Recessions mean everyone suffers? Well, not necessarily true at all and some businesses thrive during a recession and see the opportunities that it throws up really help them flourish. When most others who did well in the good times stall, these are the businesses that people should invest in.
Where you would have once purchased a new TV, or taken a holiday to the wine region of France, people will scale down their luxuries in a recession. Fortunately for them most sin is cheap and though they may bypass the new electrical goods, it’s a good time to own an off-licence or sell cigarettes; all of which improve in sales during recession. Chocolate also becomes an alternative to a good night out and does well. The only morally dubious industry to suffer is gambling, which relies on extra cash to do well and takes advantage of the happy go lucky feeling of the good times. All that being said, mobile gambling is currently thriving during the recession.
There are some businesses that just continue as usual and there is no boom or bust cycle. Pharmaceutical companies, grave diggers, waste disposal companies and healthcare companies are all constants that do well either way. People get sick, are taxed and die whether times are good or bad.
Those who can sell goods at a lower price will obviously do well when people are watching their pockets. Discount retailers benefit greatly during a recession as they allow people to save, something they may not care for significantly in the good times. People will purchase more expensive items when things are good, but may lower their quality when looking for goods in bad times.
These companies also benefit from economies of scale and so can offer cheap goods at great prices to consumers. Though people don’t shop there as an ideal, they still do so during recessions.
Freelancers and Freelance Service Providers
Instead of bringing someone in during a storm and paying them a full wage, business providers and freelancers are taken on as they cost less. These freelance providers don’t require health insurance, a roof, canteen facilities and all the extras that add up in business and so thrive during bad times.
Letting agents and others in the property management game do well in recessions as people find it harder to get mortgages to purchase a house. These businesses do well from the increased rental market and so make plenty during recessions.
Anyone involved in the area of money collection does well during the bad times. As businesses close, people lose money and need to employ professional services to get their investment back. This means that they will employ people in this area including debt collection companies, legal representatives and others, who all do well when things are down.
These examples of companies, who do well during the bad times, show that there is opportunity in the bad times as well as the good ones.
Cormac Reynolds writes for http://snap-edition.co.uk/ and has written numerous articles on how businesses can succeed during recessions.