You can always pick them out of a crowd…

In almost every speech I give, I can point out the business owners without ever talking to them. They’re typically very interested in my speech about the direction of our economy. They lean forward a little. They pay close attention.

And they don’t look happy.

They look worried and a little worn down.

These are the people – like you – that exist at the sharp end of the economic stick, living and dying with the business cycle. 

You have a right to be cautious. It’s dangerous out there. But you didn’t get to where you are by allowing fear to paralyze you. Instead, you want to know what you can “do” to survive and prosper in the years ahead.

So here’s a list of five things the small business owner can, and really MUST, do now…

#1: Don’t be fooled by talks of recovery

When the best description of the economy is “anemic” after the worst downturn since the Great Depression, you know things aren’t right. Jobs are scarce. Prices are rising. This doesn’t end well.

Don’t be lulled into a false sense of security by talking heads, politicians or even a crack-addicted market. Instead, stay grounded. If you’re looking for more in-depth analysis of what’s happening in the economy or markets, listen to Harry’s monthly webinars.

#2: Know your clients
Upscale clients have their wealth. If this is your market, be thankful and sell to them like crazy. When the equity markets roll over again, this group will go back underground. Their spending is the most elastic, growing and contracting with the feel of the markets.

If you sell to anyone else, then the squeeze will continue. $4 gas, rising health and education costs and falling incomes all amount to one thing: a squeeze on your profits.

#3: Focus on repair, rebuild, renovation
From cars to electronics to lawn equipment, the market for used goods is flying. It takes a legion of people to keep all of the used stuff in operational order. If you don’t have a service department, consider creating one. If you do, advertise the heck out of it.

#4: Secure your lending

Another round of credit crisis is coming… soon. That’s why large companies are raising cash through debt. They refuse to be at the mercy of banks who freeze or call lines of credit. Do the same thing as the big boys. Borrow money and bank it, especially while rates are cheap.

#5: Identify weak competitors
Finally, the best defense is a good offense. Know your space and who’s in it. Understand who among your competitors has the best clients. Then make them your acquisition target. When things get ugly, go on a buying spree. This will set you up for years to come.


Rodney

P.S. Yesterday, Harry wrote to you about how the lies government insists on feeding us are doing nothing but protracting the economic pains and delaying the inevitable correction. This is a point we feel very strongly about: it’s unacceptable that the likes of you and I must suffer and pay for reckless behavior and childish shenanigans. We’ve had enough. I’m sure you have too. That’s why we want to make you aware of the three biggest lies government is trying to feed you at this very moment. Knowledge is your first line of defense. Click here to take your stand.

Is Your Portfolio Ready for What's Next?

Investing is no longer a set-it-and-forget-it affair. If you’re still using that outdated approach in today’s irrational markets, you’re setting yourself up for massive losses and a difficult retirement. There’s a much… Read More>>
Rodney Johnson
Rodney works closely with Harry to study the purchasing power of people as they move through predictable stages of life, how that purchasing power drives our economy and how readers can use this information to invest successfully in the markets. Each month Rodney Johnson works with Harry Dent to uncover the next profitable investment based on demographic and cyclical trends in their flagship newsletter Boom & Bust. Rodney began his career in financial services on Wall Street in the 1980s with Thomson McKinnon and then Prudential Securities. He started working on projects with Harry in the mid-1990s. Along with Boom & Bust, Rodney is also the executive editor of our new service, Fortune Hunter and our Dent Cornerstone Portfolio.