Change in your Pocket

The media coverage has freaked everyone out into not spending, going direct, undercutting and cutting costs. This is already impacting on the business of every Venue and Musician in this country.

Remember the natural law — there is never a loss without a gain. When the sun is setting in Italy it is rising in Australia. There will ALWAYS be financial growth in another form in our market.

Just when we begin to spend money to save the planet with sustainable business practices, we get hit with a TIME FOR GREAT CHANGE. Massive Debt without Savings has created an illusion of an economic boom. Why have food prices increased? In the past six months, they’ve risen at a 13 percent annual rate. We may be seeing the first adverse effects of the ethanol boom. Corn is a main feed grain for poultry, cattle and hogs. Corn is also the main raw material for ethanol, an alternate fuel for gasoline. Competition for grain has pushed up corn prices.

So we save the planet without saving our own money and look what happens!

Basically there is no fairy tale that all growth is good and TIME FOR GREAT CHANGE is bad.
What we are experiencing now is part of a natural cycle of business and finance.

Finance has never really been a major factor in the life of a musician however now more than ever, some truly basic financial principles could seriously assist your business. The rising cost of fuel makes getting to the gig almost a luxury!

Let’s look at the four basic fundamentals for Financial Management to start with:
· Save
· Create a Cushion to manage market volatility
· Earn the Right to Invest
· Earn the Right to Speculate

These rules apply to every person — business owner, promoter, label, publicist, manager, producer, venue, artist and employee.

Manage your life within these principles.

In agriculture, farmers know that the land needs a period of time to rest in order to be most productive. Letting fields lie fallow and crop rotation are techniques that farmers have practiced since time immemorial.

This is a cycle of naturally occurring economic slowdown.

The four basic fundamentals for being effective in your role in the Entertainment Industry are:

· Save your costs, time and energy
· Create a Cushion to manage your market volatility
· Earn the Right to Invest Your Time in a Recording Project
· Earn the Right to Speculate Your Time in a Recording Project

Economies are the means by which successful entities function. Living affluent lives should not be a goal to life as it has become for many, and an economic downturn can serve to challenge this as both a personal and national philosophy. A TIME FOR GREAT CHANGE is an opportunity for intelligent leadership in your life and in you business.

Consider that time is like money. It is important to know how to SAVE it as well as how to SPEND it. For those willing to use sound financial and business analysis, a recession can bring a wealth of opportunities and provide the necessary timing to enter a number of markets.

Doing Covers Gigs — more often than not, will pay for your Recording habit. It pays for Guitar Strings, Gaff, Fuel, CDs and all the costs of running a busy working band.

Real wealth only comes from real savings and investment in projects that produce profits. This is a great time for established and emerging enterprise to set up a business structure that will be long term profitable by applying the four fundamental principles. Being accountable and balancing books by saving, cushioning, investing for profit and speculating once you earn the right is the only way to survive in business.

To value your team — your band — manager — crew — agent — publicist etc, we recommend you know the value and cost of every single role within your business.

If you are feeling negative about the current gigging or touring marketplace, consider a TIME FOR GREAT CHANGE as a time where almost everything goes on sale because this outlines the number of opportunities that are available to the everyday person or investor. Pushworth began 18 years ago in the middle of a TIME FOR GREAT CHANGE and flourished because it focused on the basic economic principles and saw opportunities where everyone else saw doom and gloom. Each day the TIME FOR GREAT CHANGE continues, business must look harder at its policies, products, production, and — most of all — the talent of its team. In a boom, everyone looks good because the business flows. But in a recession, when the going gets tough, the tough get going and the truly able team begin to shine. Careful pruning in the right places does not damage overall efficiency and this is what many people will HAVE to do in order to survive.

In your personal lifestyle and wealth, a TIME FOR GREAT CHANGE is a great opportunity to have a good think about your finances, cut your unnecessary spending in certain areas and think about investment in a number of underpriced goods. In biology, there is long-term harm to species from the burden of accumulated harmful mutations during times of decreased selection pressure. Long booms allow inefficiencies to develop that decrease the long-term health of businesses and economies.

Consider the following things that happen in a long boom:
Companies get away with poor innovation practices, as consumers will “upgrade” things that merely have an extra button, have a few square centimeters more living space, or a new range of fashion colors, but provide no great advances in functionality or efficiency.
Capital resources become poorly allocated:
Many mug punters start playing the market, and with asymmetrical knowledge, become “investment fashion victims”, with their funds not necessarily flowing where it will do the most good.
Speculation becomes rife, another form of the victory of fashion over practicality.
Sloppy management is not punished, decreasing business efficiency.

For every company that slims down its operation, another discovers new ways of doing things that should have been in effect for years but were overlooked during the boom. This is an opportunity for everyone to survive with the talent in all the right places. Focus on the positive aspects of this TIME FOR GREAT CHANGE and appreciate the benefits for YOUR business:

Revised Budgets
Re-education in Money Management and living and operating within your means.
Opportunity to become more creative with your Business Strategies and Find Ways to improve Business Operations.
Reduced Entertainment Budgets open the market to greater competition
Looking for extra income paves the way for INNOVATION

The media coverage has freaked everyone out into not spending, going direct, undercutting and cutting costs. This is already impacting on the business of Pushworth and every Venue and Musician in this country.

Remember the natural law — there is never a loss without a gain. When the sun is setting in Italy it is rising in Australia. There will ALWAYS be financial growth in another form in our market.

Let’s consider that a recession basically is a respite from economic growth. It is a time when a hiccup in the economy creates a slowdown associated with a chain of events that is generally recognized to be a “market correction”. Where segments of the economy have become over-heated, a recession provides a cooling-off period for saner perspectives to prevail.

Let‘s consider that this time in our business and market cycle is a major opportunity for this industry — for YOU.

In fact from this point, we will reframe the word RECESSION and call it THE TIME FOR GREAT CHANGE.

Consider this a Great Opportunity!

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