What are lessons from the last big economic downturn (2008-2010) that we should remember now?
I asked a few of my mentors this question, and summarize their insights this way:
- Keep your debts low. Never overleverage assets. Only speculate with money or assets you can afford to lose entirely.
- Be contrarian. “Everyone” moving in one direction should be suspicious.
- The thing you will NOT do separates you from the people who only want to bleed you dry. Focus on customers who value what you uniquely have to offer.
- Every day ask yourself, “What am I pretending not to know?”
- Choose your mentors and guides carefully. “The key to being a fly on the wall is knowing which wall to be on.” Who you know and trust will be truly critical in any economic shift.
- Do what you can to “catastrophe-proof” your business model.
- Where there is chaos and disruption there are opportunities, which often require a jump to a different S curve. Resources come in the wake of boldness.
- Expect to be misunderstood or ridiculed. Never allow yourself to wallow in self-pity.
