With the coronavirus spreading havoc, and the stock market dropping, it makes sense for you to feel like the earth is wobbling.
When I was younger, I might have panicked, but not anymore.
While the coronavirus is a serious global concern, I believe that the majority of its economic impact will prove temporary. As a virus, it may be no deadlier than the Flu, and no more contagious than a Flu pandemic.
The sky is not falling, and in a year from now, this will be in the past.
And yet it is still impacting the economy now. Should you be overly concerned?
My intel says that the economy is doing fine on a macro level, despite the economic bumps this will cause.
In our global economy, a strong economy has become a relative measure.
The US is stronger than most other countries and regions, and so capital (money) streams in from investors in those countries to ours. They have confidence in us. That bolsters our economy.
So as other countries have bigger hiccups than us, the money will continue to flow into the USA.
What about the elections?
Regardless of who is elected President, Republican or Democrat, we will do fine. (Even if it’s Bernie, I believe moderate forces on both sides will keep him in check, but I don’t think it will be him.)
As my mentor says, “Our country was founded by geniuses so it can be run by idiots.”
Normally in an election year, the economy softens, and that has not happened yet. It may still happen, but it actually may not. We are in different times.
It should be noted that both Republicans and Democrats are overspending. I never thought I would live to see this, but fiscally they both are racking up debt. At some point, we will have to deal with that. But not today.
Given our low unemployment, and other global factors, I expect the economy to keep chugging along.
So what does that mean for you?
- Don’t panic, keep your eye on long term growth.
- Talk to your suppliers to see if their supply chains are being disrupted, and what this means for you.
- Find out if your clients income is impacted by disruptions to the international supply chains or by the stock market (which is already rebounding.)
- The expansion of your business is still a valid initiative, unless you are retiring in the next 12 months.
- Develop a war chest to use for hiccups like this one (you have heard me say this over and over!), and for acquisitions.
- Don’t forget to build your business to be more salable when it is time for you to sell i.e. think about tomorrow while running today.
- Profitability should be optimized – most companies leave 10 pts of profit on the table – now is the perfect time to be increasing returns on your business.
- Have fun! Business and life should be fun, don’t panic.
Certain trends will grow, like freelancing and working from home. Keep an eye out for the opportunities and the positives that come out of this crisis!
Take care of yourself. And to protect yourself from catching the Flu or Corona – the best thing you can do is to wash your hands thoroughly after being in public; carry a hand sanitizer while travelling; avoid shaking too many hands (think fist bump); avoid touching your face (mouth, eyes) with your hands, and if your household is susceptible, get a flu shot.
God bless you and all in your household.