Many people approach me for advice when they want to start their own business and one of the most common questions is what business model to adopt. While some online franchise models seem to thrive and perform very well in tough economic times like the ones we are currently experiencing, the more traditional recession-proof industries of the past have become victims of this economic downturn and I explore the reasons for this. then.
The pharmaceutical industry
Most human beings get sick from time to time and often go to a medical professional or go to the pharmacy to try to alleviate the condition they suffer from. You’d think the major drug companies had it all figured out, but what happened during the recession is that cheaper companies are producing certain drugs for a fraction of the price and prominent manufacturers just can’t compete, so they’re losing money. fist.
The same is happening in other industries where drugs are needed. Fewer people take their beloved family pets to visit the vet because they simply cannot afford the treatment. Doctors, such as podiatrists or ophthalmologists, are also taking shortcuts with medications and medical equipment so that their profits are not affected too drastically.
Baby food industry
Many busy working parents used to rely on pre-prepared baby food to give their babies a healthy and balanced diet. However, the recession has meant that many young families now have less disposable income due to rising household bills. One of the first things to be crossed off the weekly shopping list is baby food because there are sites online that inform parents how easy and inexpensive it is to make their own nutritious meals. Because these homemade purees can be frozen, moms and dads are finding that they can save a fortune by preparing the food themselves.
Auction sites
You may think that you can make some much-needed money selling your unwanted goods on auction sites because so many people have made their fortunes over the years doing this. Unfortunately, sites like eBay have seen a profit loss of almost 20%. People are believed to hold onto things longer and therefore this means that fewer people are selling. When people spend their hard-earned money, they do so wisely and look for the best deals. Sometimes sellers on eBay and other auction sites need to make a good profit, as they have to pay fees to the hosts, so it may be the case that their products are overpriced for today’s demanding market.
Law
Naturally, you would expect law firms to be recession proof, but this is not true. The number of unemployed lawyers increased by 66% in 2011 and most law firms are postponing or withdrawing their initial offers to graduates because they simply cannot accommodate them. Some companies have also reduced their starting salaries, which means that they will not necessarily attract the best candidates for the vacancies that arise. Most highly skilled attorneys have a preconceived idea about the salary they would expect, so they can wait until the recession passes.
The sports world
Believe it or not, sports-related franchise companies have also suffered in this economic downturn. Areas like golf have performed particularly poorly simply because people don’t have the disposable income to buy golf-related products as much as they used to. New golf clubs, fancy golf apparel accessories, or software and gadgets to improve your game or swing are now considered more of a waste of money and not necessary to enjoy the game. People still play sports and spend a lot of money while doing it, yet they are much more selective in how and where they spend their hard-earned money.
Many people seek to start their own business after losing their job or simply because they want to be their own boss. However, it is really difficult to know in which business sector to invest. A franchise offers an excellent opportunity for success because you are buying in an established and successful area. However, we have already seen how previous recession-proof industries have been affected by the economic downturn, so it is important to understand that not all lines of business can survive these difficult times. Before making any franchise investment, always do your due diligence to make sure your investment is sound and has the best chance of making the most money. You can find more information on successful franchise models by reading my profile.