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?
I think that the two types of business that will and are doing good in a recession are onlines business and healthcare. According to Article Base in the U.S alone online spending will increase about 17%. This double growth is expected to keep growing over the next couple years. Consumers have become comfortable with the conviency and cost saving of online shopping. Profits tend to be much higher than retail stores.
With healthcare despite the economy people will always need healthcare says Artilce Base. As the baby boomers age so does the need for healthcare
As the baby boomer generation continues to age, so does the need for services in this industry. By finding a profitable niche in this industry you are assured to see increased demand over the next 30 years. Many oppotunities to make alot of money in this recession. That why i believe these 2 are the the business that will survive the recession.
I don’t believe that there are many businesses that can do very well during a recession. But, the few businesses that are surprisingly doing well are automobile repair shops because, instead of investing money to buy a whole new car people are getting their current cars fixed instead. Another business that I found that is also doing well is the plumbers and the electricians because just like the cars people are fixing their appliances and electric thing around the house. These are great business to get into during a recession. These are the reasons why I believe these businesses are going to get through this recession.
There are not many businesses that could actually survive and make good money in a recession. Businesses like Burger king, IHOP, and Fedex were all created during the time of a recession(Sarah Caron). Fedex will still be busy, many people have family and friends outside the state that they send presents to for birthdays and holidays.Burger King has more than 11,900 restaurants in all 50 states and expanded to 73 different countries(investor relations), even though the United States is in a recession BK is a franchise and can make their money in other countries. Even when the times get tough many businesses can still survive.
There’s many different types of start up businesses’ that can be very profitable during the recession. One type of business can be of owning a franchise such as Duckin’ Donuts and Starbucks in the fast-food industry since people still have to eat regardless of the economic condition. Another can be from a health point of view whether good or bad during the economy, people in general would still need Dentists and Doctors. So to open up a dentist office if your a licensed dentist would be a profitable business. Also one can look towards the entertainment business; video game franchises would be a great franchise to start with. In 2007 video game sales soar to a record high of 17.9 billion dollars in North American retail sales alone.
It’s been stated in articles, ads, and in the news that this is a “buyer’s market.” According to realitytimes.com, a buyer’s market is “one in which there are too many homes on the market for the number of buyers.” With this information, one can assume that new businesses and start-up companies have an advantage towards acquiring new properties. However, Banks and lenders are only offering loans to the “most qualified” individual, where both lenders would usually charge a hefty interest rate. My thoughts are this; starting a business during this recession could go one of two ways. Dominantly depending on the financial aspect and liquidity of the the business, an entrepreneur might find his or her way down the road to success. With the bigger companies going under and declaring bankruptcy because they cant afford their expenses, a little shop can come along (with significantly less expenses mind you) with possibly better customer service and a similar (if not identical) products provide the same service or good, with competitive prices. Though, entrepreneurs may have overhead costs and pesky fees here and there from lenders, entering the market in a recession could also lead to failure. It is extremely difficult for a small business owner with limited funds and resources to compete with so many franchised companies with dominating barnd loyalty.
Also, companies that already have established themselves as a lucrative business, could jump on this opportunity to expand their geographical locations. Homebuying.com mentions that both residential and commercial properties are more affordable now than ever before.
So, for entrepreneurs with limited funds that need loans, this might not be a good time. Other entrepreneurs with access to much more money, now could work for them. And the for the smaller companies that have the money to expand and want to, this is a perfect opportunity to grow without risking too much money for property.
During a time of crisis, using the right business techniques you can use the recession to your advantage. Companies such as Exxon Mobile, Chevron, Microsoft etc. are still at the top of the charts of profitable businesses. I believe that smaller businesses will do well because they don’t rely on a large amount of money. Larger companies that rely on loans and the stock market will not do as well. Using the problems that society faces for example high gas prices, can be used to the companies advantage. With a struggling society, comes opportunity for business owners, it just takes the right research to allow your company to flourish.
I absolutely think that starting a new business is possible during a long recession. Making a current product improved and cheaper is only one option such as Hud-son Forestry Equipment has done to expand their product line by creating a small wood processor for those of us with everyday wood needs. This is also a green resource and an alternative heating source, perfect for NOW when everyone is tryin gto go green. Starting a used clothing store or junkyard/used auto parts place or almost anything discount has great potential to outlast the recession. These ideas are just a starting point: they save you money and they have staying power.
In an economic recession a business can be profitable if it provides a benefit to society or helps a person feel good about what they buy without spending a lot of money. There are many companies that are still making profits in today’s economy even though the economy predicted that they should have lost profits. According to USA Today, Wal-Mart, McDonalds, and Costco stores are still making profits and doing well compared to other companies in the economy. If trying to start a company a recession it would be a good idea to look at the companies succeeding and see what beneficial services they provide, such as low prices, value of products and selection of goods. I believe it is possible to start a business in a recession but would be very difficult to get people to switch your stores.
The kind of business ideas that could survive in a recession would be to produce something that wouldn’t cost alot for the consumer, but would generate a long term profit. Maybe like a clothing line like the video I saw in my class where this woman explored an opportunity that no one had explored yet. Something that maked someone smile or feel good about themselves, even maybe cry because they were just so overjoyed. Her idea was to create a clothing line for obese teens who wanted to wear the same styles of clothes that other teens were wearing their age. She has another store for more mature people as well. She said when the obese teens walk into the store they cry because they can’t believe that they foun clothes that other teens are wearing in sizes that fit them. And their mothers cry because that they were happy that there was a store that allowed them to find clothes for their teen. Its so hard to find clothes that are in style for teens today in plus sizes. It seems like to me at least that teen styles are based around the petite and smaller sizes. I probably wouldn’t want to design my own clothing line but sounds like a place that I may want to work someday because she treats her employee’s well.
There are many businesses that could open their doors during a recession and survive. One business that has boomed due to the recession and the prior elections is OBEY Giant. “OBEY” is a clothing line, built from the ground up by a world renowned graffiti artist named, Shepard Fairey. Fairey is the man who created the iconic “HOPE” campaign for Obama during the Presedential Elections. The Key to his survival during these times is the fact that he promotes change, socially, economically politically, while still staying fashionable. People want to feel like they can make a difference, Fairey helps them on the quest.
There are companies right now that are successful and even growing in spite of the recession. One example is the salon I currently work at. Watching it succeed while many larger companies are going bankrupt makes me realize that opening a small business and being an entrepeneur is the smart thing to do now. I think anyone who is ready to open a salon today should do it, because people are always going to need their hair done. I can’t say that about all small business’, but during the recession people still want to look good and actually need to if they want to get a job. If you look like you take care of yourself and are presentable, you are more likely to get ANY job over someone who is equally as qualified as you who doesn’t.
Suppose you are a hairdresser at a salon now and you have a very large clientelle, it is a good time to open your own shop if you have a good public relations representative and you are able to market yourself. If you aren’t very busy currently working in a salon then right now might not be the time to start a business because you will likely lose more money than you invest in it. This goes for any small business; bakeries, resturaunts, bars, etc. If you have a goal but don’t have a plan or the means to meet it, then going into something you are unprepared for would be a loss in the end.
There are also ways to promote your small business that you currently run or are planning to open. For instance, in a salon, you could host a “girls night out” event for new clients to come in and bring a friend to gain exposure. You could have them bring in their styling tools and show them the best way for them to style their hair at home. While they are there, you could inform them about services you offer, give them a consultation on what would suit them best, serve drinks, sell prducts, and potentially book an appointment for them to come back and get a color or cut. By doing something like this to benefit them on a day to day basis, it would show them how to make their hair look good all the time, which makes you look good. Plus, their word of mouth would bring you more clients. You could apply this concept to whatever business you have or plan to have to get your new name into the public.
According to an article on Smallbiztrends.com, some of the most profitable small businesses during a recession include dentists, accountants, lawyers, doctors, and other service professionals. Their profit margins range from 11.5% to nearly 17% net profit. They also stated that these types of businesses do well during a recession because they provide necessary services, that most people need. And while these types of businesses continue to do well, alot of retail chains are suffering, leading me to believe that if you want to start a successful business during recessionary times, you should think about starting a small services business.
During a recession economic, almost everyone is hurting because people spend less money. With less money in circulation everyone is affected but at the same time there are some of best small business has been growing up to fill out the demanding of people living. Likely, children care provider is most American need today. Here is an example; you care for 8 children in your home, 2 of them our infants, 2 our toddlers and the rest our ages 4 and older. The standard cost for infant care is at least $200 a week, $150 for toddlers and $125 for all other ages including school aged children. Your weekly income would be $1050.00, cash in hand. Other business that we should take a look to start is a crafter. Craft shows are booming across the United States today. There is really no limit, rules or boundaries to what you can make, it just has to be unique to be successful. Crafters are unique in that they make the same amount of money for their products whether they spent $10 to set up at the local school function or $300 for a booth at a three day event. Also, I think the food industries such as grocery store; restaurant and food court are the best business to start too because this business is the first demanding for everybody.
It is possible to start a profitable business in a recession using the video game industry as your outlet. In 2008 Americans purchased 21.33 billion dollars worth of video game systems, software, and accessories. Two men (2D Boy) started developing a game in 2007 from their garage called World of Goo. After its release for the PC and Nintendo Wii it went on to sell over 2 million copies in its first year and won numerous awards. They spent just under 10,000 dollars on expenses developing their game which included rent, food, and minimal development equipment. 2D Boy are living proof that even in a recession people will buy into video games to escape reality and be simply entertained.
Because of the lack of circulation of money during this time it seems that all the small businesses benefit the most. Most of this may be due to the high cost of name brand products and high-end companies. Another reason businesses might succeed in this recession is because most start up businesses are geared toward the needs of consumers. Examples of this will range but for the most part they are directed toward the clothing(i.e. GO GREEN, all natural costs less) and food industries(i.e. organics and fresh foods at low prices). So in conclusion, if the word is out there about all of the local businesses and great deals that are being provided to everyone then the economy will eventually get better and those local or small businesses will come out of this recession on top.
Starting a profitable business in a recession can and has been done in years past. One type of business that would succeed in this on going recession would be a liqour store. An article in business week dated Feb 6. 2009 listed liquor stores as one business that is booming during this recession. More and more people are staying home and drinking rather than going out to bars because its becoming cheaper for them. Due to the on going recession businesses can be profitable as long as they are saving consumers money.
Businesses which caters to society’s basic need will strive even in a recession. This fact is supported by an article in the website morebusiness.com which states that business in fields such as insurance, funeral, healthcare, and food will continue to strive no matter what the current economic situation as people cannot do away them. People still need to protect their life and property, give proper funeral for their loved ones who had passed away, take care of their own health, and eat and drink to stay alive. These businesses always emphasize on providing great customer service, giving added value to their products, staying true to their promises, watching their budget, and most importantly keeping their customers happy and satisfied. Even though these businesses might not be huge corporation, they will still be in business for years to come.
I believe it is possible to start a profitable business, despite the economy’s conditions. You have to know people in the business, know your product and/or service, and be able to deliver what the people need and want. Having information and knowledge about your business, your competitors, and the consumers will definitely help you succeed with your company in the long run.
After doing a little research, I found out that a store called Hy-Vee started up during the Great Depression, a general store that offered people great service and merchandise, all at a low price. Later on, after the Depression, their store grew to about 225 supermarkets, all because of good faith and hard work.
Companies starting up right now have a great opportunity to hire intelligent people who have been laid off. I also believe that most of these people will want to work for new companies because its a different experience and might be more appealing to them.
When trying to overcome a recession, there are few business ideas that will actually succeed. According to an article on MSNBC titled “Which businesses hold up well in a recession?” Written by John W. Schoen, it states that there are very few people/business ventures that are recession proof. It goes on to say that two examples of pretty much recession proofs jobs are a funeral home director and an account. If you think of it, no matter how bad the economy is people will always die and people will always be making some sort of money. Therefore they will need their taxes done no matter how much of a loss/profit they gain. The articles also make a valid point stating that about 70% percent of the United States economy relies on consumer spending. Typically when a recession hits the consumer will cut back on spending. So looking at what the research states, it is pretty overwhelming that during a serious recession about only 30% percent or fewer businesses have chances at being “recession proof”.
After doing a quick Google search of “recession proof businesses” I was directed to a link containing the six most “recession-proof businesses”. They were listed as Health Care, Education, Energy, Environmental, Security, and International Business. I agree completely with all six for many reasons. Health Care is a monumental issue for the United States at the moment. Everyone is concerned with getting the best benefits, while paying reasonable taxes. I do agree with Education, but I do not believe it is recession proof. I have an uncle who is a teacher and was in danger of losing his job, though he has been teaching at that specific school for over a decade. Educational jobs are a totem pole of seniority. Energy, I completely agree with also, at a time like this, where it’s great to be green, people are searching for ways to save the Earth, and their money. Providing reasonable prices for energy efficient products/services, will land you many customers. The same could be applied to Environmental jobs. Cutting back on police force or any for of security job, wouldn’t make much sense, and people know this. That is why you will very rarely see, if ever, any cutbacks on police force. International Trade is vital for America. A solid job, though at the moment the goods and services deficit is down approximately $32 billion. I believe the main areas of focus should be Education, Energy, and Environmental jobs.
Some businesses are able to start up and have profitable sales during a recession. Business Week mentioned eleven of the businesses that do well during a recession. Debt collectors do well during recession because people want to pay off their debt. People do not enjoy having debt, the goal of many American people is to be debt-free. Debt collectors also can work deals with people that their original collector will not or cannot and debt collector also can be very scary and haunting when the person in debt. Therefore, debt collector make profittable sales during a recession because people are hurting for money but at the same time they do not want people calling them telling them that they owe people money.
Shawn Flores
I believe it is possible to start a profitable business in a recession within specific service industries. Even throughout a recession when money is tight there are still basic services that still need to be taken care of regardless of the economy, which opens the door for businesses to grow. According to the Small Business Trends website the top 3 small businesses in regards to profitability were Offices of Dentists, Accounting services, and financial investment services. Many individuals and small businesses are turning to financial and accounting professionals for advice which is creating a profitable business. If you are able to perform a service which will save or make the client money, than you can create a profitable business even in a recession.
If the recession were to continue it would still be possible to start or run a profitable business, after all Fed-Ex, Hewlett Packard &Microsoft were all formed during an economic recession you just have to find a way to cater to the new different needs of the public; basically products that makes the consumer feel like they will save money in the long run will make you money. And the New York times recently did a report that shows while big companies in a specific industry might be failing many of those industries are succeeding in the form of small businesses whos owners had to go into business for them self’s because they couldn’t find work in there field, the media has dubbed them accidental entrepreneurs. Historically some businesses even benefit from a recession because of the loss of competition. For example Bestbuy and Walmart appear to be benefiting from the liquidation of Circuit City. Our.economic history proves that it is possible to start a successful business in a recession, in fact the rewards can be even greater but a mistake can be more costly. The game just gets more difficult so to speak.
In my opinion it is possible to start a profitable business during a recession like we are in now. Franchises like Burger King have become so involved in serving the community and employing many people, Burger King is located in over 70 countries. Therefore a fast food restaurant that can compete with the fast food pricing like Burger King and other fast food retailers are so custom to, may become as profitable like Burger King. Another profitable area can be Health Care, there are so many people that don’t have Health Care, it’s becoming a high concern for Americans now. The demand for Health Care can make you rich, if you figure out how to get everyone on your Health Care plan, but you must keep in mind that you must compete with every other Health Care coverage. In my opinion a high profitable franchise like Burger King, and since we have a high number of people with out Health Care, this to me are two aspects in business to keep in mind.
There are many different types of businesses that are considered
“recession-proof.” I actually came up with my business idea when the economy started to crash. Although, I always wanted a day spa, I noticed I started stocking up on candy. For some reason, chocolate just makes people feel better. Everywhere you go, whether it’s CVS, or a local grocery store they seem to have a “discount” on bags of candy. It sounds crazy, but I used to spend almost $10 a day for lunch, now I can buy 2 bags of candy for $5, that’ll last me for weeks. It’s not the healthiest lunch, but a sugar rush will get me through the day. According to the NYtimes, “The recession seems to have a sweet tooth. As unemployment has risen and 401(k)’s have shrunk, Americans, particularly adults, have been consuming growing volumes of candy, from Mary Janes and Tootsie Rolls to Gummy Bears and cheap chocolates, say candy makers, store owners and industry experts. At Candyality, a store in the Lakeview neighborhood of Chicago, business has jumped by nearly 80 percent compared with this time last year, and the owner, Terese McDonald, said she was struggling to keep up with the demand for Bit-O-Honeys, Swedish Fish and Sour Balls. Many big candy makers are reporting rising sales and surprising profits even as manufacturers of other products are struggling to stay afloat. Cadbury reported a 30 percent rise in profits for 2008 while Nestle’s profits grew by 10.9 percent, according to public filings. Hershey, which struggled for much of 2008, saw profits jump by 8.5 percent in the fourth quarter.” This is why I believe owning a candy store is a great business to open while the economy is down.
In these difficult times one can make a lot of money by inventing new products and business plans that relate to modern finical struggles. An idea that I cam up with is to create an indoor compact garden that has its own sun lamp. This will allow people to grow fresh vegetables in the winter indoors or in their apartment. With food prices going on the rise people will be able to grow some of there own food saving them money. This whole system will be self sufficient with watering and the correct amount of sunlight. All the owner would have to do is fill up the water jug every month and the plant will water itself. This would defiantly help people save money over the long hall and allow everyone to have the joy of growing there own food.
There are some businesses that can prosper in the recession. Unlike most business which due to the economy are facing tough financial times. However there are businesses that can succeed. According to an article written by Edward Iwata McDonalds CEO Jim Skinner says the hamburger giant is “recession-resistant.” Hermann Waldemer, chief financial officer at Philip Morris International (PM), calls the tobacco industry “very recession-resilient.” Also Pepsi has done well during the recession according to the New York Times so I can assume Coca Cola and other soft drinks re doing well. This is probably due to the fact that Americans consume large amounts of beverages such as Pepsi so recession or not there are still loyal customers out there. These are business that even during this time can stand strong health care is another business right now having great success. That is why think business can remain successful despite the economy.
What kind of business ideas can succeed in a recession?
I think that that certain kinds of buisness ideas will work in a recession. these ideas, however, need to be ideas that people will buy into. i think that the best idea for business in a recession would be to start a business in the entertainment industry. in the last few years, sales of video games have risen at a constant rate. in 2007, video game sales soared to a record high of 17.9 billion dollars, and the next year went even higher to 21.4 billion dollars.in order for the business to run successfully, the population needs to want to buy the item. video games have become increasingly more popular as the years progress. that is why i think video games or the entertainment industry would be the best way to start a successful business.
As its stated in our class business book starting a business is very risky. Especially during a recession. Although times are tough, money is being watched very carefully, necessities will still be in demand. If someone was to start a business right now with a need that people desire during this economic recession will succeed. If your creating the same thing as the average joe is at the same price it’s not very effficient. A strong business plan right for for the recession would be finding out what the people need during this time. Maybe such as doing surveys online or at local stores. For example, there are people finding alternative ways to heat their homes and get generate energy environmentally friendly which is very good and very expensive. Maybe if someone can find a way to decrease those expenses for longterm investments, a business can bloom. Right now its hard to say what businesses can or cant do right now. But people just need now, not want.
I think that it is possible for a business to do well during a recession. Because if businesses come out with a product that solves society problems at a reasonable price people are more likely to buy it. Another business that can do well during a recession is healthcare, because people always get sick and they need services to assist them. People will pay for those services because they are willing to spend their money on a something that can help them. That is why i believe that it is possible for a business to succeed during a recession.
Although there is a recession going on, some businesses are still doing well. According to the Wall Street Journal, Dell is to build phone for AT&T. I noticed lately on television the advertising commercial for AT&T is everywhere. They must be doing well. Just the other day I saw the commercial for Garmin Phone like a GPS cellphone that is coming out for AT&T. Another thing about AT&T I read in the Wall Street Journal is “Qualcomm Inc. is trying a new strategy to jump-start the nascent market for mobile pay TV—going direct to the consumer.” For this new phone you can broadcast TV directly to your phone for an additional $15 a month to your bill. I know many people would want a portable GPS and TV to carry around with them. Recession may be bad for some business but others are still going well because they are coming out with new features for the consumer needs.
During the recession time coming up with the great idea is the best thing to come up with. Making or discovering something new that benefits the society would be the best way to get over the recession. The businesses should come up with the idea that needs lot of employment, so that people have job and they can make their own money. For example, I hear those radio commercial about the computer certification that could almost double up your salary. The businesses should not approve the ideas where there is loss of employment. According to WSJ the unemployment rate is already at almost 10%. I heard that the companies are coming up with the idea for the big supermarkets. The idea is that if you go to a supermarket and buy the items in your cart, one doesn’t have to put the items on the counter the “scanning system” will scan all the items in your cart. Imagine how many people will lose their job if that system is installed in all the supermarket. So businesses should avoid those ideas where there is loss of employment and come up with idea which give out more jobs.
In economically tough times like this, I think that there are some businesses that will find a way to make a profit. It seems that everybody is being more mindful of where there money is going. With this new inclination toward saving money, products that will use less resources are becoming more popular. Hybrid cars are very popular in today’s world because of their ability to use much less gas than a normal car. Also, household products like water restrictors and energy saving appliances help people save money on their utilities. I think any kind of product that offers the same usefulness but less consumption as an ordinary product will definitely have strong marketability given today’s economic state.
I believe that there are businesses ideas that can succeed in this recession. Something like a computer selling and fixing business I believe will succeed. The world now revolves around computers. You pretty much do everything with computers now a days. Everyone needs there computer to do at least something in there home. I work at Staples and we dont go one day without selling or fixing a persons computer. In order to succed a business like this needs to promote what they are selling. The more you promote the more customers you will get. The world today revolvesaround computers that why a business like this would succed.
One type of business that would be likeley to succeed in a recession would be liquor stores. This sounds depressing, I know, but an article on business week states that, “Alcohol comissions across the country are reporting a surge in wine and spirits.” Which makes sense because now that money is lacking, instead of going out to a pub or resturaunt people are now more inclined to drink at home, it’s cheaper to buy a six pack than to have a few drinks at a bar. Wine and spirits sales are hitting record highs in some states, in the article it states that “The Ohio Commerce Department’s liqour division reported that sales of spirits hit a record of $719.2 million last year.” Liqour stores seem to be all the rage in a recession, and iI think opening one in a recession would be a great business idea.
Definitely yes, it is posible to start a profitable business during this recesion. As technology grows as well as the internet, we see a lot of businesses doing great. I personally think that internet marketing services are in high demand in an industry that is growing by leaps and bounds. Therefore, anyone who has an online business presence needs to know how best to effectively market their website on the internet, and most will consult an Internet marketing firm for assistance. That’s where the independent internet marketing specialist comes in.
As small business owners. Just look for ways to build traffic and increase sales in a tough economy, a knowledgeable internet marketer can help them gain a strong return on investment using very cost efficient means, which makes this a potentially recession resistant business you should include with any money making ideas you might be considering.
Although we don’t know how long this economic crisis will last, but one thing is clear the internet and online business services will expand and continue to grow in the future, I believe this would be a great business idea to survive in this recesion.
Most companies that start during a recession and can stay long after, even becoming giants in their field are ones that people NEED or want. Businesses such as FedEx and Burger King are needed by every day people because they supply something that is required to live, food, and to get things other places faster and simpler, easy gift sending or even sending merchandise somewhere else. The companies that should start to help end the current recession need to focus on what is needed that also has a want factor such as cars, they’re needed but every 15 1/2 year old WANTS one for their “Sweet Sixteen.” If an auto company could develop a vehicle that’s not only price friendly to everyone, but also greener, such a bio-fuel (which would also reduce waste of the oil) people would buy it. The companies now, in 2009 and onward need to look into the want and need, it’s a combination that if targeted together will boost the economy greatly and for longer than a one time deal like “Cash for Clunkers”.
What kind of business ideas can succeed in a recession? Few business I think will pass in the recession. Online businesses are simple and inexpensive to start up and can be very profitable if done right.One impressive sector is communications. Specifically, wireless communications. The growth of the cell phone industry continues at a pace, unaffected by the recession. Not only are more people using cell phones (in the US and worldwide), they’re upgrading and changing phones more often.
These factors bode well for anyone getting involved in cell phone business opportunities. In particular, online cell phone businesses stand to see real growth, even if the recession deepens in the short term. This is because more people are getting used to buying products online, and also because prices are lower online due to less overhead and lower labor costs.
I think that the only kinds of business that can succeed in a recession are Health Care because people get sick all the time, just think if you couldn’t get checkups, people prefer to invest in their health than anything else. According to A1Article.com online business are the kind of business that can succeed in a recession because people know rely too much on technology and they’re successful and profitable and anyone with computer access can start one and work from home.
Education too because no matter how bad the economy is, there will always be jobs for teachers. Students will still go to school to get better job opportunities and succeed in a recession.
I think that it is not only possible to start a proffitable business during a recession, but also it can be the best time to start one. Some highly profitable companies that were formed during a recession include General Electric which is one of the oldest and most established corporate giants in America, also Hewlett Packard which is one of the biggest computer software and hardware manufacturers. Not only is it a good deal for yourself to start a business during an economy , but also you could even be a factor in getting the economy back to normal. In my opinion any business that includes going green for the environment and healthcare are the two biggest businesses to be started seeing that everyone now adays wants to go green for the environment and to save money. Healthcare will always be booming because there is always room for new ideas and practices along with the fact that as long as theres people the healthfield will never be slow.
Conchy Bretos solved a societal problem during this recession with a profit-making company. In the article from the New York Times called, “A Social Solution, Without Going the Non-profit Route” Marci Alboher writes, “Conchy Bretos, too, chose a for-profit model for her venture. While working as Florida’s secretary for aging and adult services, Ms. Bretos learned of the difficulties that force older people to leave their homes and move into nursing homes for lack of proper care. With a partner, Ms. Bretos started the MIA Consulting Group, a business that advises governments as well as private housing developers on how to bring assisted living services cost-effectively to low-income housing communities so that older people can be cared for in their own homes.” Ms. Bretos concludes by saying, “We wanted to be profitable while also doing something that was right and giving back to the community.”
One business that excels in a recession especially if the unemployment rate is up to 9.5% (US Bureau of Labor Statistics) is the employee placement companies. Employment agencies are an excellent example; they meet the needs of another company or corporation on completing a job without the benefit and having to have a full time employee, and when done with the job there returned to the agency. Another business is the funeral home business. Its difficult to understand for some people nut no matter what people are still going to keep dying and there for there will always be business, whether it’s a cheap casket or an expensive, but families most likely don’t put a price on loved ones.
I think it is right time to devolope new business and put the pepole back to work. It’s might be work or dont work. Government has to take lots of risk during the reccession time. lots of people are out of the job. its very hard for them to survive in this world. Government should produce the more product in US and they should export the product to over the sea. That’s might be work out during this time. If the country produce more product in us it’s going to be help US economy growth. Government should expand it the unemployment check for the people who dont have the job. i think that’s what government should do duing the reccession time.
I did a little research and I found that a lot of great business, and ideas did launch during a recession; to name a few, BASKETBALL The game of basketball was invented in 1891 by Dr. James Naismith, a sports coach, but for the first three years, it was actually played with a soccer ball. Then in 1894, in the midst of a recession that lasted from 1893-96, Naismith encouraged A.G. Spalding to create a ball specifically designed for the new game which evolved to become a worldwide sport. Miracle Whip, Monopoly, scotch tape and the IPOD; Steve Jobs and Co. (Stock Quote: AAPL) introduced the iPod less than two months after the Sept. 11 attacks and the economic downturn that followed. The product was an expensive luxury, and yet it sold modestly. As the economy picked up, and the design changed from year to year, the iPod became a staple for music listeners everywhere. Well over 100 million iPods have been sold to date, and that’s just to name a few. A recession could be classified as a time of major opportunity if taken advantage of.
The start of a profitable business could be successful with the right business idea. I work for a restaurant, but a smaller one. The prices are cheaper and it is much more ideal for families that want to spend less money.Small businesses are poised to weather the current economic downturn and plan to grow despite it, according to Intuit Inc.’s (Nasdaq:INTU) recent “Get Back to Business” survey conducted for QuickBooks, the nation’s top-selling small business accounting software.(Encyclopedia). Smaller is considered better during a recession. People don’t want to lose all of the luxuries if they don’t have to. According to InsiderCRM, 14 of the biggest businesses known today have come up during a recession including Burger King Corp,FedEx, Microsoft,MTV, GE,HP and others. No one is looking to lose the things they love, so they go look for a cheaper alternative and that is when you start an idea you know can be successful.
There are many businesses doing well in the recession. Since people are unemployed they try to seek other ways of gaining money, a business that has profitted in doing this was Cash for Gold. Other companies doing well are repair shops, since people can not afford to buy new products. Other companies which did well through the government program Cash for Clunkers, were the auto dealers.
Some businesses do thrive in recessions since people need more money and to conserve it as well.
Many great business ideas have came out of a recession. I brave women Lindsay Raddall is launching her company Baby Bow in South Africa. Her thought is that parents will often make sacrifices of their own needs for their children, also cutting back on their own luxuries during hard economic times. Baby Bow is based on the belief that parents will always want the very best for their children; therefore the investment is a long term one. Lindsay Raddall is not the only one that has launched during a recession. Google, Johnson and Johnson McDonalds and Walt Disney also launched during a recession. It is possible to launch during a recession and be very successful.
Alot of businesses have flourished in the past through tough economic times. It all depends on what type of business you wish to give to the people.There has been companies like Amazon, etc. Who through intense financial issues have still been able to pull through as not more than just an idea but a full out business.
It is possible to start a profitable business in these economic times, it is how you go about doing it though. You must evaluate what the consumers really want out of your product. From the article “Why to start a business during a recession” Rachel Bridge said “When times are hard people will search for value”. Consumers will give more thought into what there going to buy, so they can get the most for their dollar. Some companies are doing better in a recession like Anheuser-Busch Companies, Inc. who are reporting solid figures of profit. If you can find the right client base your business should have no trouble succeeding.
Even though it is very hard for businesses to survive in recession, but still many businesses get to survive in the market. They get to survive if they are selling goods at the reasonable price for the middle class people. Wal-mart is one of the retail stores, which is good example of business that is surviving through the bad economic condition. The reason for the wal-mart to survive is the low prices for everything that people want to get at this point of recession. The other business that is doing good is the health insurances and pharmacies. The reason for these businesses to survive for long time is that, no matter what people will get sick and they will need medicine and insurance to protect them. Overall, even though it is tough time for businesses in recession, still some businesses can survive.