You have probably already heard about SVB going “bankrupt” and being bought by HSBC – as well as the Swiss bank Credit Suisse also had its downturn.
But what does this mean for you as a business owner?
There is no doubt that what we see now is clear sign of the financial markets are overheating at more or less the levels we saw back in 2007.
While it can be rather expensive to have quite a bit of debt, then there is also a great amount of opportunity.
If your competitor for example has a high debt vs revenue ratio – then you now know that they can’t just go and lower their prices as the cost of interest payments has taken a good bit of their competitive advantage.
This does mean that you have some opportunity to win the market, simply by lowering the price a bit on some of the products that will catch their interest.
The market will also show a lot of older business owners that might get to retirement age, that just want someone to take over the responsibility of the business to avoid having expenses to close it down or “putting it up for sale” for longer periods. So there is a lot of opportunity for anyone who is hungry of expanding.
Your mindset has to be to invest in things you know will be there on another side of a recession. And then your job is easy – you just have to buy under priced assets of “motivated sellers”.
So let’s never waste a good crisis! Let’s build some businesses!
Invest responsibly and grow your venture bigger!