I was listening to the news today about Ireland being bailed out by the European Union and the International Monetary Fund.  It struck me that this event has a lesson for home based businesses.

Ireland has been flying high economically.  It’s land prices were jumping.  It’s banks were lending money wildly.  Companies were building factories and warehouses.  All the economic indicators were headed up.

Everyone was dancing in the streets.  There was no end in sight.

Then came the world wide economic crisis.  Land prices crashed.  Factories closed.  The banks were left with loans that were shaky or even no good.  The bubble had burst.

Suddenly, the government was meeting in emergency session and dark clouds were everywhere.  The result?  Ireland went with hat in hand to the European Union looking for a bailout.  The good times that could never end ……..  had suddenly ended.

I live in Las Vegas.  We saw something similar here.  Massive building everywhere.  Multi-billion dollar hotel/casinos.  Shopping centers and industrial parks.  New houses everywhere.

And then the crash.

Now there are unfinished billion dollar projects.  Vacant shopping centers.  Empty homes.  The idea of "build it and they will come" had crashed in flames.

So how does this relate to your home based business?  There are two ways.

First …..  you can get comfort from knowing a whole lot of very smart people didn’t see the meltdown coming.  And if you didn’t see it either, you can know you weren’t alone.

Second ….  is a reminder that life has cycles.  Nothing lasts forever.  Good times are fun.  It’s wonderful to celebrate and enjoy the fruits of your efforts, but you also need to be prepared for when the winds change.

Remember, Ireland may get bailed out by the EU and the IMF, but you and I have to be prepared to bail ourselves out.  Our home based businesses depend on us.

 

Written by Philip Cohen