How to turn financial troubles and crises into opportunity

Remember what people say about finding opportunity in crisis? A number of businesses were actually built this way: the economy was in shambles, even the rich were struggling, and unemployment was widespread. People innovated and turned their financial troubles into a golden opportunity to do something new, says Networth blogger and business graduate Steve Sorensen. Here are ways to do exactly that and make a good turnaround.

Add value

In the stock market, overvalued assets are significantly reset back to more apt levels. If you are providing a service and it’s not worth what you’re charging, then it’s likely for you to be scaled back or altogether written off. Make sure to add the value that people need in the toughest times.

Focus on the customer

In good times and bad, never lose your connection with your customers. You may have the brightest minds inside the boardroom, but that won’t be of great help if you are not in touch with what the customer needs and demands.

Cut off ways toward easy spending

Where are the business funds actually going? Stop the highly obvious leaks, such as painful overhead and unnecessary expenses. Staunch the bleeding until you arrive at better, more long-term solutions, adds Steve Sorensen.

Keep calm and stay on the course

Be the level head that your customers trust and rely on. Freaking out at a time of crisis may be a natural response, but there’s value to calmness and clear thinking. This way you can also access good advice that you need and navigate a financial problem or a full-blown economic crisis with clarity.

Steve Sorensen received his business graduate degree from the Iowa State University. For the longest time, he has been fascinated by the huge and often meteoric growth in net worth of some of the world's most successful companies and have dedicated a portion of his time to tracing the stories of these companies and pointing out the roots of their success. Learn more about business and investing on this page.