Starting a Business in Tough Times
Small Business Ideas for a Tight Economy
Not all businesses do poorly in a bad economy. Take a look at these businesses that can thrive in recession conditions.
It is hard for established businesses to survive in a tight economy. So how can anyone possible start up a new business in troubled financial times? Actually, it can be done, but there are some small businesses that will do much better than others.
Don't plan on starting a dog sitting business, a gift shop, or a clothing boutique. For most people, luxury items like trips and new clothes are the first to be cut when budgets tighten up.
Starting Thrift Shops
Buying gently used items at a discount becomes a must for families on a tight budget. They will look for anything from clothing to secondhand furniture in good condition at reasonable prices. Keep the competition in mind before setting up shop. Goodwill and other major thrift chains are well established and get their items free, so they are often hard to compete with. A thrift shop that isn't near one of the "big guys" has a better chance of success.
Starting a Coupon Clipping Service
Many families only have one place to cut their budget - the grocery and food category. Eating at home instead of eating out means some savings, but they will probably want to cut the budget even more by using coupons. Coupon clipping services charge a fee for their time, not for the coupons themselves. A disclaimer stating this should always be included in any advertisements and on any websites the entrepreneur sets up.
For a low-cost way to test the feasability of offering a coupon service, check out eBay. There are quite a few people selling coupons they have clipped solely through this handy auction service.
Teaching DIY Classes
While classes about learning to paint portraits may languish during recessions, classes with a money saving angle can do quite well. Consider a few of these DIY classes that make participants feel like they are saving more money than they spend on the class:
- Basic sewing and alteration techniques - Bill this type of class as a big money saver by pointing out how much it costs to get pants hemmed and buttons sewn on. Classes on sewing a child's wardrobe could also do well, especially if the emphasis is on how quickly children outgrow their expensive storebought clothing.
- Simple home repair techniques - Saving money on a plumber because they've learned how to unclog drains or replace their own faucet washers makes sense to people who don't have a lot to spend. A series of low cost classes on Do It Yourself Home Maintenance could be quite popular, especially if they are geared toward single moms.
- Thrifty cooking classes - Forget gourmet meals. Show parents with very little grocery money how to make a month's worth of nutritious meals for a few dollars a day and they will be much more excited.
Before starting any business in a depressed economy, think hard about whether it will save people money or whether they will feel that it is a luxury they can do without. It is surprisingly easy to give up an ingrained $10 a day gourmet coffee habit when it means the kids will get a well balanced dinner.
