When an economy goes into a recession, you might not think it's a good time to start a home business. Many people have found, however, that starting a work from home business can soften the blow if they're suddenly downsized from their corporate job. Here are 10 sound home business ideas for a rough economy.
1. Freelance Writing
Companies may not be able to keep an entire PR staff hired during a recession, and they'll be looking to outsource work to freelance writers. Smaller businesses often hire freelancers exclusively to handle their press releases and other written materials. Chances are that if you're reading this article, you already have the tools necessary to start a freelance writing business from home.
2. Cleaning Services
Businesses still need janitorial and cleaning services during a recession. Smaller companies may not be able to hire a larger cleaning company, and larger companies may want to cut costs. Therefore, there's potential room for you to move into this market.
3. Repair Business
If you have technical skills at repairing electronics, small motors, vehicle engines, or some other skill, it will still be in demand during a recession. Equipment and gadgets break down, and people may not want to pay the price that retail repair shops are asking.
4. Used Book Store
You can use Amazon and Ebay to start a used book store from the comfort of your home. Entertainment products tend to sell at a steady rate during a recession, and people will still buy books. Shop yard sales and other places where you can find cheap, used books, and resell them online for a sizable profit.
5. Tutoring Services
Students will still be struggling with their grades in a recession. If you have the skills to tutor students in a particular area, you can easily set up a tutoring service business from home.
6. Bicycle Repair
When gasoline prices go up during the summer, more and more people switch to riding a bike to work. Bikes tend to break down over time, so if you have the skills to repair them, a recession is a good time to consider this business.
7. Web Design
An estimated 20,000 new websites go online every day, and yet very few people know how to build a web page. If you have these skills, there's a lot of opportunity out there for you.
If you have accounting and tax preparation skills, most communities have a need for your services. Tax preparation businesses are swamped every year in April, and you could easily move into a home-based accounting/bookkeeping/tax preparation business if you have the education for it.
If you have specialized knowledge about a niche industry, and there's no authoritative website that already deals with it, you could start a blog and build up enough readers to sell paid advertising on it. Note that it can take months or years to start generating a real profit from blogging.
10. Mail Order Business
If you have products that you can sell to others, through a wholesaler or drop shipping company, you can market these products through a website and catalogs. Mail order businesses tend to maintain a steady income during a recession.
These are 10 home business ideas that have historically flourished during a recession or a depression. Don't let the idea of a slowing economy discourage you. If you have skills, services, or products that people need, you'll be able to find customers no matter what the economy is doing.
Daphne Mallory, Esq. is the co-owner of Mallory Writing Services and has written more than 100 articles helping home based business owners and entrepreneurs start and market their business. You can learn more about her here.