Recession ACCELERATED business and money making opportunities.

[GordonJ]

OK, here's what is on the other guys' lists:

FranNet (a middleman company for the franchise industry) claims the following are "recession proof":
Dry Cleaning -Hair Salons - Residential and Commercial Cleaning -Home Improvement Companies - Temporary Staffing Agencies - IT and Technology Services - Mobile Storage Units - Children's Educational Services/Tutoring -

And they can hook you up with the right franchise. OK.

According to Entrepreneur Magazine, the best bets are: Collection Agency, Health Agency, Computer Repair, Resume Services, Vending.

Then there is the current Newsweek picks: Ice Cream, like Ben and Jerry's have little to fear, lipstick and nail salons, GAMES, such as Grand Theft Auto, liquor and carryout stores, funeral parlors, etc., etc.

These are Big NAME outfits, and you can find 1001 other opinions about what is a good business to be in during a recession. I've observed that 99 out 100 of these "lists" are done by writers...not business people who have been through a recession and actually started a business.

Also, many of these "perfect" businesses require huge investments or huge knowledge. Where is the realism? Well, it's gonna be right here in just a moment.

Listen, YOU can start or expand a business in hard economic times. Which ones? Four have been the traditional go-to business are:

1) Real Estate (and maybe if you want, it still can be...but it's not all that easy)
2) Information Publishing
3) Specialty Products sales
4) Specialty Services

For this discussion, I'll skip Real Estate.

ONE specialty service that seems saturated but has plenty of room in it is the dating/love/hookup services. Put people together and make money. SOARS during a recession.

INFORMATION? Whatever helps people save money, make money, save expenses, make money, save money...get it?

Specialty Products. Here is where fortunes are to be made, and you'll see some 70's items come back into vogue (I know, I'm working on a couple of them)... products that help people save money, save energy (which is saving them money).

Also, the easy solutions to weight loss, feel-good, spiritual type things...you'll see a rapid rise in Astrologers, Rune Readers, Palm Readers etc. Anyone who can "peer" into the future and report that all is going to be alright will probably have more business than they can handle.

Escapism, including movies but now more like GAMING, all those things that have stay at home ENTERTAINMENT value are going to be OK. As will EDUCATIONAL products that help people learn a new trade or skill that will help them be wanted in the job markets.

Entertainment, education and ease of life products will be HOT for the next three years.

So, I open the floor for further discussion, including what businesses you probably don't want to be in either.

Is your business recession proof or is it a business that is recession acclerated?

Gordon Jay Alexander

Hey Gordon,

I've started hitting the "Specialty Services" area, working with local and area business men and women.

There's still a great need in the smaller towns and cities for folks that can help local businesses increase their customer base, and thus their bottom line.

My response rate is currently 1 out of every 5 contacts, so I know that there's a need.

Any time you can show a business the numbers, they'll stop and listen.

Pete

Residential and Commercial Cleaning?

Ask Any cleaning Co what happens when times are tough and getting tougher?

First Expenditure to go is Cleaning. Office staff take it on, people clean their own homes. Same applies to car detailing, High pressure house washing, etc.

Home Improvement?

Yep. When things look tough and job security is questionable, people splurge on home improvement... /s

Didn't know about Mobile Storage until just now - http://www.containaway.com.au

Like you said GJA, written by people who sit in an air conditioned office and have Never been in business for themselves and/or through a recession. Sad thing is, others looking for those few extra bucks or whatever, and who don't know any better, will buy into the misleading info. and get burnt.

More later...

Michael Ross

Michael,

Originally Posted by MichaelRoss

Residential and Commercial Cleaning?

Ask Any cleaning Co what happens when times are tough and getting tougher?

First Expenditure to go is Cleaning. Office staff take it on, people clean their own homes. Same applies to car detailing, High pressure house washing, etc.

Not true. My wife works for a cleaning company and there work load has increased 500%. It has increased to the point that their company is having a difficult time hiring people willing to work. My wife is paid on a percentage of the job and does 4-5 homes or businesses a day. Average time inside, 1.5 hours.

She makes $41,000 a year and has a company vehicle which is entry level. Company supplies all the equipment and cleaning supplies necessary. She has found that no matter your station in life, rich, poor or middle class, nobody likes to clean up after themselves. That is how she stays employed.

LB,

Thanks for trying to tell me otherwise.

BUT

Seeing as I have been involved in Cleaning in one way or another (owned company, employed other cleaners and have been a cleaner) since 1988 until only the last year or so (that's nearly 20 years), I'll stand by what I said and meant...

In a recession - when money is tight - the first thing to get jettisoned as an expense is cleaning.

Your wife is one single isolated case. I am talking about an Industry. And it's plain old Nuts to plonk down a substantial amount of money for a business that is less in demand when times are tough.

Yes, there are things that always sell - like Rolex Watches. But knowing of those Exceptions doesn't help you when you're getting into a business that targets general people.

Now. If times are not tough, then all bets are off. And whatever the media says is baloney - it's baloney anyway.

BTW, cleaning Always increases prior to Xmas. Always. (For those who might want to make some extra Xmas cash.)

Michael Ross

With all due respect, you DON'T LIVE HERE IN THE U.S.

Thanks for pointing out the obvious - that I don't live in the US. Your point is?

Originally Posted by MichaelRoss

Thanks for pointing out the obvious - that I don't live in the US. Your point is?

The point is, you seem to feel that because something is so in OZ, it's the same all over. It's not.

It's just like the real estate market. Sure, it sucks in some parts of the country, but here in my area there's money available, folks are working, and there's plenty of properties being bought and sold.

In fact, right across the road from me they've cleared two 200x330 foot lots this week for new, high-dollar homes.

In L.A. or Miami, you probably can't give property away. (At least that's what they'd have you believe.)

Pete

Pete,

Thanks for elaborating.

I know Some Things are different between our countries. Which is why, when Gordon asked about what we See around us I saw a BOOM and reported as such, while he saw recession.

But I'm certain (based on nearly 20 experience and rational thought) that, when money is tight, sales are down, profits declining, people losing jobs left right and center, people developing retraction spending habits, etc. When that happens (recession), apart from laying people off to Save Money, businesses jettison hired in cleaning. Homes stop paying out money for cleaning.

They also restrict other extraneous spending - like Vacations. Airline trips and bookings decline. Other new and large purchases also decline.

What I am being told is... that in the USA, when all these bad times are around, people do NOT get rid of cleaners. Businesses, will lay off staff but keep a cleaner. Homes will restrict their spending but keep a cleaner. And worse, going by LB, that as their money becomes tighter and profits fall, they will Then spend money on cleaning whereas before when times were good they did not.

You say that's the way it is over there. Fine. And so I ask, why/how does this happen? What makes a business with falling profits to Now decide to be even less profitable and hire a cleaner? What makes a home with a shortage of money to have less money and Now hire a cleaner?

I'm not talking about a Specific Company doing well - even nationally. I am talking about the Industry as a whole.

Michael Ross

Michael,

I always like a good round of "Fist to Cuff". Keeps men manly. But all kidding aside, cleaning businesses here in the USA are on the rise. Now maybe down in OZ it is not the case. From what you're saying, your country's recessions draw people to do things differently than they do here in the States. Which means neither of us are wrong or right.

As for my wife's business increasing, it's been this way all year, not just during the holidays. Also she is not an owner, only an employee so it is not isolated.

Now I'll give you the reason why cleaning businesses do well here especially during a recession. The cleaning industry is not regulated which allows home owners, renters, and businesses to negotiate lower prices.

If the cleaning people are hungry for business they will have more work than they can handle. Remember, us Americans are to lazy to pick up after ourselves and we don't mind paying someone else to do it.