Cutting costs and leveraging technology is a smarter play right now than ever before. My bride and I have slashed our personal and business costs, are foregoing major expenditures, strategically planning for tighter times, and are focusing our client engagements in the same direction.
There is a tremendous amount of information about the credit crisis, but this morning I came across this article (scroll down for article) about the size of the problem:
Bridgewater Associates is estimating that the costs of the credit crisis may be a lot higher than previously assume at a staggering $1.6 trillion. At the current time, approximately $400 billion has been accounted for and writedowns taken. The International Monetary Fund (IMF) has estimated a cost of just under $1 trillion, Goldman Sachs at $1.1 trillion, and hedge fund manager John Paulson at $1.3 trillion. The analysis by Bridgewater was dug up by this Swiss newspaper.
The magnitude of this problem, its intricacies and the complexities of the global monetary system is beyond my ability to understand or control — and I’ll wager you’re in the same boat. What I can control is my preparedness and the strategic steps taken to guard against devastating losses.
We’ve taken a lot of tactical steps: from no debt, to ordering a 2009 Prius for its gas mileage, to the investments we’re choosing and even things like moving from shipment of products to digitally delivering those we can. There are even times we’ve delivered talks online that previously we would’ve delivered in person, primarily due to the venue wanting to save money as transportation costs have risen.
With the acceleration of web applications to mobile telephone and broadband speeds, there’s no better time to begin to examine parts of your business or personal lives that could be slightly modified and be delivered virtually. I’m not recommending you stop traveling and use webinar technology in its place, for example, but instead replace one trip. The bonus is you’ll also learn how to use it, if it is effective (and how to make it so) and whether or not it actually saves money.
The point is to plan….now.