Doom and Gloom Update!
In the July issue of our newsletter, I talked about opportunity brought about by economic upheavals. The government bailout that Congress just passed is the next opportunity.
There is no question that all of our customers and clients are concerned about what is going to happen next, and rightly so. However, as I mentioned in the previous newsletter, problems mean opportunity.
Problem: People are being laid off.
The Opportunity: Job-training programs, employment agencies and entrepreneurial training are all businesses that can prosper. I think that franchising (one of our businesses) will get interest from lots of people who have previously been interested in doing something else, but have been reluctant to move because they had a good job. Now they may be unemployed and the decision is made for them. Many of these people have some money saved and realize that they need to do something with it before they spend it trying to hold out.
Problem: Real Estate foreclosures.
The Opportunity: The government bailout will create multiple opportunities by offering real estate to investors who are willing to move it off the banks’ books. Sure, the investor will have to hold the property for a few years, but you may be able to buy at 20 cents on the dollar.
Problem: Lenders not making loans.
The Opportunity: In the past, people have put together private pools of money to back local projects for a good interest rate; and since there are not many good investments out there this will get interest again.
Look in your own town and see where the problems lie. Wherever the problems are, the guy that can help solve them can do some good and make some money. Those of you who remember the last government bailout (The RTC) in the late 80s early 90s know what I mean. Fortunes were made solving problems then, and new fortunes are going to made solving the problems again.