“A brilliant mind once stated that everything eventually requires a restructure. Businesses and livelihoods will require a dramatic overhaul when we finally see blue sky after this virus loosens its grip on nations. Fortunes would have been reduced or lost, and savings will have been wholly or significantly depleted. Millions of people have lost their jobs and have entered the dividing redline of poverty. Governments have released their stimulus packages and are doing their best to cushion the impact of minimal to no income. A capital injection of epic proportions will be required to jumpstart any redlining economy. Scott Morrison announced $18 billion in economic stimulus to fight COVID-19 and build confidence in Australian governing to reinforce the pillars of stability for the economy.”
Australia is not in as bad a shape as so many other countries. For starters, we are grateful that we have a surplus to rely on. Our government was quick to react and built a framework of recovery by first providing for the ones in greatest need. A challenging job was undertaken by the PM Scott Morrison and his cabinet. A commendable effort that will provide Australians with a launchpad to recover quicker when this virus subsides.
How Do We Restructure?
In the first instance, we will be seeking a level of recurring income that will make up the central vein of revenue, for most this will be in the form of a job or small business that generates regular turnover and cash flow. Unfortunately, it won’t be business as usual as the world continues to reel from the catastrophic death rates and financial debt chains that will burden taxpayers if governments are unable to grow their economies at a steady pace. So what do you do if you are looking to rebuild your financial lifelines and where do you focus?
Focus on creativity and the value in filling gaps
There is comfort found in human resilience, creativity and ingenuity. For thousands of years, we have been able to reinvent and reengineer our way of living and improve our standards of living. So the first answer can be found in our creativity! Entrepreneurs will inevitably create the next Googles, Microsofts, Facebooks and Ubers that will become the unicorns of the future. In all downturn markets and depressions, diamond-like unicorn companies are thought up and brought to life. For those of you who have a little stashed cash for investment opportunities, this new wave of future-focused companies will be the ones to back. Make sure you can afford to invest though, as you do not want to be in a position to reply on investment returns when the returns might only come in the medium to long-term. Take a step back and try to understand what people will need in the future when their lives become busy again. The additional precautionary measures that will be taken to deter the advancement of viruses, bugs and infectious diseases is an excellent place to start to do some RND. Future business can be found in these gaps.
Next, fill the gaps
When jobs are lost, and markets begin to recover slowly, opportunities will be lurking in every industry. There are already gaps and shortages of numerous products. It will take some time to find and relink supply-chains that have fallen by the wayside due to the financial constraints and the legal pivots caused by COVID-19. I have assessed huge gaps in short to medium-term global supply-chains. These supply gaps are holes within middle manufacture that governments will be backing to get the wheels of the economic engine turning again. There are shortages in the medical industry, in the supplement medicine space, in certain food products. There will be additional shortages of raw materials that are required in the middle manufacture of finished goods. Countries will begin to reconstruct and change their manufacture supply-chain agreements to hedge risk. A levelling of the playing field will open the door for new suppliers to link up deals with local and international partners. New passages to alternative trade routes will be fostered. Opportunity is all around; we all, however, are required to scratch a little deeper than the surface to find it.