Bust and Boom Economies
Downtimes are inevitable. We must learn from history that economies are cyclical. Over the last hundred years there are economic good times followed by recessions or depressions.
So how do we protect ourselves against downturn losses? Do not invest what you cannot affort to lose. Do not leverage you revenue producting property higher than your incoming cash flow. Do not expand your business at the peak of the ecomony just before the next downturn. Always keep a nest egg of capital at your disposal.
Try to own and operate businesses in areas of the country that have economic strength. Try to get away from fighting the uphill current of stagnent economic situation. Sometimes you just cannot overcome a local bad economy that resists growth. Take a look at the big picture and see what is happening around you.
Written by: Howard R. Sinclair
http://www.businessadvantagealberta.ca
