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I remember starting my company in the last economic downturn after a tough (but necessary) exit from the brokerage house where I was working. I never thought I would leave that brokerage because my co-workers were family to me. Back then, all I did was work and work out. That was my life. My colleagues became my life. Making the choice to leave that family — a choice that appeared abrupt to some — was essential for me to keep my self-respect. Nonetheless, it left me depressed because I really had no one else in New York at the time. I had not built my network yet as I have now. It was a hard time, but I learned a lot not only about surviving a downturn, but also about battling depression.

I didn’t anticipate that another downturn would happen so quickly, even though it seems to happen every 10 years or so if you look at history. We always need to be ready for this. History does repeat itself, and we should not be so shocked — we just need to be better prepared.

The History

1962: The “Flash Crash” or “Kennedy Slide”

1973: The “Nixon Shock”

1987: Black Monday

1990s: The Gulf War

2000: The Dot-Com Bubble

2001: 9/11 Attacks

2008: We all were there.

2020: We all are here.

The stock market will work itself out eventually, as it always does. The beauty of the market is that it is always correcting itself. The bad part is also that the market is always correcting itself. Knowing this, we need to prepare better for downturns as we come out of this one. We need to know that at any time, something out of our control can (and will) happen. Our companies and employees need to know we expected this and that we will guide them through the storm.

Here are a few things I learned over the years that have helped me through many storms.

1. “Give to live. Live to give.” This is our company motto for good reason. In times of depression or bad markets, if you keep finding ways to help others and give, scientists say, your brain will release endorphins. From this you will get a “helper’s high,” or as I call it, you simply build good karma within your organization. It’s hard to replace this — and, as long as you don’t expect anything in return, there is no better feeling.

2. Exercise. This, too, helps release endorphins to positive effect, helping to ease stress and anxiety. For me, lifting weights or running clears my mind so I can see the opportunities in front of me better. Plus, seeing the visible results of exercise can build confidence.

3. Have a cash reserve. Make sure you start building a cash reserve in case the market turns. Whether that’s through a line of credit (LOC) or actually having cash on hand (better), you will be happy you did it during these times. It’s not my favorite tactic, as I would like to keep my money working for me, but at the same time, there are some safe vehicles that work a little better than a savings account to consider. A savings account normally yields about 0.05%, so a better option would be a three-month FDIC-insured CD or short-term commercial paper, which are in the approximate range of 0.8–0.9% and 1.10% annual returns, respectively. Every little bit helps, so even though these don’ represent a huge jump in percentage, it is still worth it to explore these other options versus a savings account. In the long run, stocks or steady real estate holdings can give much better returns, but it is not for the faint at heart, as we are seeing in today’s market. You can win huge, but you can also lose huge when playing in either stocks or real estate, so working with advisors in these fields is very important.

4. If you have a good marketing team, use them to the max. Many people cut this department and PR when the market turns, but if you have a good team, don’t do that. Now is the time to get the word out and communicate to your clients, colleagues and others. Let marketing and PR teams go to work and help position your brand as a light at the end of the tunnel. As Warren Buffet said, “Be fearful when others are greedy, and be greedy when others are fearful.”

5. Creative sales. Think differently about how to engage your clients. Find new ways to reach new partners who may be good for your company. Have your sales team showcase their creativity to do more — and think outside the box. This usually leads to more personal interactions with your sales team and your clients, resulting in more business once you pull through the downturn.

6. Look for the happiness in each day. You must be a positive source of motivation for your team. You are the leader. They look to you for normalcy, guidance, steadiness and safety. Do not give them any reason for their feelings to waver or you will lose your top people. A downturn is a prime time for other companies to poach and kill. Don’t let them.

Life is funny in that we always seem to forget that we truly are in control. A downturn just means you have different opportunities you need to exploit and explore. You need to be sure to keep running in with wide eyes and an open heart. If you do this and stand by your community, you will prevail.

I left my old company and started a new one, which I now consider a family, where individuality, honesty, loyalty and hard work are everything. We may be the little fish among the sharks in this industry, but we have big hearts and a mighty bite. This attitude has gotten us through downturns in the past, and it will again get us to the other side.