On Monday, as the stock markets were continuing to crash at lightning speed, somebody asked me my ideas.

I informed them welcome to the crash of 2011!

And while the 16% drop in 10 days is just the 3rd time that has happened in 4 decades (likewise 1987 and 2008),
this volatility possibly continues for a long time.

For 2 reasons:

1) An A Wrong Measurement Tool-A GDP, gdp. A Currently we measure the success of our economy based upon
how much we increase our consumption. A When the US was the only nation (mainly) doing this, we might
basically get away with it. However with the entire planet now attempting to do it, it is unsustainable.

2) A A Requirement & Poors' Message- reducing the United States Government's capability to repay its debt.A
While it isn't S&P's reason, the primary one from my point of view is # 1 (above). A This was magnified by the clear
presentation this summer season of government's failure to function as a unit.A The message ended up being
painfully clear-- they do not have the finest interests of the nation in mind.

Envision running your company in this manner?

For example, let's state you have a company that offers handbags.A For years you have actually been doing well.
Your reputation and income has actually been the envy of the market.

Then gradually the competitors begins coming in.A They start undercutting your costs and going after your most
loyal clients.

As sales start to slip, you increase your marketing budget plan to try and keep them at bay.

But they keep coming at you.

You cut your rates and work your workers harder.A To cut expenditures, you utilize cheaper labor and materials.

As a result, the quality of your purses drop.A Clients are less delighted with your brand name.

Now you require more cash to pay bills and increase your marketing, so you take out more loans.

Meanwhile your workers and supervisors, mostly stressed to the max, begin blaming each other for the errors and
wrong turns the company has been making.

Next you find the banks have increased the rates of interest on the financial obligations you owe them.

One day you awaken and ask yourself how you ever entered this mess.

How to handle the debt crisis in YOUR business:

1) A An Excellent vs. Uncollectable Bill- "Excellent" is financial obligation directly credited to generating cash for
your organisation, by means of sales and lowered expenses.A When looking at loaning, always ask yourself, "What
is the ROI on this purchase?" A (ROI= Roi). A The answer must be a multiple of what you bought it, like "10X". A
For instance, when I borrow $100, it is good debt if it will create a minimum of $1,000 in return.
2) A An Excessive vs. Right Quantity of Debt- danger and capability to pay it back are needed here.A Danger = O *
P, where O= possible result and P= the possibility of that outcome.A The closer that number is to "1", the better.A
There are threat evaluation tools online to use.

3) A A Leveraging Debt- irregardless of your financial obligation position, use it as a chance to innovate and
recreate your company's direction it is heading. For example, utilize the reality you have your financial obligation
to it to develop urgency for requiring to discover new chances for your company to capitalize on.An Utilize it to
produce more abundance of money and joy in your life.

4) A An Increase the Team- concentrate on team effort and checks and balances. Make sure everyone is clear on
the UnReasonable goals and difficulties ahead for the business.A And they are all in this together.A As a team.A
This will probably involve compromise.A For successful compromise, it is important to leaving the ego out.

5) A A Stay concentrated on the higher good- for all your stakeholders.A You will require to specify this with your
team.An Utilize it as a choice making procedure as you work your strategy forward.

6) A A Take Notice Of Your Home- stakeholders are most likely enjoying your motions. Whether it's your financial
institutions or neighborhoods, social media can change things for you on a dime.A Stay prepared, prepared to
respond and adjust when necessary.

7) A A Redefine Success- and what it implies to you.A Possibly the very best method to measure success is not on
just how much we buy, but how pleased we are.A Now that's UnReasonable! Envision what that would do to who
is # 1 in the world.A For instance, the US would probably be towards the bottom and Costa Rica towards the top
of the list of "happiest" countries.

So, I think the S&P downgrade was a great thing.A It is a wakeup call that our management team and concerns
are a bit out of whack.

And with the best focus and intentions, we will adjust our sails and move through these economic difficulties to
stronger, more grounded country and planet.

Action Steps For the Week:

When was the last time you Century Consulting Services evaluated the state of your company's debt?

Do you feel pressure or comfy about your money position?

If you feel comfortable, review it to see how much you need to cover your fundamental nut (i.e. month-to-month
expenditures). An Establish a strategy to have 3-6 months as a cushion.

If you feel pressure, review the actions above.A Determine where your debt circumstance is from a threat vs.
benefit of investing your cash on certain financial investments in the company.A Determine it from three
situations: low, medium and high probability in happening.

Next, determine if it is mostly "excellent" of "bad". A Keep in mind, if it is creating profits for you, it is good.

Declare the response to your group.

Utilize your formula for the ROI for any capital infusions (i.e. "10X").

Then get clear with your group and guarantee they work well together and will collaborate through the obstacles
ahead.

As a group, define what "the higher great" means to your company.An Ensure the team stays focused on this.

Last but not least, make certain you integrate the joy component.A What does this mean for you and how will you
measure it going forward.

With all this in location, search for ways to leverage this business direction with your customers.

Doing these steps will most likely surprise you in how quickly and fun this will be for you.