#Economic Downturn

[johndunwin]

Main street Skokie - waiting for redevelopment

[opulence-is-decadence]

You can't convince me that corporations aren't behind the "girlmath" tiktok trend. "Oh if you spend $1000 in something two months ago it's free now", "if you paid in cash it is free".

Literally you are promoting financial ignorance towards women as a trend. A demographic that already has lower wages while presenting "girl" things as being stupid.

[cultofcreatures]

I really feel like we're in an economic depression. I know very few people who are making enough to live comfortably. And it's mostly because of wealth hoarding and exploitation of the working class. No one is having a good time right now except for the 1%, who are just rolling in dough while they call the working class "lazy" to try to make us do more for less. They say no one wants to work, but I haven't heard back from hardly any of the places I've applied to. This shit isn't right. I'm getting really fucking pissed off, and I think you should be too. Something needs to change and soon.

[whats-in-a-sentence]

The financial crisis of the mid-1860s cut down the northern squatters one by one.

"Killing for Country: A Family History" - David Marr

[boostrapper]

5 Ways for Startups to Survive Recession

Introduction

Major economic forecasting institutions and experts are predicting an economic recession as a series of complex real economic problems such as inflation, supply chain collapse and geopolitical risks have recently emerged one after another. The predicted recession is to put early stage startups at risk, directly. The less activities from VCs recently forced startups to prepare for all the scenarios.

While the current economic recession may present challenges for startups, it can also be an opportunity for them to demonstrate their resilience and adaptability. Here are some strategies that can help your startups that will not only improve your chances of survival but also to attain a healthier and sustainable future growth.

Here are five ways for a tech startup to navigate a recession:

1. Extend your cash runway

As a startup, it is essential to focus on extending your cash runway in order to ensure sustainability and success during recession. This involves making sure that you have enough cash on hand to cover your expenses and maintain operations for as long as possible. According to a survey by the National Venture Capital Association, 82% of startups that fail do so because of premature scaling, or expanding too quickly without adequate resources. By carefully managing your cash flow and taking steps to extend your cash runway, you can avoid this common pitfall and give your startup the best chance of success.

Here are three key steps to help extend your cash runway:

Get a clear overview of your financial standing: Understanding your current cash flow, liquidity, and forecasts is essential to extending your cash runway. You can track your cash flow by looking at your income and expenses on a regular basis. Your liquidity is a measure of how easily you can access your cash and convert it into other assets. You can measure your liquidity by looking at your current assets, such as cash and accounts receivable, compared to your current liabilities, such as accounts payable and short-term debt. Finally, your forecasts are estimates of what your future financial performance might be. You can create financial forecasts by analyzing your past financial data and making assumptions about future economic conditions.

Change approach from optimistic to conservative: By being more cautious in your spending and making more conservative assumptions about your future financial performance, you can reduce your expenses and increase your cash runway. This might include reducing your marketing budget, delaying hiring new employees, or negotiating better terms with suppliers.

Identify unnecessary cost drivers: Unnecessary cost drivers are expenses that are not essential to your business and can be eliminated or reduced. Common examples include unnecessary travel, excessive entertainment expenses, and unnecessary office supplies. By identifying and eliminating unnecessary cost drivers, you can free up cash that can be used to extend your cash runway.

2. Consider creative ways of cost cutting

To maintain financial stability and profitability, you should consider creative ways to cut costs. Although layoffs may seem like a good option at first, they should be considered as a last resort because they can negatively impact morale and productivity. In addition, layoffs come with associated costs such as severance pay and unemployment benefits, which can be both a financial and administrative nightmare. Instead, it is recommended to start with other cost-cutting measures before considering layoffs. Being creative with these strategies can help you achieve better long-term results.

Here are some of them worth considering:

Optimization: Find ways to do things more efficiently, such as streamlining processes, automating tasks, and using technology to improve productivity. By optimizing operations, businesses can reduce their costs without sacrificing quality or productivity.

Minimize operational costs: Another key strategy for cost cutting is to minimize operations costs. This includes finding ways to reduce expenses such as utilities, rent, and transportation. For example, businesses can negotiate lower rates with suppliers, adopt energy-efficient practices, and use public transportation instead of company vehicles. According to a survey by the National Small Business Association, 29% of small businesses reported that their top cost cutting strategy was reducing energy costs, and 27% said they reduced their travel expenses.

Reduce cost of goods sold (COGS): COGS refers to the direct costs associated with producing and selling products or services. By minimizing COGS, businesses can reduce their expenses and increase their profitability. This can be achieved through a variety of strategies, such as negotiating lower prices with suppliers, reducing waste, and finding more efficient production methods.

Stretch R&D projects timeframe: For businesses that rely on research and development (R&D) to innovate and stay competitive, stretching the timeline of R&D projects can be a cost-effective strategy. By taking more time to develop new products or technologies, businesses can spread out their R&D expenses over a longer period of time, which can help to reduce their overall costs.

3. Strategic Partnerships

Strategic partnerships are an important tool for growing startups. They help you to access new markets, share resources, improve competitiveness, and gain access to a wider network of industry contacts. Partnerships can help you save time and money and accelerate your growth by leveraging the resources and expertise of your partners. They can also help you differentiate yourself from competitors and gain a competitive edge in the market by leveraging the reputation and credibility of your partners. Overall, strategic partnerships can be an important part of your growth strategy and can help you succeed in the market. McKinsey & Company found that successful strategic partnerships can lead to a variety of benefits, including increased market access (cited by 74% of respondents), cost savings (cited by 67%), and access to new technologies (cited by 59%).

Here are three ways that you could:

Communicate with your key partners about how they are handling the downturn: Effective communication is key to the success of any partnership, and it's especially important during times of economic downturn. By staying in touch with your key partners and asking how they are handling the challenges of the current environment, you can better understand their needs and find ways to support each other.

Focus on building stronger relationships: In times of uncertainty, it's important to focus on building stronger relationships with your strategic partners. This means investing time and effort into understanding their business needs and goals, and finding ways to work together more closely. By building stronger relationships, you can create a sense of trust and mutual support that can help your business weather any economic challenges.

Consider new strategic partners to combine efforts for shared results: Another way to grow your tech business through strategic partnerships is to consider new partners who can help you achieve shared results. For example, you might look for partners who can help you access new markets, leverage new technologies, or bring new skills and expertise to your business. By entering into win-win agreements with these partners, you can combine efforts and achieve shared results that benefit both parties.

4. Pivot business model

During times of economic recession, it's important for businesses to be flexible and adaptable in order to survive and thrive. One key strategy for navigating these challenges is to pivot your business model, which involves making changes to the way your business operates in order to better meet the needs of the market.

Here are two key approaches to pivoting your business model and thriving during a recession include:

Adapt the current business model to the changing market needs: A key approach to pivoting your business model and thriving during a recession is to adapt it to the changing needs of the market. This could involve revising your product or service offerings, shifting your focus to new customer segments, or finding new ways to deliver value to your customers. Experts say, 70% of tech startups reported successfully pivoting their business model in response to the COVID-19 pandemic, resulting in increased revenue and market share. By proactively adapting your business model to the changing needs of the market, you can stay relevant and competitive in the face of economic challenges.

Identify new revenue streams: Another way to pivot your business model is to identify new revenue streams. This might involve exploring new business opportunities, such as offering new products or services, entering new markets, or finding new ways to monetize your existing offerings. According to a survey by the U.S. Census Bureau, 47% of small businesses reported introducing new products or services in response to the COVID-19 pandemic. By diversifying your revenue streams, you can reduce your reliance on any one source of income and improve the resilience of your business.

5. Use agencies to outsource business processes

Outsourcing certain business processes to agencies and freelance contractors can be an effective way to improve profitability and increase efficiency. According to a survey by the National Association of Small Business Owners, 41% of small businesses reported outsourcing at least one business function, with the most common functions being marketing, accounting, and human resources.

Here are three key benefits that outsourcing business processes can help a business improve profitability:

Avoid administrative burden: One of the main benefits of outsourcing business processes is that it allows businesses to avoid the administrative burden of managing these functions in-house. By outsourcing tasks such as marketing, accounting, and human resources, businesses can free up time and resources to focus on their core competencies and drive growth.

Work with agencies and freelance contractors: Another key advantage of outsourcing business processes is the ability to work with agencies and freelance contractors who have expertise in specific areas. For example, a marketing agency may have specialized knowledge and experience in social media marketing, while a freelance accountant may have a strong understanding of tax laws. By outsourcing these tasks to experts, businesses can ensure that they are receiving high-quality work and maximizing their profitability.

Attain flexibility to scale up or down as per uncertain market dynamics: In addition to avoiding administrative burden and accessing expertise, outsourcing business processes can also provide businesses with flexibility to scale up or down as needed. This is particularly important in times of economic uncertainty, when market conditions can change rapidly. According to a survey by the National Small Business Association, 52% of small businesses reported being negatively impacted by the COVID-19 pandemic, and 48% said that they had experienced a decline in sales. By outsourcing certain functions, businesses can quickly adjust their operations to meet the needs of the market, which can help to improve profitability.

Conclusion

It is crucial for businesses to take proactive steps to increase their chances of survival during a recession. This can be achieved through a combination of strategies, including extending your cash runway, implementing creative cost cutting measures, forming strategic partnerships, pivoting your business model, and outsourcing certain business processes to agencies. By carefully managing your finances, accessing new markets and resources, and adapting to changing market conditions, you can weather the downturn and position your business for long-term success. Don't let a recession hold you back – take action now and set yourself up for success.

[buzz-minds]

The Deepening Crisis in the Île-de-France Real Estate Market

The real estate market in Île-de-France, once a symbol of stability and growth, is now facing an unprecedented crisis. Sales are plummeting, and prices are following suit. This downturn, previously unthinkable in such a coveted region, highlights both structural and cyclical challenges. Several macroeconomic factors, including rising interest rates and global economic uncertainty, have led to a…

[futurefatum]

Economic Downturn: September's New Moon in Leo (Tone: 310)

Prepare for economic shifts as Uranus goes retrograde and the New Moon in Leo heightens emotions. Stay creative and cautious! #Astrology #NewMoon #EconomicOutlook

August 31st, 2024 by JoniPatryVedicAstrologer (5) Economic Downturn: September’s New Moon in Leo Unveiled | Astrology News ABOUT THIS VIDEO: The video titled “Economic Downturn: September’s New Moon in Leo Unveiled” by Joanie Patri discusses the astrological implications of the New Moon occurring on September 2nd, particularly in the sign of Leo, and how it could affect global and personal…

[ohmyfivedotcom]

When Cash Crumbles: 5 Eye-Opening Stats on Economic Downfalls and Resource Scarcity

Economic collapses and the subsequent lack of resources can feel like stepping into a dystopian novel. It’s a situation that has affected countries and communities worldwide, leading to severe consequences for everyday life. From empty grocery shelves to skyrocketing unemployment rates, these scenarios offer a grim glimpse into what happens when an economy crumbles. Understanding these impacts…

[signode-blog]

The Looming Crash? Demystifying Market Meltdowns and When to Worry (or Not)

Let’s face it, financial headlines love hyping the possibility of a market crash. It’s like financial clickbait, designed to grab your attention and stoke fear. But is a crash really on the horizon, or is it all just overblown panic? In this post, we’ll dive deep into the world of market crashes, exploring the likelihood of one happening soon, the telltale signs to watch for, and, most…

[tenth-sentence]

But Jones was putting on a brave face.

"Killing for Country: A Family History" - David Marr

[cb-reblog]

[opulence-is-decadence]

"Girl dinner" is another symptom of economic downturn. You're basically glamorizing food in smaller quantities because you can't afford what you used yo eat at your biggest meal of the day.

[cultofcreatures]

Everything is so fucking depressing. Prices keep going up at the grocery store, and the amount of food you get keeps going down. Shelves are empty. Everything is closing. I thought this was only supposed to happen under socialism. 🙄 Everything fucking sucks. I hope we get bombed.

[whats-in-a-sentence]

The white rhetoric around the riots – all caused by white lynch mobs motivated by racial hatred and economic grievances – demanded the soldiers of colour return to their colonial homes and an end to association between them and white women. The irony of a colonial race insisting that people stay in the land of their birth was invoked by Felix Hercules, of the national liberation movement in the British West Indies, in The Times of June 1919:

I do not believe that any excuse can be made for white men who take the law into their own hands because they say they believe that the association between the men of my race and white women is degrading.

If . . . the problem can be solved by sending every black or coloured unit forthwith back to his own country, then we should be compelled to see that every white man is sent back to England from Africa and from the West India islands in order that the honour of our sisters and daughters there may be kept intact.

"Normal Women: 900 Years of Making History" - Philippa Gregory

[authne]

Global Stocks Fall as Investors Stress Over Recession

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[ryan-knowledge-zone]

Americans Feel Economic Pinch Despite Job Surge

In the midst of robust job creation, Americans remain skeptical about the economy's health. Despite the addition of over 2.3 million jobs this year and a sub-4% unemployment rate, the economy still leaves many dissatisfied. The culprit? Inflation. Rising prices for essentials like rent, food, and fuel are straining budgets, offsetting the positive job market trends. High housing costs and interest rates further exacerbate the challenge, leaving younger generations struggling to achieve financial milestones. So, despite promising macroeconomic data, the burden of high prices continues to cast a shadow on economic optimism.