The Coming Recession And 7 Ways To Prepare Your Small Business

Economies fluctuate. They experience waves of growth and decline. And businesses, like boats, ride those waves. When the economy is good, businesses prosper; when the economy is bad, businesses are at risk. Recent signs suggest that we’re facing an imminent recession. Will your business be at risk? In this article, we will look at the coming recession and outline 7 ways that you can reduce the risk to your small business.

In its simplest terms, a recession is a lack of money in the economy. When people hear that there could be a recession, they spend less. And guess what happens! Demand for goods drops. As a result, demand for manufacturing drops. Then, demand drops for employees to do the job. And because of the threat of job-loss, people spend less. It’s a vicious cycle; a self-fulfilling prophecy. The secret to ending a recession is to get people to spend. That’s why the Federal Reserve (and similar central banks in each country) increase and decrease interest rates: Lower interest rates lead to more loans and more spending. Higher interest rates lead to fewer loans and less spending.

A recession is merely part of the economic cycle. We may not like it, and the central banks are effective at minimizing its severity, but a recession is bound to happen. And because it is a self-fulfilling prophecy, the more we hear about job cuts and recessions and stock exchange losses, the more likely we are to put our money under the mattress instead of spending it… which is exactly what fuels a recession!

Increasingly, news reports indicate that a recession is imminent. Even if you choose to spend your money instead of bury it in the backyard, you can be sure that there are millions of other people out there right now who are digging holes in their lawn or tucking an envelope under their mattress or reworking their budget to exclude frivolous spending. So, we can be sure that a recession is coming. Is your small business ready for the recession?

Here are 7 ways that you can prepare your small business:

1. Rework your sales material: It’s time to dust off those brochures and breathe new life into your website. Each sales piece will need to work extra hard to generate the same amount of sales. That could mean freshening up the content, sharpening the pitch, or clarifying the benefits. This is one reason to welcome a recession: if your revived sales collateral can sell in a recession, chances are that it will sell even more effectively in a period of economic growth.

2. Reposition your offering: Remember that people avoid spending their money in recessions, unless they have to. And there are some recession-proof industries which sell products that people need, no matter what the economic condition. Food and shelter are two examples. But what if your small business serves a need outside of the most basic needs that people willingly spend on during a recession? What then? One option is to align your business with one of the necessary industries. For example, you could rewrite your website content to show the importance of your product or service right now; to demonstrate why your product is, in fact, a necessary industry. For example, if you sell car tires, you could show how tires are an excellent investment because they keep families safe and ensure that people get to their jobs on time.

3. Offer additional products and services: With fewer people buying, and with consumers needing a greater reason to buy, this might be a good time to test a handful of ancillary products. One example for e-businesses might be a free bonus ebook. Create 3 or 4 bonus ebooks and allow a customer to select one as a free gift. Keep track of which ones are selected most frequently. Then, when sales pick up again, be sure to include that ebook as a sale-inducing bonus all the time.

4. Explore partnering opportunities: When the economy is smoking hot, businesses don’t always have time to brainstorm ideas with other businesses. But if your small business is looking to stay afloat, there’s probably another one in a similar situation that would be willing to talk. To find that business, forget what you offer. Instead, think about who your customer is. Identify small businesses that market a different product or service to the same customer. Approach them and talk about doubling up on advertising or perhaps selling the other’s products on consignment.

5. Reach out to previous customers: Your happy customers are a resource to you. It’s easier to convince them to buy from you again and they act as evangelists for your business to their family and friends. Even if you don’t normally reach out to this group, consider changing your habit for the next few months. Create a promotional letter, ezine, or special website where you can thank them for their previous business, offer them another product at a discount, and encourage them (with an incentive) to send you more business.

6. Relax; it won’t last forever: The recessions experienced in North America in the past 50 years have all lasted, on average, about 12 months. Maybe a few months more, maybe a few months less, but generally about that amount of time. While those months can be devastating to some small businesses, it is unfortunate that many small businesses adopt the incorrect notion that the downturn will continue on indefinitely and they take drastic measures based on that line of thinking. However, economies are cyclical and they do move through recessions back into periods of growth. So businesses that tighten up moderately — not drastically — will weather the recession much more effectively and will be better positioned at the end of it.

7. Get ready for growth: During a recession, people buy less so companies are often more flexible and willing to make a deal. Think long-term and buy your raw materials and equipment in advance. As long as your negotiated bulk discount is more than the cost of storage, you’ll come out ahead because you’ll be able to produce finished products faster (and at an overall lower price) than your competition, once the market heats up again.

It would be great if the prediction of a recession turned out to be wrong and you didn’t need this information. It would be great if small business owners could adopt a “business-as-usual” approach without any worry that their customer-base might suddenly disappear in the coming months. But there’s a good chance that there will be a recession shortly. If you take action now, your business will be better prepared for it.

Can a fresh take on older technology help lead the way to economic growth? Are small businesses really the drivers of the economy? One company, Netfloor USA, is trying to be just that. Manufacturers of cable management access floor systems, they took a decades-old technology that was relegated to data centers, and redesigned and rebranded it for all types of facilities. While their business is growing, are there enough organizations like theirs to jump start the economy?

Leadership Business Coaching Helps You Communicate

Business coaching is a relatively new profession in the field of consulting, which has come into being by the meteoric jump in the use and popularity of the Internet. Many long-running and established businesses have come to accept the undeniable advantages of having a ’face’ on the Web, and of course there are many businesses which were started on the Internet.

A variety of businesses in both the material and virtual world are desiring business coaches to aid in increasing their marketing potential. Location and availability of products in the community are not the only necessities in maintaining a solid customer base these days. Leadership business coaching is becoming an integral component to aid in achieving success in any business and owners who desire to be a leader in their field are finding it to be essential.

Finding the perfect name, creating a catchy slogan, and setting up an appealing website may seem like the only things a new business owner needs to be successful. Many new business owners are disappointed when they complete these steps, yet the business doesn’t just come rolling in. They often fail to realize just how much time and effort they must personally invest to make their dreams come true.

Experts are often available to aid these entrepreneurs and help them achieve success. Leadership business coaching experts can provide knowledge in their area of expertise and share experiences helpful to the growing entrepreneur. This is often the best way to get hands-on training for all aspects of business, including advertising, merchandising, and marketing.

Coaches are available either in person or virtually, and will work with you and your employees to lay out proven tactics to help you achieve your professional aspirations. With their deep knowledge of current business conditions and trends, they will help you to portray your ideas and products to the public in a positive light.

Not as simple as it might seem, becoming a leader in your field requires communication with as wide an audience as possible. An important first step in establishing yourself and your brand, sharing your expertise with others using modern communication tools and forums can create and enhance public trust in your products and services. Leadership business coaching can help you and your business become leaders in today’s competitive business economy.

With the growth of the Internet, new types of consulting positions are now available. A good example of this phenomenon is leadership business coaching. In great demand by businesses from small proprietorships to big blue chips, business coaches are essential tools for increasing marketing opportunities, and ensuring ultimate success in the new global economy. Becoming a leader is your chosen field of product or service is not as simple as you might think. Developing your expertise and being willing to share that with others through speeches, articles, podcasts, and consultations may be ways to create public trust in what you can offer.

Grow Your Small Business In A Bad Economy

Corpus Christi, TX The National Federation of Independent Businesses’ May 2008 survey paints a picture of some very stressed out small business owners. Small business’ earnings are at their lowest point since 1992 and 9 in 10 owners surveyed expect the economy to continue to decline over the next six months.

Laura Harris, a nationally renowned speaker and author of the new small business owner self-help book Surrender to Win” (October 2008 release), says, The answer for small business owners in hard economic times is to hire and retain the right staff.”

Here are Harris’ 5 hiring tips:

1)Take enough time to get to know your prospective team member rather than hiring on a gut reaction. Part of the interview process should include introducing the potential employee to key staff so you know how the team members will interact. This process can be invaluable.

2)Don’t hire a prospective employee with an unprofessional phone voice or sloppy appearance. The first impression you have of a perspective employee is the same first impression a client will have of your company.

3)Hire an inexperienced person you can train to mesh with your style of leadership. Personnel with experience often come with old habits and pre-conceived notions. Training someone from scratch means you can mold them to perform the way you prefer.

4)’Steal’ good employees from other industries. Someone who goes above and beyond for their current company has a good enough work ethic to work hard for yours.

5)Hire someone with different strengths and weaknesses than your existing team rather than hiring someone just based on how much you like them. Adding staff should expand what your business has to offer.

And Harris’ 5 tips to retain and grow employees who think like owners:

1)Every company needs a foundation of uniformly enforced rules and guidelines on which to agree. Create a detailed employee handbook and stick to the guidelines so everyone (including you) knows the company policy. Having rules in writing helps the employees understand what is expected of them so they can succeed as a group member.

2)Invest in your employee’s education by paying for courses and offering time off to take classes. Rather than worry your team member will get so smart they’ll leave or want a raise worry your business will remain stagnant if you don’t invest in employee education and they don’t grow their current level of expertise.

3)Help your employees put their families first. Allow time off for children and parents when it’s needed. Putting family first doesn’t detract from the job it creates a well balanced work environment for the boss and the employees.

4)Hire responsible people, take the time to train them well and give them room to work. Micromanaging stifles creativity, creates second guessing and leads to stress for both the owner and the employee.

5)Be loyal to your staff and they will be loyal to you. Spend time investing in the right person so they stay with you. A resignation or firing is disruptive to the flow of business and bad for the morale of everyone remaining on the team.

And Harris says sometimes it’s not the employee you need to fire it’s the client. Know what type of client gives you the highest return and is the most hassle free. Gear your advertising and public relations toward taking on new clients like those.”

Owning a small business can be less stressful and more successful with the right team members and clients.

Is A Legitimate Work At Home Business Right For You?

The idea of owning your own legitimate work at home business sounds great, doesn’t it? Well, you might be surprised to know that it’s a lot harder than you think. You will probably end up working harder and longer hours than you did at your job. The good news is that you will be working for yourself, making yourself money and doing what you love to do, all with your very own legitimate work at home business.

More people are deciding to start their own legitimate work at home business. With the current state of the economy, who can blame them? It allows them to take control of their lives and income, creating a rewarding lifestyle. The unfortunate reality, however, is that a large number of people don’t think that it’s possible for them to run their own legitimate work at home business.

A lot of people just don’t have the proper mindset, drive and determination to make a legitimate work at home business a success. One of the main factors when going into self employment is setting goals for yourself. You need to set reasonable goals, expectations and desires that you want to achieve. This will have a huge impact on how well you do with your legitimate work at home business. Every aspect will be affected, so determine early about how you’re going to market and advertise.

One of the main factors right now for people turning to self employment is the current economy. Money is getting tighter than ever and forcing people to turn to alternative means to supplement their existing income. For the most part, the risks associated with a legitimate work at home business is often worth it because of the nice pay out. Of course, there are many who are forced into self employment due to lay-offs and downsizing. Many find that they need to replace their existing income altogether. It’s a harsh reality, and one that many have to face.

Another scenario is individuals who are close to retirement. They may need to start a legitimate work at home business because their retirement funds are not enough to support their current lifestyle. This problem is very common, but many find it rewarding to do something they like to do, while creating the income they want. It’s important for many to be in charge of their finances and having that peace of mind that they’re retirement has a bright future.

There are those that just work better independently. They have the drive and motivation to do things themselves, and a legitimate work at home business provides the income they want. This gives them the freedom in making their own decisions and not having to answer to a boss. This allows for them to bring out their creativity side, something they couldn’t do otherwise working for an employer.

Whether you were forced out of your job, are looking to retirement, or just long for being independent and doing what you want to do instead of working your whole life doing something you hate, a legitimate work at home business is a viable option.

Business Loans Provide Financial And Moral Boost To Businessmen

Any businessman or entrepreneur can get business loans
provided he complies with the criteria on personal and professional front required by the lending authority. Due to saturation point in job market or due to professional hiccups, Business loans has got an edge over private service. That is the reason business is considered as one of the coveted and royal occupation.

It is always easy to plan for business but virtually it is not easy to start a business without sound financial backing. To eliminate such problems, business loans are designed. Business loans can provide a financial solution to sort out your business problems. Business loans are basically loans which helps businessmen to start a business or to support their existing business.

Business loans can be used for many purposes. If your business loans are secured against any collateral of yours, you can get a large loan amount. Large loan amount can be spent on buying land and property. You can also use it for larger investments that are needed for your business enhancement.

Small business loans could be unsecured loans
. It will be ideal if you need them urgently. Small business loans can be used to meet your day to day business expenses or as working capital or as line of credit.

Business loans are available to people who have bad credit history. However it may not come that cheap as it is expected .Easy Small business finance are becoming popular because of its flexibility and usefulness. So, if you also wish to nurture your business or start up new business, look for the business loans that are ultimate for yo

The Global Financial Crisis and Its Effects on the Indian Economy

Let’s understand the concept of global economic crisis first. It is important before proceeding to analyze its impact on Indian economy. Global economic crisis refers to the financial crisis owing to the great depression of 1930. It is an upshot of profound economic recession, which commonly refers to business cycle contraction and decelerated activity over a long period of time. It is a situation where macro indicators like gross domestic product, employment, capital utilization, household incomes and business profit fall and bankruptcies as well as unemployment rates rise. This global financial crisis is among the greatest financial challenges of the world economy, which originated in the United States. It began in July 2007, when the credit crisis started with the loss of confidence by US investors in the assessment of sub-prime mortgages, which caused a liquidity crunch. With globalization, the entire world is affected by the crisis and its impact can be very well witnessed all over.

It is often predicted that India will be one of the largest markets in the future. This is primarily because India is considered to be one of the largest developing countries in the world. With the assimilation of the Indian economy and its financial markets with the rest of the world, the country experienced its worst slowdown on the back of global headwind, domestic macroeconomic inconsistency and policy reversals on the financial front. The risks arose mainly from the impending hitch of capital flows on an unremitting medium term basis from the anticipated slowdown of the global economy, particularly in advanced economies and from some elements of prospective financial alterations. In India, the adverse effects have been chiefly in the equity markets due to the setback of portfolio equity flows and the affiliated effects on the domestic Forex market as well as on liquidity conditions.

Impact of economic crisis on different sectors in India

Impact on the IT sector

With the global economic crisis, the IT sector of the country is facing uncertainty, especially the software industry. About 30,000 jobs in this sector have been affected because of the financial crisis in the United States as the industry has been largely dependent on it. Approximately 58% of the revenue was generated from US-based clients, owing to which, the industry had faced and perhaps till sometime will be facing hard days on the economic front.

Impact on the Indian banking system

One of the prime aspects of the current financial mayhem has been the lack of an apparent contagion of global economic crisis being felt by banking systems in budding economies, particularly in the continent of Asia. The Indian banking system as well has not been affected by it similar to other banks in the rest of the continent since it is not directly exposed to the sub-prime mortgage assets. Both in the public sector and in the private sector, Indian banks are financially sound, properly regulated and well capitalized.

Ni Hao Ya’ll – A Country Boy View of Studying Business in China

I couldn’t believe that I still had energy to hike another 3 or 4 miles on the Wall after spending almost two weeks exploring China’s oldest temples, largest cities, and busiest streets – but I did! Five years ago, I would have never thought that I would be hiking on the Great Wall of China but on May 18, I boarded a plane heading for Shanghai for one of the most enjoyable vacations (and adventures) in my life.

In early Fall, a faculty spot came open and I had the opportunity to Study in China for two weeks. The agenda that was sent to the faculty and students who would be participating and looked pretty full, so I decided to stay an extra five days to explore on my own. For the past 4 years, outside of my day job as a web technologist for Eastman Chemical, I’ve taught college night courses at local colleges on topics such as Internet Commerce, Web Technologies for Education and Global Human Resources. The trip was sponsored by the Southwest Virginia Higher Education Center and was open to students and faculty from Virginia Intermont, Emory and Henry, UVA Wise, and other Tri-Cities schools to study business and culture in China, so I was eligible to go “free” excluding airfare.

As China seeks to be one of the largest capitalist economies in the world, it was an exciting time to go. Everyday I hear complaints about how fast China is growing and how everything we buy is made in China or how many jobs go overseas to China, so I felt a need to see what actually is happening. I was pleasantly surprised to see where a large percentage of our American money goes, but recognize we need to change our paradigm.

The biggest challenge that I faced as I planned for the trip was learning about the culture and trying to prepare for the unknown. George H, trip coordinator, and the staff at the Southwest VA Higher ED Center did a great job setting up two sessions to learn about culture and language. We were introduced to several different facets of China which helped us prepare for what we were to experience. Though I’ve travelled to countries such as Italy, Greece, Germany, Scotland, and several others – I was totally not ready for the major cultural difference and lifestyle in China.

After the 12-14 hour flight, we landed in Shanghai which is China’s largest city and is also known as the hub of economic development for China. My jaw dropped to the floor as we rode the tour bus to our hotel through Shanghai which is also home to the largest port city in the world. Shanghai literally means “above or out to the sea” and with a population that fluctuates from 20-30 million everyday due to so many surrounding villagers moving to the city during work hours with hopes of finding industrial work, it was easy to see why the Chinese are eager to see their economy grow. Shanghai is home to over 300 of the Global Fortune 500 companies and has over 6000 foreign funded businesses.

Economy

Everyone knows that China exports a lot of stuff, but many folks in our area didn’t know that China actually imports hundreds of millions of dollars worth of chemicals, coal, computers, waste metal, and machine parts from the Tri-Cities area in addition to being one of the largest buyers of chicken feet (which was a pretty popular treat all over China). China is Tennessee and Virginia’s 3rd largest export market. In the book, China Inc. author Ted Fishman states that China has not stopped growing for the past 30 years and its economy has doubled over three times over. In 2007, China sold the U.S. more than $256-billion more in goods than they bought. This surge has no equal in modern history.
One of our speakers from the U.S. Dept of Commerce in China said that 10 years ago, 70% of U.S. businesses that set up shop in China were not profitable, now the figure has flipped and only 30% of U.S. businesses are not successful. However, we learned that setting up a business in China is more complex and bureaucratic than it is in the U.S. and there are certain businesses that do better than others such as hi-tech medical devices. And with their rating of 163 out of 169 in a global study of press freedom, China still filters news and views from citizens whose ideas might undermine China’s values of security, honor, and interests of the motherland.

Culture

While I was wandering around from different museums and temples, I kept hearing about the “four” major Chinese inventions which are paper, gunpowder, printing and the compass. I can see why they were so proud of these since there isn’t a day that goes by that these aren’t used by people all around the world. It was amazing to see the Forbidden City which was built from 1406 to 1420 by a million laborers, the largest imperial palace architecture of the world, where 24 Chinese emperors ruled China for 500 years. In addition, we saw the largest imperial garden in the world, Summer Palace, Ming Tomb, Beijing opera and Acrobatics show, and the famous silk market where I picked up a few Tommy Bahamas shirts for less than $10, copies of course.

So, why is China beating the U.S.? Asia’s economic success rests on social foundations formed by a renewal of old traditions emphasizing hard work, family cohesion, passion for learning, high savings rates, and disciplined and orderly societies. I have found that both Americans and Chinese find enormous cultural differences in each other’s culture, yet they both feel the impact of change from the other. While exploring Shanghai’s Bund area, I saw one of the largest buildings in the world, world’s largest port, and one of the most diverse economic centers in the world that shouts out on buildings and signs “See China Change.”
There were several interesting differences from North East TN that I found. Take food for example. I only found a few Western restaurants, KFC, Pizza Hut, and McDonalds and they were scattered pretty far from each other. Chinese food is actually very similar to American versions of Chinese food, except they just have more types of the familiar dishes that we enjoy. Things didn’t taste as sweet or as flavorful as you would have in the U.S. I remember when one of our students got an ice-cream which looked pretty “fruity” on the package, yet had peas and corn in it.

In the tourist sections of China, you would find people selling anything you could imagine and every time you turned around, people were saying “cheap for you” or ask “watches or bags” and when you asked for something else, that was pretty much the only English they knew. In most cases, when you stopped to express interest in a product, you were physically pulled into their small booth or chased down the shopping streets as they yelled cheaper prices to you with hopes that you would buy.

Our group of students and professors explored Shanghai, Hangzhou, and Beijing and shared wonderful experiences together. I think everyone was amazed at how well China preserved their culture and history while still growing into an economic superpower. From techno clubs to a boat cruise on West Lake, an opera to a hike on the Great Wall, we all learned something new about China that we hadn’t realized. One of the most intense moments was when we were in Hangzhou and were getting ready to board a train to Beijing. We saw thousands of people and ambulances near the station. At first we thought there was a parade, but when we arrived inside the train station with our tons of luggage on our side, we witnessed something very heartwarming. We saw huge numbers of doctors and nurses lined up in perfect formation waiting on earthquake victims so they could get them to the hospitals. A moment I ‘ll never forget.

Toward the end of my trip, I jumped on a night train from Beijing to Xi’an (pronounced She ann) which is one of the most historical cities in China and is also home of the Terracotta Warriors. The 600 mile train ride was a great way to see the mountains and valleys of China as well as get a glimpse of the 40% of their population which work and live in rural areas. Most of these people work the government owned land and make less than $2 per month. Because of this low income, a huge number are starting to move into the bigger cities so that they can work in manufacturing plants.

When I arrived at the crowded and confusing train station in Xi’an, I quickly found a cab and was able to show the driver a few characters which got me to a hotel in the heart of the city. It was so cool to stay in a 4-star hotel for $40 per night and get a cab ride practically anywhere for $5. Early on, I stumbled upon one of many “spa’s” where you could get a full-body massage for $6. China rocks!! One of the most unique characteristics of the city was a 40-foot tall and 40-foot wide wall (with moat) that went nine miles around the city. It was built for fortification in the 1300’s and has lasted the test of time.

Xi’an was one of my most memorable cities, even more than Beijing or Shanghai. I met a college teacher who was grading English composition papers at the university that we were staying in while in Shanghai. Her name was Tracy Meow. Tracy graciously offered to be my contact while I was in Xi’an, so when I arrived in there, it was nice to know some of the locals. She took me to a popular area which is known to have a large percentage of Chinese-Muslims. We enjoyed some interesting local food on sticks. The next day we had a dinner at a fancy restaurant and I met two folks who were from Texas and had just moved there two years ago. We talked in great detail about how Americans who move to China to live acclimate to the Chinese culture and lifestyle, one which is very different from the U.S.

The next day I hired a driver and tour guide for $50 (for the entire day) and they drove me 60 miles outside the city to explore the Terra Cotta Warriors and several other sights. It was fun not being in a big group and I can definitely recommend this for others going to China if you want to “do your own thing.” As we rode back into the city after a full day of exploring, I saw dozens of tents all around. I asked my guide, Sara, what was going on. She explained that a lot of people moved to Xi”an (and other areas of China) to get away from the earthquake area and that they didn’t trust being in tall buildings.

The last day before I left China, I was invited to teach a two hour English lesson to a group of 30 Chinese freshmen at Tracy’s school, Xi’an International Studies University, one of the oldest language universities in China. The students were very polite and inquisitive of their Southern U.S. speaker. I pulled up the Tri-Cities on a Google map, shared a few stories about our region, and had several ask questions about U.S. culture and politics. I was very surprised at how well their English skills were even though they were very shy about speaking. Tracy said it is sometimes very hard to get them to talk but in her senior level classes where she teaches “Bible as Literature,” it is just the opposite.

One unique aspect that we recognize in the U.S. is the focus on learning among Chinese students. We hear daily about the poor scores American schools have in areas such as math and sciences. Before I went to Xi’an, I had the opportunity to spend a week on a large college campus in Shanghai and I learned that the students really enjoyed learning and doing group learning activities. Unlike American students, Chinese students spend more time building specific skills and knowledge on substantive topics versus pop culture or consumer satisfaction. Their parents constantly reinforce the fact that “perfectibility is within grasp of everyone.” Parents are very involved in their children’s life so much that they are known to push “too hard” for successful kids. Recently, there have been articles published in the newspapers that bring awareness to this issue.

Some other interesting facts I learned about China:

China’s one child policy (which is changing) has created a generation of 90-million “only children”
China is expected to overtake the U.S. as the worlds largest economy in 10 years.
China has the highest number of annual deaths triggered by air pollution.
China has the largest number of Internet users 220-million
Cell phone usage in china has grown from 87 million in 2000 to 432 million today.
For students and young professionals wanting to get an edge on the future global economy, I strongly recommend that you start learning about our partners on the other side of the world. Here are a few things that you can add to your “Culture Toolbox” when you start

Chinese love western money, culture, and music but sometimes view Americans as wasteful and arrogant, so be very polite and respectful everywhere you go.
When visiting hosts, gifts are in order.
Face – If a person confronts a problem directly this can become a big issue due to putting people on the spot and making them loose “face,” so it is important that you avoid drawing attention to individuals who may give poor service or someone you have a problem with.
Guanxi – Building relationships takes time and most relationships require a level of deep friendship in order to work. Another factor is that you never rush into business with them. Americans must enter into negotiations slowly and work toward consensus.
Individual vs. Group – Since the Chinese didn’t go the period of enlightenment, reformation, or Age of Reason, so their sense about “group” is different than Western views of individual freedom and free-thinking.
Try to learn some basic Chinese. In 2004, there were around 50,000 Chinese language students in American highschools while there are nearly as many people learning English as there are English speakers in the U.S., Canada, and Great Britain combined. Some favorites I used were:
Ni Hao – Hello
Hen hao – very good
Bu shi – no
Yes – shi de
Duibuiqi (doy bu she) – Sorry
Wo jiao – My name is…
Xie Xie (she she) – Thank you
tai guì le (tag way la) – Too expensive
Zai jian – goodbye

There are a lot of opportunities for young professionals who want to experience china whether it be to learn about how they conduct business, continue their historical culture, or gain insight to an entirely different paradigm. I think it is critical that we start opening up doors to building stronger understanding of China and its people and to the wonderfully rich partnerships we can establish with their dynamic younger population which is shaping the future global economy.

My experiences there opened my mind to how fortunate we are, how wealthy, how advanced, and how many opportunities we have to really impact our community and our country. We shouldn’t see China as a “competitor” or “threatening to our economy” but rather as a global partner which we can begin trying to understand so that both sides understand what each other needs and how we can mutually benefit from each other. Step outside your comfort zone, meet people that are different than you, and embrace the knowledge and experience of others.

Stop Using Old Economy Ways to Survive in a New Economy

The world has gone through a number of different ages such as the Stone Age, the Bronze Age, the Iron Age and so on. A couple of centuries ago, the world went through an Industrial Revolution. Then came the Atomic Age and the Space Age. Right now, we are living in the Information Age. Throughout history, the people who profited the most were the ones who recognized the age that they were living in, and took maximum advantage of it.

The people who could make stone implements probably had a better chance of survival during the Stone Age. Likewise, craftsmen who had the required skills in metallurgy probably thrived in the Bronze and Iron Ages. Market savvy inventors and industrialists became millionaires during the Industrial Age. From the early 80s onwards, we saw people proficient in Information Technology become millionaires. Discerning the trend of the current age and taking advantage of it is a sure way to become successful in business.

The decade of the 80s marked the beginning of the New Economy. Although people tend to vary in their opinion of what the new economy really meant, we can be fairly certain that it is symbolized by two significant events. The beginning of the 80s saw the emergence of the personal computer and the advent of the Information Age. Although computers were in existence long before the 80s, the emergence of the personal computer is what popularized them and made it available to the common man, initiating the Information Age. The proliferation of the Internet further strengthened and solidified man’s dependency on the computer for a wide variety of needs. Almost during the same period, communism fell and capitalization started spreading throughout the world, facilitating the globalization of business.

These two significant events marked the beginning of the New Economy. In order to thrive in this environment, businesses really need to stop using old economy ways to survive in a new economy. Business owners first need to recognize that they are indeed doing business in the new economy. Then, they need to make use of the factors that really define the new economy – globalization of business and the use of Information Technology.

The biggest and most successful businesses today tend to have a global presence. They are constantly searching for new markets worldwide to expand their business. At the same time, they are making good use of computer and information technology to enhance their business. Most successful businesses today use the Internet for marketing, sales and customer support.

Businesses that wish to thrive in this new millennium should therefore stop using old economy ways to survive in a new economy. Globalizing their business and using computers and the Internet to enhance their business is a reliable way to make their company successful.

Is Globalization To Blame For Unemployment?

It is a well-known fact that globalization increases productivity and life standards. There are a lot of advantages which causes business owners to work on the goal of expanding the business overseas. While this is proving to be beneficial to countries where products and services are being exported to, the concern grows for locals. This concern is largely focused on that fact that the unemployment rate continues to rise thereby giving the impression that globalization is one of the causes.

It is true that because of the economic downturn, most businesses are looking to outsource services to take advantage of lower labor costs in developing countries. Outsourcing has been a hot debate topic ever since its inception. The main idea is that the local economy suffers since the jobs are handed over to other countries instead of their own.

Globalization is responsible for modernizing business processes and outsourcing certainly changed the way how business is being done. However, it is not only these factors which contribute to the unemployment rate. The biggest contributor to unemployment is companies who close down because of the recession. The increase in number of small businesses helps alleviate the unemployment rate and if these small businesses go global or outsource some of their services, it does not necessarily mean that there would not be jobs for locals. Some might argue that globalization and outsourcing may mean a lesser demand for workers. This is called structural unemployment and even when the economy was doing better than it is today, this still happens but it doesn’t warrant a rise in unemployment. Globalization proves to be more beneficial than harmful apart from some of its disadvantages. The trick is to change it to work, rather than against, your business.

Marie Hernan is a full-time writer and blogger. She is adept at digital marketing and is updated on the latest trends and resources to help her clients. She often provides tips and advices regarding the use of social media and financial aspects of small businesses.

Philosophy of the Economy Part One

Plan

Chapters:

1. Introduction.
2. History of development
3. Levels of Development: distinctive points, changes and reason for changes
4. Philosophy of Development
5. Psychology of Development
6. Social changes and consequences of Development
7. Nationalism, Ideologies and Political Systems enforcing them.
8. Economy and Market Forces: Historical Development
9. Globalization and consequences
10. Most Developed Countries different approaches in the modern world
11. From struggle to survive among individuals, societies, countries, blocks of a pro Supply Economy to a Regulated pro balance between Supply and Demand Economy
12. Life in Modern Developed Countries
13. Social tools of acceleration and deceleration.

Chapter I – Introduction

The Globalization has become an irreversible historical process constantly expanding and evolving at the same time the social and economic conditions in the most developed nations have succeeded raising productivity and concentration of capital. The old tools of Economics cannot anymore accommodate these new developments and are not able to establish most favored conditions for such an important to the World and for any individual countries new development to evolve smoothly by avoiding major economical crises and without destroying the environment. Having inadequate Economical Tools creates volatile market conditions which work in conflict with current possibilities of market expansion: this research is to proof the change from a Scarce Economics based on volatile interest rates fluctuations and deregulated speculations into a Market Economics based on market stability, regulated economics and Global Expansion of even small to medium size businesses and investors.

With the current system of Economics even the very resilient US economy will not be able to sustain the ravaging forces of shrinking profit margins and market crashes. It has become obvious for a company to maintain its profitability it must go Global /also National for US and EU/: but the Medium to Small companies and Investors are hardly capable going global in a highly deregulated markets and exchanges.

There are great possibilities in a Global scale for establishing a heavy regulated but at the same time free market place where more individuals from elsewhere will be able to compete in very increasing intellectual competition; this process could be accelerated by increasing the security of doing business and investing capital which will increase the LTV and MTV of the assets and even further to enhance some currently considered liabilities or with very limited LTV and MTV. When doing that the Monetary policies will change because of this extra security so more money will be able to circulate without provoking inflation; then more business and investment will follow and gradually these rules and regulations will envelope more markets around the Globe to establish a Global Market Place for even Medium to Small Business and Investors having such Global access.

This is the end of the shady Trickle Down Economics or the bureaucratized Socialized Economics and the beginning of a real Market Economics /called by me a Market Stability Economics/ because it relies on the Market Competition and on Regulated Business Practices and Direct and Indirect Investment under clearly stated laws and regulations implemented by the Governments but controlled by the Courts.

All these is becoming possible only in the very recent times by the incredible developments of the Internet, related technologies and communications; the fall of the Eastern Communist Block, the expansion of the European Union, the entering of WTO by China and by the expending freedom of business all over the Globe which as a consequence increased Global Productivity, Access to the Market Place, quick jump from Ideas to Realization, opening the Global Employment Market, allowing expanding Global Direct Investment, allowing Internet Education and Self Education. The World has changed forever.

The following is a Philosophical Conception attempting to substantiate the new changes through Historical sequence of developments and conclusions.

Economy is one of the reasons setting our life in motion and moderating our personal desires and behavior with compliance with the social rules of organization to accomplish highly sophisticated structures of societies and countries and lately economic blocks.

Many historical occurrences could be explained by the Economics and the ways individuals and societies are affected by it. The competition among individuals for economical and political advance in any society which competition has grown into Global has always been the way bringing innovations, improvements and progress but in the same time bringing corruption, injustice and the following revolutions and terrorism.

The Individual Desire for Success and the following competition among individuals is in the beginning of relations between individuals and societies as a general driving force which organized societies into countries, empires and economic blocks. A constant struggle between the interests of the society and individual interests is regulated by cultural and religious rules and common laws which moderate and leverage this relationship so the societies could function.

Historically the competition for success has moved from more primitive and physical one using more physical tools and methods for success to more intellectual and abstract one using more intellectual methods for success. So consequently of such changing priorities the social rules of behavior have changed accenting on these constantly evolving values.

Economy is a main field for individuals’ competition and also a general tool for comparison among societies; it has been evolving and changing with the new values invoked by the the general intellectualisation. Relativity of a society or group of societies to adjust their values through rules and common laws to fit a Current International Level of Development-CILOD is called Country’s /for this society/ Current Level of Development- CCLOD. This philosophical law of Social Relativity SR is to be established based on historical statistics and method of comparisons. Every single moment in history has its CILOD and every society has its CCLOD at any time of its existence.

Why are we attempting to figure out the relativity of historical economic and social development?

The up to now marginal understanding of the processes of human development by the Philosophy over all has being limiting the abilities of different societies to find for themselves best ways for development: thus ideologies such as pro Capitalistic or pro Socialistic, or pro religious Fundamentalistic have been playing role in preventing philosophy to clear the values and reasons for socio-economic progress and development. The disconnection between Philosophy and Economics for some time has fragmented general abilities for comprehending a conclusive system of evaluation and consequential objectivism. Economics has drifted away from philosophical thought to a practical science of statistics and ideological self-adjustments. The desire of practical clearance of ideas has taken over philosophical reevaluations of sometimes subjective values. In context of such ideological more like status quo science of Modern Economics real historical possibilities have been sidelined and obscured as not complying with the “political correctness” and its accents. The same approach certainly applies to the ways different tools of Economics have been evaluated and used however under economic and social pressures Economics has been evolving an examples is the change form the Gold reserve backed currencies in the past to the more abstract current system.

The evaluation of the basic inflationary processes, the most recent effect of high tech developments, Internet and Worldwide Political liberalization causing fast Globalization; even the past changes from Farming driven Economics to Manufacturing Economics and now to Services and Investment Economics have been poorly evaluated not followed into conclusions and consequent resolutions which is to bring a coherent philosophical systems to describe these changes and provide guidelines to the Future; the understanding of Economic and Social tools historically has been very fragmented over the board.

The consequence of such insufficient approaches toward Economics have been many wars, revolutions, totalitarian dictatorships,depressions and most recently the rise of religious fundamentalism and terrorism. One will say that I am going too far in giving the Economics such powers: he or she could be right there are political situation driven by social forces not relating economy on their surface but beyond any socio ideological motion stay pressures of social expectation of certain values and motivations and such pressure is still a product of individuals’ desire for competition which was steered to ideological values because of lock of economic competition for majority of individuals to participate, and because governments’ role have always been to defend the status quot of socials structures the energies which could be used for such economic competition have been flown into nationalism, racism, chauvinism and the general ideologies as well

If in prospective we evaluate the economic and social reasons for the Second World War as an example when the conception of imperialism at the time by Hitler and by any world powers that appropriating foreign resources and occupying others’ assets was considered equitable when if a detail evaluation is done these neighboring countries could have been much more beneficial as trading partners which you can see in the new developments in Europe; Such an example of conceptual misunderstanding of economic and social tools by all of the great powers and Nazi Germany was a result of this mindless war which did not do any good to anyone but after the devastation it made clear that unleashing the dark powers of individuals’ powers instead of using their creativity is worthless. In the new world of rising terrorism such misunderstanding of reality by the Most Developed Countries’ Governments could have fatal consequences for any country or even for the World. To try to suppress millions of people living in poverty and religious fanaticism is not a feasible way to go forward into a new world when the possibilities of the Current International Level of Development to engage Worldwide individuals into a productive competition are real; denials of opening these opportunities by the Most Developed Countries based on ideologies such as status quo US capitalism or in case Chinese socialism, or European social bureaucratism, or nationalism, or whatever prejudice will only bring tensions, insecurity and environmental disasters..

One will say if there are too many economic and social factors to be put together in a way which can provide comprehensive evaluation, is it correct?

Yes if the information is accumulated with no strict guidelines. In case the principles of this conception is simplicity: not ignoring any major factors for socio-economic development but concentrating on the guiding ones that have the most effect on the projected development.

How competition could be considered main engine of individual and social relations and development?

There are countless numbers of traditional and circumstantial factors in an individual life which play roles in characterizing this individual and his/her correlations and social interactions. The economic factors are limited but very important part of this process. The conditions in which an individual grows up, the stability of day to day life, the possibilities in front of him/her, the positive and negative pressures on him/her by the society; obviously negative economic pressure could have very depressing and mind altering effect on ones character; the lock of opportunities could contribute to ones instability and perplexities. Historically ideologies, religions, nationalism and general culture have helped offset the instability the lock of socio-economic opportunities to the majority. The social structures have established an array of tools to suppress individual Desire for Competition which suppression `historically has been antagonistic based on classes’, nationality and other belongings to limit majority of individuals from competing for socio-economic advance. But in a world of low productivity and political chaos such limits of competition ware actually positive for the stability and the survival of these societies

The main competition for individual success has changed not only from physical to intellectual but also from very limited opportunities for particular classes to more general and accessible; this process of opening of socio-economic competition to higher percentage of the population is at its best in the Most Developed Countries which historically have always been the most advance socio-economically thus at any PCLOD the CCLOD of the MDC is basically a result the best adaptability of this country or block at the historical moment to use in a better way Current Possibilities’ potentials of their citizens in the most productive at this moment ways. Because in different historical moments different socio-economic structures were working best, examples: the Roman Empire’s strong militaristic approach supported by political power needed militaristic organization and social philosophy to dominate the current World thus Roman structures were best reflecting the PCLOD and therefore Rome dominated the known world she was the best adapted under the circumstances. Other examples are ancient Persia, China, and Aztecs in the Americas.

Obviously to base this philosophical conclusion on the approach of evaluating these historical changes the continuity and relativity of these changes have to establish: and it may be best presented as a change of socio-economic philosophy and psychology from pro physical pro manual one reflecting at the time manual labor economic approach as dominating to a pro intellectual one apprehended by the developing high technologies and economic globalization one when intellectual economic approach is dominating. This socio-economic evolution is reflected into historical changes; here it needs to be mentioned that they were periods in the World history when these processes of intellectualization were severely interrupted and even reversed an example are the Dark Ages in Europe, or the Mao’s governing of China the changes are not necessary a flowing continuation but more like a spiral like continuation.

Someone will say that this philosophy replicate Marxism for these people my answer is that Marxism was based on development based on struggle between the having and having not classes when this Philosophy of the Economy is based on the historical continues change of historical priorities from physical to intellectual. Which I believe has given the opportunity of the human civilization to advance. So as an example when technologies and socio-economic structures were underdeveloped appropriating foreign resources was the only way was a country to advance into interstates competition therefore the best organized countries were establishing their empires by concurring others and imperialistic foreign policies were supporting them: in such socio-economic environment individuals’ competition was redirected into militaristic by nationalism and ideologies Individual Desire for Advance was obviously related to individual advance by militaristic ways. The same principle of timely important values applies to pre historic times when instead the organization militaristic skills of the time of the empires, personal physical personal strength had been much more valuable therefore the “heroes” from the Ancient Greek mythology were compared and related to the gods. When Great Empires before the Great Wars of the 20th Century were occupying the known World the mentality of conquest and spread of civilization was reflected in the literature, economics and science of that time to justify their policies fierce nationalism and chauvinism were promoted by the Governments and other institutions: “the philosophy of being better meant being militarily stronger, and even on a common level that a man is not one unless going through the army” prepared individuals for the armies and multiple devastating wars. Now days such “philosophy” sounds almost comical; people have understood the consequences of wars and they are used only under extreme circumstances.

Throughout history continues accumulated information was needed for successful competition which is another factor for coming to a new Current International Level of Development. Such higher ground can be reached only by expanding and enhancing current possibilities which always are a result of improving economies and political structures. On the ground base improving technologies, trade relations and business environment in any time of history had prompted a new CILOD.

When productivity was low classes based on individuals’ background and individuals’ access to resources and position in the society have been playing dominant role in societies around the world. Because of the low productivity to maintain “normal” level in the society multiple servants and feudal taxes were needed. Thus the theory of scarce resources was born. To suppress individuals for demanding more participation in economic competition a philosophy of servitude and tyranny of oppression was established: all over the world.

The negative socio-economic pressures on individuals accumulated in such conditions usually brought rebellions and revolutions therefore societies needed release valves: the nationalism, chauvinism, xenophobia, religious hatred have naturally been parts of such social negative built up releasing system which was promoted by government and negative social pressures were channeled into regional wars and constant insecurity.

The next and higher step in this social prevention system were the ideologies which were higher more sophisticated level of prejudice: in both systems of negative pressure releases any individuals not complying with the “acclaimed” ideas were persecuted and considered asocial and sometimes even enemy of the states: ideas for righteousness fitting some current criteria have been used and continued to being used for the same purposes even to promote belonging to causes and principles to suppress individual desire for success.

The theory of Scarce Resources has being based on a pro supply economics and competition it reflects the allowed by this conception limited percent of individuals access to fair competition which is accessible mostly for the upper classes who control big business and investment in now days. The Scarce Resources Economics including access to good education, to borrowing Capital, to market exchanges investing is pro Supply and the supply has been controlled by the big business and large investment groups and their strong lobbyists; the Governments have been part of this system by promoting their interests.

US is a perfect example how this conception works where good schools are quite expensive and the theory of income based education is dominant: which theory was probably good for a steady developing US economy and not so good for the rapidly developing global market which promotes different kind of competition by globalizing the labor market so the large corporation are looking elsewhere for qualified scientists and technicians, following on such demand large US Universities responded by creating graduate programs in science where high % PHD graduates are of foreign origin. Same conception prompted number of software specialists and medical doctors to come from India and elsewhere to fill the existing demand in US. So far Business Graduate Schools even opening some competition are lingering behind relying on the more conservative and seemingly less demanding business competition as still a steady place for the upper classes kids to be promoted but with the Europeans and Chinese’s high accessibility for commoners to all strong undergraduate educational programs and the becoming extremely sophisticated Global business a demand for highly intellectual business managers will drive Business Schools toward similar to the science faculties global approaches of admittance and scholarships.