World wide spread of COVID-19 or Novel Coronavirus made All Governments to shutdown all Social and Economic activities. This led all business owners to lose their income opportunities and even there were lots of Hunger Deaths due to Lockdown. This situation is very serious than late 1920’s Spanish Flu virus Pandemic and 1929 Economic Recession. So We highlighted some Business Opportunities During Recession of 2020 which will be helpful for the 2021-22 year.
A recession is undoubtedly a time of business opportunities during a crisis, almost none economic activities and you would think that everything will slowly start crumbling.
Well, that is not true in most cases, and by most cases we mean businesses. Before we start looking for Business Opportunities During Recession, let’s see what is Recession mean.
What is a Recession?
Technically, a recession is defined when there are two consecutive quarters of negative GDP(Gross Domestic Product) or a decline in economic activity.
We can all agree that during a recession, most businesses are affected and some are impacted more than others, like non-essential, Luxury Goods, tourism, & Entertainment to name a few.
When people have limited disposable income, they tend to spend less on luxury goods & entertainment and restrict their spending to essentials and avoid major purchases.
What industry sectors are most likely to add jobs during a down economy?
Most Probably you seen some essential items needed all time(even during lockdown), has added most Jobs and income opportunities in COVID-19 Pandemic. Below are Some business which added jobs during Lockdown period and it will flourish even in the coming Recession.
Listed Business Opportunities During Recession –
- Vegetables, Fruits and Essential Commodity Item Selling Business.
- Milk and Milk Products.
- Cleaning and Washing Services.
- Hair Style and Saloon Parlours.
- Soft Drink and Beverages (Especially Liquor/Alcohol).
- Online and Social Media Marketing Businesses.
- E-learning and Online Schooling.
- Insurance Sector.
Besides above-given businesses, there are many businesses that thrive during a recession. Many kinds of businesses remain immune to the effects of a recession.
Starting a business in recession –
Below, we take a look at 10 Businesses that are Recession-proof Investments which face Medium to Low Impact during the Recession.
Online Foods Selling –
Food producers often work to maximize their and make them as large as possible. The main categories are Cake, Pastry, Cold drinks and Chat items. During the lockdown, these businesses were in demand.
Same as Vegetables and Catering services, online foods like Pizza, Pasta, Burger were in demand.
Home Delivery Services –
Home delivery is Service Sector industry, where no physical business will survive in Digital erra. As smart technologies playing greater role in day to day business activities, more home delivery services has been in demand.
Look at online e-commerce giants like Amazon, eBay, Flipkart and Other online stores who created an online audience and today these are doing billion-dollar turnover all over the world.
Education (e-Learning) –
Since learning and education are an ongoing process, the teaching and tutoring business won’t be affected severely by a recession.Explore all your possibilities. Udemy online courses on sale from $11.99
In fact, it is often noticed that people go back to universities, get higher education and develop new skill sets at the time of recession.
Online Courses and sites where people can learn additional skills (Like Udemy) are sure to see an increase in traffic.
Discount Stores –
In a period of crisis or a recession, the public usually visit outlets to buy in bulk and at discounted rates to save their money.
TJ Maxx(U.S.) and TK Maxx(U.K.) and Dollar Tree grew tremendously during 2008-2009 Recession period and this is the case with many discount stores during times when people have to be more savy with their money.
Social Media Businesses –
During a time of recession social media businesses like Fcebook, Instagram, Twitter and YouTube has thrive the most as people felt the need to share all kinds of content with each other.
This mostly ranges from News& Knowledge to entertainment, and now with Lockdowns and Social Distancing in place, usage on these types of platforms will have skyrocketed.
Online Marketing –
Those who run online marketing businesses, profit the most from the recession period as many companies around the world tier down on their traditional marketing campaigns and budgets.
They look for most cost-effective ways to reach their audience and are willing to try out cheaper alternatives.
In a recession, People are scared of loosing jobs vis-a-vis health problems, and so they get insurance to be secured.
Insurance businesses give people a sense of security in uncertain times.
E-commerce Stores –
While most physical stores struggle to keep selling various commodities during the recession, an online selling business can excel.
As it’s an inexpensive alternative to bricks and mortar stores.
E-commerce stores such as Amazon, eBay, Flipkart, Walmart, and Some Shopify, Magento and Woocommerce business has been thrived during the lockdown period and continue to be prosperous right now.
Home Security and Alarm Systems –
Due to COVID-19 Pandemic, in various Hospitals, High Locality areas, crime-cyber security rates tend to increase, also more reasonable during recession.
People are more inclined to take additional Security Measures to protect their properties and belongings, especially Online money Laundring and Frauds.
Due to fear of break-ins, people upgrade their home security and alarm systems.
Freelancer work for various loacl and International businesses are in demand more than ever during economic crises because businesses look for an inexpensive alternative to hiring new employees.
These people are usually self employed and are hired on a temporary contract basis.
Video Conferencing and Collaborative Apps –
Given the current situation, most companies are making their workforce remote.
With more people encouraged to work from home employees are using Video Conferencing solutions such as Zoom, Skype and Collaborative tools such as Microsoft Teams and Slack, to carry out daily tasks and conduct meetings.
Debt-Related abd Repossession Services –
Services like these are in demand more than ever in a recession or COVID-19 Pandemic.
A debt counselling business or debt collection and repossession services will thrive because of people’s inability to keep up with loan, credit card and mortgage payments consistently during times of crisis.
So if you are an Entrepreneur and thinking of investing in any of these businesses, or even starting one yourself in 2021, you are definitely making a wise decision.
Be sure to look more news analysis and Research for upcoming COVID-19 Pandemic updates, and any further recession news, you should be prepared in that way.
Always Remember, My One Mantra as an Entrepreneur, Be a Problem Solver. Solve Peoples personal and Social Problems, you will get a Billion Dollar Job.