What is the Best Small Business during an Economic Downturn?

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What is the Best Small Business during an Economic Downturn?

by Fenella Ting
(Kuala Lumpur, Malaysia)

George Bush on Economic Recession

My friend posted this question "What is the best small business during an economic downturn?" on facebook, he is in USA now. Below is his full question reposted from facebook:-

"Hello fellow Malaysians,

I know most of you are probably affected by the current recession especially the one in the US.

I received a direct blow from it. My business sales has fallen approximately 60% compared to last year's month to month comparison.

I am still surviving, however a few of my retailers have already folded.

My question is this. Any ideas what is the best small business to get into with the current situation? Consumer buying habits are changing drastically because of the downturn.

1) What are they buying?
2) What will make them buy?
3) Is it a sustainable business?

Thanks! "

Business/Marketing Tip by Willy Lim

Hi Fenella,

There are certain industries that are more resilient to economic downturns than others.

1) Businesses dealing with daily consumables that people have to use everyday

This is the obvious that comes to mind.

People have to continue to eat, drink, shower, brush teeth, shampoo their hair, economic recession or not.

That being said, to simply rush out and start a retail business dealing with daily consumables may not be such a great idea now, especially since investment tend to be on the high side and with the retail industry being highly competitive, all these point to a risky venture in current economic climate.

Daily consumables business is recession proof, but you would really want to structure it such that your investment and overheads well managed.

One option would be to use a direct selling model is to market daily consumables, the investment is low and the overheads are low too. In fact, direct selling industry has historically outperformed other industries during downturn.

See Singapore TODAY newspaper report here:-
Creating wealth amid turbulent times

Side note: While direct selling may be a recession proof industry, it may not be everyone's cup of tea.

2) Training Industry

Another business which is recession proof is the education or training industry. During economic downturns, people look for ways to equip themselves with better, more updated skills.

It can be a small business owner wanting to improve his marketing skills so that he can stay ahead of his competitors or it could be a retrenched employee learning new skills to prepare for employment in a new industry.

Whichever the case, trainings aimed at increasing net profit of small businesses and increasing income of employees are pretty much sought after during economic recession.

There are other good businesses during economic downturns, but the above are the two that comes to my mind.

If anyone has more suggestions, feel free to share it by commenting on this article :)

Delivering Net Profit to Your Business,
Willy Lim

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What is the Best Small Business during an Economic Downturn?

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Sep 28, 2009
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Internet Business For Sale!
by: ng

Willy, do you know anyone who might be interested? please read message below....

On going internet business with website gathering spa, beauty, slimming, massage, reflexology, fitness, wellness customers and merchants for SALE!
Owner tied up with other ventures.
Genuine interested party please contact Ng at +6(019)3143378 or email nchar@tm.net.my

Mar 24, 2009
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The Best Small Business during an Economic Downturn
by: Angela James

The question is "What is the Best Small Business during an Economic Downturn?"

I truly believe that any business can survive an economic downturn if the business has a plan. So many small businesses go into business without any strategic plan.

By this I mean a beginning plan, a middle and an exit plan. During economic downturns, this plan, gives the owner an opportunity to look at what is working and what needs to be done to change the course built upon the information in the plan. This goes for 'brick and mortars' as well as any network marketing business.

Remember that this is the first recession for many people but the U.S. has gone through at least 7 that I know of. The difference is in the planning and the need to want more.

I could certainly point out more issues but the point is Have a PLAN...

Mar 16, 2009
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Internet marketing - a recession-proof business
by: Pearlin

An Internet marketing business.
Here's why it is ideal:

* You can start with very little investment, literally a few hundred dollars

* It's a completely portable business, you can work in your home, or anywhere you want to as long as you have a computer and an Internet connection

* You don't need any employees

* You have no fixed costs

* You can work as much or as little as you choose

* It is incredibly scalable

* You don't need any technical skills, everything you need to know is very simple and easy to do, and ANYONE can learn it

* Anyone can do it, male or female, any age (15 or 85), with previous success or not, it doesn't matter where you live

For more information on how to start a successful Internet business, go to
http://www.makemoneyinpyjamas.com

Mar 15, 2009
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Recession Proof Ideas
by: Anonymous

Great post. There was recently a video about Network Marketing and why people are turning to Network Marketing in a down economy.

One of the main reasons was that people here (in the US at least) still want to be pampered - they don't want to give up the "personal" side of their lives - you know - haircuts, makeup, skin care, health care. They want to be nurtured because everything else is falling around them.

I posted the video on my twitter page and you can watch it if you check out my profile. It was an NBC or CBS video (can't remember right now and not very long but pretty informative).

My twitter is http://www.twitter.com/anitak
.
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