When times get tough, the usual reaction is to cut the fat, tighten your belt and let things go – in other words, to retreat. However, I am going to make the argument that when the rest of the world encourages you to contract, you should expand.
Before I make my case, I want you to know I am not a “doomsday” and panic kind of guy. Nonetheless, I am still a practical person who can see the reality of the situation. Right now, the whole world is in a state of emergency. To even have a chance of making it out alive, you need to lean into hard times.
If nothing else, the 2020 pandemic should have taught you one thing: businesses that made it adapted – and even prospered – during the lockdown because they refused to close up shop. DoorDash, Amazon and Netflix are just a few examples.
I am going to make the argument that when the rest of the world encourages you to contract, you should expand.
Are you still not convinced that you should expand while other people and businesses contract?
I’ll take it a step further. I am going to give you the formula for doing it.
5 Steps to Expand While Others Contract
As I lay out the exact plan I’ve used to succeed in any economy, know one thing: Panic and worry won’t help you. You can acknowledge and be rational, but don’t let emotions take the wheel. Creating prosperity in a time of uncertainty takes a clear head. Keep that in mind as we go through these steps:
1. Plan and Prepare for the Contraction.
While I don’t want you to succumb to fear, the first step to expansion is planning and preparing for the worst-case scenario.
That can look like many different things. In the case of COVID-19, it meant having plenty of food and water for your home. Businesses also put systems in place for their teams to work remotely.
Whatever it is, do it so you are set up for success.
2. Commit to Growth.
The next step in your plan is to go all in on expansion. You must decide that it is going to happen, no matter what. Also, you have to accept the fact that failure to do so will result in contraction. Mindset is important in every venture you take on. This one isn’t different.
3. Follow the Money.
The third action on your hit list is to answer two questions:
- What industries are people flowing cash into right now?
- Where does your money need to go?
Money follows attention. Once you figure this out, you’ll have the insights to appropriately pivot and prioritize your finances. Now, the fourth step is where many people end up breaking:
4. Persist Regardless of Initial Results.
At the outbreak of any kind of crisis, there is always the chance that you may have miscalculated or made some wrong choice. Still, it is critical that you continue – chances are that others made those same errors. The difference between them and you is that they quit.
Quitting is the only guarantee that you’ll lose!
Keep going and implement this final action …
5. Do What Others Refuse to Do.
Lastly, take advantage of others throwing in the towel. (It sounds bad to say it that way.) The key to this plan’s success is expanding into others’ “quit” and taking their market share.
The competition isn’t willing to bring product selections in person? I’m driving to the client to present those options in person. They don’t do trials? I’m going to offer them a month free.
See what I’m doing here?
After whatever contraction you’re faced with, life is going to go on. The choice whether life ends for you or you continue to be affluent is yours to make.
