How to Thrive in a Recession (My Exact Framework)

Summary

The USA GDP economy is slowing down, supply chain problems are becoming more acute, and all the economic indicators signal that we are beginning a recession. Things are not going to get better in quite a few years. So if the economy doesn't change, you need to be the one that changes to survive & thrive. In this video I'll discuss the only way I think entrepreneurs can thrive in a recession: by becoming wartime entrepreneurs.

Transcript

There's only one way to thrive in a recession as an entrepreneur, and that is to become a wartime entrepreneur. You cannot afford to not watch this video and learn a proven framework that would allow you not only to survive, but thrive in an economic downturn. Let's get to it.

Hey, I'm Leon Castillo, Founder of Selfmastered . a high performance training company that helps entrepreneurs scale their businesses by solving their silent bottleneck, their own performance will transform the unproductive, overwhelming and focus entrepreneurs into laser focused business athletes that can achieve in one day, what they previously achieved in one week.

So you know how it goes. The markets have been battered in the past few months layoff have started, especially in the tech sector, the USA GDP economy is slowing down, supply chains problems are becoming more acute, and all the economic indicators signaled that we are in the beginning of a recession, the economic conditions are way worse than they were just a mere two years ago. And listen, things are not going to get better in quite a few years. So the if the economy doesn't change, you need to be the one that changes in order to profit. In this scenario, before we discuss what it is that you can do.

Let's discuss how important it is narrative in everything that we do. Because listen, it doesn't really matter. How much has the economy fault. How bad are the value chain problems if people are becoming gloomy, because the more gloomy people are, the less they are going to transact because capitalism is predicated on trust, you need to trust the person you're making business with and optimism, you need to believe that the future will be better than the present. And when we enter a recession, both trust and optimism go down.

So it becomes harder to do business. And this is good news to all of those that embrace their inner war time and entrepreneur, and sick business, like to prosper, do it those times in which you could build a business based on a huge social media, following a little bit of charisma and working on the right things are over. Now. It's all about skills, Strategy, and Financial discipline, just like Warren Buffett said, when the tide goes out, it is when we know who is swimming naked. And in the next few months and years, we'll see how many of those entrepreneurs that you admire so much. We're actually swimming naked.

So what can we do in order to thrive in this session? Well, essentially, there's five things that I highly encourage that you do, and that I'm definitely going to do in order to make our business stronger. And we can weather the storm in the best possible manner. But before we get in, remember to like, subscribe and hit the bell. So you never miss out on any of the juicy videos that will list every week.

Because listen, we are in the business of helping you grow and make sure that your business survives the economic downturn. So number one thing that wartime entrepreneurs do that peacetime entrepreneurs maybe are not as good at is aligning everyone towards the mission, you need to ask yourself what is the future that you are envisioning for yourself and your company? Where are you headed? What is the destination in times of economic recession, there is no room for error. You cannot entertain ideas or projects or stuff that just doesn't align with the survival of the company in the long term.

So the first thing you need to do is understand why it is that you are headed and enforce this and every single decision peacetime CEOs are okay with maybe violating the protocols or doing stuff or falling for shiny object syndrome if there is something to gain from it. But wartime CEOs understand that there's nothing to gain from deviating from the company's survival.

So number one thing is understand what are you headed and just work on those things. Step number two is right size your team. The most important thing is that you have the right people in the right seats, doing the right things. We have economic Bonanza like this last 10 years from the last crisis to this one. There is a lot of people they're just not performing at the level they should there's too much fat in the businesses and you need to squeeze out as much efficiency as you can from the teams that you employ.

So there is no room for those that do not honor their commitments. And especially not room for those that do not understand the most important thing for our business is survival and the fulfilling of that vision. So step two, right size your team three, squeeze out every single inch of efficiency in all of your processes, meaning you need to max out one lead acquisition channel before to jump to another one. You need to max out the efficiency of each process in the company, you do not hire people just for the sake of hiring you maximize the output per unit of input of your workers, you do not try 1000 things you do not change the structure. If the structure is working, you need to first master what you know you're good at and make sure each person and each channel and each system is working to the utmost capacity before opening new channels, hiring new people, or creating new system. This is supremely important unless you master what you already have, you will not have a chance to expand in the future for rethink your marketing

. Listen, this is a hard pill to swallow. But in times of recession, there is no room for nice to haves anymore, everything must be a must have. So if you're selling something that is not strictly necessary, at least not in the eyes of the general public, you need to change your marketing so that they understand that they need you. In order to continue surviving, you need to align your incentive with the incentive to the people that you serve.

And that is done by rethinking your marketing so that it becomes obvious that what you sell is an absolute must have, for example, that's something that we are doing right now because some people don't understand the importance of execution and performance in business even though most businesses fail because the entrepreneurs are very good at strategy, but they cannot execute and perform. So we are constantly reshaping our marketing to make sure that people understand that they need to train themselves in execution and performance. If they want to find their breakthrough. If they want to reach the next level. We are making sure that they don't see us as something that is nice to have but an absolute necessity if they want to be their best in business.

And finally five Institute absolute financial discipline s spend every dollar as it was your last because it may very well be this is not a time for lavish purchases that have no value whatsoever. Every single dollar you spent must be tied to a ROI or you will soon see how your cash balances are depleted and you do not know how to fill them back.

So these five tips is what I believe you need to do if you want to survive this recession one understand where are you headed? What is the mission and make sure that the company survives to put the right people in the right seat doing the right things right size your team make sure your business is as lean as possible to avoid entropy and maximize efficiency talking about efficiency Third, you need to extract as much efficiency of fabric project do not open new lines of business don't hire more people don't create new stuff. If you haven't mastered what you already have for rethink your marketing. It needs to be obvious to the market that what you're selling is exactly what it needs to reach the next level or you will struggle people do not buy nice to have in times of turmoil and finally five s spend every dollar as it was your last extend your runway by yourself peace of mind Make sure that you are not in need of some financial rescue.

These are my five tips. I hope it was useful. The next few years ahead are going to be challenging but if you ask any millionaire out there that is above the age of 40. He will tell you the years between 2008 and 2013 word the best of the best for new businesses because they could buy assets at discounted prices and really find opportunity where others only found crisis.