Recessions are quite possibly the best time to start a business! Too many people use recessions as excuses to not follow their goals and create wealth. It is arguably better to start a business in a recession, we’ll look at why, and several industry options.
How many recessions have there been in America? 47. How often has the USA has been in recession? Almost 30% of the time. So realize this…. any business you start you will be hit by a recession at some time or another. Microsoft started in a recession, as did hundreds of very successful companies.
Experienced entrepreneurs understand this and don’t use the recession as an excuse for what is actually just fear. Inexperienced entrepreneurs always use recession, global warming, local economy, too much competition, not a big enough market, their cat just died, any excuse to bail out. First time buyers will often jump at any opportunity just to stop that fear of making a mistake,of possibly losing money and run back to the security of their job that they hate ……ironically the same job they will lose in the next recession! The best way to protect your job is to be the boss.
Why is running a business in a recession actually a good thing? 1. Its easier to retain talent. If you run a business today in a great economy, you know its a challenge trying to hire people. In a recession you can pick and choose your employees because there are 50 people lining up for your one job. You’ll also have more motivated employees who will stay with you longer. 2. Your vendors and suppliers are more negotiable as there is a limited buyers for their products and services. 3. It’s cheap to borrow money. Fed interest rate already slashed down to just above 1%, we arent even officially in a recession. Money gets really cheap and borrowing for your business is available at a much cheaper cost. 4. Your competition will be less intense. If you can be that business that doesnt shrivel up and blow away, you will enjoy more customers as the businesses all around you shrivel up and blow away.
So what businesses are great options for a recession. This will depend if you have money or do not have money. We’ll start off with options if you have little or no money.
The gig economy is a great option, meaning freelancing, and that could be writing, graphic design, consulting, coding, social media manager, photography, chef, driver, fitness trainer, tutoring, there are hundreds of gigs, that you can easily learn online, that will be in great demand during a recession. Many companies will be downsizing full time employees but will still need these services and are likely to hire freelancers.
Beyond the gig economy you can write a book and market it online. How about a book on thriving in a recession? You can start a YouTube channel, YouTube is free for creators and for viewers, and in a down economy more people will be watching, You can become an affiliate marketer and start a blog, people still need to buy soap, food, games, they need to get in shape, as an affiliate blogger you can capitalize on that. You can learn to cut hair and offer mobile hair cutting services for seniors, you could write resumes, in recessions tons of people will need resumes. As the majority of the population sits eating cat food waiting for the end of the world, you can be clicking your heels realizing that recessions are actually a good thing.
if you have money to invest in a business or franchise. There are certain industries that will do well.
Senior care franchise providing care to seniors in their homes. Investment for a senior home care franchise will range from about $80,000 and up. Hair cutting franchises. Total investment for a hair salon franchise is about $180,000 and up.
Child care and education franchises. Childcare franchises can be started as low as $60,000.
Real Estate franchises. Real estate franchises can be started as low as $40,000, Also related to real estate, property management franchises can be a great option as more people are renting which creates additional workload for landlords. A property management franchise will cost about $45,000. Also in real estate, real estate investing franchises can work, as you can snap up incredible bargains and use them as rental properties.
Recommerce/ Thrift Shop businesses or franchises – Investment about $240,000
Commercial cleaning franchises and Master Franchises – Cost for a master cleaning franchise about $200,000, a general cleaning franchise about $60,000 and up.
Automotive repair franchises. Cost to open an automotive franchise is about $200,000, distressed resales can be as low as $50,000. These can take some work to turn around but if you are willing and able it can be a good deal. We post bargain resale businesses each month on this channel so be sure to subscribe!
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