If you’re like many people, the current economic downturn has left you feeling anxious about your financial future. But there is some good news: with a bit of creativity and hard work, it is possible to create a recession-proof business or side-hustle. In this blog post, we’ll share some tips on how to do just that. So if you’re looking for ways to earn extra income and shield yourself from economic turbulence, read on!
Define your target market and what they need/want
When starting a business or side-hustle, the key to success is to carefully select and define your target market.
Finding and catering to customers who will stick with you through thick and thin, even during difficult economic times, is essential in creating a successful, recession-proof venture. Knowing what your customer needs and wants will ensure that your products or services remain in high demand regardless of the current state of the economy.
Before starting your business or side-hustle be sure to understand who exactly your target market is and what they need/want so that when challenges arise they are still coming back for more.
Research your competition – what are they doing well and where can you improve
For those starting a recession-proof business or side-hustle, it is essential to do your research on competitors. Take the time to explore who your competition is, what they are doing well, and where there is room for improvement.
Comparing yourself to the successes of others can help you learn which strategies are working and how you might refine your own approach. Additionally, seeing what other businesses in similar markets have failed to do right can be valuable in avoiding their mistakes.
Ultimately, digging into the competition can be an educational experience that helps uncover invaluable insights and propel your own business further.
Create a niche product or service that is unique to your business
If starting a recession-proof business or side-hustle is your goal, then creating a unique niche product or service could be your ticket to success.
Developing a product or service that only you can offer gives customers a reason to choose you over competitors. For instance, if you are starting an online store that specializes in leather bags and wallets, it’s important to create products and styles that are specific and not available anywhere else.
When shoppers know they can get something unique from your business, they will be more likely to reach into their wallet and make the purchase. Consider what makes your product or service different and work on making the features stand out over your competition – it just may be the foundation you need to build a successful side-hustle or business!
Build an online presence for your business through social media and SEO
Starting a business during an economic downturn can seem daunting, but it doesn’t have to be. Building a strong online presence is essential to starting a recession proof business or side hustle and two of the best ways to do that are through social media and SEO (Search Engine Optimization).
By integrating both into your plan you can reach potential customers worldwide, attract leads for your product or service, and boost your credibility in the marketplace.
It’s also important to make sure your website looks professional, contains relevant information about what you offer, and takes customer feedback seriously – all of which you can use to increase traffic even more!
With the right combination of social media and SEO strategies, any business can come out on top during tough economic times.
What are the best recession proof businesses to start during a recession?
Starting a business during a recession can be a scary endeavor, especially if it is not one with long-term sustainability during an economic downturn.
Fortunately, there are several businesses that thrive despite any and all financial obstacles. Examples include food delivery/takeout restaurants, online tutoring and consulting, home repair businesses, and pet services such as dog walking or grooming.
All of these require very little overhead cost to get started, mainly due to the fact that people will always need some type of sustenance (food) or entertainment (tutoring).
Home repairs are usually put off until they can’t be delayed any longer when money is tight. And pets provide unconditional love no matter the condition of the wallet. So if taking a risk on starting a business is what you’re ready for, go with one that won’t suffer in hard times!
Offer discounts or promotions to customers during tough economic times
In tough economic times, creating a recession-proof business means adapting to reduced consumer spending. Offering discounts or promotions to customers can help keep your business afloat during a recession since it encourages more people in the area to visit your store or purchase from your website.
When customers take advantage of specials you offer, they may be more likely to return and recommend your store or product to others, creating loyalty and long-term customer relationships that provide residual sales for your company.
With thoughtful planning, creating discounts or promotions for customers can be an effective way to encourage more people to try out your product and services during hard times.
By following these simple steps, you can weather any economic storm and come out on top. Although it may seem like a lot of work, if you take the time to focus on your target market and creating a quality product, you will be successful.
Erika Finn, founder of Stacking Acorns, is an attorney who graduated from law school at University of California, Berkeley. She was a member and editor of the California Law Review and won the Prosser Prize for Legal Accounting. She holds a Master’s Degree from the University of Southern California (USC) and a Bachelor’s degree from Indiana University- Bloomington. Stacking Acorns is a personal finance website for women by women. We help mid-life women achieve financial freedom through real estate investing and other streams of passive income.