How To Stay Afloat During Recession?
A global meltdown is a phenomenon that happens once in a while that puts the world on edge. It is certainly a trying time that will pull down the international economy making everybody go out of business. During the last recession in the United States, the unemployment level was 10%. It was the longest recession since the great depression when 170k small businesses shut shop. Today we are once again facing a pandemic that can increase the prospects of a recession that could be worse than the Great Depression.
The world is witnessing huge layoffs, closures and business loss. The market is dwindling due to uncertainty. Most businesses are becoming unstable paving way to personal downfall. It is but quite unpredictable as there are trends that certain businesses have made people millionaires during the time of recession.
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Industries Safe From Recession
Industries that provide services and goods for people have always been safe from recession. So, if you are planning to start a business but are not sure of what to venture, then seriously consider the services and goods industry a serious thought. One of the most stable investments is a grocery store. It provides consumers with basic goods that are required for their sustenance. Even in the worst of recession, people still need to use toilet papers, bath soap, toothpaste, brush and cook food. All these are available in a grocery store. Wholesale shops, consignment and thrift stores also do well during recession. People don’t tend to buy new furniture, appliances and clothes during recession. They will look out for used products that will come real cheap. During the recession the clothing stores sales went down by 10% while a thrift store had an annual sales increase by 35%.
Information technology is another safe haven during these testing times. Not just that the business prospects are more, but there is a good level of adaptability. It was the fastest growing sector during the last recession in the United States. People are now dependent on technology and gadgets to do most of their work. Students and teachers rely on technology for continuing education. There is a steady growth in technology and related service sectors. One other interesting area which is not affected by recession is the repair industry. People use things that will certainly get repaired. There is no difference between a recession or a non-recession period. In one way people actually spend money to repair items than buy a new one during a recession.
Health care and social services is another booming industry during recession. It has the largest projected growth compared to any other industry. There is a constant demand for in-home health services, personal health care, and senior care. Cleaning services also do well during hard times. There are plenty of office spaces, classrooms, conference halls and malls that require cleaning on a daily and weekly basis irrespective of economic conditions.
Plan For The Worst
It is advisable that you research based on facts and figures before you plan to plunge into business. The businesses discussed above are less likely to fail you during recession, depression or climatic risks. You can either have your own business or buy a franchise. The only thing you need to consider is that the product and services should be an everyday necessity and not a luxury product. Your typical customers should be analysed and see how their purchasing patterns change during recession. Auto mechanic services, electricity service, pipeline and plumbing are services that people require anytime. People go for cheap beer and wine more so during recession. Whereas fine dining, takeaway find sales dip as people tend to cook at home during hard pressed times.