Business

Crisis creates once in a lifetime opportunity!

By Reuben Buchanan

The current global financial crisis has been described as a ‘once in a lifetime recession.' Reuben Buchanan explains why.

Savvy business owners, entrepreneurs and investors recognise the GFC as a once in a lifetime opportunity to make money.

Here's why:

• Prices of public and private companies are extremely undervalued. Most will return to their true valuations over the next few years creating significant upside for investors.
• There are many industries that are thriving in the current environment.
• Lower barriers to entry for new businesses because most competitors have shut up shop.
• The cost of labour has significantly dropped – meaning business owners can employ better quality people at cheaper rates.
• If you can provide others with a business opportunity such as a franchise or distributorship, recruiting in the current market' is easy (as many people are seeking cashflow opportunities or extra income).
• In property, prices have dropped and rental yields remain high due to the housing shortage. This combined with 20-year low interest rates means it's easy to positively cashflow an investment property.

Personally I have never been so busy. I'm knocking back business opportunities every week. And even though everyone is saying that capital is hard to come by, all the investors I speak to are very optimistic about the current investment environment. They are actively looking for the ‘next big thing' that might become an IPO in two to three years when the stock market recovers. So timing is ideal.

Sir Richard Branson says the time has never been better for entrepreneurs. In a recent interview with The Times (London) he said the economic downturn has provided entrepreneurs with their greatest opportunity in years.

“Fortunes are made out of recessions. A lot of entrepreneurs get going in the economic depths because the barriers to entry are lower. There are a lot of Richard Branson types who will emerge in next three or four years.”

“Sir Richard Branson believes the economic downturn has provided entrepreneurs with their greatest opportunity in years”

Branson also offered entrepreneurs some advice on how to get through tough economic times.

“You have to come up with imaginative ways of saving cash, like signing every cheque yourself. You would be surprised how much you can save even in large companies if the boss questions every purchase order that goes out,” he said.

Another very effective business opportunity is to become a distributor of another business's products or services. You receive a commission on every product or service you sell. It has virtually no overheads, no start up costs, no risk and you can do it part time.

Best of all you can usually make more money per sale than the company you distribute for! This is because you have few overheads. They have to create, manufacture, administer and deliver the product. All you have to do is sell to your network. So even if you are only making a 20% commission on the sale, you are likely to be more profitable on a per sale basis.

There are many more ways to get into business without the' traditional risk associated with most start-ups. If you would like to attend a workshop on how to start a business with low risk and no money, please contact my office on 1300 858 418 or email jack@teldar.com.au. I hold these events regularly throughout Australia. Best of all, there is no cost to attend!

Reuben Buchanan, Director - Wholesale Investor & Teldar Media founded Wealth Creator magazine in 2001. Today he assists and educates companies on capital raising and exit strategies. www.teldar.com.au