Thread by @mywifequit

5 tips to help you prepare for the next recession (pandemic edition)

From a guy who has:
> Lived through 2 recessions
> Runs 2 online businesses (inc a 7 figure e-com store)
> Supports a wife and 2 kids

Ignore these tips at your peril

//Thread//

With the pandemic causing mass layoffs and record unemployment, it's clear we are going into a recession.

Why listen to me?

Because I've survived 2 of these monsters.

This thread will contain all the lessons I've learned so far so you don't make the same mistakes I did...

First, a quick PSA.

This thread took time to put together and I don't ask for anything in return except a RT of the ☝ tweet.

I want as many of you to be as prepared as possible so please share the free advice.

Let's take a small step back to my first recession in 2002....

📉2002- I watched my stock portfolio plunge to <50% of its original value 😭

In my state of panic, I made 3 mistakes
> Sold off a ton of stock at ATL values
> Stayed in cash
> Missed the multi-year bull market that followed

Fast forward to the 2008 crash...👇

2008 - Determined not to make the same mistakes as 2002, I did the opposite and bought up a bunch of stocks at ATL prices and held them for long term profits 📈

I also started my businesses
1- Bumblebee linens (e-com)
2-Mywifequitherjob.com (blog)

Both are winning today

I made a tough decision to quit my job and focus 100% on my businesses.

I still remember
> All my former colleagues being terrified of losing their jobs
> Many close friends losing jobs
> Not being able to sleep due to fear of losing my job

Now you know my story, let's get...

into the tips to make you recession proof.

Disclaimer: I’m not a financial or investing expert. As a result, please take everything that I say in this thread with a grain of salt. These are my opinions only and should not be taken as fact.

That being said let's get started...

- *My philosophy on recessions, pandemics or crisis**

> Don't panic.
People have a tendency to overreact. Your best "strategy" is to do the opposite.
It helps to remember some of the biggest companies today started during recessions
- IBM
- GM
- Adobe
- Disney

> Proactive beats reactive

Recessions are temporary. Your business and financial health are long-term.

You have 2 choices:

1) Do nothing.
2) Do something
- Be creative
- Build something (Good eg is hairdressers doing house-calls)
- Double down on what's worked in the past

Recession tip # 1 Focus on what you can control, add value, think long term

When life gives you lemons, make lemonade.

Due to the pandemic we had to cancel our live event which was already sold out.

Many event hosts decided NOT to refund their customers.

BAD choice.

The best

investment you can make as a business owner is in your own customers.

With that in mind, and with a long term mindset, we gave the option to refund all our customers, no questions asked.

However...

We incentivised them to hold their ticket by giving them ADDITIONAL BENEFITS...

1) We made our summit virtual with all the speakers we had lined up
2) We gave guests the option to ask questions in real time
3) We gave them a pass to our next live event

As a result, we got an overwhelmingly positive response to our refund policy and virtual conferences.

Recession tip #2 Have a strategy for investments (and stick to them!)

Most advisors will tell you to hold out but I'm doing something different which is to short the market

(Again: NOT financial advice. Don't copy. It's just an opinion)

In the last 2 downturns, I messed up by

taking action when it was too late.

So at the beginning of the pandemic in March 2020, I shorted the S&P and sold most of my portfolio.

It worked for me this time but it's no guarantee it will work every time.

The point is to have a strategy before hand, and STICK TO IT.

Recession tip # 3 Eliminate all unnecessary business expenses

In times of crisis, you want to keep overhead costs at a minimum.

If you run a business, now is the time to do a line by line analysis of your expenses

Put them into 3 categories
> Nice to have but not necessary

> Must have to survive
> Can be replaced with something cheaper

Scrutinize or cancel all the nice to haves and consider looking for more affordable options for replaceable ones if you can.

This frugality will pay off in times of crisis

Recession tip # 4 Double down on what's working

Looking back on my businesses, it turns out our biggest growth occurred during the last downturn.

Here's what we did:

> Doubled Ad spend
> Bought in bulk to take advantage of low product costs
> Chose cheaper shipping options

> Improved packaging
> Doubled down on content
> Redesigned our store
> Invested in more machinery

If there's something that's already working for you, double down!

Remember this downturn is only temporary so take advantage of this time and build for the future

Recession tip # 5 Pump out content

When money is scarce and time is plentiful, you should be putting out as much content as you can.

Creating content is virtually free to create:

> A blog costs <$3
> Podcasts are free
> Youtube channel is free

So what are you going to do?

Right now, everyone is scared. Everyone is worried and wallowing in despair.

So take a deep breath, look on the bright side, and decide what you want to do.

This is the best time to create content while you're stuck at home.

👇👇👇

The is the best time to start selling online when people are scared to invest.

Who dares wins, no regrets!

If you enjoyed this thread I'll leave you with 3 things...👇

1)Check out the YouTube video where I go in depth into each tip ([]())

2)Share this thread by retweeting the first tweet

3)Follow me for more content like this

Cheers