Image Source: The Guardian
By Suhaib Mohammed
As the economy nosedives further, you need a source of income that will cater to your day-to-day expenses. What better way to thrive than starting a venture? Here are 5 small businesses you can start during a recession:
- Food and Drink
No matter how badly a recession hits, consumers will never cease to eat and drink. According to Jonathan Glionna, Barclay’s head of US Equity Strategy, consumer staples and telecommunications are some of the recession-resistant industries. Based on more than four decades of analysis, Barclays found that “food and beverage, household and healthcare products returned 7 percent six months before the end of recessions and 11 percent a year after,” a good news for anyone who wants to start a business during these tough economic times.
- Cleaning Services
Another business you can start during a recession is to offer cleaning services. People need their homes, offices and immediate environments cleaned. You can start with the network of people you know by conducting initial research to understand the services they are currently receiving, if they are satisfied, and what other services they may need. With a small start-up capital, you can run a cleaning business with a low-cost business model.
Tutoring is another lucrative business that is recession-proof. With zero startup capital, you can start tutoring on the subjects that you are very knowledgeable about. You can start by advertising your tutoring business with word of mouth, and also put up banners at schools, university campuses and pubic places.
The Internet has become a global market. Consumers ages 25 to 34, lead the way in Smartphone usage in-store, reports CMO.com. Online shopping retail sales are “predicted to grow steadily to $370 billion in 2017, up from $231 billion in 2012,” according to a study by Forrester Research. With Africa’s young population, there are huge opportunities for selling products and services online, using e-commerce stores such as Jumia or Konga.
- Laundry Service
Like tutoring, laundry service is also recession-resistant as it requires minimal startup capital and operational cost. You can run the business from your house. To start, you will require a pressing iron, soap, a table, a laborer and a marketer. This business is one that can be scaled up overtime.
During a recession, you’ve got to have the guts to turn your crazy idea into a powerful product that people are willing to buy.
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234Finance is an online hub that promotes African Entrepreneurship. We feature small and medium sized businesses on the platform, shedding light on the current and future developments in diverse sectors across Africa. We also provide free resources, share opportunities and events on our platform that entrepreneurs can benefit from and thrive in Africa’s tough business landscape.