“If the world is upside down the way it is now, wouldn’t we have to turn it over to get it to stand up straight?” – Eduardo Galeano.
Believe it or not, it was predicted 12 months ago that we were heading for a financial downturn. However, with covid-19, this has now turned out to be a recession of epic proportions. Suddenly, things that felt concrete and fixed, no longer feel this way.
This week I’ve seen:
- Job loss
- Pay cuts
The crash is inevitable and imminent and there are three reasons why.
Wave one – consumer debt defaults
In February 2020, rent defaults were > 30% and this is set to rise to > 50% in March/April. Credit card debt is up 20%. Unemployment rates tracking towards 25%+. These cracks will inevitably turn into a crash.
The consequence: money is cheap right now and it is easier than ever before to borrow money.
Wave two – corporate debt defaults
85% of company rent is already in default. Corporate debt is a record 75% of GDP and in the UK 42% of national income is “risky”. Collapses will occur sector by sector starting with retail followed by hotels, cruise liners, tires and rubber, leisure facilities…and so it continues.
Consequence: the sale of the century. Companies that were worth £millions will be sold for peanuts.
Wave three – sovereign debt defaults
Total global debt is up 500% vs 2008. Defaults will begin in emerging countries leading to hyperinflation, which quickly erodes the real value of the local currency, as the price of all goods increases.
I realise that this makes for sobering reading. This blog is by no means about instilling fear.
I believe that knowledge brings great power.
I have already heard from clients that have got to interview stage and now job opportunities have been pulled. The hiring freeze phase has already begun. This will have a knock-on effect to career progression and internal promotions within companies too. As I’m sure many furloughed staff are wondering….will there being enough of the company/university left for me to return to?
So what can we do about it…?
The people that will not just survive this downturn but thrive, will be those with an entrepreneurial spirit. You may think that this is only relevant to start-up companies and CEOs but that is not the case.
Instead of waiting for opportunities to present themselves to you, create them.
The very best foundation for this is through rapid growth and expansion of your professional network.
Because…your LinkedIn profile is not a dusty old CV. It’s not about you. It’s about what you can do for others.
- If you are looking for a job. It’s about pointing your profile towards the opportunity you are looking for and growing your network full of the people who will hire you.
- If you are looking for internal promotion. It’s about pointing your profile towards the people you serve in your job e.g. customers and using it as a tool to be pro-active and bring more opportunities. To become a voice within that community and be recognised for your contributions.
There are structural changes you can make to your profile using templates and scaffolding but the most important thing is the strategy behind what you are trying to achieve and how to grow it. You can do this from as little as 15-20 minutes of daily actions. Like doing a set of daily sit-ups to protect your future health.
Do want to grow your LinkedIn network full of the right people from ~450 to 9,000 within 6 months and learn a strategy to harness that network into ideal opportunities?
If you answered YES. Please check out my 1:1 personalised LinkedIn Masterclass £59. LEARN MORE
PS: Last chance to book a personal branding strategy session “LinkedIn Masterclass” for £59. After June 2020, this session will be converted into a digital masterclass to preserve my 1:1 time for coaching. BOOK NOW.
PPS: Next week I’ll be talking about how the cultural paradigm that we live in fuels competition in the workplace.