Surviving a Recession: A Guide to Starting a Small Business

 

The recent global events, such as the ongoing pandemic and economic uncertainty, have many experts predicting a recession in the near future. With unemployment rates on the rise and financial struggles becoming more prevalent, more and more people are considering starting their own small businesses to become self-employed.

While starting a business during a recession may seem daunting, there are certain industries that tend to be more resilient to economic downturns. These "recession-proof" industries include home improvement contracting, online reselling, cleaning services, child care, online freelance, online teaching, accounting, bookkeeping, and car repairs.

Home improvement and contracting, for example, is a £328 billion industry that is always in demand. During a recession, homeowners may be more likely to invest in home improvement projects to increase the value of their properties and make them more attractive to buyers. Online reselling of luxury goods is also a popular way to make extra income during a recession, with the industry projected to double in the next five years.

Cleaning services, child care, and online freelance opportunities are also essential services that will always be in demand. The e-learning industry, for example, is projected to grow to £600 billion by 2030, making online teaching a lucrative option for those with marketable skills.

Similarly, the accounting and financial services industry was valued at  £390 billion in 2020 and is expected to continue growing. As long as people are earning money, they will need help with tax preparation, bookkeeping, and financial planning.

Starting a small business during a recession may be risky, but by choosing a recession-proof industry and developing a solid business plan, it is possible to be successful. By providing essential services that people will always need, you can create a stable source of income for yourself and your family.

It is important to remember that starting and running a business is not an easy task, it requires a lot of hard work, dedication and patience, but with the right mindset and strategy, it can be a great way to survive and thrive during an economic downturn.