Is your home based business recession proof?
Is your home based business recession proof, or close to it.
I talked with a gentleman who ran a business of renting high end sports cars. His business is already being hit by the recession.
Are the products or services that you are selling in your home based business going to remain strong through a recession.
As I think about this, the thing that I notices is that I use just as much toilet paper if if I have a flush bank account, or if I don't. With travel, if my bank account is empty, then I will travel less.
So my advice today is to think about you home based business, are the products or services that you sell going to remain strong during a recession?
Here are some examples....
Energy drink - weak if cash is short.
Phone service - remains strong even when cash is short.
Travel / Vacations - if cash is short, people travel less.
What products or services to you sell, and do you think that they will remain strong in a recession.
The only things that are recession proof are death and taxes. Unless you've got a home-based mortuary or home-based taxes (i.e. you run the mafia, protection money), there are few recession proof strategies. Maybe people should take a more functional view instead of a fad-based view of the economy. Give people what they need, instead of marketing them to get them interested in something they neither need nor want. For instance, - dry socks. For the homeless. There's few greater needs out there for the homeless than dry socks. But who is out there getting dry socks to the homeless? I'm just saying our economy should be more based on what people NEED instead of what they are forced to want by tv ads.
My home business is providing a ready source to be able to order things that people already use via the internet. Though people will always have need for food, clothing, cleaners and such it is still possible that the money will not be available to make the purchase.
You must have a good product that is necessary for every day living during a recession to survive.
My business involves selling handmade art/crafts, and since such items are a luxury, rather than something you need no matter what, my sales could be hurt by the resession. However, I do such a small volume to begin with that it's hardly a problem... my business is really more of a hobby.
I also use my talents with creating crafts to make extra income. People really enjoy my knitted products. However, I realize that although I put my time and quality into my products, people can and will shop at WalMart or the Dollar store when their money gets tighter.
I agree with you that, when setting up a home based business, you need to go with lasting products, not fads. Fads are subject to problems in a recession. Items that are practical will outlast any recession.
I find the economy is getting so bad that we all have to watch every move we make. Putting money into a failing business can only pull you down faster.
I agree that there are certain staples that will always be prioritized regardless of the economy. Part of the trick, however, is to recognize the impact a recession could have on your business and plan accordingly. Unfortunately, many business that are recession proof are often the businesses that show low (but steady) profits. If you are in a sector influenced by the economy, recognize it and when the business is doing well, save for a "rainy day" so that you can survive a downturn in the economy- or better yet sell it and move on if you can recognize the onset of a recession in time.
Beer never goes out of style even during a recession. I don't sell it, I just know some things never go out of business.
I have rental property, and I can say my renters seem to be struggling as much as we are. Is anything recession proof? I guess we still have to eat, drink, use cars, buy gasoline, clean, and have parties. But I eat less expensive food, buy less food at drive thru's, drink cheaper drinks, use my car less, buy less gas, honestly clean less, and have no parties, or almost NO parties. The daughter turns sweet 16 in december though.
I sell avon product and Fashion jewelry and lately even though we aren't in a recession quite yet, I'm feeling the affects of it all. No one wants to buy, no one wants to spend thier money. I don't blame them because I am the same so to answer your question, I would have to say Yes, it will affect me tremendously.
