Start A Recession-Proof Business

It’s no secret that the economy is in trouble. Professionals debate daily as to whether we are in a financial recession, or whether we are just headed in that direction. All of a sudden, we feel insecure about our jobs, our savings, and even our retirements. With so many businesses failing, it’s hard to imagine that starting a business
of your own would be a good idea. The fact is, there has never been a better time to start your own recession proof business at home.

How Can A Business Be Recession Proof?

One characteristic of a recession-proof business is that it provides a product or service that will not go out of demand. Certainly, plenty of people are having to make sacrifices on how much they spend not only on the “extras”, but also on the necessities. Finances for many of us have taught us to set up priorities on how we use our money. That means giving up unnecessary purchases but not the things we need in order to survive. If you provide a necessary product or service, you will have a recession-proof business.

It also depends on your target group for which you provide you product or service. Not everyone is in the market for the same things at the same time. Everyone’s finances aren’t affected in the same way and by having the right target group, you can recession-proof your business.

Some Advantages to Having a Home-Based Recession-Proof Business

Flexibility is always one of the most attractive features to any home-based business. For parents of young children, this could mean not having to pay for child care while getting to spend more time with your children. If a student has classes and needs to work around them, a home-based business will let them work around their own schedule without worrying about someone else’s priorities. Whatever you need to find time for, a home-based business will give you the freedom to spend your time where you need to spend it. A home-based recession-proof business will not only provide flexibility of your time, but will also provide you with financial security.

Another advantage to having a home-based recession-proof business is that you will never have to pay for the gas to drive back and forth to the office again. Many people commute long distances for their jobs and over the last couple of years, this has gotten to be a financial burden for many. When you work at home, there’s no fuel used, no wear and tear on a vehicle, and you don’t even have to go out to eat lunch!

Of course, one of the biggest advantages you will have from starting your own home-based recession proof business is not having a boss to answer to. You don’t have to worry when the economy worsens that you will go into the office one morning to have your boss tell you that he is “letting you go”. A recession-proof business is one that will give you the security to make your own decisions and to benefit from your efforts.

Ways to Recession Proof Your Business

First, let’s not panic. True, payrolls shrunk by 17,000 in January. But at the same time, the Labor Department adjusted December’s numbers upward, reporting that 82,000 new jobs were created that month – a far larger figure than the government’s initial estimate of 18,000. Unemployment, now at 4.9%, is just 0.9% higher than the 4% level that economists consider “full employment” (meaning that everyone who wants a job has one).

Still, with the ripple effect of the mortgage mess still spreading, consumer spending in a sulk, and companies like Citigroup, and Sprint Nextel  announcing big layoffs, you’d be smart to start thinking about recession-proofing your job – or, failing that – devising a plan for landing on your feet somewhere else. Here’s how:

Think of ways to generate revenues or cut costs. That brilliant idea you had that would open whole new markets for the company, but require substantial spending to get started? Scrap it for now. Concentrate instead on finding places to pinch pennies, or identifying cheap new sources of revenue. Or both.

Be visible. “This isn’t the moment to take an extended vacation. Your position could be eliminated while you’re gone,” says Dale Winston, CEO of New York City-based executive recruiters Battalia Winston (www.battaliawinston.com). “It’s also not the time to come rolling in at ten o’clock.” If you possibly can, figure out a way to stand out and distinguish yourself. She adds: “If you’re in sales, get your numbers up. Nobody will be laying off star salespeople.”

Talk up your contributions. “Make sure you’re adding value at work by going above and beyond your basic job responsibilities,” says Christine Price, principal at staffing firm Ready to Hire (www.readytohire.com) “Then make sure your boss knows it, without being obnoxious.”

Keep a broad perspective. “Don’t get a reputation as someone who only does what he or she is told to do,” advises Richard Bayer, chief operating officer of career counseling network The Five O’Clock Club (www.fiveoclockclub.com). “Pick your head up, look around, and get in on the action. Volunteer for crucial responsibilities, including tasks for which your boss is responsible.”

Just doing your job well isn’t enough. “The question is,” says Bayer, “when your organization is making a list of who has crucial skills, will you be on it?” If you suspect not, now’s the time to hustle.

Get your skills up to date. “Companies get rid of people whose skills are obsolete and replace them with people who are already trained,” Bayer says. “Take classes, join trade organizations, and prove you’re plugged in.” Christine Price adds: “Consider going back to school, to show your employer you’re serious about your career and your performance.”

No whining allowed. Attitude does count – a lot. “Management wants people who can boost morale during tough times,” observes Dale Winston. Not only that, says Christine Price, but happy workers are less likely to get laid off than people who seem to dislike what they do. After all, the reasoning goes, if you grumble about your job all the time, then maybe giving you the sack would really be doing you a favor. Gulp.

Never stop networking. Of course, the day you get a pink slip is not the day you want to start calling old colleagues, asking former bosses out to lunch, and getting in touch to say hello to all the interesting people you’ve known over the years. No, the time to start doing that is now. Whether or not you move seamlessly (and relatively painlessly) into a new job after a layoff often depends on how consistently you’ve contacted – and maybe even helped – lots of people when you didn’t need them.

Update your resume, return headhunters’ phone calls, and start picturing where else you might like to work – just in case. If you’re mentally prepared for a move, you’ll make a wiser one than if you wait until you’re desperate (read canned).

One more thought: If we really are in, or headed for, a recession – and economists can’t even agree on whether or not we are – it may not be so bad. Every downturn is different. So who knows? If you’re not a mortgage banker or a home builder, maybe your current position is perfectly “safe.” But think about it for a while and you may find yourself wondering: Is “safe” good enough? Maybe it’s time to change jobs anyway — and heed the immortal words of Keith Richards, “I’m gonna leave while it’s still fun/ I’m gonna walk before they make me run.”

Recession Proof Consulting

Most Americans surveyed by a 2008 Fortune Magazine poll believe the economy in the United States is on a downward spiral. They agree if a recession isn’t here already, it soon will be.

The poll of 1,000 Americans found that:18 percent are somewhat worried about losing their job in the next year, and 8 percent are very worried65 percent believe U.S. economic conditions are getting worse57 percent believe the United States is heading into a recession in the next 12 months48 percent have been cutting back their spending in the past 12 months15 percent have not been able to keep up with their credit card payments, and 9 percent have not been able to keep up with their mortgage, rent or other loan payments

In the midst of such tumultuous times, layoffs, unemployment and financial hardship are top worries on people’s minds.

“No question that if the economy goes into recession, or is already in it, unemployment and job security are going to get worse,” said John Challenger, CEO of Challenger, Gray & Christmas, a consulting firm that provides outplacement services for executives and middle mangers in an ABC News article.

“The risk of layoffs will grow and the number of layoffs will grow. That means often you can get caught without a job through no fault of your own,” he continued.

But, as the saying goes, every cloud has a silver lining, and in the case of a recession, the following jobs are it, Challenger told Yahoo! HotJobs. These are the businesses that will thrive no matter what the economy is doing, quite simply because they provide services that society in general cannot go long without.Health Care: Health services occupations including medical assistants, home health aides, physical therapists and medical records technicians account for close to half of the 30 fastest growing occupations.Education: Teaching is generally immune to a shaky economy, particularly if you’re teaching in an area with a high growth rate, such as the South and Southwest.Energy: Anything related to alternative fuel sources, oil and gas and other energy sources will likely flourish in coming years.Environmental: If you have “green” skills in sustainability and other environmental issues, you will be in demand.Security: Police officers, international security experts and others who fight crime will still be in need even if the economy turns sour.International Business: Working in another country, or simply being an expert about another culture or language, will work to your advantage during a recession.

If you currently feel your job is in jeopardy, or you’re looking for work, don’t despair — remember that certain skills, like dedication and perseverance, will always be in demand.

“I think there will always be opportunities for people who want them. If you’re hardworking, if you’re persistent, if you keep your skills current with today’s marketplace … you’ll be fine,” said Cathy Paige, vice president and general manager of employment service Manpower’s Northeast division. “The world is always looking for hardworking, good employees.”