Some great ideas on generating long term sustainable economic growth were posted last week. I noticed that most bloggers talked about government intervention, either using fiscal policy or government spending to generate long term economic growth. Let’s assume for this blog that we don’t need to worry about government, taxation, or credit markets. In addition, let’s assume that this economic slowdown will last longer than anticipated. Under these conditions, is it possible to start a profitable business?
If you do a little research, you will find that some of the greatest business ideas were launched during a recession. Remember that solving society’s problems can be profitable! Can you find companies that are doing just that this time around?
Through research I found that Wal-Mart does better during a recession then any other time. Some companies such as Facebook are not effected regardless of the economic state. In October Microsoft bought a 240 million dollar stake into 1.6% of profits generated from Facebook. That is a clear indicator that the Facebook company is doing amazing! It is totally possible to start a business during bad economic times, you just need to figure out where to make the money. Facebook does not take money directly from the customer using the site, but rather the customer indirectly creates revenue for Facebook by clicking around and generating ads. Any business that makes money indirectly well providing a free service for its customer could potentially work.
Money is tight all around, unless you are a millionare you are going to look for ways to save money. So naturally discount stores are going to
be thrieving. Stores such as dollar stars. good will and espacialy Wal-Mart. Food chains like McDonalds are also rideing out the recession in
good form. Ceo Lee Scott of wal-mart has said the company is doing
“extrodinarily well” and that its founder built the company to thrieve
during toughh economical times. And acording to USA Today wal-mart has posted a 7 percent rise in third quarter sales up to 98 billion dollars.
As long as the effects of the recession continue to impact the U.S i do
not see wal-mart looseing ground any time soon.
During ressetion, companies that will do goo, are companies such as Wal-Mart. Not only is walmart the least expencive, but you can get anything you want there. From groceries, to clothing, to tv. At the lowest prices around, im not surprised that Wal-Mart is so successful, in this period of time. Other companies, are McDonalds. People have go to eat. It is the fastest way, and the cheapest way to eat if you are on the go.
On a reccesion bussinesses that help people save money is the key. Thrift Stores always have profit and in though times even more.I think that one business that could prosper in these trying times would be a carpool service company. With gas prices on the rise yet again, cutting down on the cost of transportation is an enormous positive thing the consumer can do to ease the mind and lighten the wallet. The only thing needed to be successful in a time like recession is to have enough funds and be creative in marketing your methods.
During a time period in which we combat a recession it’s pretty safe to say that more businesses suffer than flourish overall. However there are also businesses that people still require to be in existence no matter how bad the economy is including food service, and auto body repair. According to Powerhomebiz.com, these industries will still perform well during a recession because people obviously always need to eat regardless of finance and instead of buying a new car, holding onto an older used car and keeping up with repairs can make more sense financially. Regardless of the time however, the food industry can be a difficult venture to break into even though Restaurantowner.com claims the failure rate of new restaurants is not as high as the commonly thought of 80%-90% rate. While many do and will continue to suffer through this recession, through research it is also safe to say that some industries can prevail during hard times.
During a time period in which we battle a recession it’s pretty safe to say that more businesses suffer than flourish overall. However there are also businesses that people still require to be in exisistance no matter how bad the economy is including food service, and auto body repair. According to Powerhomebiz.com, these industries will still perform well during a recession because people obviously always need to eat regardless of finance and instead of buying a new car, holding onto an older used car and keeping up with repairs can make more sense financially. Regardless of the time however, the food industry can be a difficult venture to break into even though Restaurantowner.com claims the failure rate of new restaurants is not as high as the commonly thought of 80%-90% rate. While many do and will continue to suffer through this recession, through research it is also safe to say that some industries can prevail during tough times.
Some companies seem to be more “recession-resistant” than others. Companies that seem to be doing the best are Walmart, Google, Costco, McDonalds etc. McDonald’s (MCD) CEO Jim Skinner says the hamburger giant is “recession-resistant.” Basically if you are a major food distributer, web based company, or a tobacco company you are still profiting even in the recession.
Companies that would thrive in a recession are businesses that provide necessities at cheap rates. This is why Wal-Mart would be doing so well right now. With some research online it seems like many online companies may be recession resistant. If one is creative enough and can build a business opportunity around a persons day to day needs at good prices, it will probably be recession-proof