deal with it. Even our children should be aware of the situation, and everyone must pitch in and do their share if we are to reverse the downtrend in our economy.
Recession is one word we keep hearing about everywhere. People are talking about it constantly, and seriously considering the after effects of this gloom and doom situation.

Financial definition of recession is when economic activities starts to decline over a period of at least 6 months. No, not 3 months now, then 3 months after a year. Recession happens when it continues month after month, without break.

For the regular guy on the street, it means that your regular paycheck is just not making it until the next paycheck – you’re falling short because prices are getting higher; your job is hanging precariously on a thin thread because the company’s sales are decreasing exponentially; or property you are buying or have bought are decreasing in value.

For the housewife, recession means that she will not be able to buy luxury goods or even the more quality, high end food products. Instead of shopping for daily needs in the local grocer, she goes to the market to stretch her money. There are less treats for the children, and even adjustments in holiday plans.

In the United States, a deep recession started being felt with the collapse of the subprime mortgage. Private economic activity dropped significantly, more than it has ever done in the past 2 decades. The effects was next to catastrophic and has a intense domino effect on the rest of the world.

Whether you are rich or poor does not matter, everyone is affected. What used to last for a week, will now last a few days. Everyone has to make adjustments in their lifestyles – if not because they have no choice, then because it would be ridiculous to start spending like there’s no tomorrow, hoping that it’s all a bad dream, and things will normalize in a few weeks.

When there is a recession, there is no miracle cure except if money comes down from heaven, or starts growing on trees. You have to buckle down to work, tighten your belts, and stop spending on non-essentials.

You should also stop using your credit card because you will be paying too high an interest, especially if it starts compounding. This happens when you don’t pay the full amount due, so you keep getting charged interest on whatever purchase you did not pay for completely.

Recession is not the end of the world. It’s not unmanageable. But it does requires more than what you were doing before. You need to live within your means, minimize credit purchases, buy on cash, and work better so your job does not get threatened.

You could also try looking for supplemental income if you do not want to change your lifestyle. Bottom line is that either way, there will be sacrifices to be made.

Living in a recession may be depressing, but you have to start thinking positive about life, and believe that things will get better for you, if you follow these three basic rules : work hard, buy on cash, and live within yours means.

If you have a family and a spouse, you could either start a double income by asking your spouse to look for part time work, or you could start a small business at home with your spouse handling the daily grind.

Remember, there is no shame in honest work.
If you go to www.wordnet.princeton.edu, you will learn more about recession.

Quote of the Day:
Recession: a widespread decline in the GDP [gross domestic product] and employment and trade lasting from six months to a year.

Best Reading:

Conclusion:
Recession is just a word that somehow manages to instill fear, doubt, and massive gossip. Buckle down and work hard and effectively, and you will manage quite well. Be creative, and look for additional sources of income to augment what you are now earning. It’s something you should be doing anyway, recession or no recession.