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Is my business recession proof?

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QsId 112
Asked by Isaac Thuku
Category Personal Question
Title Is my business recession proof?
 

How do I help my business survive during a recession?
What are the signs of an imminent recession?
What happens next after the recession?

Tags versatile business ideas, recession, growth, business sustainability, entrepreneur
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Answers

MemberAnswerDate
Isaac Thuku

What is a recession?

A recession is a significant decline in the economic activity economy wide that lasts for several months

What is a Depression?

If the recession is severe it is referred to as a depression. A depression may last for a year or more.

How do I help my business survive during a recession?

A business can fail, survive or thrive during a recession. Any business that thrives or survives a recession is considered recession proof.

For any business to survive during a recession, it must:
- Sell a product that the market needs and customers are willing or have to pay for regardless of whether they have disposable income on their budget. Such products include healthcare, education and taxes.
- Sell a product that costs so little that customers are still willing to buy despite reduced disposable income. Such products include candy, newspaper and lottery tickets.
- Sell a sin product that customers are willing to pay for to keep themselves happy or appease an addiction. Such products include cigarettes and alcohol. While expensive high end wine won’t sell by the bottle, establishments selling wine by the glass will continue to sell.

What are the signs of an imminent recession?

Here are some telltale signs that a recession may be around the corner:
- High inflation
- Increased unemployment
- Reduced expenditure

What happens next after the recession?

When a recession ends, it means the economy decline comes to an end. However, this does not mean the economy has more money available for expenditure it is just the first step towards recovery.

Recovery from a recession will usually take two years or more before the economy can get back on its feet and start thriving again.

Benefits of a recession

You may be wondering what good would come out of a recession other than a bunch of job layoffs and business bankruptcies. Well, if you are a strategic investor recession delivers a whole lot of business opportunities to pick from.
-A recession means companies will make a great effort to streamline their operations and optimize their investments so as to stay afloat. As a result of these changes they turn into stronger investment opportunities which appeals to investors.
-During normal economic times, most companies will thrive and this makes it hard for an investor to easily identify a strong company. A recession cuts out the clutter and it is a lot easier to identify a strong company to invest in.

Recession Proof Businesses

Here is a list of business that will do well or easily survive a recession and make a good investment for any investor:

- Mainstream and alternative Healthcare services
- Repair services
- Account and tax related businesses
- Removals and repossessions
- Education and child care services
- Death services
- Veterinary services and pet services
- Fast food
- Dating services
- eBay business
- Contraceptives and cosmetics
2015-10-27

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