Making Money During a Recession

On August 7, 2009 Mariko Lamb, of Talk Radio News Service reported that Keith Hall, Commissioner of the Bureau of Labor Statistics had released Data to the Congressional Joint Committee reporting a moderation in unemployment. A view of this report, available at the Bureau of Labor statistics shows that the unemployment rate has remained consistent at 9.4%. These numbers combined with the growing areas of job losses such as transportation, financial activities, and especially construction and manufacturing; can frighten someone considering opening a small business or a home business.

These numbers do not mean that this is a bad time to open a business, especially one with lower overhead such as from home. While it is true that the above areas have lost employment numbers, it is also true that employment in leisure and health care have been increasing. The important thing is to be smart in choosing a home business or small business that will fit the current trends. Statistics support home business pursuits. About 70% of home-based businesses will last over a three-year period, compared to 29% of other business ventures, according to the Home-Based Business Institute. In fact, According to IDC, home-based businesses create an estimated 8,500 new jobs daily.

When opening a business, consider a few important things. First, what do consumers not go without if they can help it? Where are the first places they will cut? Looking at these two factors will help with decisions as to whether or not the product to be marketed would be profitable or if it is on the list of things that a consumer would scratch off the list first.

Second, consider the 80/20 rule. Most marketers sell their product to the 80 percent of the consumers who have only 20% of the economic purchasing power. That is a lot of work. Consider businesses that focus on that 20% that hold 80% of the economic purchasing power.

Third, if a service industry business is being considered, look at what consumers are having to leave undone while they work harder during these economic crunches. Is there a service that could be offered to assist or fill in the gaps. For example, most day cares cater to the 9-5 worker. But many consumers today, are being forced to take jobs with differing hour structures. There are very few day cares that cater to swing shift or graveyard workers.

Another option is offer to teach to others an area of expertise. Consider taking on an apprentice at a lower wage to save money or offering lessons in a trade or industry. For those facing disability, look into helping others market their businesses from a computer. There are many affiliate programs out there as well as direct marketing that can be done.

Regardless of when an entrepreneur is looking to start their business, money can be made during a recession. It is a proven fact that many increased their portfolios even during the great depression. The important factor is to figure out what is either down in cost that can be invested in and held on to till the recession is over. Or, if that is not a financial possibility, to market to what people are looking for today. After all, according to the 2009 edition of The Small Business Economy released by Advocacy and posted on sba.gov this year, it was stated. "Risk-taking entrepreneurs are often the generators of the innovations that drive the American economy forward."


Have a prosperous week
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