7 Ways Bad Economies Are Good For Business

I got the memo, but I chose not to attend any of the, “The economy sucks and my business is ruined,” pity parties people are throwing around me. I know all too well that economic issues have beaten businesses in this country with the ugly stick for quite a while now. I’m not jumping in the “woe is us,” pity party mantra because I believe there is always a silver lining, and the economy is not immune to the power of hope and positive thinking. While the media loves to cover all things negative (remember, if it bleeds it leads!), there are actually some good things that can come out of a bad economy. You may not hear much about them, but they are there, and if you focus them, the rewards will be immense!

Bad economies are GOOD for your business!

Here are 7 reasons why a bad economy is actually a good thing:

1.) Strengthening Relationships.

When the economy is good and you are buried in business, you probably don’t get to spend much time nurturing relationships. Whether it’s with your family, friends, or those you would like to network with more frequently, now you have no excuses. You can give the time to strengthening those relationships and help reduce stress as the same time. Remember, laughter is sometimes the best medicine! The bonds you build and the emotional investment now will pay huge dividends in the future.

2.) Scrutinizing Spending.

As an entrepreneur, you are probably pretty free with spending when the economy is doing well. You don’t mind taking on some added expenses, even if there isn’t a return, because you are not hurting financially. But during a tough economy, you will need to look at each expense and really determine if it will bring you additional value or a return. If it will not, ax it and you will help your company financially. The habits you develop now will carry over when good times return and you’ll see the payoffs double and triple.
3.) Monitoring Cash Flow.

Hey sailor, you on shore leave? During a strong economy people usually let the money fly like sailors on liberty, whether at home or at work. They spend freely, without giving it much thought, focused on enjoying themselves and having a good time. But during a down economy, you will be forced to keep closer tabs on your cash flow. This will make you better off financially at home and in the office. It will also help you learn to be better about making financial decisions while still enjoying yourself, only in less spendy ways.
4.) Back to the Basics.

Rough economies will get people back to doing more of the free or low cost basics that help to build strong families, even to planting victory gardens and finding creative ways to feed, clothe and entertain themselves. Rough economies also spur innovation, at home and in the office. Spending a lot of money going out to the theater for a family showing of the latest flick isn’t the only way to build strong family bonds and be entertained. You can rent a new release for a buck, pop some popcorn, and gather on the couch in your pajamas and save a lot of money! Same goes for your business – rather than putting out money on expensive parties, you can opt for low cost company picnic-type ones. Your folks are also more likely to find more creative ways to sell, to build and to produce when it means the difference between keeping or losing a job, or getting a raise or bonus or not.

5.) Trim the Fat.

This economy is the perfect time to take a look at where you are spending money and see what can be trimmed. There are likely things at home and at work that are getting your money that is completely unnecessary. Find those things, cut them, and don’t look back! You will have more cash flow, and as you have already read, that’s a good thing!

6.)Get creative.

During a strong economy, most people just go with the flow and reinforce the status quo. But during a weak economic turn, people will innovate and find new ways to do things both at home and in the business world. New business ideas will come out of this economic slump, and one of them could be yours!

7.) Do it yourself.

During high economic times people eat out more, among other things, that they could do for
themselves. By getting back into the kitchen to do your own cooking, you will have more dedicated family time, will spend a lot less money, and will most likely be eating a heck of a lot healthier! You may opt to wear another hat or two at work, or to examine how you can be more effective and efficient there as well.

These are just seven examples of the good that can come out of a tough economy. There are many more as well! A poor economy will make you better at watching your money, tracking your spending habits, and even creating stronger bonds with people. In the end, you will likely emerge a happier, well-adjusted individual that has a keener financial sense. And that, my friends, is a good thing!