In a recession, the news is dominated by stories about high street shops and small businesses closing their doors due to the ‘prevailing economic climate’. What the papers don’t mention so often however are the many business sectors that are positively thriving despite all the odds. In this week’s blog, we will show you businesses in three such sectors.
Just because the economy is in bad shape, it doesn't mean taxes will simply go away. If anything, it becomes even more difficult to ‘pay the man’ when funds are tight. As such, services that can help other businesses to keep their books in order and to pay their bills remain in high demand. So if you are financially minded, starting a business that can help other businesses may be the perfect venture for you.
With many people priced out of the house-buying market due to high deposits and other associated costs, one of the industries that is notoriously recession-proof is the property rental market. Many prospective home owners have to raise around 20 to 25 per cent of the value of a home to secure a loan, and with many struggling to save anything at all – let alone the many thousands necessary for a deposit - meaning that 23 per cent more people live in rented properties now than did in 2008. Obviously then this is one of the industries consider setting up in.
Specialist food and drink shops
There is a common misconception that during times of financial strife, the general public will go straight to the bargain shops and value supermarkets, reducing their weekly spend on high-end food and drink. Whilst in some cases this is going to be true, for many, recession causes individuals to give quality greater credence when making a purchase.
This emphasis on quality means that many shoppers now prefer to go to a range of specialist shops for their meat, vegetables and alcohol, as opposed to just making do with what the corner shop has lurking at the back of their shelves. This has meant that specialist butchers, alcoholic drinks wholesalers and sweet shops are now doing a roaring trade.
"Basil" is a cafe in Whitecross Street London that thrives with its local-centric activities, particularly on Friday nights with the introduction of "Aperitivo", which introduces specialty Italian foods free every Friday night for locals and workaholics still in their offices at 6 pm.
Specialty Cafe Owner Lorenzo Canonica is a self-proclaimed "...cheeky Italian-born Londoner from the beautiful city of Genoa." Basil is just one of a recent crop of cafes in Whitecross Street, which is right next to one of Europe's newest technology hubs. It is an area where Specialty Food businesses such as Basil are clearly bucking the economic trend. Lorenzo declares in a recent interview: "...I bring with me always a new energy to make things work, and old family recipes from my home; because it does not matter the weather or the economy, people love special foods served with love." We will be publishing a more in-depth look at Basil's story as part of our Inspirational Entrepreneur Series in the next few weeks.
So if you are passionate about specialty foods then maybe a specialist cafe like Basil or Out of The Woods (from a recent blog article) could be your dream business...
During a recession, consumers are more likely to tighten their belts than go out to the cinema, a bar or club. As a result, the games industry is seen by many to be recession-proof. Whether it is through the production of expansive titles for major consoles such as the Xbox 360 and PlayStation 3, or educational games for kids to be played in a computer's browser, the games industry is in rude health at the moment. Therefore if you are full of great ideas, and have an interest in games and programming, maybe developing games, gaming apps or even starting a game development company could be the new start you need.
With many one-breadwinner families now having to take on another wage in order to keep a roof over their children's heads and food on the table, the demand for high-quality childcare has never been greater. From after-school services to sports and leisure clubs, childcare is always the last thing a family will cut from their budget, meaning those working the industry are much more resilient to recession than other businesses.
Build British Business is about uncovering great stories of industries with thriving StartUps and entrepreneurial pursuits. If you feel you have one, do feel free to comment below or enter our Blog and Win a Workshop Day on Facebook.