THINKBIGBEBIG ENTREPRENEURS » Credit Crunch http://www.thinkbigbebigentrepreneurs.com Wed, 08 Sep 2010 12:00:11 +0000 english hourly 1 http://wordpress.org/?v=3.0.1 How to survive a Credit Crunch http://www.thinkbigbebigentrepreneurs.com/2009/03/how-to-survive-a-credit-crunch/ http://www.thinkbigbebigentrepreneurs.com/2009/03/how-to-survive-a-credit-crunch/#comments Tue, 31 Mar 2009 15:59:09 +0000 Timothy Bosworth http://www.thinkbigbebigentrepreneurs.com/?p=1066

Last week I had a very hard conversation with one of my friends who was discussing whether he should shut down his business.  He was feeling particularly low which was not nice to see for someone who was ordinarily up beat.   

What I took away from our conversation was that in economic down times you have to do the following:

  1. Look for alternatives -  This can either be with your current supplier, or evern just a change of outlook
  2. Be realistic -   Is your business going to survive?  Do you have enough money to pay bills, staff, or even yourself
  3. Plan to fail  - This ensures that you know what to expect if the proverbial …..hits the fan
  4. Research – Knowing your market through active research will help you win new business and be more cost effective.
]]> http://www.thinkbigbebigentrepreneurs.com/2009/03/how-to-survive-a-credit-crunch/feed/ 0 Credit Crisis Visualized http://www.thinkbigbebigentrepreneurs.com/2009/02/credit-crisis-visualized/ http://www.thinkbigbebigentrepreneurs.com/2009/02/credit-crisis-visualized/#comments Wed, 25 Feb 2009 10:13:53 +0000 Timothy Bosworth http://www.thinkbigbebigentrepreneurs.com/?p=823


Here’s a short and amusing video that describes what the credit crisis was all about in simple yet effective terms. Enjoy.

]]> http://www.thinkbigbebigentrepreneurs.com/2009/02/credit-crisis-visualized/feed/ 0 Supply and demand http://www.thinkbigbebigentrepreneurs.com/2009/02/supply-and-demand/ http://www.thinkbigbebigentrepreneurs.com/2009/02/supply-and-demand/#comments Fri, 06 Feb 2009 18:02:03 +0000 Timothy Bosworth http://www.thinkbigbebigentrepreneurs.com/?p=572

  • People face trade-offs.

Every decision involves choices, and more of one good means less of another good. Income and wealth are not limitless, since there is only so much time available. Trade-offs apply to individuals, families, corporations and societies.

  • People respond to incentives.

If rational people compare costs and benefits, then changes in either one may change decisions. An example of an incentive that people respond to, are changes in prices. In general, people are more likely to buy something if it is cheaper. If an action becomes more costly, then there is an incentive to switch to other choices. Note that all actions have substitutes.

With this being the case when the supply of a good or service is greater than the demand, you will naturally get a situation of market saturation. With our current economic climate being less than the perfect ecomic model, it is important to remember the basics.
TOP 5 THINGS TO REMEMBER IN A RECESSION
  1. Value Proposition - What do you stand for.  What makes your product service, concept or idea special
  2. Brand Proposition - What defines you?  Is it your service level, or  is it your price point.
  3. Customer Retention – Look after the customers that are currently spending money with you
  4. Cash is KING – You have to ensure that money continues to come into your business.  Don’t do what everyone else is doing and lower your prices.  All that does is say “Hey I don’t think my product is worth the money”
  5. Time is a healer.  It may have been something your mother once told you when that girl (She shall remain nameless) broke your heart!  

However the principle still applies.  All economies go through ups and downs until they reach a natural equilibrium again.

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