On Monday, as the stock markets were continuing to crash at warp speed, someone asked me my ideas.

I told them invite to the crash of 2011!

And while the 16% drop in 10 days is just the third time that has actually occurred in 4 years (also 1987 and 2008),
this volatility possibly continues for a long time.

For 2 reasons:

1) An An Incorrect Measurement Tool-A GDP, gross domestic item. A Currently we determine the success of our
economy based on how much we increase our intake. A When the US was the only nation (mostly) doing this, we
might essentially get away with it. But with the entire planet now trying to do it, it is unsustainable.

2) A A Requirement & Poors' Message- devaluing the United States Government's ability to pay back its debt.A
While it isn't S&P's reason, the main one from my perspective is # 1 (above). A This was amplified by the clear
presentation this summer season of government's failure to operate as a unit.A The message became painfully
clear-- they do not have the very best interests of the nation in mind.

Think of running your business in this manner?

For instance, let's state you have a business that sells handbags.A For many years you have actually been doing
well. Your reputation and income has been the envy of the industry.

Then slowly the competition begins coming in.A They start damaging your costs and pursuing your most loyal
consumers.

As sales begin to slip, you increase your marketing budget plan to try and keep them at bay.

But they keep coming at you.

You cut your rates and work your employees harder.A To cut costs, you use cheaper labor and products.

As an outcome, the quality of your handbags drop.A Consumers are less delighted with your brand.

Now you require more money to pay expenses and increase your marketing, so you get more loans.

On the other hand your staff members and supervisors, mainly stressed to the max, begin blaming each other for
the errors and wrong turns the business has actually been making.

Next you discover the banks have actually increased the rates of interest on the debts you owe them.

One day you wake up and ask yourself how you ever got into this mess.

How to handle the financial obligation crisis in YOUR company:

1) A A Great vs. Bad Debt- "Great" is financial obligation directly associated to generating money for your
business, via sales and lowered expenses.A When looking at loaning, constantly ask yourself, "What is the ROI on
this purchase?" A (ROI= Return on Financial Investment). A The response needs to be a multiple of what you
purchased it, like "10X". A For example, when I borrow $100, it is excellent financial obligation if it will generate a
minimum of $1,000 in return.
2) A An Excessive vs. Correct Amount of Financial obligation- threat and ability to pay it back are needed here.A
Risk = O * P, where O= possible result and P= the possibility of that outcome.A The closer that number is to "1",
the better.A There are danger evaluation tools online to utilize.

3) A A Leveraging Debt- irregardless of your financial obligation position, use it as a chance to innovate and
recreate your business's instructions it is heading. For example, use the truth you have your debt to it to create
seriousness for requiring to find brand-new chances for your company to capitalize on.An Utilize it to create more
abundance of cash and joy in your life.

4) A A Ramp Up the Group- focus on teamwork and checks and balances. Make sure everybody is clear on the
UnReasonable goals and difficulties ahead for the Century Consulting Services Reviews business.A And they are all
in this together.A As a team.A This will more than likely include compromise.A For successful compromise, it is
crucial to leaving the ego out.

5) A A Stay focused on the higher excellent- for all your stakeholders.A You will need to define this with your
team.An Utilize it as a decision making procedure as you work your strategy forward.

6) A A Take Note Of Your House- stakeholders are more than likely seeing your movements. Whether it's your
financial institutions or communities, social media can alter things for you on a dime.A Stay prepared, prepared to
react and change when necessary.

7) A A Redefine Success- and what it means to you.A Perhaps the very best method to determine success is not on
just how much we purchase, but how delighted we are.A Now that's UnReasonable! Picture what that would do to
who is # 1 in the world.A For instance, the United States would most likely be towards the bottom and Costa Rica
towards the top of the list of "happiest" countries.

So, I believe the S&P downgrade was an excellent thing.A It is a wakeup call that our management group and top
priorities are a bit out of whack.

And with the ideal focus and objectives, we will adjust our sails and move through these economic difficulties to
stronger, more grounded country and world.

Action Steps For the Week:

When was the last time you evaluated the state of your company's debt?

Do you feel pressure or comfy about your money position?

If you feel comfortable, review it to see just how much you need to cover your basic nut (i.e. regular monthly
costs). A Set up a plan to have 3-6 months as a cushion.

If you feel pressure, evaluate the actions above.A Determine where your debt situation is from a threat vs. reward
of spending your cash on certain financial investments in the company.A Compute it from 3 situations: low,
medium and high possibility in taking place.

Next, figure out if it is mainly "great" of "bad". A Remember, if it is creating profits for you, it is good.

Declare the response to your group.

Use your formula for the ROI for any capital infusions (i.e. "10X").

Then get clear with your team and ensure they work well together and will collaborate through the obstacles
ahead.

As a team, define what "the greater excellent" means to your company.A Make sure the group stays focused on
this.

Last but not least, ensure you integrate the joy component.A What does this mean for you and how will you
measure it moving forward.

With all this in location, try to find methods to take advantage of this business instructions with your customers.

Doing these actions will probably surprise you in how quickly and fun this will be for you.