Small Business Reading Room

Monday, May 02, 2011

WHY BAD ECONOMY IS A GOOD THING?

We all know too well the effects of this economy on each and every one of us. This article I have read is worth knowing that with all the negative things you hear, there are actually some good things that can come out of bad economy.

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

Strengthening relationships. When the economy is good and you are buried in business, you probably don’t spend much time nurturing relationships. Whether it’s with your family or friends, now you have no excuses. You can give time to strengthening those relationships and help reduce stress at the same time.

Scrutinizing spending. As an entrepreneur, you probably don’t mind spending on some added expenses because you are not hurting financially. During this tough economy, you begin 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.

Monitoring cash flow. During a strong economy people usually let the money fly, whether at home or at work. They spend freely, without giving it much thought . But during a down economy, you will be forced to keep closer tabs in 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.

Back to basics. A rough economy will get people back to doing more of the free or low cost basics that help to build strong families. Before ,you spend a lot of money going out to expensive restaurant . Now you can prepare a home-cooked meal with your loved ones and save a lot of money. Same goes for your business- rather than putting out money on elaborate parties, you can opt for low cost picnic-type ones and still have fun.

Get creative. During a strong economy, most people just go with the flow and reinforce the status quo. But during a weak one, 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.

These are just examples of the good that can come out of a tough economy. A poor economy will make you better at managing your money, tracking your spending habit and even creating stronger bonds with people. And that is a good thing!

posted by daisy at 3:25 PM - permalink 0 comments

Small Business Reading Room

WHY BAD ECONOMY IS A GOOD THING?

0 Comments: