Economic downturns, recession and stagflation, affect businesses significantly.
Hence, most entrepreneurs in the UK and across the world are reluctant to start their businesses during this time because it may seem illogical.
But, some businesses can succeed even during an economic downturn. It may require a lot of organizing, planning and creativity.
These types of businesses are regarded as recession-proof businesses.
Here are some of the businesses you can start during the economic crisis:
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Healthcare Services
The healthcare services business is a great business to start during an economic downturn.
It is recognized as a shining example of a recession-proof business. Whether the economy is prosperous or in recession, it wouldn’t stop people from getting sick.
So the healthcare sector won’t experience massive losses or downsizing.
This is truly the case in our current situation. There is a pandemic that has paralyzed certain economic sectors and caused economic downturns.
Still, financial resources are channeled into the healthcare industry in a bid to keep the spread of the virus under control.
The healthcare sector still thrives despite the state of the economy.
Some healthcare service business you can start without a medical degree include:
- Medical Records Management business
- Medical Billing Service business
- Medical Supply Sales
- Stylish Uniforms for Medical Professionals Store
- Medical Marijuana Dispensary
Further, as technology continues to advance in the medical sector, important tools like top home care management software becomes even more crucial. Smart people to facilitate this technology will become even more in demand.
Home Improvement or Remodeling Stores
Studies have shown that there has been growth in home improvement spending in recent times in the UK.
During times of economic downturn, homeowners will prefer to engage in D-I-Y outdoor projects, kitchen and bathroom remodeling to putting their house up for sale.
It may be very challenging to get loans to purchase a new apartment during a recession.
So businesses that revolve around the sale of materials and tools for home renovation, improvement and remodeling will thrive during this period because of the rising demand of those kinds of materials.
Some examples of home improvement store businesses you can start in the UK include Composite Warehouse, decking supply business, Window Blind Sales, Electrical Fittings Sales, Ceramic Tiles Sales and so on.
Tutoring Services
Another recession-proof business you can start during an economic crisis. In times of financial upheaval, job losses and unemployment, a lot of people return to school to increase employment opportunities.
Research studies have shown that during difficult times, learning enthusiasm grows. So, tutoring service will be in high demand.
Tutorial services need not take place in the traditional face-to-face form.
These days, you can easily start an online tutoring service, where classes and seminars take place virtually. It is more affordable and convenient this way.
Online dating service
During tough economic crises, most individuals may seek love and romance to help them persevere.
With increased job losses and downsizing, a lot of relationships will end, while divorce and separation will be on the rise.
This is the reason why the dating industry thrives during this period.
Online dating services are very convenient and allow singles to interact and create meaningful relationships right in their comfort zone.
Many of the relationships forged via online dating services have led to marriages.
Online dating service is one of the most lucrative businesses on the web. If creatively designed to appeal to singles, you can always be guaranteed a steady stream of profits.
The good thing is that you don’t have to be an expert at coding or programming to start an internet dating portal, but you have to come up with a profit-oriented and value-based strategy to sustain the business.
Virtual assistance service
During an economic crisis, more businesses will reduce expenses, downsize and save labor expenses by hiring virtual assistants.
All that is needed to start a virtual assistance service is great work ethics, ability to work unsupervised and excellent administrative skills.
It may also be an added advantage if you have undergone skill acquisition or training.
You can enroll in one of the numerous virtual assistance online courses. The startup cost for starting a virtual assistance service is very cheap.
You only require a small home office and an internet-enabled computer.
Tip for starting a business during an economic crisis
Here are three tips that will help your new business survive during an economic downturn:
- Although there is always uncertainty and low appetite for risk-taking during an economic downturn, you can take advantage of this period.
- For instance, you can hire good staff at low cost, purchase raw materials for your business at a more affordable rate and secure a low-interest loan or credit to grow your business.
- Think long term. As you are starting a new business amid a financial crisis, you should have accurate and timely financial statements and budgets that reflect your business status.
- This will enable you to grow your business to be more sustainable and efficient.
- Excellent customer service is essential for your business growth, especially in an economic downturn where people are less likely to spend.
- Try as much as possible to reduce waiting time and give timely responses.
- Ensure you are attentive to your customers’ needs and build a rapport with them.