People always wonder how they’ll fare in a bad economy, but from my experience, the best opportunities arise when the economy isn’t doing well. It’s true that most people won’t buy things when the economy turns bearish, and it will leave business owners vulnerable. But a bad economy is the perfect time to take over markets. If you plan properly, it’s easier to purchase competitors at better prices.
Here are the three steps I’ve taken to succeed in “dark” times:
Identify When the Economy Will Take a Turn
- Wall Street. Look for rapid drops in major markets for consecutive amounts of time. When this happens, most investors start to sell and take higher losses, which in turn creates great opportunities for savvy investors. The common phrase associated with smart investing is, “Buy low and sell high.”
- GDP. Gross domestic product is the monetary value of all the finished goods and services produced within a country’s borders in a specific time period. When GDP is continuously dropping, it’s a sign that a downturn is close.
- Loan ability. Talk to your banker on a regular basis; look for them to tell you that they aren’t loaning much and qualifications are becoming more obtuse. When banking opportunities start running dry, it squeezes the economy as well as business owners. This can create great strategic opportunities if you have money in the bank and are looking to buy out competition.
- Inflation. This means your dollar can’t buy as much in a short period of time as it could before.
When all of these signs occur, there’s a strain on businesses and consumers, giving strategic business owners great opportunities to buy.
Prepare Yourself to Take Advantage
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