The Rich get Rich

closed Did you hear? It may be hard to wade through all the job cuts and plant closings, but Intel is actually expanding. Yes, expanding here in the US! Thestreet.com has an interesting article on how this is an example for small businesses. If you follow my blog, you know that kind of thinking is right up my alley.

First, let me clarify some things. If you have no money, I am not suggesting that you go out and expand with tons of debt with no real plan or purpose. Having to resort to downsizing your business is a reality for many owners and managers right now. I don’t want to make light of the very real recession many of us are experiencing in one way or another.

All that said, though, there are some businesses that have been doing quite well. If you ask them, they say “recession shmecession! I have the same business I’ve always had. In fact, I’ve been getting some new customers!” For these lucky few, its time to start thinking big.

There is no better time than a down market to expand your business. Think of it like this- if you buy stocks in publicly traded companies with solid financials and a plan for the future, history has shown us that you will probably do quite well. Many people invested heavily during the depression and became richer than ever after the depression was over. Stocks became undervalued during the depression.

During this recession, several things are becoming undervalued:

Employee Costs
Land
Buildings/Construction
Advertising
Outside Services

Investing in the above items wisely could prove far more profitable than investing in the right stocks. Now is the time to take your business into the next phase, and maybe break out of “small business” forever. Gain market share, start a new product or service, add jobs, open a new office in another area- the choice is yours!

I am not writing this simply because I want you to do well. If you are sitting on some cash or some opportunity, it is your obligation to spend it! The only way our economy will recover is if we all pull together and loosen up those purse strings. Hanging on to your cash because you are afraid of what might happen to your business could very well become a self fulfilling prophecy.