As we look at the business world right now we can see that many corporations are struggling due to the current pandemic. As entrepreneurs, we are flowing with innovative ideas that will be great business ventures. However, do you ask yourself “Is this business recession-proof”? Before exploring new ventures always know who your target audience will be. This will be important for many reasons including their spending habits during an economic crisis. This information will tell how your business will be impacted. If you want your business to survive a recession then it is simple….find out what customers want and build a sustainable delivery model.
Listed below are a few fireproof ideas that can endure changes to the economy:
Consignment sales– One thing for certain during a recession is saving money will be essential. Therefore customers will always be in search of bargains and deals. What better way for a customer to save money while shopping for high-quality items on consignment.
Repair services – This industry will always thrive because no matter what the current state of the economy is things will always break. Home repairs, automotive repairs, computer hardware, and software will always need repairing at some point. Therefore, if the economy crashes, individuals with repair services will keep jobs coming in.
Event planning – No matter what crisis the world is in no one and I mean no one can miss an opportunity to celebrate. Event planners take the headache of organizing big events such as weddings, birthdays, anniversaries and corporate events. When expenses are being cut and budgets are put in place, events typically remain.
Bookkeeping and tax prep – During a recession staying on top of your finances are essential in business and overall surviving. Let’s be honest, math is the least favorite subject so people jump at the opportunity to outsource anything involving it. Bookkeeping and tax preparations will always be in demand no matter what happens to the economy. Although there are automated applications that do these things for you, relish in the fact that there is a wide range of people and businesses who prefer human transactions.
Baby Products and services – When there is death, there is most certainly life to follow. According to the United Nations World Populations Prospects report, “a baby is born in the United States approximately every 8 seconds”. That is just in the United States alone, imagine combining this statistic with the entire world. One industry that should be heavily considered is baby products and services. Babies will always need essentials such as clothes, food, diapers, and toys. Even in tough times, a new set of parents will have to purchase these essentials, just make sure you create a branded product they feel good about using and can afford at any turn in the economy.
The ideas above are great recession-proof industries however nothing in life is a sure thing. Because of this, it is beneficial to take additional steps in setting your business up for success in case there is a potential economic threat. Below you will see a few smart strategies and tactics you can use to prepare your business, recession-proof or not.
- When creating your business model always have growth and profit in mind. Also make sure your model is fluid, has room for growth and can be renewed.
- Planning for the worst does not necessarily mean planning to fail. Have a plan written specifically for economic downturns. Identify areas you will cut back without suffocating your business.
- Always gage your business performance and work diligently to improve key performance indicators.
- Be at a position where you have a birds-eye view of your business. Look for areas where you can outsource to increase efficiency.
- Alleviate tedious and key business processes through automation.
- Create an aggressive recession marketing plan with incentives to boost sales ( Proper preparation prevents an untimely performance so create a forceful marketing plan that is customer incentivized to boost your sales.
Moreover, be an awesome individual! Customers always remember how they are treated during their lowest moments. During this current pandemic, we are facing I have seen some amazing acts of kindness from Owners and CEOs. When the economy rebalances and believe me it will, people will remember who went above and beyond for their customers and employees.