Domino’s anyone??

So yesterday after my blog Independent Magazine Distributors went under as did a South Island preschool chain.  Hill & Stewarts demise is also a cost cutting/survival exercise. Expect more of this as the domino’s start to fall this year.

You all know my views on the opportunity this creates for investors but let’s look briefly at what else should be on our minds if we are wage and salary earners.

1. Be the best darned employee in the company.  Companies will continue to down size this year, make sure you are on the bottom of the redundancy list.  Be early, volunteer for the cr*p jobs and make your self as indispensable as possible.

2. Most of us can see flaws in a business. In fact get into the lunchrooms of lots of companies and you could be forgiven for thinking that all the staff had PHD’s in business management.  But if you do actually have ideas that might help your employers bottom line, write them down and give them to the boss.  This is an opportunity to do everything you can to ensure your current income source survives.  Do whatever it takes. If there’s stealing going on report the culprits.  If it’s you STOP IT!!  Gross inefficiencies in the next office/department/plant??  Tell senior management.

I remember 20 years ago writing a letter to the GM of a company I had just started with.  I basically said how poor my induction had been and it appeared that the sales people within the company couldn’t even explain their own products to me properly so what hope would a client have. I asked for additional training as I took my job seriously and I didn’t want to be representing the company poorly.  I was promoted 3 weeks later .  So take the initiative.  If you’re a floor cleaner and you have a great sales idea, speak up!!

3. Plan Plan Plan.  Hundreds of great companies go under every year. So set a plan to be in control of your own income as soon as possible.  It doesn’t have to be full time property investment or even self employment but get planning something!! A part time job, tutoring at home in some area you have expertise in. Sticking $20 a week in a high interest bearing account and never touching the compounding interest. Trading widgets on Trademe.  I recently heard of a lady who had a nervous breakdown. She couldn’t work at all. She was book mad however and managed to get a couple of second hand places to give her their books from house lot sales and she started looking for free boxes of books etc on Trademe. She then started listing individual books back on Trademe and to her surprise they started selling. Became a full time business with zero cost of sales .

And finally remember the journey IS the destination, take time to enjoy everything you can. Redundancy and poverty can’t rob you of the beauty of a sunset, the smile of a child or the joy of an intimate relationship.

Stay Inspired and Stay Safe ~ Dean Letfus

The Ethical Investor