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How can we even consider starting a home business during a recession? Well, I know what you must be thinking right now. Credit is dire, money is tight, and most people are afraid to spend money. But these real problems with the current economic situation is one of the things that can help many small businesses prosper.
In fact, the suggestions suggest that at this time when unemployment is rising, so are micro-enterprises. How can this be? Well, let’s look at some of the factors that make people want it.
Why do people want to start a farm or micro business now?
- Many unemployed people have turned to self-employment for income. With few jobs available, some brave people have decided it’s time to create their own position.
- With tight credit and high credit card interest rates, it’s time to get debt under control. Even if some are still working, they need extra money to pay bills or shop. Some purchases, like car repairs, tuition, or dental care, just won’t wait until banks decide to lend money again at low interest rates.
- Family caregivers, such as those caring for children or the elderly, may want a way to earn extra money without having a set schedule. They need some kind of job that allows them to be flexible, and some may need to work from home.
What additional services do people need during difficult times? When consumers are nervous about spending money, it can seem like they won’t be good customers for your own business. But during tough times, the demand for some things actually increases. If you can help others with what they need, you have a good chance of prospering.
- Family caregivers can return to work in a traditional job. They will have to hire elder care or child care. They may also need help with cooking meals, gardening, or cleaning.
- Things need to be fixed instead of replaced. Are you useful? Can you mend or alter clothing, fix a dishwasher, or paint a wall? If you can offer affordable prices, you’ll probably have some interested customers these days.
- Companies may not want to onboard employees, but they still have work to do. The freelance market is growing. Some freelance jobs require special skills, but others really don’t. If an Internet business needs software, it will need to find an experienced computer programmer. But you can find freelance writing skills online if you can do some basic research, write a few paragraphs, and have access to a spell checker. Other companies hire workers online to perform a variety of tasks that are fairly easy to learn. Freelance office assistants, called virtual assistants, are also in demand today. Some companies even hire customer service representatives who answer the phone or call customers about bills from their own homes.
How can you promote your business without spending a lot of money?
You may think you don’t have the money to advertise, but you can do effective work without spending much. Sometimes a phone number on a yard sign will work. For online work, you can find career forums that allow you to apply for jobs. There are many free or fairly cheap ways to advertise.
Flyers are inexpensive to print, and can be posted on car windows in a busy supermarket or chain store if not prohibited. This really works too. He had a friend who ran a karate school and spent about $20 printing fliers that he put up in car windows at a nearby grocery store every few months. Every time he did this, he received at least a dozen inquiries and 3 new students. Just one month’s tuition was triple the price of the flyers, and it was an effective way to promote his business without spending much.
So if you’re wondering if a recession is a good time to start a business, keep in mind that it may be the best time of all!