When the economy takes a turn for the worse, many people panic and worry about their jobs and finances, however, this is also an opportunity for business owners to capitalize on the situation. There are many business opportunities to consider during an economic recession. This blog post will discuss ten business opportunities you should consider during these challenging times!
- Online Beauty Reseller Business
- Online Personal Shopper Service Business
- Online Drop Servicing Business
- Online Dropshipping Business
- Home-based Catering Business
- Motivational Speaker Business
- Starting A Franchise
- Real Estate Company
- Investment Advisory Service
- Fundraising Company
1) Online Beauty Reseller Business
The beauty reseller business is one of the first business opportunities to consider during an economic recession.
Is it profitable to resell beauty products during a recession?
Beauty products are always in demand, even during tough times. As you may already know, your appearance not only may impact your outfits, it could also affect your job prospects, so people will be even more interested in looking their best during an economic recession. Statistics show that during the beginning of the pandemic in 2020, the online beauty industry grew by 5.6% in the U.S.!
Why is it a good opportunity to resell beauty products during a recession?
Another reason that it is a good opportunity to start becoming a beauty reseller is that most beauty suppliers have extra inventory to meet short shipment times. However, during an economic downturn, they are more likely to desire to increase their cash flow to guarantee that their firm can continue to operate. In other words, they are more likely to want to get rid of their inventory fast by giving a discount. Here is an example of how a beauty wholesaler trying to get rid of their inventories by giving unbelievably huge discounts. Consequently, you will be able to start your firm with less capital while carrying a more comprehensive range of beauty products. In some cases, if the stock of discounted items can last until the economy recovers, your net profits may even continually increase over time, as the market price of the product rises!
If this is what you are looking to start with the beauty reseller business, consider joining Carsha's beauty wholesale program. Carsha carries over 100 different brands of beauty products at very competitive prices; they also have a simple, free registration that allows you to browse the wholesale prices of over 4000 products with ease.
2) Online Personal Shopper Service Business
The online personal shopper service business is another business to take advantage of during an economic recession.
What is an online personal shopper?
The job for this position is to help others shop for the perfect items online, whether it is for a special occasion or for everyday use. Your daily job duties will include researching items and trends for your clients, helping your clients select items within their budget, coordinating the purchase and delivery of items and providing styling advice to your clients
Why people hire a personal shopper?
As a frequent online shopper, you'd be thinking about whether such a good job actually exists? It is not only a real job, but it is also an in-demand profession! Your customers are likely to be too busy to shop for themselves, and they are usually professionals who have a higher income. In this case, the recession may not have as significant an impact on their spending. In other cases, your clients may want to take advantage of the sales during a recession but do not have the time to browse through all the options. They would rather delegate this task to somebody else and be able to focus on their work or business.
What qualifications do I need to become a personal shopper?
You will require to have good communication skills, be detail-oriented and adaptable to satisfy your client. You will also have to be familiar with the use of search engines and online shopping processes. As personal shoppers are usually paid by tasks, you can also manage to increase your income easily by just speeding up!
How to earn more as a personal shopper?
One little hack to become a more successful online personal shopper, especially once you have a bigger client base, is to provide some offers that the client cannot get by themselves. For instance, if you sign up for this beauty wholesaler, you can get at least 25% off for a beauty product even if you are just getting a single unit for an SKU, as long as you meet the US$650 minimum order amount. Therefore, once you are confident that your clients can altogether order over US$650 worth of beauty products from you, it is a business opportunity that you can provide the exclusive offer to help them save money. At the same time, they are also helping you to get this extra wholesale discount and earn a higher income too!
3) Online Drop Servicing Business
What is drop servicing?
Never heard of the term 'drop servicing'? It's where you get paid to do services that are normally done by a business, but you subcontract the work out to somebody else.
What is a drop servicing example?
For example, you could be a web designer that gets paid $500 to design a website, but you only pay your subcontractor $200 to do the work, and you keep the $300 profit.
How to become successful in drop servicing?
If you think you have a wide social network, or if you are confident in your ability to find the right talents, then this business is perfect for you! By choosing the right candidate to drop service, you can also build up a brand of your own, that people trust the quality of work provided by your company.
What are the benefits to drop service?
This business is perfect for a recession because it has low overhead costs, and you can get started with little or no experience. Indeed, you may need to spend years learning one single new skill, but with drop servicing, you can get started immediately in all sorts of areas, from social media marketing to SEO to web design, without actually knowing any of the skills.
4) Online Dropshipping Business
Now we know of drop servicing, what about traditional dropshipping? Is dropshipping dead? No! It's flourishing!
Can you be successful at dropshipping?
Nowadays, the key to being successful in dropshipping is to find a supplier that is not overwhelmingly represented on the internet yet. If you can find a supplier that not many people know about, you're in business!
How to become successful at dropshipping?
To achieve this, try reverse thinking! You don't always have to find a supplier that provides dropshipping service, instead, you can go with a normal retailer that offers the same product but at a cheaper price. After you place your order, send a request to ask the retailer to drop ship the product to your customer's address. Many retailers are willing to do this because it doesn't cost them anything extra, and they're happy to get the business.
How to earn higher profits by dropshipping?
How can you find a retailer that sells products cheaper than a dropshipping company in the first place? It's actually quite simple. You just need to find a retailer that is located in a country with a lower cost of living than the US, such as China, and is willing to ship to your country. You don't have to go to Aliexpress where Chinese buyers intend to sell higher to foreign buyers, instead, go to Taobao (淘寶) and you will be amazed how any Chinese-speaking retailer in China is selling the same product much cheaper than Aliexpress. Best of all, Taobao has already got a system for their users to ship worldwide with their own courier service named Cainiao (菜鳥). Also, don't worry about the language barrier, we have Google Translate and the translation is more accurate than you think.
How do I get into branded dropshipping?
Extra tip: If you are reselling branded products and have no way to source them from China, try to look for a retailer in Hong Kong instead. Since Hong Kong is one of the biggest tax-free shopping paradises in the world, you will be able to find many branded products being sold at a fraction of the price. This is an example of a beauty retailer in Hong Kong that sells branded cosmetics, skincare products, and more at much lower prices compared to the US.
5) Home-based Catering Business
During an economic recession, another business opportunity to consider is starting a home-based catering business. This business is perfect for people who love to cook and entertain. You can start this business with very little money and even run it from your kitchen. Just make sure that you get the necessary permits and licenses from your local government.
Is catering a good business?
One of the great things about this business is that you can start small and then scale it up. The economy won't be bad all the time, once it starts to recover, and you have already got a loyal customer base, you can start to expand your business, add more employees, or even consider opening a brick-and-mortar restaurant.
How can I make my home-based catering business successful?
The key to success in this business is to focus on quality and customer service. During an economic recession, people are looking for ways to save money. They may not be able to afford to go out as often, but they still want to enjoy good food. If you can provide them with a quality product at a reasonable price, your customers will loyal to you which makes your business successful.
6) Motivational Speaker Business
A motivational speaker business is another business that you can start during an economic recession. With the help of the internet, you can reach out to a global audience with minimal capital, for instance, by uploading videos on YouTube. As people may be struggling with unemployment, debt, or other problems, you can help them see the silver lining and give them hope for the future as a motivational speaker.
How do motivational speakers make money?
Once some of your messages are delivered to your target audiences, you can start to generate income by charging for your speaking engagements. Some ways to make money as a motivational speaker include giving talks, workshops, or seminars; writing books or e-books; or creating audio or video products.
Another business model is to work with businesses, government agencies, or other organizations that are looking for motivational speakers. You can get hired to give talks to employees, you may think why would companies spend extra to hire a motivational speaker when they are already struggling with their business. The answer is simple, because an inspirational talk can help to retain employees and increase productivity.
7) Starting A Franchise
If you're looking for a business opportunity that can provide you with a steady stream of income, then starting a franchise is a great option. Franchises tend to do well during economic downturns because they offer a proven business model and brand recognition.
Why franchising is good for business?
When you start a franchise, you will need to invest in the initial franchising fee and ongoing royalties. But you will also have access to the franchisor's marketing resources and support system. One of the easiest franchise for you to start is a convenience store, as it requires a relatively small investment and you can get started quickly.
Which franchise is most popular?
Some popular franchises include restaurants, retail stores, business services, and home-based businesses. If you're thinking of starting a franchise, do your research and choose a business that will have a strong demand during an economic recession. Also you will have to consider whether it fits your skills, interests, and budget.
8) Real Estate Company
If you have some money saved up, investing in a real estate business can be a great way to make a profit during an economic recession.
What happens to real estate during a recession?
Many people are forced to sell their homes at a discount during an economic downturn, which presents an excellent opportunity for investors. In human history, billionaires like John D. Rockefeller and Andrew Carnegie made their fortunes by investing in real estate during economic recessions.
Is recession is best time to invest in real estate?
While there is some risk involved in any business, investing in real estate during an economic recession can be a smart move. If you do your research and invest in the right properties, you can make a lot of money when the market recovers.
How to start a real estate company?
You can start a real estate business by buying properties at a discount and then either selling them for a profit or renting them out. You will need to have some knowledge of the real estate market and the ability to find good deals on properties. Make sure that you have the financial resources to cover the cost of the properties and any repairs that may be necessary.
9) Investment Advisory Service
Another business opportunity during an economic recession is to start an investment advisory service. This business can be done online or offline.
What is an investment advisory service?
If you have experience in investing, you can provide advice to people who are looking to invest their money during an economic recession. You can help them choose the best investments and avoid the ones that are likely to lose money.
How do I qualify in giving investment advisory services?
You will need to have some knowledge of investments and the stock market. You can get this information from books, online courses, or by working with a financial advisor. You will also need to be able to communicate your investment advice in a clear and concise manner.
Why should I start an investment advisory service business?
You should know that wealthy people are always looking for ways to invest their money, even during an economic recession. Though, even if they are rich, it's not necessarily mean they are good at investing economically. So if you can provide them with the advice they need, you will be successful in this business.
How do I start earning money by giving investment advisories?
You can start this business by setting up a website or blog and offering your services to people who are looking to invest their money. You can also advertise your business in newspapers or online.
10) Fundraising Company
In businesses' perspectives, nothing is more appealing than having a relatively stable financial support. And in an economic recession, business opportunities that can provide financial stability will always be in demand.
One of the business opportunities that can provide this stability is starting a fundraising company. A fundraising company helps businesses and organizations to raise money by organizing events and campaigns.
How does a fundraising company work?
A fundraising company typically works with businesses and organizations to create custom campaigns that fit their needs. The company will then work to promote the campaign and raise money through various means, such as online donations, event ticket sales, or corporate sponsorships.
Why should I start a fundraising company?
Starting a fundraising company is a great way to help businesses and organizations in need, while also making a profit. You can use your creativity to design campaigns that will appeal to potential donors, and you can use your marketing skills to promote the campaigns. During a recession, there will be many businesses and organizations in need of financial assistance, so starting a fundraising company can be a very lucrative business opportunity.
What qualifications do I need to start a fundraising company?
This business requires you to have good organizational skills and the ability to market the events you are organizing. You will also need to build up a good network of contacts, as this business is all about relationships.
If you have the necessary skills and contacts, starting a fundraising company can be a very profitable business during an economic recession.
Conclusion
In conclusion, there are many business opportunities during an economic recession. If you have the right skills, some courage and a huge dedication, you can start a business that will be in high demand and make a lot of money. So if you're thinking of starting a business, don't let an economic recession stop you from achieving your dreams.