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How To Be Recession-Oblivious

Some people say we’re heading toward a recession—and they’re right. In this episode, Dan Sullivan and Shannon Waller talk about what entrepreneurs can do so that they not only won’t suffer when the recession hits but will actually make even greater progress than before.

Here's some of what you'll learn in this episode:

  • Why another recession is inevitable.
  • What really goes on during a recession.
  • How a recession is a correction.
  • Insights from Dan’s experience of past recessions.
  • How the value of higher education has drastically changed.
  • What will eventually end the coming recession.
  • Why the best possible things happen during bad times.

Show Notes:

What the world needs is people who know how to do something that actually creates value.

Recessions are a natural phase of economic, commercial, and technological growth.

When you have a jump in productivity, that’s a growth market, which is the opposite of a recessionary market.

A recessionary market happens when too many people are being overpaid for what's being created.

Recessions immediately force the fact that some things aren’t going to make it in the future.

Conditions due to COVID have permanently undermined the global supply chain networks.

We're going to be in recessionary and inflationary conditions for at least a decade.

Supply chains that are providing almost everything just in time on a global basis are getting strained to produce more and more results with less and less backup.

The number one cause of the recession are the institutes of higher education. And this is because they're being paid to educate people in worthless skills.


Visual Thinking by Temple Grandin

Blog: “The 3 Most Important Questions For Growth As An Entrepreneur”

Episode Transcript:
Shannon Waller: Hi, Shannon Waller here, and welcome to Inside Strategic Coach with Dan Sullivan. Dan, there’s been a lot of talk, questions, concern about a potential upcoming recession. I wanted to talk to you about that and get your take. So, what are your thoughts on what’s happening in the word? I love how you peruse a cajillion sites. You’re very up to date on the news. I’d love to get your insight into, is there going to be one? If so, what can people do about it?
Dan Sullivan: Well yes, there’s going to be one, because it’s a natural phase of economic, commercial, technological growth. There’s a phase where something brand new is being created, and it’s more valuable than what presently exists. Not only that, but it creates all sorts of new value. Therefore, there’s a jump in productivity. When you have that, you have a growth market, which is the opposite of a recessionary market. A recessionary market happens when it becomes measurable that too many people are being overpaid for what’s being created.
Shannon Waller: Interesting.
Dan Sullivan: What happens, first of all, is that things which were really worth a lot in the marketplace are worth less, and people aren’t willing to pay. So, there’s fewer people willing to pay for something, and so sales are not made. So, there’s not revenues. Profitability goes down.
But the other thing is that, when things look really hot, and they look like they have real growth potential, then a lot of people are hired now, even though they don’t have capabilities. Because then they’ll be trained and be ready for even higher levels of economic growth. That happens. Then after a while, their pay outpaces the value of what’s being contributed. So, there’s a correction. A recession is a correction, okay?