Why Big Companies Always Win During An Economic Crisis?

Let’s take a look into three important factors that are key in helping your business survive. A business is not simply having a storefront or an online business, it’s also your real estate portfolio. You have to manage your real estate portfolio as if it is a business, and that also needs to survive in times of economic crisis. 

We have talked about keeping all your paperwork in order, tracking your expenses, tracking your finances so that when it’s time to declare your taxes, you have everything up and ready. Especially if you are a big company, when you are that big, you are required to actually file your taxes on a quarterly basis. That is an incentive to always stay on top of your finances.

Why is it important to have your finances in order? The same thing applies for when you go to the bank and you want to apply for a mortgage; you have to show your bank statements, you have to prove that you actually have a stable income, you have to show that you have good credit.

That is not that much different on the commercial side. When you have a business, you have to be able to have all other paperwork in order because what happens in times of an economic crisis? The government is going to come in and they could approve incentives such as the Care Act where you as business owners can get access to loans like the PPP or the EIDL, but what do you think factors in when it’s time for you to go to the bank and apply for that loan?

Finances are important to overcome an economic crisis

For those big companies who are always constantly filing their taxes on a quarterly basis, they’re always on top of their finances, all they got to do is just to simply show up to the bank and say, “I want to apply for the PPP and here is my paperwork,” but what do you think happens to the smaller business and its employees? On average three people as opposed to 500 people? That small business, for the most part, typically, will have the business owners doing the accounting, doing the bookkeeping, and doing everything. What do you think happens to the accounting when you, as the business owner, are taking care of that?

In terms of priority, it goes all the way towards the bottom. Why? Because when you’re a business owner, you are caring for your customers, you’re caring for yourself, you’re worried about paying your operating expenses, such as the rent, the utilities, anything that’s necessary to keep your business running. Yes, having the bookkeeping is extremely important, but believe me, it won’t be at the top of your mind when it comes to things to do. What happens in times of an economic crisis? The government can come in and say, “We’re going to approve this act and all businesses are going to be able to qualify as long as you employ 500 people or less.”


Here you come in as a business owner with three staff, and you’re trying to get your documents in order, trying to keep track your expenses, and by the time you get to the bank, you already have at least a hundred other businesses in line waiting for their loan to get approved. What’s the likelihood that the funds are not going to run out? What’s the likelihood that you, as a small business owner, can have access to that? 

  1. One key factor that you always have to keep into account is to always take care of your finances. Especially during an economic crisis.
  2. The other is all about the relationship, whether you are in business, whether you are in real estate, all businesses are actually relationship-based. Let’s just put it this way, the banks are in business to make money. The banks are not in business to take your house away, they’re not in business to take your business away, or to take your car away.

Credit History

Economic Crisis for entrepreneurs
If you own a business, the last thing you can ignore is finances. This is essential for large companies.

That relationship, that strong credit history, it is extremely important because you have to be able to maintain that relationship, and what a better way to maintain your relationship than paying your bills on time, always making sure that your bank statements are on the positive and not on the negative, and also having a good business credit history with the bank. The same applies for when you go to the bank and apply for a mortgage; the very first thing they’re going to check is your credit history. 

During an economic crisis, the ones who are strong, not only they get to survive but they also get stronger and they wind up passing their genes onto the next generation and next generation.

If your business it’s already on the weak side, you are barely making it by, you can barely pay your bills, one month you’re struggling, one months you do okay, but on average, you’re not the strongest business in the field, your business resiliency is going to be tested at the time of an economic crisis. Think about this way, we have a business who has managed to prove to be strong over the years over and over, they hire 500 plus people versus a small business. You, as a big business, are already proving that you can afford to pay the loan back to the bank, and then if you do get the loan, you manage to save 500 jobs.


You are saving 500 families from going into bankruptcy because of the economic crisis, from not being able to pay their rent versus a small business who hires three people. You might feel bad because the business can just cease to exist, and then those three employees, they can wind up without a job, but what do you think is going to happen with those three people? They can easily come into this company and get a job and be employed, and that way, you’re not sacrificing an entire economy, an entire town, and a chance, the possibility to wind up in a recession or a depression. That ‘s, in a nutshell, why big business always wind up winning long-term.

There you go, the three keys are having:

  1. Your finances in order.
  2. Building a strong credit history so you can maintain a strong relationship with the bank.

The rule of the strongest; what can you do, what can you do to figure out how to make your business strong and position yourself in a way that your business can’t survive in an economic crisis?


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