Some business do better during economic recessions. A recession can be the best time to start a new business because they offer unique market gaps and circumstances that entrepreneurs can use to their advantage. These are some of the best businesses to start during an economic depression.
Because consumers have less money to spend during a recession, anything you can offer at a discounted price is going to do well. The best discount stores will be the ones that offer discount essentials like groceries and clothing. Another essential is housing. You can expect housing rentals to increase during a recession. If you can offer cheap rental housing, you are going to make profits. Second-hand stores and pawn shops will also see increased business as people not only try to buy cheap, but also to make money by selling unwanted items.
Unemployment is high during a recession, so offering services that help people find jobs will be a winner, such as resume editing and assistance, online job board and employment agencies. Businesses that provide job-related training or education help workers improve their employment credentials so they can get a better job when the economy improves.
Debt collection can be profitable during a recession. Personal and business debt is high in times of economic distress. There also tends to be more delinquent payments and inability to repay the debt. Because every dollar counts during a recession, the companies that loan money will want debt collected aggressively.
Historically, products like alcohol and cigarettes sell well during recessions. If you can offer alcohol and tobacco products at a discount price, your business will do well. Bars and liquor stores are winning recession startups. Sell cigarettes and lottery tickets in your store or bar.
George Hariri is a business writer who has been writing in 2011. He has great expertise and experience in the area of new business startup and finance. Hariri studied international business at The George Washington University where he completed his Bachelor of Business Administration. Since then, he has been instrumental in numerous start-up ventures, including several where he acted as CEO.