Recession Coming Small Business Advice

Below is my Recession Coming Small Business Advice.

With a recession coming, people will still continue to spend money, but it goes without saying that they will spend less, except for the wealthy.

Therefore, you have to re-examine who your business targets. Is there a way to pivot and focus offering products and/or services for people on a budget, and/or do you need to target customers with deeper pockets, who are unaffected by a recession?

Here are some examples of what you could do.

If You’re a Travel Agent

People will still want to take a vacation, but it will likely be a shorter one, maybe just a weekend getaway, and it will be closer to where they live to avoid having to take a flight or use too much gas. In fact, I was looking at a local hotel recently, and they were offering an additional 20% off to anyone in the area looking to take a staycation.

Therefore, a good solution would be to add weekend getaways and staycations to your offerings. Now, you still have that wealthy 1% who will take the high-end luxury vacations, so make sure to pitch to them as well as there will likely be other incentive perks for this type of travel, since there will be less demand.

If You’re a Realtor

You will probably be best to focus on people looking to downsize their home due to layouts or people strictly attempting to lower their cost of living. The middle ground price range will likely not be as attractive unless your clients are people relocating to your city from a higher priced area.

If You Own a Restaurant

You are going to have to push value offers such as two-eat-for-the-price-of-one type specials. And don’t give up on your takeout menu just because COVID is over. People will want to avoid the added expense of drinks and tipping, but still enjoy not having to cook.

If You Have an Online Store

Think about how people will change certain habits due to costs, as this might help you determine what else to sell. For example, customers might:

  • Give up their gym membership for home workouts. ie sell small fitness items.
  • Decide not to buy a new home but instead renovate or redecorate the one they’re in. ie sell home decor.
  • Ride their bike more than drive their car. ie sell bike accessories.
  • Eat at home more ie sell cookware, packaged food and accessories.

Much like COVID, a recession does depress people somewhat, which makes them turn to comfort items and activities. This includes food, alcohol, getting a pet, watching more TV, home baking.

Gifts always sell, but people will spend less on them. From Christmas gifts to wedding gifts, be sure to offer a variety of price ranges.

If You Sell Services

Some services will increase if it means anyone in the household who isn’t currently working now has to re-enter the work force as the family needs the money – so child care, housekeeping, food prep and lawn care services might actually increase in demand .

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©2022 Gail Oliver. All rights reserved. Recession Coming Small Business Advice.

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