Forums: Discussions for entrepreneurs and small business.

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Rich Sloan , Co-Founder, Chief Startupologist, StartupNation

Hey Rich, nice article :-D

I think I`d mostly suggest "diversify." I dunno if it`s an age thing, but it seems to me that most folks I know tend to think of "income" as coming from 1 source. It could be their job, their portfolio, their business, whatever...but it usually is a single answer to the question: what do you do for a living?

But in tough economic times, it seems that having multiple sources of income is just like having a diversified portfolio. It`s a way to hedge bets.

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Rich Sloan , Co-Founder, Chief Startupologist, StartupNation

I think financial planning is great in either extreme - either a burning hot economy (I want to make more money) or a screaming cold economy (I don`t want to loose too much money).

Entertainment is also good at either extreme.  In hot times, I have money to burn and in cold times I like to spend a little money to make me feel better and forget my troubles.

Finally, look at the stock market, who does good in bad times - the providers of the basics, like the P&G`s of the world.  Not sure how many small businesses would fit into this category though.

Discount box stores like Costco, Sam`s, BJ`s, etc. do well during down markets as people know they save money by buying larger quantities.  If you are willing to buy items in big quantities club stores generally have a 12%-14% margin on their products vs. 36%-45% in grocery stores.  Most people feel it`s Ok to buy filet mignon when it costs half the price you`d spend at a grocery store by buying it at a club.

Actually, I think a specific "screaming need" these days, is a better way to post job openings. Reading your actual article, it seemed like you were discussing strategies, but for something specific, it`s the finding jobs.

It may have seemed like a good idea to take job applications online, but we`ve reached a point where it not only isn`t working, it`s acting against the best interests of both employers and possible employees. I think it speaks to the over-centralization of a "web" location, which almost seems like a contradiction in terms. But we need a way to get personal again, across the board.

Big Box stores and chains, with last-minute inventory management are failing. The worse the economy gets, the more direct and immediate the distribution channel will have to become. It`s why customer service is so bad in so many places---that lack of direct, neighborhood understanding.

So I think there`s a massive need for localized Web sites that get into details of what a town or section of a city needs, and puts people together for exchange. It`s where Craig`s List began, but now that`s become confused. So a better organized CL type of thing.

Pawn shops, consignment stores, thrift stores, check cashing businesses, and online learning (people really start thinking of a better career when the pocketbook suffers).

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Get Out of Debt

Debt workout, mortgage workout, anything that cuts debt and reduces a consumer`s monthly spend.

In: do it yourself debt workout, mortgage short sales, mortgage workout.

Out: "credit counseling".

--Richard



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Richard Geller, Entrepreneur
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Cupcake bakeries seem to be "screaming hot".