The Best Businesses to Own During a Recession
My two favorites:
Affluent-focused.?
The rich are mostly recession-proof. The guy buying a $10 million yacht doesn't care about the price of gas or eggs.
In many markets, the high-end of that market is undeserved because most business owners erroneously think going after the MAJORITY segment of the market is the play.
It's usually not. Find those segments where money is no concern or is way down on the list of purchase factors.
Alternative to the norm.
When people get sucker-punched by the institutions that were supposed to have their backs, they are more willing to seek alternative solutions.
If regular education has failed them, self-education becomes a priority. They'll look for other investment strategies if traditional finance isn't delivering.
I built my first business on the back of the 2008 financial collapse, which was a wake-up call for many folks - maybe they should take a more active role in their money.
Whatever route you take, it's essential to know...
...how your audience feels about the recession.
For some markets, being optimistic in a sea of pessimism is the way to go, whereas with other markets being the harsh realist while everyone else is pretending things are fine is your ticket.
If you can find an industry that everyone else is running away from out of fear and panic (not reality) - you can swoop in and serve audiences easier, cheaper, and without the regular competition.?
Godspeed.
Multimedia Specialist also investor in CryptoCurrencies, Real Estate, Stocks, Options | Founder, Director, CEO; The Rainbow Group
2 年Hello Jason: Excellent insight as always. I got my start in investing during the recession of 1974. I was able to pick up a multifamily lot in a downtown area of a university town. I took the lot to my bank and they offered to give me a construction/takeout 30 year loan combination for 100% of the cost of construction. So, I ended up with a tri-plex for the cost of a lot. The cash flow was good enough that I lived in the owners unit for free. The following month I was offered another tri-plex for closing costs as the down payment with a positive cashflow. Early the next year I was offered a fourplex, take over the payments. It had a very nice cashflow. Now I had a few thousand per month coming in that I didn't have to work for. It couldn't have happened if it were not a recession. It was followed up by the recession of 1979. I had opened my first bricks and mortar retail store at the end of that previous recession. The growth was explosive. Partly because of opening it during the recession, partly because it was a men's sportswear and beachwear store and Saturday Night Fever came out the following year. I took the excess cashflow and bought up more Real Estate.