Opportunites in this economy

[White8]

The current economy has definitely created some challenges but also can create opportunities it's just a matter of trying to have a positive outlook and looking for them. I bought an electrical contracting business about six months ago and so far things have been going ok to well with a couple of very good months. Since the recession:

1. Commodity prices have dropped therefore my COGS has dropped increasing my margin
2. Fuel prices have dropped
3. The businesses in my industry that did not take care of their customers in the good times are losing customers to me
4. There are great bargains on equipment
5. There are bargains on commercial property that will allow me to open satellite offices in a couple of nearby cities in the next few years.
6. Some other construction trade businesses as slow now and may be available for purchase once we reach the bottom and see an upturn (the plumbing contractor down the street was ready to sell six months ago)
7. I've been more compelled to network which I really don't enjoy but it will bring in business now and in the future
8. I've looked more at offshoot businesses such as a home lighting ecommerce site since I'm a dealer for several brands

The point is, spend time looking for how you can profit from this situation rather than worrying. Fortunately, most aspects of our economy are cyclical and things will return to normal eventually.

 

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[TOLDUSO]

Although now is obviously and most definately a good time to capitalize on the markets and current going prices for products and property, there is still one thing that hasnt changed:

You have to have money to make money.

Im not saying that you have to be rich already, but you do have to have the means of attaining things or getting something off the ground in the most cases. This could mean loans (which banks are simply not giving right now) or VC's (which are harder to find in these times).

This is also not to say that the fastlaner living on Ramen right now isnt going to make something out of nothing, as that is always a viable outcome regardless of economy, but it definately tightens the game for those with nothing looking to get off the ground with real estate investments or other similar ventures. Banks are simply not lending to the average Joe.

The #1 thing for everyone to do, especially right now, is to not live out of your means, and even better, if you can, cut back on your spending. You would be surprised what oppurtunities might open up for you that you otherwise might not be able to drop a dime on.

An unfortunate outcome of recessions such as the one we are in/facing, is that it widens the gap between the classes. The rich can now easily become even richer, but the poor man stays poor without as much oppurtunity as there was.

Now for my point:
The fastlaner that can find a means by which to bridge the gap between the classes in some fashion or another (be it with a product or service or whatever) is going to be the one who strikes it big in the coming years.

Put your thinking caps on folks, and maybe you can reap the rewards. :smug2:

 

[Extra]

That sounds good White8 i'm glad you have your head in the right place, and Tolduso hope your thinking cap is working and hopefully mine will actually come up with something NOT done before..
i hate doing patent searches on an exciting idea and have it already be taken.. such a crushing feeling, but you gotta get back on the horse more times than you fall off to get anywhere in the world.

 

[TOLDUSO]

That sounds good White8 i'm glad you have your head in the right place, and Tolduso hope your thinking cap is working and hopefully mine will actually come up with something NOT done before..
i hate doing patent searches on an exciting idea and have it already be taken.. such a crushing feeling, but you gotta get back on the horse more times than you fall off to get anywhere in the world.

Dont put all your efforts into thinking up a physical product. There are many needs out there that dont necissarily require something that is manufactured. Many a millionare, especially considering the "dot commers," simply filled a void and provided a service.

To become a millionare, you only need to reach 100,000 folks in the entire world at $10 a pop for your service or subscription. In those terms, becoming a millionare isnt so unfeasable; at least thats how I see it. :smxB:

 

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[PEERless]

Dont put all your efforts into thinking up a physical product.

Agreed. A service is the only way to create something out of nothing. Ideas and thoughts are low-cost resources. Inventions are dandy, but the overhead on selling a thing is higher than on marketing an idea, concept, or system. Got it?

 

[williell]

Think about starting a collections agency, they seem to do well in recessions I am thinking about starting a collections agency.