Small Business Ideas During Economic Hard Times

by Catherine Lovering

Several of the world's largest brands started in times of recession. Harnessing that entrepreneurial spirit when the economy is struggling can lead to innovation. Focus on the unique needs that arise when people have limited cash flow or are experiencing personal circumstances as a result of job layoffs in order to identify your target customers. If you have limited cash flow of your own, focus on creating businesses that have low startup costs.

Filling the Gaps for Other Businesses

Established businesses need to cut costs during a recession. They still need vital services performed, but they may outsource them to save money instead of perform them in-house. Virtual assistants maintain a public face for the business by arranging meetings and answering phones and correspondence. But they save the business money on overhead costs such as a computer and phone by performing the work remotely from home or their own office. And because the assistant is hired on a contract basis, businesses that use their services save on benefits and others employee expenses.

Making Family Life Easier

During recession families may require more than one income earner to make ends meet. Since salaries are lower, family members may have to work longer hours to meet their expenses. Therefore, they may lack time to perform household duties such as cleaning, dog walking and maintenance and repairs. If you offer to do these services at the right price point, you can start your own business by helping families continue with their lives while they get back on their feet.

Educational and Career-Searching Services

Economic downturns are when people are looking for work, going back to school to increase their marketable skills and, like you, starting businesses. These people will patronize resume-writing services, interview consultants and private tutors to give them an edge in the job market and at school. New entrepreneurs may need help with organizing, creating an office space and advice on budgeting and creating a work flow. Using your relevant skills, you can tutor or advise those who can best use your services.

Providing the Right Consumer Goods

Consignment stores do well during recessions because they serve both those who provide the goods and those who buy them. When cash flow is limited, people try to make a few extra dollars by selling their quality used goods. Consumers also search harder to find the best deal for their dollar, which includes buying consignment goods. Selling recycled goods or handmade goods from recycled materials need not be restricted to brick-and-mortar retail: Setting up an online shop is another way to sell your wares.

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