Entrepreneurs see an opportunity where others see obstacles. A recession is a gr
ID: 1191696 • Letter: E
Question
Entrepreneurs see an opportunity where others see obstacles. A recession is a great example. Recession means unemployment, difficulty paying bills, fewer customers, home and business foreclosures, and cost cutting in different areas for individuals and businesses. These are the negative consequences of recession.
However, even during a recession, the opportunities are endless. The business ideas are just different from those in economic boom times.
Select one or a combination of the negative consequences of recession and answer the following related questions:
Describe an entrepreneurial opportunity that would be beneficial to both the entrepreneur and those negatively affected by the consequence of recession.
Provide the basic product or service description and clearly define the benefits.
What would your strategy be to attract potential customers for this idea?
How would you try to secure funding for this business? Do you believe it would be more difficult considering it focuses on a struggling component of the economy? Justify your answer with examples and reasoning.
Support your responses with examples.
Explanation / Answer
During recessions, job security becomes the number one priority as workers flock toward so-called recession-proof businesses.Recession-proof businesses are traditionally defined as industries that either thrive during rotten economic times or at least survive unscathed.
The global financial crisis of 2007-2009, however, rewrote the rules about recessions. Many economists are now saying that there's no longer such a thing as a recession-proof business. The best that employees can hope for is a recession-resistant business, meaning one with a better chance than most of riding out a recession.
The key to job security during a recession, experts say, is to find a company or industry that shows long-term growth potential, is immune from outsourcing and isn't tied to the fickle tastes of consumers.
So what might those be? Here are some examples, in no particular order, starting with three items that are guaranteed to make you feel better.
1. Accounting Services
Who would guess that accounting services would prosper in a recession? According to a survey done by Intuit in 2009 of 250 accountants and 250 small business owners, about 80% of small business owners said they felt more confident having an accountant as a close business advisor during this uncertain economic time. About 73% of accountants are proactively advising their clients on how to conduct their businesses during this trying economic time. Rich Walker, an executive with Intuit, said, in a recent interview, that the accountant was a piece of the puzzle for the small business that included others such as the banker, the attorney, and the financial planner.
2. Bulk Food Sales
When economic times are tough, many people buy food in bulk. They buy large quantities of items like flour, sugar, laundry detergent and any other products they use on a long term basis. A good idea for a small business is a bulk foods operation.
3. Affordable Luxury Items
Affordable luxury items seem like a contradiction but it isn't. During a recession, people tend to feel deprived. Starting a small retail operation that sells a mid-level luxury chocolate instead of a top-level luxury chocolate might do very well. An ice cream shop that sells a cut above regular ice cream, but in small quantities, might prosper. You could start a travel agency that specialized in affordable, but luxury vacations. An example would be a luxury vacation in the United States instead of in Europe.
4. Debt Collection Agency
An obvious business to start would be a debt collection agency since many people can't afford payments on credit cards or other debt during a recession. To reduce your overhead costs, you can actually run this type of business out of your home.
5. Resume-Writing Services
During a recession, unemployment is high. Many people lose their jobs. Along with unemployment, there is also underemployment where people aren't working up to their potential. Everyone is looking to polish up their resume. There is a demand for experienced resume-writers, another business you can run out of your home.
6. Auto Repair Services
Auto repair services grow by leaps and bounds during a recession. The last thing people want to do during a recession is make a large purchase like a car. They try to keep their current cars running instead. If you are an unemployed auto mechanic or if you are a business manager who wants to start an auto repair business, you're in luck during a recession. It's probably one of the best businesses you can start. Even when the recession is over, there is always a demand for auto mechanics.
7. Home Staging
Many people have never heard of this business, even though it has been around for a long time. During this difficult economy and the bursting of the housing bubble, it has become more difficult than ever to sell a home. A home stager has become vitally important. Simply put, a home stager makes your house look good and appealing to possible buyers. They know what buyers want and how to make your home appeal to them. If you are an interior decorator, this is a recession-resistant business for you.
8. Virtual Assistant
The job of Virtual Assistant didn't exist just a few years ago. During the recession, this profession has really grown has companies have not had the money to hire expensive staff people on site. As a result, they have had to outsource many functions. The Virtual Assistant serves as an administrative assistant to executives, CEO's, entrepreneurs, and entire businesses. The communication is done online and on the telephone. Virtual Assistant's are cheaper and just as efficient for businesses as in-house assistants. The job is nearly recession-proof.
9. Tutoring Services
Tutoring services is another job that is virtually recession proof. Many individuals go back to college when the job market is tight. As different sorts of job become available, such as jobs in green industries, tutoring services are going to be even more in demand. If you are a tutor, you can conduct your business online, in person, or both, which makes it very versatile. If your field is a popular field, then all the better as your services will be in high demand.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.