Given that we are in the middle of a recession, if you were to start a business, what would it be? Where do see the opportunity?
That’s a very interesting question to ponder, especially for entrepreneurs willing to capitalize on opportunities available.
I’ve seen a number of responses, blog posts, opinions on the types of businesses that could work in difficult times. Some of these include:
- Provision of Financial advice. In times of confusion and fear — shrinking retirement funds, increasing debt, downhill investments, etc — there’s a huge number of people who need guidance on the steps they need to take. Small business owners are looking for advice on how to deal with unexpected financial constraints. Families and individuals may be looking for advice on how to manage their finances given their new budget reality. Investors, particularly retirees, need help in protecting their nest eggs and finding any opportunities in a down market.
- Eldercare. One reality we all face is that whether the economy is going up or down, we are all going to go old. Services such as adult daycare facilities are still going to be needed. However, if you are targeting the baby boomers market, most of which relies only their retirement funds (that may be shrinking) as their main source of income, this may be the group that will be tightening their belts even more. So niche travel for the active boomers may be hard hit during tough economic times.
- Auto Repair and Maintenance. People tend to forego buying new cars when money becomes hard to come by and cheap credit is not as easy to get. Instead, they’re more likely to keep their cars, which entails maintenance. As such, there is a big opportunity for this business when the market goes down.
Let me know if you have any other ideas of the types of businesses that could work during a recession. Love to hear your thoughts!