Recession-Proof businesses?

[Woody]

Hey guys, long time since I’ve been around! Hope everything is going good.

Okay, so here is the deal

I have been busy with school, preparing for the ACT test, and getting ready for college. I have not been able to create a few websites that I set goals to do over the summer. I'm kind of disappointed, but I just have to move on. This current economy is crazy. My stocks are down. Before I invested in these companies I really though it would take a disaster for them to lose such value! So, I have been trying to think of small businesses one could start that are recession proof. I want to think of businesses that people NEED, not one they can live without.

A few I have though about:

1) A mechanic/EMISSIONS shop. Government regulations require cars to get regular emissions done; I doubt that this law will be removed any time soon.

2) Health Care office. People need doctors, dentists, etc. Why not find a doctor and help invest in opening a practice and have him be the “brains�

3) Online businesses. They take little to no start-up costs, are able to offer lower priced items than local stores (usually ha ha), and do not require the shopper to leave their home and spend precious gas...

4) Payday loans. Let's face it, people get desperate for money. With the ridiculous interest rates people are willing to pay, is this not a good idea?

5) Debt Management. The American way of spending is causing many people to rethink their current situations. I predict, many people will NEED this service shortly, and will be willing to do almost anything for help out of their current situation.

I would LOVE to hear some more ideas!

Thanks,

Woody

 

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[fanocks2003]

Hey guys, long time since I’ve been around! Hope everything is going good.

Okay, so here is the deal

I have been busy with school, preparing for the ACT test, and getting ready for college. I have not been able to create a few websites that I set goals to do over the summer. I'm kind of disappointed, but I just have to move on. This current economy is crazy. My stocks are down. Before I invested in these companies I really though it would take a disaster for them to lose such value! So, I have been trying to think of small businesses one could start that are recession proof. I want to think of businesses that people NEED, not one they can live without.

A few I have though about:

1) A mechanic/EMISSIONS shop. Government regulations require cars to get regular emissions done; I doubt that this law will be removed any time soon.

2) Health Care office. People need doctors, dentists, etc. Why not find a doctor and help invest in opening a practice and have him be the “brains�

3) Online businesses. They take little to no start-up costs, are able to offer lower priced items than local stores (usually ha ha), and do not require the shopper to leave their home and spend precious gas...

4) Payday loans. Let's face it, people get desperate for money. With the ridiculous interest rates people are willing to pay, is this not a good idea?

5) Debt Management. The American way of spending is causing many people to rethink their current situations. I predict, many people will NEED this service shortly, and will be willing to do almost anything for help out of their current situation.

I would LOVE to hear some more ideas!

Thanks,

Woody

All businesses can be recession proof as long as business accumen comes along with it. Without business accumen every business can fail in recessions. Even in good times.

 

[Luke12321]

Think about it as "How can I get myself to where I want to be in the shortest amount of time within a method I am comfortable with". Don't worry so much about the economic conditions around you....you control your goals, your focus, your business.

 

[TaxGuy]

4) Payday loans. Let's face it, people get desperate for money. With the ridiculous interest rates people are willing to pay, is this not a good idea?

a former associate of mine went into this business and let me say it's not a good time unless you have the startup capital(he's got plenty), not to mention with all increased guidelines there's a lot of red-tape just to get started.


I think an online service based business is the best bet, just need to find a service that people need and a way you can cater to this need, as far as a medical office, instead of dealing with a B&M look into the plethora of info on lead-gen sites posted on here.

 

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[fanocks2003]

a former associate of mine went into this business and let me say it's not a good time unless you have the startup capital(he's got plenty), not to mention with all increased guidelines there's a lot of red-tape just to get started.


I think an online service based business is the best bet, just need to find a service that people need and a way you can cater to this need, as far as a medical office, instead of dealing with a B&M look into the plethora of info on lead-gen sites posted on here.

Once again: business accumen. Without it, it does not matter when or what you start. You will lose ultimately. Train your brain to be sharp enough to see good deals from bad ones. Learn to spot liars from truth tellers. Learn how people behave when they are authentic and when they are not. If you do, it does not matter when you go into business. Or in what kind of business you go into.

If you need to rely on recessions etc you are a victim and victims seldom get rich or stay rich. That's the fact. The sharp ones always beat those guys, with pleasure.

 

[TaxGuy]

fanocks I don't mean to gush, but it's a breath of fresh air everytime you post!!! :hl:


it is true that there is no such thing as a "recession proof business" because ANY business can be RP, case in point the company I work for sells advanced IT solutions for small to large companies and various gov't/educational institutions, a "victim" mentality thinks that "small companies will not buy our products in a down economy b/c they don't want/have the money to spend" but the accumen we go by is "no matter the state of the economy ANY size business has a need for our products/services b/c in a down economy the technology needs will improve efficiency and more than justify the cost benefitting the customer"

bottom line is the "half full" mentality can make ANY business successful, despite the state of the economy.

ex- A mortgage broker who made their living off of sub-prime lending gets hit by the increased guidelines, a victim just whines that "I can't get the easy loans anymore and have to go out of business", but the real players know to channel their resources and tap into a different client base to keep their business thriving, their ideology is "while subprime/stated income loans are no longer viable, people still need housing and there are qualified borrowers out there and I'm gonna find them!"

with that in mind, I'll amend my statement about payday loans slightly, it IS a business model that can work especially in a down economy, but it is going to cost a lot of time/money just to get started at the moment so if you don't have a lot of both then it's best to explore other options.

 

[MJ DeMarco]

Consignment stores, Goodwill stores, thrift stores ... all do better in hard times.

 

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[BryanC]

Yeah, I'd agree fanocks that any business can become "recession proof". I have been reading a lot of Small Business mags lately that have all kind of business opportunities boasting: "Recession Proof." "Makes money in a recession!"

I think that idea and label is generally BS. They are only pitching these opportunities to newbies with little business skill.

If your business is a valuable resource to other businesses or consumers, you are going to do well no matter what. If your business is the "Go To People" for a particular good or service, I can't see how you'd do bad. You just need to create something that people "have-to-have" so to speak. My idea of recession proof is human necessity.

And if sales slow down, that means it is time to advertise more.

I also see you mentioned pay day lending. I would say that Pay Day Lending is about as recession proof as it gets. I actually just went by one of those places on my way to the Orthodontist this morning and the place was absolutely jammed.

If you have the cash and want to put it at that kind of risk, I'd say it is a great business to be in...

I have thought about that kind of business for a long time, I just do not have the necessary start up funds at the time though.

I found this website on Google just now:

Payday And Paycheck Loan Startup & Training Manuals for the Industry

Looks like it shows you the whole operation and how to do it.

Other ideas:

Vending.
Lawn.
Something online.
Marketing...
Hair Care.
Taxi.
Convenience.
Clothes.

I could think of a lot of services and product people would need in a recession or in a boom. I could probably go on and on for days and days...

MJ makes a good point on thrift and other such businesses that deal in assisting the needy.

I would say if you are just getting started out that you should probably go online and see what you can do with a little creativity.

 

[hakrjak]

Liquor Store
Tobacco Shop
Strip Club

Anything to take people's mind off the current problems...

 

[TaxGuy]

more power to ya, if you can get the licensing to do such a business the product pretty much sells itself :cheers:

 

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[hakrjak]

Also anything Health Care related will continue to be in demand. People can't skimp on their health. They can cut back on other things.

I'd say one of the hardest hit businesses already has been anything related to Beauty.. i.e. Salons, Nails, Hair, etc.... We have several friends who are in that business that have lost 90% of their customers over the past 6 months due to people cutting back on beauty expenses.

Cheers,

- Hakrjak

 

[hakrjak]

How about Trucking? You can buy your own Semi Truck & Trailer used relatively cheap (Get started for $30-40k)

Groceries always need to be trucked, along with many other staple items. Stay away from hauling construction materials (Flatbed and Dropdeck trailers) -- But I'll bet if you stayed with Refridgerated trailers, you'd be able to stay very busy.

If you own your own equipment the opportunity exists to make $75-100k a year.

- Hakrjak

 

[TaxGuy]

interesting example which can be either fastlane or slowlane, depending on how you approach it, i.e. I know someone who is an example of each-

1- owner/operator, owns their own equipment and has to get shipping contracts(most decent contracts require atleast 5yrs of driving experience). Works 50+ hrs/wk(10hrs/day/5days) and has to pay for gas and repairs, the only people that can truly whine about the cost of gas b/c their rates don't go up enough to compensate when gas hits $5/gal. Net income- $50-70k/yr

2- dispatch service/trucking company, connects truckers with companies, finds either laid off truckers with experience and good driving records or recruits good truckers already employed. Truckers are preferably owner/operators so equipment/maintenance costs are handled by the drivers. Your service is networking and being compensated for this service(not the driving part). Has $10-15/hr employees handling the phones and depending on co. size has marketing/accounting department. Net income- unlimited

 

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[Woody]

Thanks for all your replies. I have kind of changed my outlook on "recession proof" businesses. I understand that all businesses can do good, even in a downward economy. I guess with all the negativity floating around I was not thinking about how to make a company successful, rather on what businesses are successful. The business acumen term is rather new to me, yet a brilliant concept.

All businesses can be recession proof as long as business accumen comes along with it. Without business accumen every business can fail in recessions. Even in good times.

Thank you for this info. I googled business acumen,

the ability to view "business in the round" with a more holistic perspective.
linking an insightful assessment of the external business landscape with the keen awareness of how money can be made - and then executing the strategy to deliver the desired results.

I really can see how looking into a problem, can fix the profit and success of a company. The company should alter their tactics to fit the economy, not alter their entire business to match any economy. Am I right?

thanks guys,

Woody



a useful article I found with my Google search.

 

[Bilgefisher]

Not to steal ATW's thunder, but don't forget self storage. She has a blog post about it on her site. Self Storage Millionaire

 

[Redshft]

Businesses catering towards birth, marriage, and death. Birth and death is something EVERYONE goes through, no matter the state of the economy. I'm sure marriage has good odds as well.

 

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[hakrjak]

Businesses catering towards birth, marriage, and death. Birth and death is something EVERYONE goes through, no matter the state of the economy. I'm sure marriage has good odds as well.

Divorce might be a better bet. Isn't it 2 out of every 3 marriages that fail now adays?

- Hakrjak

 

[PEERless]

^ And divorce, baby!

[edit] ...aw, Hak beat me to it!