I don’t want to get into the reasons for ups and downs in the market.
But the world we live in sees that the market will go up and down.
And in the down times things can hurt. People naturally cut back on their spending. Wants quickly give way to needs. We try to grab onto the things dearest to us and try to figure out a way to just survive.
The last 8-9 years have been pretty good. I got my first job out of college in the Summer of 2007. Not really the best time to enter the workforce. In the Spring of 2009, the company announced layoffs. I was lucky to keep my job, but if left an impact on me.
It made me realize that we’re responsible for ourselves in this life. We’re not entitled to anything. Not even a job. No matter how hard we may have worked or how loyal we might have been.
And I’m fine with that.
In 2009, I started blogging. Just as a hobby. Just because I liked it. In 2010, I got a client that wanted me to write weekly posts for their business blog. Shortly after that I found another client. Then Ghost Blog Writers officially started and in 2012 I left my job to do it full time.
Since about 2010, things have been pretty good. If you’re like me you’re kind of waiting for the floor to drop out from everything. Just to kind of reset.
But I’m not thinking that it will be all gloom and doom.
Here are some reasons to look forward to the next market downturn.
1. It’ll Remove The Pretenders
Entrepreneurism has become kind of a cool thing in the last decade. It’s a good thing that people are looking at ways to come up with new ideas that will help the world.
But it’s easy during good times. During downturns is when things get tough. It’s easy to bailout and go get a job.
In the next downturn, things will get tough. Those that can’t handle it will look for something easy. That will mean less competition for those that stick around.
It’s not right or wrong either way. It just seems to be the reality of what will happen.
2. It’ll Remove The Noise
Right now there is a lot of noise. A lot of new great ideas. The next biggest thing. That always seems to happen right before things take a downturn.
Just before there is an upturn, though, it seems to be the opposite. People are skeptical of good things. There isn’t a lot of noise. That makes it easier to kind of see through to what’s working. You can see new trends.
When everything is bad news the good news really stands out…if you look for it.
3. It’ll Lower Prices
In any market correction it almost always seems like prices drop. I remember when I worked at that job in 2009 that we were lowering prices to get any sales that we could. It was great for the customers. I tried to not drop prices too much and it kind of smoothed things out.
For those with savings it’s a great time to buy things. For those with debt it means cutting back on everything to focus on paying off the debt. Maybe you could even reduce some of the debt with the debt holders.
It can be more difficult to get a loan, but if you have savings. If you saved during the good times, it can be a great time to get in on great prices. For business and for personal life.
4. Good People Will Be Available
One big unfortunate aspect of downturns is that good people become available. But the best people usually don’t stay available for a long time. The reason is that the smart businesses are quickly there to snap them up.
If your business relies on good people then save now and make your jobs appealing because when things go bad there will be good people available.
5. The Best Rise To The Top
Because they work harder.
When the company I worked for laid off it was really neat to see how hard everyone that stayed with the company worked. Not that they didn’t work hard before, but they went into another gear to help the company see the thing through.
No extra pay. In fact, less pay. No bonuses and things like that. The best people just put in the extra effort.
6. Customer Needs Emerge
During the good times it’s difficult to figure out what customers really need versus what they want. When times get tough the money dries up a bit. We start saving. We start buying only what we really need. Maybe there is a little spending on the wants, but it’s mostly on the needs.
For entrepreneurs, this is a great thing. It makes it easier to see the things that matter most to people. This makes it easier to find something that you can provide that will survive downturns in the future. You can focus on what really matters.
7. People Get Distracted
Less competition for new ideas.
When downturns happen it’s really easy to get caught in the trap of bad news. Everything on the news is bad. The markets are bad. People are losing jobs.
When everything is bad, though, it means people are distracted. There is likely less competition. Fewer people starting new businesses.
While everyone is distracted you can go inward and focus on creating something really special.
8. Character Wins
People lose a little trust when things get bad. Obviously if businesses start cutting back on staff they will lose trust. If they start putting out bad products they’ll lose trust from their customers.
Character wins out during downturns. If you’re doing the right things by your team and your customers during downturns it will really stand out. People will be drawn to do business with you.
That’s something that can hold you through difficult times and on into the good times.
9. We Build Good Habits
When money gets tight it forces you into better spending habits. That’s true both in the personal world and in the business world. No more spending money on excesses.
Fancy new office equipment? Not necessary. The two-year old iPhone will do just fine. So will the $25 Craigslist desk and chair.
These good habits are forged during downturns and last into the good times. It makes for a better business.
10. We Find Out More About Ourselves
What we value. What we really want to do in life.
It’s hard to know who you really are. It’s almost impossible to figure it out when times are good. But when times are bad you start to really see what matters.
Downturns certainly are not fun. You don’t want to see anybody lose their job. You don’t want to have to think about downsizing a house or anything like that. It can cause incredible hurt.
But it doesn’t have to be all bad. There is great opportunity in downturns. One is likely coming in the near future. I’m trying to prepare for it. Not just by saving, but by preparing to take advantage.