Recession by definition is a time when business slows down due mainly to lower demand. However, although this may be true in General/on average for the businesses in a certain economy, it is also true that economic recession can be an opportunity for some businesses. It is a historic fact that in every recession some businesses do thrive and these are the businesses that know how to read the signs, adjust their course and identify services/ products that are in demand.
Just talking the example of the Covid lock-down periods, it spiked demand for laptops to the point where there was short supply and it also spiked demand for video conferencing. On the other hand, food-delivery companies boomed whereas sit-in café restaurants and bars faced a challenge surviving.
A step ahead of the competition
Recession is a time of change and uncertainty and during these times business slow down their activities until they can figure out which way to head for next. During these times of economic restrain if you identify any gap in the market you can quickly gain market share and be a step ahead of the competition who is still trying to figure out what is going on.
Be the first off the mark – capture and retain consumer loyalty
Identifying a new market gap, a new need by consumers is not easy but once it is identified it spreads like lightning amongst consumers. Remember the demand in laptops, video conferencing and food/ grocery delivery in the covid period. If you are amongst the first to identify and react to the market gap you will make a long-lasting impression on the consumers and gain their loyalty, because you fulfilled a need that they had. They won’t look to your competition unless they can provide a better package.
Strike better deals with your suppliers
Recession is a time during which consumers have the upper hand and in negotiations with suppliers who compete for a share of the shrinking market. As businessman during a recession, you are also a client/ consumer so this may be the time to take advantage of lower prices and strike new more advantageous deals with suppliers.
Recruit personnel that can make a difference in your business
As businesses try to survive during recession, they often make decision to scale down in size, close down locations, reduce number of staff and or lay off highly paid employees. During these times, businesses are also reluctant to recruit new staff unless they absolutely have to. This means that few employment positions are open for but it also means that if you are recruiting you have much less competition for new talented recruits and moreover these new recruits will be reasonable with their salary demands as they know that open positions are not so many. This is another opportunity for running businesses because it means that they have the opportunity to recruit personnel which can really make a difference.
Is your product or service in demand? If yes, then go ahead to start your business, the recession can be a good thing for you.
Recession refers to lower demand for existing product of services and this is usually due to changing circumstances. If you have an innovative product or service that is in demand during the general recession then your business can boom. You can enjoy high demand for your products / services whilst taking advantage of high supply and low price of services and products you your business needs to buys.
In in business and in personal life success is just an attitude of mind. We need to be able to identify changes in circumstances and be flexible enough to change accordingly.