Losing a job in an economic downturn can sometimes be just what the doctor ordered.
Here are some tips for starting a recession proof business. In this article, we will discuss some recession proof products and service ideas. These are great ideas to consider if you are thinking about starting a business during nationally tough financial times.
Look For Recession-Proof Products and Service Opportunities
The best way to ensure a small business’ success during a recession is for that business to offer products or services that will still be in demand during a recession.
Often, these products and services will focus on things that people either REALLY can’t do without, or can’t seem to do without.
In a previous article we outlined some items that people seem to buy or use no matter how little money they have. A successful business will take care of these wants, but even they will only be able to target a few people during a recession (the people with an overpowering urge to escape!).
There are also products which people NEED to have even during a recession, and if you can target those with your skills and your business plans, you have a good chance of prospering even when bigger businesses are posting record losses. Here are a few recession proof business ideas:
- Debt collection services: There’s no better time. This is a brutal job, but it’s a big business and other businesses are what will be paying for your services.
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Food Services: Everyone needs food, it’s the last thing to be crossed off the list. Finding a way to get food to consumers cheaper than the next guy means staying afloat.
Five years ago, a two cheeseburger meal at McDonald’s cost under four dollars, if you can believe it. The same meal today costs over eight.
The point? People will still want to eat easy food, but they won’t buy it at a high price.
You might not be able to cut out McDonald’s share of the cheeseburger market, but the principle is this: find what people want, then make it more affordable.
The slick advertising and packaging that enables companies like McDonald’s and Starbucks to charge too much for products don’t fly during a consumer-savvy recession.
Take advantage of their pricing mistakes and cash in if you can.
- Medical Services: Again, everyone needs medical attention regardless of the bull or the bear. Good administrative skills can come in handy here; a company which contracts nurses out, for example, can get really busy as hospitals seek to cut their costs.
These are just a few ideas, there are hundreds of recession proof business opportunities.
Before we move on, though, a word of caution, just as there are recession proof products and services, there are also those which fall by the wayside immediately during a recession.
It’s not the right time to be selling high end luxury goods, or the trinkets and decorations which are popular when times are good.
On the other hand, second hand store and pawn shop owners tend to profit both ways during hard financial times.
Finding a viable small business to start is the first step in business planning during a recession. The next article in our business planning in a recession series, we will learn how to ensure that your small business foundation is strong enough to survive lean times.
