You can feel the bad news or look for the good news. I choose to look for the good news.
In the last downturn of 2000/2001, I decided to slow my business down and take the opportunity to grab hold of personal time and do something for myself and my family.
I moved down to a four day working week (still more than ten hours per day) and spent time doing things on my personal list. In particular, I spent time studying a new skill by extending my qualifications.
Sure, I had less money, and it was tough. But when the market picked up in 2002/2003, I was positioned increase my revenue, increase my business and ready to ride the economic growth. More importantly, I was completely refreshed from a quiet period with shiny new skills to grow my business.
It paid off handsomely, I rode to top and made more money than ever before.
The second piece of good news is that I planned for this economic failure. It was clear that there was going to be a major economic problem about eighteen months ago, and that's when I started increasing my cash reserve and tightening my costs. I didn't know when or how bad, but when the newspapers consistently talk about a "correction", and commentators also agree, you know it's really going to happen in the next couple of years.
When this downturn comes to an end, I will be planning to increase my cash reserve again. Maybe not for the first six months, but my business plan will have the "economic downturn of 2012" (or whatever its going to be), and I will be reserving cash in the years ahead.Â I can be sure that its going to happen, and I feel positive that I will be ready for it.