...
🛫 Read more about info business, financial literacy, personal growth. Internet business, online business, investments, income, professions, profitable investments, deposits. Success stories, self-development, personal growth.

How to make money in a crisis

7

The economy is constantly changing: it depends on foreign and domestic policies, unemployment, purchasing power and other factors. We talk about how to make money in a crisis and save your savings.

First, it is worth accepting the fact that the crisis is natural. It is cyclical, and on average happens once every 10 years, unless, of course, other factors have influenced it. Now we are facing a crisis in several areas at once: information, economic and medical.

The latter was revealed with the onset of the pandemic – there were not enough doctors, hospitals, or medicines. The economic crisis came with the start of the military operation and is aggravated by the fact that business has not yet recovered from the pandemic. An information crisis is information noise: fake information, unfounded opinions, etc.

So, the crisis is what redistributes finances. The bottom line is to understand from which niche to which you need to move. So, for example, if Aeroflot shares fell with the onset of the pandemic, then ZOOM shares soared.

How to make money in the crisis of 2022

So, there are several main ways. First, you can buy assets that have fallen in price. How can you make money on commercial real estate in a crisis? Buy something that has fallen in price, but will rise in price later. However, you need to understand that this is a long-term investment for at least 5 years. In addition, there is still a risk that the price of the asset will not rise. Secondly, it is possible to find a new use for the resource, which during the crisis turned from an asset into a liability. For example, come up with a business in hotels that are idle in quarantine.

Thirdly, buy what demand has grown. For example, start producing masks and antiseptics. Finally, another option: develop your business so that when a competitor leaves the market, take their place. If a niche has “sunk", this is not always a reason to immediately think about bankruptcy, it makes sense to work twice as hard.

So, in order to understand what to do next, you need to decide what will be in demand. Here are some options.

Internet Services

This includes the development of applications, websites, stores, and online cinemas, delivery services, and online education. Firstly, analogues are leaving the market: we cannot study on Coursera, buy clothes in many foreign boutiques, or launch advertising on Instagram. People need to somehow develop their business, they still want to buy beautiful things or make repairs in the apartment. You can take the place of competitors or enter with a new product. However, it is worth considering what segment of the audience you are working for.

Everything at the base of Maslow's pyramid

These are, for starters, physiological needs. These include the need for quality sleep, food, quality rest, and a comfortable place to live. How to close them? For example, open a small production of products: chocolate, cheese, desserts. Another option is to make your own clothing brand.

The second level is the need for security. Services of assistance in emigration, fast registration of a foreign passport, etc. began to be in demand. Those who do not want to go abroad try to make themselves feel safe at home. The third step is the need for love and belonging. The popularity of the services of psychologists, interest clubs, etc. is growing.

Anything that solves the problem

In a crisis, there are more problems, and surprisingly, this is a plus for competent entrepreneurs, not a minus. People pay for solutions they haven't found themselves.
Think about the challenges people are currently facing, which ones you can help overcome, how to offer solutions for money.

It should be borne in mind that in the case of creating a business in a crisis, speed is very important. You don't have to compete with huge companies, but you do need to outrun a dozen others.

How to make money in a crisis

What else can be done?

The best thing to do is to prepare in advance. This means that you must have a financial cushion for yourself and for the business, if you have one. The longer you can live on the money saved, the more relaxed you will be and the more opportunities you will be able to take advantage of.

Someone will say that the above tips are only suitable for “soft” crises. And what to do, say, in case of default? Again, there are several options. First, consider that your contribution may be frozen. Secondly, to buy real estate, which in general is not very profitable now. Demand is growing, and so are prices. A lot of properties are overpriced. Finally, the purchase of currency. Well, if you had savings in dollars or euros.

The most reliable option, perhaps, is either investing in a business that you plan to develop, or buying European or American blue chips. It may be worth buying machinery, equipment and similar resources if the price of them has increased slightly.

How to make money in a crisis

Conclusion

All that is described above are just ideas of what can be done. You will have to decide how to proceed. We have described basic economic advice. This includes portfolio diversification, and the creation of a financial cushion, and the search for new solutions. Try to see opportunities, not problems.

For example, you are a photographer. It would seem that your services are not a matter of prime necessity, they are not cheap, and in general, everyone is not up to them. On the other hand, people will open their own business. This business needs a website, social networks, advertising, and therefore high-quality content. Moreover, many will start looking for an opportunity to relax and have fun, and you can come up with something for them.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More