Recession Storm Good for Some Businesses

The old saying “It’s an ill wind that blows no good” is true. Even in the worst of times, some people prosper.  Some businesses are benefitting from the current recession, when others are not.  Who are these people, and how you do you become one of them?  It is the nature of their businesses that causes them to increase sales and revenue when other businesses are going in the other direction.  Basically, I’ve seen several kinds of businesses that are profiting from the recession:

“Make Do” Businesses. These companies sell products or services that people need when things are looking bad.  Auto repair shops, for example, see more sales in recessions because people repair their cars instead of buying new ones.  Rental companies also prosper, because people will rent many kinds of equipment that they might have bought before.  For example, people will be renting tillers and other garden equipment, instead of buying.  When I only trim my trees once a year, do I really need fancy, expensive tree trimming tools?

Home Repairs R Us. It’s not surprising that people are repairing homes instead of looking for new ones, which means that hardware stores and home repair businesses will benefit.  Many of us who would love to sell our homes are doing repairs now, hoping to be ready to take advantage of better times ahead for real estate sales.

“Buy-Down” Businesses. People still want products and services, but they are likely to buy cheaper versions of these things during a recession.  One good example of this phenomenon is in the travel industry.  During vacation season, people are less likely to take that big trip to Europe.  Instead, they may choose a weekend somewhere closer and cheaper.  I was talking to a Bed & Breakfast owner who said her bookings for this spring are up because people want to get away, but they don’t want to go far.

Regional Events May Benefit. Using this “buy-down” logic, local and regional events may benefit from the recession. In Iowa, for example, people may decide to forgo the state fair and stick to the county fair, or enjoy the local waterpark.  I know of several families who took their children to a local indoor waterpark for Spring Break instead of heading off to Disney World.

If you can find a way to tap into recession-proof business opportunities this year, it may mean the difference between increased revenue and lower sales.  Remember, someone will benefit from this recession; it might as well be you.

Image: sxc.hu