Mostly, however, this only means that those who were rich become even richer. And those who were not that wealthy become much poorer and some even find themselves in poverty.
Anyway, how’s that happening? How do they double or triple (etc) their wealth during recession when money seems to cost nothing, when what you own is depreciated in price, unemployment grows, you have to work your hardest to simply feed your hungry children and there seems to be no light at the end of the tunnel?
What happens to the market
Simply put, the number of people or companies working in the niche starts to shrink faster than the market of the niche. That means that the income of the companies left grows (and grows their nominal share of the market also, but money is more important of course).
This situation happens on every market in every country and may be easily observed. You may find in any search engines the latest news about the wealthiest British who have doubled their fortune during the last recession etc. This used to have happen and this will happen again.
Does it concern everyone?
Of course it doesn’t work with the innovative companies or the ones that introduce something especially new that has never existed before.
Why do some companies grow and others go bankrupt?
This depends on the strategy that the company has chosen for itself. If the strategy is adequate and answers the challenges of the time, then the company wins even if its whole departments are laid off and the expenses are cut sharply.
But if the strategy is wrong or sometimes there may be no strategy at all, the company will go down inevitably. The same concerns people. Do you have a strategy for your life during the coming decade?
How do they build an effective strategy to overcome crisis?
Not so many people know how to do that. To build an obviously winning plan one has to understand not only what is happening now and how it all used to happen in the past, but has to know some certain facts about the future. That is, you have to have information.
Information about the future means everything during the crisis. Ordinary people, small businesses and local companies don’t have access to this kind of information. The world is ruled by wealthy and powerful who not only know the information, but they are those who create it.
If you are reading this article – you don’t know much, probably. 🙂 But! You should try to build your strategy based on your circumstances, abilities and surroundings. Because some kind of strategy is always better than no strategy at all.