There has been a time when we went to any shop and each of the shopkeepers said that the market is being so cruel and low, it is difficult even to recover costs, customers are not spending, on and on and the list of worries of businessmen would never end.
That is what we call ‘recession’.
We all have heard it, we all have seen and witnessed it. According to economics terminology, the recession is a phase of downfall in an economy where consumers are unwilling to spend and inflation climbs skies, followed by a considerable fall in GDP.
The definition itself raises terror, whether you are into a business or a job. In times of the low economy, being in business will, of course, worry you with your profits and sales, but being employed for someone would equally worry you in terms of job security and remunerations.
The Great Recession of 2008 is the recent case of recession at a global level which we all can recall. Just like the Nuclear Explosion at Hiroshima and Nagasaki, we are still struggling to make good the losses of that recession hit, and probably it would take more years to do so completely.
Describing a few details, this dark period began in the US in 2007 due to a dip in the real estate market and the tremors of this economy earthquake were felt in most developed countries of the world. But countries like China and India were less affected than others.
While studying about recession, one question tickles all of our minds that does recession affect each and every business?
Most of us think yes is the answer because we tend to witness a downfall in almost all major industries include real estate, construction, jewelry, textile, agriculture, etc. but to keep your calm, there are a handful of business lines which not only sustain but even flourish during the times of recession, while it is a struggling darkness for the rest of them.
So if you are not one of them who laugh off the fear of recession until it actually strikes them, rather you are the one who wants to recession-proof your business, then here is an easy list of business options for you which have shown upwards graphs even the economies were low.
1. Entertainment Industry
We all desire to be entertained even in happy times so obviously we want distractions from our business tensions during gloomy times, and most of the wealthy businessmen consider entertainment as an easy escape.
So here are a few business options thriving during a recession:
When it comes to Jennifer Lawrence or Julia Roberts, who will think about the bullish or bearish phase of the market before choosing to spend on those three hours.
Rather, they find it an easy and affordable option to distract and refresh their minds from their worries or profits and losses. A big tub of caramel popcorn with a large chilled coke and Vin Diesel dancing on the big screen, who will resist! So popcorn and theaters are always a yes.
We all have seen those funny businessmen with unlimited wealth who sit on their massive black boss chairs in their office, scratching their nice, round and fat tummy and watching television when there are no customers humming around.
So be it ladies or gents, America’s Got Talent and Game of Thrones are enjoyed by all of them. So directly, there is no such bad impact of the recession on television show makers, rather people love to share hearty laughs, watching the F.R.I.E.N.D.S. So, people continue to pay for Netflix subscriptions.
Though it is a weird thing to believe, yes the modern generations are keener to get their skins inked and when they have idle time from their business, they choose to sit and get a nice tattoo. The US has seen a considerable increase in the number of people having tattoos during the recession period.
2. Health and Wellness
Health is the prime requirement for every being, so ongoing income levels definitely do not affect our expenditure on our health. The wellness industry is an emerging branch in the health sector which broadly deals without outer looks and beauty.
So here are a few lines of earnings in this industry which are boosted during the recession:
Gone are the days when an apple a day used to keep doctors away. With adulteration in almost all food products and mechanic lifestyles, diseases and health issues are not expected to hit a recession in the near future. Things like life-saving drugs are counted in the list of necessity goods so the people are never going to compromise in this sector.
It is a period of recession, so it does not mean we won’t visit a doctor even when we are burning with a 102 on the thermometer, or if we have got our leg broken. Needless to mention, gynecologists and pediatricians are unavoidable at any given point in time.
2.3 Beauty and Wellness
Whether she is your wife or girlfriend, you know you can’t win an argument from her when it comes to her beauty chores. The monthly facial is always a mandate even in times of low monthly sales.
Ladies may restrict them from buying expensive clothing, but they would love to compensate for the lost joy of shopping by buying affordable cosmetics. They can find delights in petty things like nail paints or mascaras.
Not only for females, even for the beauty-conscious businessmen, but a relaxing spa or a body massage can also release your numeric tension up to some extent.
3. Food and Beverages
In the sequence of Food, Cloth, and Shelter, food comes first. So no question marks raised when we say the Food industry is not affected by dipping trends in the economy. A country can never be so poor to let everyone starve. So the following segments of this industry see sunrises even in dark days:
Just because your shop or office is locked down, you just can’t shut down the kitchen of your house. You will always need basic kitchen items like wheat, salt, and milk. Apparently, you can skip on luxurious groceries like Mozzarella Cheese or Worcestershire Sauce but basics will always be on the shopping list.
People often complain that their spouses don’t have time to spend quality hours with them. It may sound funny but the recession is the time for you. Families usually come closer during hard times.
So we can grab on your idle time to cherish a nice dinner date with our loved ones. So the restaurants are welcoming guests with open arms at all kinds of times. A glass of wine while you dine can drive away from the worries of your workplace in a blink.
4. Finance Industry
The phrases ‘recession’ and ‘boost in finance industry’ seem north and south poles at the surface level but once you dig deeper, you get that relation vivid.
So we can witness growth in the following niches:
It is a myth that high-income earners require accountants more but in reality, it is the other way round. When you are down in the valley, you need more expertise when it comes to managing your returns. It is then more crucial for you to avail of all the tax benefits or subsidies.
You need to manage the inflows and outflows of the funds you have more carefully when the amount is comparatively small. Presenting true and fair picture of your firm in the books and records is vital even in a period of recession.
4.2 Financial Consultants
If the bad business days are not tending to end and it is getting tougher for you to cover your variable costs and meet your break-even point, you might be thinking of borrowing some money or getting a loan sanctioned.
Here, in such cases, the role of financial consultants becomes all the more important. People who are running small businesses, franchise owners, consultants, etc. will need financial help as only they are the ones who can guide you practically in an unbiased way.
They would advise you regarding managing your idle funds if any or suggest you the ways to meet the shortfalls efficiently.
4.3 Investment Advisers
The money invested during a recession may get doubled up after the economy recovers or it can happen the exact opposite- the money invested can become zero. So investing during such unpredictable times is no different than gambling.
It is always better to consult an expert in that field before taking a big risk. So the business of investment advisories flourish.
5. Sin Industries 😈
This head may seem a bit out of the track because the topic was revolving around crucial things like money, finance, economies. But somewhere in our heads, we all know what exactly out hearts wish to do when err are depressed.
We want to grab those 60ml pegs or vodka shots, expecting to forget our tensions. So in times of depression, we see an ever-increasing growth in the following areas:
When we talk about happy hormones, we remember that a famous scientific term called dopamine, which is basically a motivational chemical released by our brain.
Many beverages release this chemical with alcohol being at the top of the list. That is why people tend to shed off their worries when they are drunk. So how can we forget to put the liquor business when we are discussing the ways to deal with depression.
Though the government has never yet and will not approve any kind of marketing of alcohol and tobacco products, yet the consumers never exhibit a lack of awareness regarding them. If not alcohol, the businessman suffering from sheer losses will end up choosing tobacco as an escape. It works the same way as alcohol does, intoxicating and numbing our logic and senses, hence helping our stress to blow out for a while.
Needless to mention, the term ‘casino’ is very interesting in itself. This term is used to describe a nice place with loud music, unlimited choice of drugs and intoxicants to delight yourself while you play the game of cards by betting handsome sums of money.
What else you need to relax from those endless business issues of your office. Probably this is how most of the rich yet ideal businessmen would like to spend their empty days.
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