The initial reaction of Pinoy Entrepreneurs, or any businessman or anyone for that matter, upon hearing the term “recession” is naturally a negative one. If there’s any agreement when it comes to defining recission, it’s that there’s no universally-accepted definition. Some defines a recession a a decline in a country’s real gross domestic product (GDP), or negative real economic growth, for two or more successive quarters of a year. Economists say that the US could go into a recession, pulling down the global economy, the Philippines included. Philippine officials, however, are quick to add that the Philippine economy could weather any external recession.
Regardless of whether there is recession or whether it will affect the Philippines, it is always prudent for the Pinoy Entrepreneurs to consider such fact in decision-making. The same could be said about the Pinoy’s personal finance.
Make your business recession-proof. The negative impact of a recession is inevitable. The impact may be harsher to some business than others, but no one willbe spared. Real estate business could be seriously affected, as buyers hold off purchases until after recession. As will be discussed below, however, there are also opportunities with recession. In general, a Pinoy Entrepreneur would do well to anticipate the impact of recession on the business and it’s always better to be prepared than simply hoping that the adverse effect of recession won’t come. BusinessWeek (Recession-Proof Your Business), for instance, suggests that the entrepreneur should continue to get the word out about the business and keep personal credit ratings high.
Make your personal finances recession-proof. If there’s a need to recession-proof any business, it’s also true that there’s a need to recession-proof personal finances. CNBC lists some ways of doing that, including the diversification of one’s ability to earn money and managing debt. Of course, it wouldn’t hurt to save more by paying yourself first. Diversify your sources income (or, in Filipino, “damihan ang raket”). Spend less. Save more. Stay out of debt. Stay liquid.
Business opportunities in recession. It would seem improper to profit from another persons grief, which is plenty in recession, but if you do not provide a service then surely, someone else will. This is noted in one article, which goes on to use the real estate as an illustration — the greater the number of properties that are re-possessed and that could mean some good business if you are involved with garden maintenance, for instance. With the expected rise in lay-offs and unemployment during recession, some recommend starting an employment agency, a life coaching service, a personal image consultancy, job skills training, or a resume writing service. Pawnshops appear to thrive when credit sources are drying up. There are other areas to consider and perhaps our readers could make other suggestions through the comment section below. The Pinoy Entrepreneur will see opportunities even in a recession, if ever it comes.
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