MLM + the Economic STORM => Some ThoughtsHello Partners:
It's no secret that our economic world is in financial chaos at this time.
I'd like to share with you some 'strictly personal' thoughts about this (so called) catastrophe - - -
The Wall Street // Main Street financial crisis started with symptoms of panic - followed by an infection of fear - and then distrust.
Nervous investors and worried baby-boomers + retirees have seen their portfolios and their 401k's murdered - panic selling resulted.
Despite the actions already taken by the White House / the Treasury / the Federal Reserve - stock markets in the US / Canada / Asia / Germnany / Japan and Europe have (thus far) continued to free-fall - and liquidity with banks has remained frozen as I write this - which means that businesses and consumers are having difficulty getting credit for their operations, their purchases, etc.
Fortunately, we're now seeing a critical and timely "wholistic" approach to solving the crisis, where the G7 countries have now declared they'll be "co-ordinating" their economic efforts on a global scale, including the injection of fresh capital into the banking systrems where necessary. This is an unprecedented but welcome event in itself.
No DEPRESSION - The economy is not at risk of falling into another Great Depression most experts agree - but certainly, the nation could be facing its worst economic downturn since 1929 - with a prolonged and painful
RECESSION looming.
BOOM // BUST - The past ten (10) boom years, called “the Golden Years" could perhaps more aptly be labled - the “Age of Irresponsibility” - where both government and consumers went on a wild and reckless "spending spree" - "having it ALL" - piling up mountains of crushing DEBT.
Yes, easy CREDIT has been king -- high LEVERAGE was the name of the game -- in the housing market, the stock market - you name it. No longer - at least not for a while.
DOWNSIDE -
IF the right government and private 'rescue' tools are NOT put into place - and the correct action is NOT taken - what could all this mean?
Here are a few thoughts - - --- Unemployment could rise from 6% to over 15%. Many small businesses will fail - many employees will will lose their jobs
-- Home prices could go down for the next 2-3+ years, and in some areas, could drop 30-40 % from current prices
-- Large and small banks could fail worldwide, and "bank runs" could be a common - cities and states and countries could see bankruptcies
-- As the Fed prints more and more money "out of thin air" to try to stop the bleeding - the US Dollar could fall 30-50 % from current levels, causing heavy inflation
-- Many, many in the Middle Class could lose their homes and slide into years of poverty
MATERIALISM - Financial chaos might hurt in the short term, but
is it making people think about where the relentless pursuit of "materialism" has led them over the long haul? Hmmm. That's the problem of the American Dream, isn't it? Where does it end?
Most people have been chasing the idea that they'll be happier if only they have "more and more". And yet, that's a dead end, because none of us is really any "happier" - long term - when we finally get that big-screen TV - that newer home - that classier car - on and on.
UPSIDE - Here's the thing => during all the financial and emotional carnage, there will also be opportunities to prosper, and many new millionaires will emerge. Already, savvy investors are starting to 'buy up' shares - at bargain prices - in good solid companies for example.
We could also see stronger banks / financial institutions - 'unfrozen' markets - greater transparency / regulation - and international supervision - being four of the major keys to recovery.
REALITY - But none of this will be easy. Some of it poses risks for us as taxpayers. All of it is decidedly unattractive in the sense of large "official" intervention in what should be "private" markets able to stand on their own feet. Unattractive or not - in normal circumstances, the point is - it seems that the needed tools to restore and maintain functioning markets and liquidity are there. Now is the time to use them - backed by forceful and persistent leadership in the new US administration and Congress - with both the public and private sectors being involved.
BLESSINGS? - Recessions usually bring a few 'blessings in disguise' - wiser and more cautious decisions ((hopefully, we'll spend less on foolish stuff - save more - smoke less - become fitter, thinner and greener - and the roads will be safer (less traffic - less crowded :-))
So, Where Does This Leave Us as
HOME BUSINESS ENTREPRENEURS?
What do WE - as Home Business entrepreneurs - do in the midst of all of this?
Since my professional background is as a Financial Advisor, I'll put that hat for a moment...
CAUTION - For starters - this is a time of caution. It's not a good time to take great risks in either our jobs, businesses, professions or our personal lives. Rather, it's better to carefully consider any purchases or major moves - and if possible - to wait. Unless we are faced with an emergency, we wait (again, my opinion).
INVESTMENTS - Nevertheless, IF we're in good financial shape - there ARE indeed some good stocks and mutual fund values out there - depending on our age, risk tolerance and comfort level. :-) In addition, a percentage of our resources should include "precious metals" (gold / silver).
It's also a good time to PLAN for our future and to set GOALS - to ask ourselves what we really want to do with the next segment of our lives, and spend time doing the research we need if we want to move in any new direction.
As well, it's great time to start improving our FINANCIAL literacy and our understanding of the economic world - so that when things do turn around, we'll be ready. I know people who are poised now to buy things at bargain prices with the knowledge that they will benefit in the future.
Because times are (will be) leaner, staying in close touch with our MONEY is a wise move. Now is the time, if we haven't done so before, to start keeping track of our spending and earnings - getting to recognize our own patterns.
OK - what else? - - -CHANGE - I believe we'll need to 'adjust' our expectations somewhat - that things will not necessarily 'be business as usual' - at least for a while. We'll need to work more effectively - more creatively - with our minds 'open' to new ideas and change.
OPPORTUNITY - Yet this is an absolute time for "opportunity" too. If history is any guide, recessions come and go. We've had a number of them. Times of prosperity always tend to follow recessions. We need to prepare ourselves for this by looking for "positive" things in these times.
Some people will be affected by mass-panic and they are going to follow the crowd - but there will be a few who will just step back and watch the dust settling.
INTERNET - There's no recession or financial shakiness on the Internet right now. Many Online marketers are using financial and business principles that are enabling them to build high net worth positions as they create wealth from home.
Searching For ALTERNATIVES - As some people find themselves out of a job - or their earnings dwindling - they will look for ways to "earn money" - not just additional income. They will start their own Home Businesses and look for ways to gain Customers (and Associates, in the case of MLM).
Typically, our NETWORK MARKETING // AFFILIATE MARKETING // INTERNET MARKETING industries do well in these times.
FEAR? - To quote Dr. Ivan Misner, Founder of BNI (Business Networking International -
www.BNI.com/ ) - "... there's nothing like good old fashioned fear to freeze an entrepreneur in his or her tracks! -- "Now, please, lean in close and listen carefully. I'm going to ask you to do something difficult, yet very important - Ignore all those doom and gloom voices. It's not that I want to deny reality. Nor am I judging whether all those important voices are right or wrong. What I am saying is, all those voices are sending you useless information. Not only are they urging you to be afraid … very afraid … they are completely ignoring the SOLUTIONS on which you need to focus!"
Personally, I say he is dead ON -- Bravo, Dr. Misner! It's a 'mindset' thing (the 'glass is half FULL -vs- half EMPTY) - it's a pyschological decision we all must make individually.
If we tell ourselves - "I can't succeed in this economic downturn" - we probably won't. But if we focus on specific solutions to the particular issues and challenges and opportunities of our business - our niche markets - our current and prospective customers - we are likely to enjoy more success than all the "naysayers" put together would have predicted! :-)
JOBS - Now, for a lot of people that do not have any alternative to the
9-5 “J-O-B” situation - yes, I guess there really could be cause for concern.
And for sure, when job losses occur, there's less disposable income going around for
our products and services and opportunities.
SAFEGUARDS - But for those Home Biz entrepreneurs that have “vision” and can “see” the power of RESIDUAL INCOME - of LEVERAGE and DUPLICATION of effort - the direction to take is very clear.
MLM - Being engaged in a NETWORK MARKETING business means there are some 'built-in protections' that cannot be found in most jobs - self-employment - businesses and professions. We become part of an industry that doesn’t 'depend' on a lot of the same infrastructure that traditional businesses do.
We depend on our organizations - which are PEOPLE - people of like-mind, that can dream big dreams - and who are dedicated to sharing with others - and who receive great rewards for helping to 'enhance the lives' of others.
LOA (LAW OF ATTRACTION) - I myself LOVE this cause - it's based on the principle of GIVING - becoming SOLUTIONS Providers to others - and thus, we "attract" those who seek answers to their questions - solutions to their problems.
A BETTER LIFE - Yes, we in Network Marketing are part of the one of the greatest opportunities in the world in my opinion. And we're not constrained by territorial boundaries or restrictions that may inhibit 'others' from growing their (traditional) businesses. Our opportunity is only limited by our own vision and our desire and determination for achieving a better life.
But, we need to start right NOW - not wait - we need to start sharing our "message of HOPE" with everyone we know.
Planning NOW for => 2009
To close, I'd like to share a formula I got from Dr. Phil Humbert (
www.PhilipHumbert.com ) - for making our
PLAN for 2009 - - -
Reviewing our achievements - and making choices about how we'll invest our time and energy in the coming year - is
the most important thing we do right now. The care with which we review the past year - and the precision with which we plan the new year - ultimately determines the quality of our lives. And it's best done "before" the holidays, when there are SO many distractions.
A great life is the result of accurately assessing what's working, and making a precise, thoughtful and detailed PLAN for the future. Sure, our plans may not work out in every case, but a PLAN gives us a chance. Without a good Plan, we're just wandering through life. Let's not let that be "us".
The "4 D's" for making an effective PLAN (courtesy Dr. Phil Humbert - slightly edited):
1)- DREAM - Some people call this a "vision" or something else, but whatever term you prefer, as Stephen Covey says, you must "start with the end in mind." If you can't dream it, you'll never achieve it. What do you want? Where would you like to go? How much do you want to make? Who will be with you? Dare to dream BIG!
2)- DECIDE - Some dreams will always remain dreams, wishes or fantasies. I think day-dreams are healthy and that's fine. But some dreams deserve the chance to come true! At some point successful people make a clear decision to "go for it." They commit to a result, with no turning back and no excuses. Some dreams are just dreams, but other dreams deserve your best efforts and it's up to you to DECIDE.
3)- DESIRE - When things are tough, only a "burning passion" and an "insatiable desire" will keep you going. Passion is what makes life worth living! Passion, desire and faith get us up early and keep us working all day long. When the financial markets collapse or friends laugh at our ideas or customers won't buy, DESIRE keeps us going. Desire is the "north star" that guides successful people. Fuel your desire and it will power your dreams.
4)- DAILY ACTION - Daily discipline - daily effort, -daily action to make your dreams come true is the KEY to all success. We've all heard that "a journey of a thousand miles starts with a single step." That's true, but we forget that a journey of a thousand miles also requires many additional steps! Each one is easy and simple, but it must be taken. Most dreams are like that. Individually, each step is reasonable and easy, but each one must be done at the right time and in the right way. There is no alternative but daily action.
Many people remain confused or ambivalent about the quality of their life. WE have the chance to be or become whatever we choose. WE can have or do just about anything we can imagine.
Let's set our sights high
Let's be clear about our Decisions, our Desire and our Daily Actions.
We CAN have the life we truly want! :-)
I appreciate the priviledge of posting here at Tony's excellent Forum.
Sincerely / Peter A.
www.PeterArnoldOnline.com Peter Arnold, CLU, CFC // Founder
Business Achievers Academy // Canada
Executive Director // The DRA // Canada
(Distributor Rights Association -
www.TheDRA.org )
