The United Kingdom is on the verge of a recession, and everything sounds bad on the news.
When times are tough, it's easy to believe that no businesses make money during a recession, but this couldn't be further from the truth.
Sure, you'll have to work a little harder, but it is entirely possible to build a profitable and successful business during a recession.
So, what types of businesses are a good bet if you want to go it alone? Check out our list of popular and simple-to-start businesses.
- Grocery stores
- Repairs & Handymen (or women)
- Children’s shops
- Credit control businesses
- Mobile mechanics
- Mobile hairdressers
- Lenders
- Hire shops
- Painters and decorators
- Kitchen refurb businesses
- Child daycare
- Recruitment agencies
- Digital Marketing
- There are five steps to starting your new business.
Grocery stores
One thing is certain: we all need to eat, and with grocery prices rising by the day, shoppers are on the lookout for alter-natives to the big supermarkets.
If you can open a store that sells good food at low prices, you can beat the big boys, who seem to be getting further away from their customers by the day!
Repairs and handyman services (or women)
During recessions, one recurring theme is that people tend to hold on to what they have rather than buy new. This means that even people with very basic handyman (person?) skills can carve out a decent living by fixing all those little jobs around the house.
People also tend to buy flat-pack furniture rather than ready-made, so offering a service to put these together could be a winner.
Children's stores
We all enjoy spoiling our children, and the temptation is even greater when they are newborns.
We've all paid a little more than we expected for the first buggy, cot, or sterilising kit, so a shop full of interesting and exciting kiddie goodies can be a fantastic prospect.
Credit management firms
Credit control, the first of our Business to Business prospects, is something that most businesses struggle with on occasion. Opening your own office is a great idea if you have good credit control skills, because you can offer epic credit control at a fraction of the cost of hiring someone to do the job in-house.
Mobile mechanics
One clear takeaway from the dark days of 2008–10 was that when times are tough, people (and businesses) hold on to their cars for longer. This means they require servicing and repair, and if you are a skilled mechanic, a mobile service may be right up your alley.
Because you have few overheads as a mobile, you can provide excellent service at a fraction of the cost. This means you make more and your customers pay less.
Mobile hairstylists
Even if they have less money in their pockets, people still want to look good.
A mobile hairdresser, like a mobile mechanic, has few overheads and is free of many of the financial ties that make their work expensive.
If you have a talent, why not use it to benefit yourself while also benefiting your customers?
Lenders
Unfortunately, when money is tight, people frequently have to rely on lenders to get the things they require.
Opening up shop as an ethical lender is a great way to make money during a downturn, but keep in mind that you must follow the FCA rules.
You can also go the brokerage route, where' you can offer loans from a variety of lenders and receive a commission as a result.
Rental store
If people require something but cannot afford to buy it, the next step is to hire it.
It could be as simple as a dress or formal wear hire shop, a party hire shop, or a DIY equipment hire company.
Plants and machinery, vehicles, and office equipment can be rented by businesses. In fact, the only thing you can hire out is your imagination.
Decorators and painters
One of the interesting things that happened during the last financial crash was that when the housing market tanked, people began doing home improvement projects.
Painting and decorating, garden renovations, and adding on rooms with loft conversions or conservatories all became popular as people chose to stay put rather than move during turbulent times.
Kitchen renovation companies
Kitchens are one of the most important rooms in the house, but replacing them can be extremely costly.
Specialist businesses that replace door fronts and worktops rather than entire kitchens, on the other hand, can make good money when people can't afford a full replacement.
Daycare for children
When times are tough, families must work, and with two parents out of the house, childcare is required. Childminding services are in high demand, and if you build a good reputation, you will never be out of work.
Just keep in mind that you'll need to register with OFSTED and follow their rules.
Recruitment firms
When businesses cannot afford to hire full-time employees, they frequently turn to temporary workers through an agency.
If you have prior experience in this field, a recession may be the ideal time to strike out on your own.
Marketing via the internet
Businesses approach a recession in two ways. The first is to stop marketing, which is a huge mistake because sales will plummet. During a recession, smart businesses actually spend more on marketing, so if you have skills like graphic design, SEO, or copywriting, now is the time to use them.
5 Steps to Launching Your New Company
Starting a business in the UK is simple, but there are some steps you must take before you begin.
- Do some market research—will people buy what you are selling?
- Write your business plan—it doesn’t need to be elaborate, but you should have an understanding of how you are going to achieve your goals.
- Speak with an accountant—Don’t skimp on this because a good accountant can save you more than their fees.
- Depending upon the type of business you have (sole trader or limited company), your accountant may do this for you.
- Get insurance: If something goes wrong, then you need to make sure you are covered.
- Your accountant will tell you that you should keep your money separate from the businesses.
- Get your marketing right – this is where' so many new businesses fall down. Get this right and everything else is easy!
- Get an easy way to take payments—you need to be able to take card payments quickly and with low fees.
- Put money aside for your tax – you pay tax at the end of the year when you are in business, so put a chunk aside so you don’t have a nasty shock.
