How Family Businesses Can Get Smart By Studying the Economy

Today – How Family Businesses Can Get Smart By Studying the Economy

While the prevailing levels of small business confidence have remained relatively strong in the wake of Brexit, SMEs are beginning to adapt their strategies to cope with a volatile climate. This is reflected by the fact that 63% of firms are considering expanding into overseas markets during the next 12 months, with emerging economies such as Dubai particularly popular. This represents the perfect example of business-owners monitoring and responding to economic trends, as they look to create an adaptable model that can thrive during challenging times.


The Link Between the Markets and the Economy

This is certainly an outlook that family businesses can look to learn from, particularly those that operate in competitive or depreciating markets. By learning how to study economic trends and identifying the numerous opportunities that they bring, it is possible to profit even during times of austerity. The most simplistic example of this is for entrepreneurs to study the price shifts and market movements which occur in their own industry, as this helps them to gauge consumer sentiment and make informed decisions concerning spending, borrowing and pricing.

In many respects, however, it is the financial marketplace that serves as the most prominent embodiment of this principle. After all, it is an increasingly diverse and liquid entity, and one that is home to an array of asset classes and derivatives. These markets are also vulnerable to economic and geopolitical shifts, which in turn creates an opportunity for small and independent firms to build knowledge, understand the deterministic relationship that exists between separate entities and identify ways of profiting accordingly.


How Family Businesses Can Get Smart By Studying the Economy

How Trading the Markets Can Help you to Build Wealth

We have already touched on how studying trends and share price movements within your industry can lead to incremental gains over time, but this is not the only way to build wealth when studying the economy. As your knowledge and level of determinism builds, for example, you can look to trade on the financial market, focusing on derivatives that relate to your expertise before diversifying your portfolio in line with economic trends.

In the current climate, one of the best ways to trade on the financial market is to deal in currency pairings. While currency represents a volatile derivative, it remains extremely sensitive to geopolitical events and evolving economic trends, making it easier to translate your insight into practical trading decisions. We would also recommend that you use an online trading platform and an affiliated mobile app, as this offers you access to real-time and historical analytical tools (which place your insight into context) and enables you to execute orders in real-time.


Make no mistake; studying the economy and the trends that define it represent an excellent way of earning money in the modern age. This is particularly important for small and family businesses to heed, as it enables them to build wealth while also creating a strategy that can drive organic growth over time.


How Family Businesses Can Get Smart By Studying the Economy is a feature article


1 Comment

  1. March 23, 2017 / 23:30

    What a great read. I really had no idea it was so important to study the economy. I’m going to try and understand it more this year, as it is an area I know very very little about.You never know I could earn lots of money from it.

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