Nick's Tips . NET – Advice for Entrepreneurs

How to make money in a recession!

Posted by Nick on September 17, 2009 at 18:56 pm

In this informative article we will talk about what is a recession, especially the economic and global recession we are experiencing right now, and how you can recession proof your business and find ways to make money during recession.

First of all: What is Recession?

I don’t want to bother you with the terms here, but if I remember correctly from my business classes, recession in a few words is defined as GDP (Gross Domestic Product) growth slowing down. Gross Domestic Product is the total amount of goods being produced in a country within a specific time frame. During recession economy and businesses stop expanding, employment falls, people get laid off, unemployment rises, and housing prices decline.

I don’t think there is a secret that the US, and other countries, are in a recession right now.  My prediction, and don’t shoot the messanger for this, is that the recession will continue for a couple of more years, and it will even deepen, possibly approaching a depression.

Now, on the bright side:

Did you know that during a recession there are more opportunities to make money than ever before?

The media is telling us horror stories about how awful the markets are and how badly the economic crisis is affecting us. The stock market is crashing, foreclosures are up by incredible amounts, and banks have collapsed. On top of all that, major insurance firms are going under.

We hear this every day on the news and in the papers. This constant barrage of bad news leads us to believe that the recession is worse than anyone thought. The media keep telling us all the money is gone. No one has any money to spend and we’re all going broke.  Banks going downhill. WaMu was purchased not long ago, and over 12 other banks went bankrupt. It’s scary.

It’s also not the whole truth.

Let’s look at some common sense about money.

Did you know some people are thrilled to see the recession because this means stock, real estate and hard goods are cheap – the prices are lower than they’ve ever been. Savvy investors are going to swoop in and buy up stocks and real estate at very low prices.

As always happens with all cycles, the economy will recover eventually. It usually happens in 2-5 years. Prices will go up and those people who bought during the downturn while prices were low will sell up and make obscene amounts of profit. In fact this current recession will create more billionaires than ever before in history.

And yet the news is telling us that there’s no money around. No one is spending.

So where did all our money go? Did they hide the money somewhere in a dark, deep tunnel? The money hasn’t gone anywhere. It’s not like this money all of a sudden vanished. Someone took it ran with it and not we are saying, “crap, what about now?” Even if that was the case we could have printed more money.  Instead, the money is just being re-aligned. It’s being transferred from those people who bought silly things when times were good over to smart marketers who know the importance of providing quality and value to customers who are wary about where they spend their money now.

What’s happening right now is a massive transfer of money from the re-active people who didn’t act smart during the good times and are now panicking that things have gone bad over to the smart marketers who are willing to take positive action now that times have changed.

Basically, money is being transferred from people like THEM, to people like US. Who is THEM? They are people who sit around and wait for the government, new president, God, the Universe, their industry, or their boss to give them More Money. They are praying that they don’t get laid off. If something goes wrong they blame it on the economy. They want to start a business, but they want to wait for the economy to Get Better. That is THEM!

Who is US? US/WE – you and I – are the people who MAKE THINGS HAPPEN. We realize that more billionaires will be created during this time than ever before. We see that the world is CHANGING and we want a piece of it. We are not hoping that someone else, a guy, a group of people, give us a handout. How horrible is that!!! Instead we, you and I, focus on value. We see what we want to accomplish, where we can provide value for others, and we focus on ABUNDANCE.

Abundance is everywhere.

THEY follow the news and freak out.

WE follow abundance, we don’t listen to the news.

THEY are sitting around and wait.

WE Start Businesses. It is the BEST time to start a business right now.

Re-active people are people who panicked and didn’t plan for this recession. They reacted poorly when things got tough. They are afraid of the gloom and doom stories on the news and so they hesitate when great opportunities come up. They wait for the market to get better. They watch what everyone else is doing… and they miss the biggest opportunity in their lifetimes by being reactive.

People who benefit during a recession are proactive. Proactive people are different than re-active people in the way they think and act. They take advantage of opportunities, they learn to become smart marketers, and they don’t hesitate to make the most of the opportunities that are available.

Any smart marketer who owns a home business should easily be able to take some proactive steps to earn even more money during a recession. There are several action steps a smart marketer can take in order to promote their internet business more effectively and make more money than ever before.

• Provide value with quality products and make sure you’re marketing your niche in the right way to the right people.
• Think in terms of abundance rather than scarcity – a.k.a. “what can do right now to take advantage of the economy with what I have in my hands or with what I am good at?”
• Be proactive about reaching your niche audience and take advantage of the reduction in online advertising costs.

There’s plenty of money out there so be ready to act when opportunity arises.

Marketing via direct response marketing works when people are looking for opportunity. It’s a proactive move made by smart entrepreneurs who know to take positive action and take advantage of the opportunity of this economic situation by offering value to customers.

Learn to market your products and services correctly and you’ll find so many people who think the same way you do. They know they’re ready to take advantage of these times of opportunity but they’re waiting for the right product that offers them real value for their money.

So what will you be doing in your business to maximize your own sales during this period of opportunity? Will you be the one who sits on their hands and waits for things to get better?

Or will you be proactive about taking positive action to create serious wealth for yourself during this economic downturn?