Recession is one of the most dreaded events in human history, no matter the era. It not only damages life savings, but also changes the course of an entire generation of people. The financial recession of 2008 was so severe that United States had to experience a decline in birth rate. Families were more focused on surviving the recession rather than expanding their generation. And let’s not talk how hard businesses were hit, a lot of them filing for bankruptcy.
But, there were still many businesses that thrived. In fact they made more profits than before. No, I’m not talking about the big ones like Apple and Microsoft, but unnamed businesses with only one or no employee. What did the business do? Or what kind of products did those business sell to register profits during a financial recession.
Hence, in these post I’ll mention the 7 low investment business ideas that can survive financial recession.
(1) Online Coaching
Only a years ago, not everyone was into selling courses and providing online coaching. But 2020 happened and everything changed drastically. Bloggers made more money every month than they usually made every year. Bloggers prefer selling online courses more than offering live coaching. It’s because making an online course is easy. You only have to put effort once, and the money keeps flowing in. This is a top-notch passive income source.
But you may ask: I don’t have any brand value. How can I sell a course? That’s where services like Skillshare and Udemy comes in. Udemy is probably the world’s most well-know digital course selling platform. Udemy is pretty famous among college students and buyers who want affordable knowledge. Skillshare, on the other hand is completely free.
Skillshare works great for niches like: Art, Productivity, Graphic Design, Self-Improvement, etc. So, if you want to share your knowledge about logo design, Skillshare can make you more money than Udemy. Ali Abdaal, a famous YouTuber and entrepreneur revealed his total yearly Skillshare income. Dude earns about $60,000 from Skillshare alone. Of course, his YouTube popularity is one of the primary factor for this absurd amount, but you get the idea.
(2) Maintenance Services
You might not know this, but maintenance services make quite good money, especially when they fix something sensitive. Also, people tend to choose not to buy new things and keep old ones in order to save money during recession. This is not uncommon, but reusing old products naturally when there’s less money in the market.
Now, it’s up to you to choose what kind of maintenance service you want to start. It can be cleaning service maintenance, or fixing old furniture. The best recommendation would be to choose a business idea that require low investment, have substantial profit margin, and you have enough experience in the industry. If you miss any one of these three, you’re bound to have issues.
Yes, a maintenance business may require low investment financially, but you got to have the expertise. Without that you’ll soon hit a roadblock. You can find countless businesses that hit a roadblock soon after introducing a new product because they have very little expertise. In the end, they either hire or shut down the entire product line.
(3) Sell Thrift Product
Suppose you have very limited amount of money and you need to buy clothes. What would you do? Of course, you’ll try to buy affordable new clothes. But, not everybody is lucky enough. Cheap clothes usually aren’t skin-friendly, and in many cases, can cause irritation and discomfort. That’s where thrift store clothes come in. You get good quality clothes at an affordable price, the only compromise is that they aren’t new, and it used to be worn by someone in the past. Meaning, they second-hand clothes.
Thrift store products sell well, but it sells way better when the economy isn’t in the right shape. People save money by buying thrift store products, and avoid brand-new clothes. Honestly, it might feel like a bad decision to start a new store right at the midst of a recession, but some businesses have no season and they also aren’t dependent on the economy.
Think logically for a second. Ask yourself the same questions a customer would ask themselves before entering your store. What would convince them to enter your store and actually buy something? Almost all the time, people buy something that they don’t have. Now, the situation is that they have little money, but they want good quality products. If your new thrift store can provide these two (good quality, affordable products) you store if going to be a hit.
(4) Financial Advisor
Being a financial advisor is a tricky job. Your decision can make or break someone’s bank. If being a financial advisor is so risky then why am I recommending it? Because there’s a ton of money in it. Professions related to stock market, finance management, and investments make great money whenever there’s a economic wave. Doesn’t matter whether the wave is negative or positive. Investors try to enter the market and want to know the “right time” to invest, and stock traders make millions shorting stocks. As a financial advisor your job is to analyze the overall financial scenario and advise your client to take a decision.
Let alone a full-fledged business, an average financial advisor makes at least $80,000/year in the US. Yeah, this might seem low when you compare the risk to reward ratio, but, financial advisors make serious cash from bonus. They also make cut off their client’s profit. Well, I don’t know how true the latter is, but financial advisors sure make serious money from bonus.
So, if you have good finance knowledge, it’s high time you start providing your service to people. Keep the prices low in the beginning to attract more clients. But remember one thing: Don’t trick your clients. This is the worst sin you will do, if you do it.
(5) Affordable Food Truck Business
I love the food truck business as much as I love food trucks. The guy who registered the first food truck business must be a genius. The largest selling point of a Food Truck is its mobility. You can literally reach any corner of the city and sell your product. And since you’re not a brick and mortar restaurant, you can keep the prices low.
Another reason why a food truck business is one of the best low investment business: It doesn’t require any research funding. A large number of big businesses are heavily dependent on billion-dollar research. Yet the profit is barely enough to cover the expenses. On the other hand, a food truck is an already established business that doesn’t require any research funding as such. Yeah, you can apply any number of personal ideas, but that’s completely different from a patented research.
Now, let’s talk money! Do you know how much does an average food truck make in the US? It’s $100,000/year. $100,000 on an average income every year is no joke. The ROI (Return On Investment) is insanely high. You can expect to earn back you initial investment amount in a year or two. And since food trucks usually offer products at low prices, they run pretty well during a recession.
(6) Freelancing
During a recession, businesses tend to cut cost. They increase the prices, fire employees, and keep production low. By firing regular employees, they tend to hire freelancers to complete their jobs. Though freelancing wasn’t famous enough back in 2008, but in 2020 freelancers made a ton of money. Freelancers have a chance of making way more than a regular employee because the income is not fixed.
A reputed freelancer can rake in 4-figures a day if they know the work pretty well, but that might not be possible for a regular employee. Hence, if you’re fired from your job, don’t fret, especially when you have skills. You can make money as a freelancer.
If you have a hard time believing that freelancers don’t make enough money, then visit Fiverr. I personally know a graphic designer who makes 5-figures every month only from Fiverr. He started solo, but today he has a well-established graphic designing business that has worked with big companies.
Disclaimer: Please do a thorough research before starting a business. I won’t be held responsible if your business don’t make profit. This post is just a personal suggestion and doesn’t offer any financial related services.