The recession has taught many potential entrepreneurs an important lesson: even if you have a great idea, and even if you are successful in starting your own small business, a recession can almost instantly wipe out all of your success. While it is no news to small business owners or new entrepreneurs that starting your own business can be a risky endeavor, a tough economy can add insult to injury to many business owners whose businesses would thrive in a better economic setting. Therefore, one strategy for those who want to remain entrepreneurial while riding out the tough economic times is to start small businesses that are "recession-proof." Here are several ideas for businesses that can succeed in any economy:
1) Repair Shops
It is a well known idea that during an economic recession, people cut back spending on certain types of consumer goods, such as cars or homes. However, they can't prevent the fact that the goods they already possess will inevitably need to be fixed up or repaired at some point. In fact, repair shops tend to see more business during a bad economy because people start making use of the old goods they have lying around the house, like an old bicycle or old furniture. If you can repair these things, you will be good to go.
2) Education-Related Businesses
Education is recession-proof. In a bad economy, many people even turn toward education as a way to put off job-searching for a few years, or to make themselves more competitive in an economy with high unemployment. Therefore, people will be willing to dish out the necessary money to improve their academic standing or to diversify their academic talents. This is why tutoring businesses, language training, or other types of academic coaching won't fade away during tough times.
3) Cheap Food
It seems like a given that the demand for cheap food will increase when people have less money to spend or when they are being cautious with their spending. However, for most consumers, the fact that they are searching for cheaper food does not imply that they want their food to be unhealthy or of worse quality than what they ate before. This is why it is a smart idea to start businesses focused on healthy or sustainable food that is affordable at the same time. Many new, successful restaurant businesses are incorporating their consumers' desire to remain healthy with the constraints they face on spending money.
4) Businesses Related to People's Vices
Sadly enough, people's "addictions" don't go away during a recession – sometimes they even get worse! This can include vices such as smoking, alcohol, junk food, and more. Starting up a liquor store, ice cream shop, or a shop where you can sell cigarettes and lotto tickets might be a good idea for entrepreneurs who want to ride out any economic setting.
5) Consumer Must-Haves
Like the other categories listed above, many type of consumer "must-haves" are not going to go away in any economy. These can include clothing, shelter, health-related goods, and energy. Starting up a business in any of these industries is a good way to avoid the effects that a drastically changing economy can have on your business. Some ideas can include: thrift stores, medical practices, or hardware stores. You can also focus on making the "less-expensive" version of these stores than the competing stores that already exist in your community.
Lily Faden - About the Author:
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Source: http://www.articlesbase.com/small-business-articles/five-ideas-for-recession-proof-small-businesses-4816452.html
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