Am I stupid in these economic times?

September 27, 2008

This was originally posted on my personal blog but I thought I would post it here since it relates to my business as well.

So just to put things into perspective here…I am a mid 20s, white, middle class, male. I have a college education and my own (pretty small) business editing videos-most action sports, and inside that mostly surfing. Business has been pretty steady but Im not living the rich life or anything. I would like more jobs, I guess, or even better, I would like jobs that pay better.

Anyways, I just booked a 3 week trip through Europe with some friends and bought a new HD camera package at around $10,000USD. Does this make me stupid? The economy is on the brink of failure and Im sitting here blowing my cushion for these kinds of times. I was really hesitant at first and almost regretted my decision-I mean, this is almost my entire life savings. But, I do have a plan and I talked with a friend who reassured me my decision was a good one.

I will be going on this trip to document it and hoping to market something out of it to make back my investment, or even better, come out on top a little. There are a few ways that I think I can do this. The camera package I purchased was on 0% financing for 6 months-as long as I pay it all back before then I don’t pay any interest. Now, the money is in the bank, and hopefully it still will be in 6 months time. I plan on paying a little back each month and if I need more money upon my due date, then I will sell the camera for about 80% of what I paid and look at it like a 6 month camera rental for about $2,000. Now, the rental fees for this same package is about $3,000 a month. So, I would keep the camera for 5 more months and spend $1,000 less. Seems like a good idea. Also, I could probably buy a new camera at that time and do the same financing and keep this process going. This would mean that I would always have brand new, top-of-the-line equipment.

Can I go wrong here? There are the obvious risks such as theft and/or not being able to get the price you want for it-but these are both extremes and are still existing if I were planning on keeping the camera for a longer period of time.

Also, I talked with a friend about the economy and he assured me that now is the best time to start a business. There is the least amount of competition and your competitors are probably scaling back anyway. He seemed to think that this is also the best time to buy a house or remodel your current home. Costs are down-they will be going back up in the near future and your investment will pay for itself in no time. Agree? If you have the will and good business fundamentals I would agree.

So, look at these times as an opportunity rather than a time to sit back and wait to see what happens.

Good luck.

tar

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