It seems like déjà vu. Tensions in the United States appear to be setting the stage for a global recession similar to the one that occurred in 2008. This time, however, the looming global recession is being influenced by:
- trade tensions between the United States and China
- a war for technological dominance between the United States and China
- growing tensions between the United States and Iran which could skyrocket oil prices
The 2008 recession, also dubbed the Great Recession, lasted from late 2007 to mid 2009 and resulted in America’s Gross Domestic Product (GDP) declining by 4.3 percent and the country’s unemployment rate increasing to as high as 10 percent. The effect on America’s economy had a ripple effect on several nations globally, including Jamaica.
Jamaica relies heavily on the success of America’s economy for several reasons including facilitating the growth of the tourism sector and providing income for the government’s coffers in the form of remittances. Therefore, the Great Recession also heavily impacted Jamaica.
We do not want a repeat of this economic crisis in Jamaica (or anywhere else in the world for that matter!). There is a great thrust towards the growth of Jamaica’s micro small and medium sized enterprises (MSME) sector, and rightly so. After all, these businesses form the backbone of our economy. We have spoken about the fact that this support makes now one of the best times to start a business in Jamaica. In fact, we have covered some ways to come up with business ideas and have provided suggestions for possible business ideas. Here are the articles in the series if you have not gotten a chance to read them:
However, with another global recession seemingly on the horizon, how can you create a business that survives? Use the R-E-A-C-H strategy.
R- Rely on More than One Market
Part of the problem with some businesses is dependency on one market. Although this does depend heavily on the nature of the business, a business based in Jamaica does not have to focus solely on Jamaican or American customers. The world is your oyster so it is important for you to find ways to sell your products in other markets. It can be as simple as using targeted paid advertising on social media to sell your product or service to a non-American overseas market. However, it can become as complex as adding a new division to your business that focuses on products and services that appeal to a global market. The point is that you should expand your reach as much as possible so that all (or most) of your eggs are not in one basket.
E- Engage a Remote Team
Hiring full-time employees brings several human resource obligations that can negatively impact your business as the pressure of a global recession takes its toll. Freelancing sites such as UpWork and Fiverr will help you find freelancers who you can employ on an as-needed basis from anywhere in the world at a fraction of the cost of a full-time employee. You may still need a few full-time employees, but the number can be drastically reduced if you work with a remote team of experienced freelancers. Success Lifestyle Magazine has a team of writers, graphic designers and photographers who can be your freelancers for content marketing projects. Contact us today to schedule a free consultation.
A- Adjust Your Focus
Adjustments may be necessary for your 5 year growth plan to reflect a renewed focus on more promising global markets. You will need to work with your team to ensure that everyone is on board with the necessary changes. Additionally, roles should be clearly defined so that all team members understand the part they play in helping you create a resilient business.
C- Connect with the Right Partners
Networking is an essential aspect of business. The longevity of your business depends on the quality of your products and service, the innovation of your team, how well you and your team can establish lasting customer relationships and how good you are at finding the right partners who can help you reach new markets. Remember that your focus is not reserved to Jamaica (or any country from which you originate). You need partners in the markets of interest because they know these markets better than you do and can help you create a winning strategy to sell your products or services.
H- Hold On for the Ride
The journey will not be easy. Entrepreneurship is not for the faint-hearted or the person who is unwilling to stick it out no matter how hard it becomes. There is a bumpy road ahead; you need to learn how to dodge the potholes and get yourself back on your feet when you from into an unexpected pothole that threatens to tear your business apart. Hold on for the ride!
Learn More About Starting a Business in Jamaica
Our founder, Christine McLean, has created a comprehensive guide to help you start a business the right way in Jamaica. It is jam-packed with all you need to know to start, fund and maintain a healthy business, even with the impending global recession. Whether we like it or not, the possibility of another global recession happening is great. However, starting a business in Jamaica can help you gain a level of financial freedom that you never thought possible if you know how to do it the right way. Complete the contact form below to pre-order your paperback copy! The book will be released in November 2019! Pre-order now while supplies last!