daily blog

Many parts of the world are in recession or at least facing a downturn in the economy. At these times, redundancies and cutbacks are announced on almost a daily basis. Like all events, the current economic challenges present the opportunity for learning for current and aspiring business leaders. So what are 5 key lessons from the current recession?

Lesson 1: Take a long term view

Businesses exist or are established with a view to growing and existing for a long time. With so much information so freely available about opportunities to make gains now or the constant focus in the media about how bad things are, it is easy to lose sight of the bigger picture. By keeping a focus on the bigger picture and recognising that the economy generally goes in cycles, you can avoid taking short term decisions which are not in the best long term.

Lesson 2: Don’t put all your eggs in one basket

In business it is important not to put all of your eggs in one basket. It is important to have a portfolio of products and/or services so that you can spread risk and reduce the impact of downturns in the economy. This is exactly what we do when it comes to investing or saving. We have a range of options to spread the risk.

Lesson 3: Continually innovate

Successful businesses don’t stand still. They are continually looking for new products or services they can offer or new and innovative ways of offering what they currently have. In large organisations it is easy to become complacent, to stop looking out for ways to address an unmet need or to believe that the good times will stay for ever. Having different products and services at different stages of the life cycle is important and this requires constant innovation.

Lesson 4: Focus on the way forward

Pick up any newspaper, listen to radio or watch TV and chances you will come across lots of negativity about how difficult things are. While without doubt things are challenging at the moment, there is little point in investing time and energy focusing on what has happened. Time and energy focusing on the way forward is much more productive and beneficial than focusing on what has happened. Make a commitment to focus on how you move forward and achieve even more success.

Lesson 5: Expect uncertainty

Uncertainty is part of parcel of being in a leadership role and it is essential to your success that you expect, accept and prepare the best you can for uncertainty. Regularly look at trends in the area which you operate. Consider what might create uncertainty. Develop your ideas on how you will address the uncertainties if they arise.

Bottom line- The economy will always go through periods when it is strong and periods when it is weak. As a leader you need to prepare yourself the best you can to prosper in both good and bad times. I invite you to take the first step by signing up for my free e-course and monthly newsletter at

http://www.goalsandachievements.co.uk

Duncan Brodie- Goals and Achievements

The great housing boom of the nineties and onwards was a time of endless building and big dreams, but these things cannot last and the inevitable downturn has occurred with house prices and value falling at record rates.

We all knew this day would come, as change is inevitable; but many of us have been surprised that it took this long for things to turn the other way. Today the marketplace is significantly different and affecting all major sectors of the economy, with slowing business growth, falling house prices and difficult credit conditions dramatically altering consumer spending and confidence.

Outside of the financial sector, homeowners and potential home buyers are paying most attention to the grim news circulating around Britain’s media. This is a time for information gathering and measured thinking, not rash decisions and blunt generalisations. Whatever your view on the current state of the economy and housing market, it cannot be ignored.

Britain is more vulnerable to an economic slowdown because of the high levels of debt held by many households that are well used to the widespread spending that typified the good years. Now higher interest rates have seen spending replaced with more cautious behaviour as more people become aware of the perils of these uncertain times.

The high cost of housing in the last decade has not helped as house prices have not really corresponded to income levels. People now have little to be optimistic about as house prices suffer their sharpest monthly falls since the early 1990s, down 11% compared to this time last year, 2007.

Hundreds of thousands of homeowners are looking to renegotiate or compare mortgages, only to find that their choice of available deals has decreased dramatically and average borrowing costs have risen sharply as banks struggle to cope with high lending rates and falling profits.

New buyers looking to get their foot onto the property ladder don’t fare much better when comparing mortgages. 100% mortgages are, for now anyway, a thing of the past while average two-year fixed-rate deals are less attractive than previous years and new mortgage lending has fallen to a 15-year low.

This property malaise has swept across the US and UK and is rapidly affecting other countries too as news of mortgage brokers, estate agents and house builders shedding jobs due to lack of demand is now common place in the national media.

It is understandable to wish to turn away from the somber news of negative equity, repossessions, and mortgage struggles but now is an important time to take stock, examine your spending and speak to your financial advisor. Patience and reliable information are key, it is important to acknowledge that this is a period of change, but also to remain upbeat as after the rain, there is always sunshine.

Adam Singleton writes for a digital marketing agency. This article has been commissioned by a client of said agency. This article is not designed to promote, but should be considered professional content.

For a successful investment, you need to buy low and sell high. Unfortunately, this is not happening for most people in today’s real estate market. People are panicking. And as a result are selling their homes for less than what they paid for them. All across the country, sellers are bringing money with them to closing just to get out from under what they view as a sinking ship.

In the current market, it is a better idea to hold onto property until the market turns around rather than sell while prices are low. Right now, homes are staying on the market for twice the amount of time that they would have only a short while ago. And they are selling for less. So, if you do not want to sell your home at a loss, it makes much more sense to hold onto it.

This doesn’t mean that you have to continue living in your home though. You could rent out the property and rent another place in a new location or purchase a new home using the equity that you have built up in your home. When the market improves, you can sell your rental for a profit.

If you have owned your home for a good while, you could realistically rent it out for an amount larger than your mortgage payment. The rent you collect may also pay for insurance and property taxes. This will enable you to move into a new home and hold your old home until the market improves.

However, this method is not free from responsibility. Any repairs that need to be done on the property will be done at your expense. You will also have to claim the income that you receive from rental payments. But you will probably be able to benefit from a large profit when all is said and done.

The bottom line is this: Don’t panic. Hold onto your property until the market has a chance to turn around. Downturns have occurred before, and the housing market always recovers. You just have to hang on until it does.

Sal Vannutini is the author of ” The 8 Power Profit Secrets To Making More Money With Less Risk In Real Estate, ” a free strategy report for investors. Get your complimentary copy at http://www.FastFixerUpperProfits.com today.