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The opinions expressed by the entrepreneur's contributors are their own.
After the crisis caused by the Covid-19 pandemic, we all had to reinvent our approach to business. But we learned during the pandemic that the crisis isn't all bad. The crisis helps us think deeper, expand our imaginations, restructure our organizations and understand the real needs of our business.
But how can we as entrepreneurs make our business crisis-proof? We may not be able to stop the crisis, but our company will be better able to handle it if this crisis hits.
Risk and crisis management are consistent features of forex and currency trading. Here are some areas where small business owners can learn important lessons from the art of forex trading.
Avoid false advertising
Many small businesses struggle with the crisis of customer defects or the persistent inability to acquire and retain new customers. The problem often lies in their marketing strategy.
As you slowly scroll through your timeline on social media, you will be exposed to a plethora of ads from small and medium-sized businesses, all of which are vying for your attention. You will find an awkward feature in many of these ads. false advertising. While these ads promise amazing freebies or great deals, the reality behind them often shows something completely different.
I once received mail from an advertising company that I almost patronized. It read, “I noticed that you stopped making the purchase. Hey, I know the ad is a bit wrong, but … “Needless to say, that kept me from doing business.
A key characteristic of forex trading is the risk factor. It's one of the most noticeable features of the market, and so noticeable that Donald Trump's Covid-19 diagnosis caused a stir. Any serious forex trader, trainer or broker will point out the nature of the risk involved in trading while promoting their services or teaching their courses.
My early forex forex trade got me in touch with FxBro, a sibling-run forex trading community, where they talked so loudly about the risks of forex trading it almost looked like their marketing strategy.
However, I noticed that I was drawn to the strategy of Maksim and Nina Konstantinov (co-founders of Fx Bro) because their clear warnings made me even more appreciative of their advice.
When taking advantage of PPC campaigns and ad marketing on social media, you need to understand that building a loyal following doesn't mean sacrificing the truth on the altar of attraction.
It's important that you don't market anything beyond what you can offer, and while you need to put your creativity into marketing, you also need to draw the line just before creativity turns into dishonesty.
In the words of Fxbro Maksim Konstantinov, co-founder, "When we fall downstream, we keep saying it out loud, explaining to our clients that even after 15 years of Forex trading, we can still make losses, and so do they." Konstantinov thinks it's great to always be clear about the risks involved in advertising after starting over and going through all the downturns.
This is the stance marketers should adopt across the board and is one of the most effective ways to avert the customer defect crisis.
Related: 6 False Advertising Scandals To Learn From
Spin the wheel, don't reinvent it
Two years ago I was on the board of a body that issues grants to aspiring African entrepreneurs. When I sat on this panel, I found that almost 90% of those who did not succeed failed because they tried to reinvent the wheel. They tried to run a business that was new in every way. Its crisis was a "lack of capital" and it was self-developed.
Granted, innovation and invention are generally good for business, but they're not always necessary, especially when there are already verified work systems that are producing massive results in your industry.
Forex trading platforms are realizing that many people will not sit down to study the technical details of the market. In order for most people to invest, they need to incorporate a "mirror trading system".
Alex Campbell, Chief Executive Officer of Vast Triumph, explained the “mirror trading” and AI strategies that have been used to great effect as “a system that minimizes the need for deep knowledge and experience in the marketplace. Mirror trading connects investors and new traders with our high earning traders and delivers results for investors without the need for in-person trading. "
No system guarantees success, but when you find working, proven systems for your company, I often advocate the "Ctrl C, Ctrl V" approach. There is no shame in copying systems that work. In the same circumstances, there is no reason they won't work for you.
Aspiring entrepreneurs can distinguish themselves through their corporate culture, values and mission. However, when it comes to business strategy, learn what works and spin the wheel. If you insist on treading uncharted waters, you are easily prone to unforeseen mistakes.
Protect today with yesterday
The first time I tried trading the Forex market, I wiped out a $ 300 account in one day. It hurt and I learned. Crises are inevitable in business. However, if you want to document your experience and adapt your business to resist the same crisis, you will win in the long run.
The human body is becoming more and more immune to the diseases it previously survived. Hurricane-prone areas of the state are beginning to reimagine its infrastructure to withstand such a harsh climate.
Likewise, in Forex, every successful company or trader has a "trading journal" that documents all of their market movements in order to better understand how they move and how they react.
It is important for small business owners to know that in order to become resilient, you may need to estimate and document all of the wrong and correct business steps. Not whining about losses and failures is the best way to understand the business, and your industry in particular.
Nothing you read in books prepares you for the business experience you get firsthand. So write your own books by keeping a record and make sure that your business moves forward with this knowledge.
Related: How Journaling Can Make You a Better Entrepreneur and Leader
Well-balanced risk-reward ratio
The question that young entrepreneurs often ask me is, "How do I maximize profits?" This question is crucial, but it becomes a little worrying when I see these companies trying too hard with every margin in their business To earn money.
Often times, profit maximization can be the direct opposite of customer satisfaction. Small businesses have to be content with many risks. To do this, you would need to find a balance between profit and risk.
This place of equilibrium is a place where you as a company don't overwhelm yourself and still provide enough satisfaction for customers to justify their further investment.
In forex trading, a trade is considered bad when the risk far outweighs the potential for profit, and a trade can be safely carried out when the risk / reward ratio is at least balanced. This is an invaluable tool for all successful forex traders and businesses: risk management.
Related Topics: 5 Ways Business Owners Learn To Handle Risk
To avoid a crisis, you need to become analytical, patient, observant, balanced, honest, and customer-focused. This makes it much easier to develop positively as a company and to get thicker skin after a crisis.