Cosmetics: When things get tough, women look for more inexpensive ways to pamper themselves like cosmetics and nail salons. In fact, some economists point to rising lipstick sales as a sure sign of a sagging economy.
Dry cleaners: People still need to look professional at their jobs and need their clothes cleaned regularly, especially those going on interviews.
Hair salons: Grooming is considered a NEED. Hair salons that cater to families are the most recession proof.
Residential and commercial cleaning services: As our lives get busier, cleaning services have become more of a “need” and less of a “want.”
Home improvement companies: A downturn in the economy means people won’t be buying new homes for a while, so they have no choice but to work on their current home.
Doctors and pharmacies: People get sick no matter what the economy is doing. And, during a recession, stress levels are much higher and since stress depletes the immune system, these businesses may actually thrive in a challenging economy.
Here are three ideas to recession proof your business:
1. Focus on your marketing. Advertising is the first thing that businesses tend to cut out but that is a big mistake. Marketing doesn’t have to be costly – use the resources you have. Ask your front desk staff to make calls to inactive clients or those you haven’t seen in a while. It doesn’t have to be a hard sale call, just let them know of available appointments or special offers that might give them an incentive to come back into your store. You can also have some kind of event. Pool resources by partnering with another neighboring store to share email or mailing lists and come up with an event that builds excitement and gets traffic back into your store or office.
2. Use “Add-On” to create more revenue. Train your staff to ask for specific services – this is one thing fast food restaurants do really well. For example, “Would you like to biggie size that fry?” Just adding one small item to each purchase can give you a boost.
3. In a tough economy, prices are more of a consideration than in normal times. Don’t cut all of your services, but be aware of what your competition is charging and come in a little less. Most economists recommend cutting prices on some items by 15-20% than what you would charge in a normal economy. With some creativity and altering your daily tasks, you too can have a business that booms in any economy.