The mass media is still reporting an economic downturn, and many companies are having trouble generating profits. Even so, some companies are making their profits soar. What is making the difference?
Whoever blindly believes everything they hear will be in trouble when the economy crashes. For example, all of us have seen incidents of the media reporting fabricated stories, but people keep buying such reports. Even if the media does do a perfect job of reporting, we still do not know if spokespersons from any corporations or government agencies are telling the truth to news reporters. If you, like everyone else, believe those unverified reports, your business will be in trouble like any other businesses when someone on TV says we are in recession.
Here is a real-life example: reports about Canada's crude oil reserve. Awhile back, the media reported that it would take 150 years to dig up all the reserves if oil companies dug at their planned rate. After hearing those reports, the general public believed that there were 150 years' worth of oil supplies for the entire world. (If you know people from Alberta, Canada, ask them. They will agree.) However, when you divide the published reserves amount (170 billion barrels ) by human oil consumption in the year 2008 (30.8 billion barrels ), you will get a little over five years. You can now see the "equivalent of 150 years of human oil consumption" is just a product of confusing the digging rate with the consumption rate.
As it is very easy to see, if you make long-term business plans based on inappropriate information, i.e., 150 years' worth of oil reserves, you will be deep in trouble down the road. Rather than buying into rumours, you need to properly evaluate information. If you do that, you can separate yourself from the general public. Then your business will stand strong, while all other businesses are flushed down the toilet because of a bad economy -- or whatever.
© November, 2013