The following guest post is by Michael Herder.
When the economy is down, times are difficult for all of us. History has shown that it is often the small businesses that end up bringing the economy back up to speed, but starting a business can prove to be difficult. What type of business should you start? How do you get the funding? These are all great questions. The good news is that some of the biggest businesses in Corporate America were started during recessionary times. Plus, you benefit from lower rent and utility payments and reduced salaries. Everything is a little less expensive in troubled times. There are, in fact, some solid business ideas that work well in a down economy. These recession proof business ideas allow you to start a business that could thrive even when most markets are down. Here are four solid business ideas that will do very well in recessionary times:
1. Bulk Foods
When times get difficult, people start growing more concerned about food than they do about some of the more flashy gadgets they are typically interested in. Families can save a great deal of money when the buy bulk foods rather than individual, prepackaged, pre-produced foods. Bulk foods that a family can buy in large quantities and use for a long time tend to sell well when the markets are down. As recession proof business ideas go, getting into the bulk foods industry may be the way to go.
2. Debt-Related Companies
If you want to start a business that is about as recession proof as it gets, a debt collection agency is one of the best options available. Of course, there are other debt-related industries that you could get involved in. Perhaps you could offer debt counseling services, or get into the debt consolidation industry. Whatever option your choose, companies revolving around debt in one form or another will almost always do well during a recession.
3. Affordable Luxury Items
The term affordable luxury is something of an oxymoron, but it has the odd effect of working during a recession. When the economy is down, people start to feel as though they are deprived of the things that they feel they deserve. Selling “luxury” items and services like inexpensive jewelry, cheap vacations, small portioned fine dining, and so forth can be an excellent business idea when times are tough.
4. Accounting Services
It might seem strange, but accounting firms seem to do very well during a recession. Business owners feel more confident during a recession if they have an accountant to help with their financial decisions. A study conducted by Intuit in 2009, during the heat of the financial crisis, discovered that 80% of small business owners felt more confident knowing that they had accounting services to help them with any potential problems that they could face.
5. Any Business That Saves Businesses Money
The bottom line? Just get in the game. Your customers will eventually tell you what business you are in and help you grow it and because you own it, you’ll have the passion to take it all the way.
This was a guest post from Michael Herder of InkFarm.
Photo by Leo Reynolds.