SOME CEOs/FOUNDERs ASK ME WHAT SHOULD THEY HAVE MIND IN THE NEXT YEAR…
Some CEOs/Founders asked me how I should feel next year.
I simply explain this.
Of course, it should not be expanded at this time. Why is it difficult to explain all aspects, current businesses take 12 hours for me to help them understand how all aspects of business are tied to money, but I will explain here the monetary aspect of circulation.
The essence of the economy is the flow of money and debt.
One man’s revenue will be another man’s expenses. This man owes money but cannot pay it, which will lead to a breakdown in the value chain of social operations, fewer jobs, reduction of personnel will be the upcoming trend, life will be difficult and motivation for tightening customer spending.
In 2019, the circulating money is expected to be about 10 million billion.
2023 is predicted to be 6 million billion. Because interest rates on deposits from banks will increase, with the aim of withdrawing money from circulation to reduce inflation, the central bank is required to do this for two reasons:
a) Someone asked, “Why do you have to raise interest rates instead of reducing them?”
Historical data shows that if interest rates are not raised but do the opposite – lower interest rates, cheap credit. However, the employment rate will increase, inflation will skyrocket and the economy will not be able to recover.
And b) the Fed raises interest rates and exports inflation to other countries, including Vietnam.
The increase in mortgage and mortgage interest rates will cause individuals with excessive leverage to fore real estate to fall sharply.
The increase in deposit interest rates is high, even higher than the profits made by some enterprises in the year.
Of course, some companies (of course only some, not all) of their side are still doing well and their profits are still attractive compared to bank deposit rates.
But I know, that number is not a number that every business can do.
Matter generates consciousness.
If we lack money, we will worry, even:
Small things tear up big.
Big things become huge things.
So what to do next year, say something with a smile, understand everything.
Exercise, and learn new skills. Cost savings.
Whatever can be missed, let them go.
Business owners have two great pressures:
a) Pressure on the recognition of their companions.
b) Financial pressure.
The a) needs time, not in a hurry.
But don’t let yourself be pressured by not understanding the nature of finance and money (b).
Spend reasonably, think about what to do, and ask Mr. CFO before doing it, does this create any value, if not, don’t do it, stay defensive, focus on personnel, and … practice.
Wishing everyone clarity.