How do you successfully increase and ressession proof your business?

[forest beekeeper]

We started collecting apartment buildings in 1985. Small towns, big towns, East coast, West coast, being career military we move around a lot.

Economies change, folks still need housing.

Some folks will sleep in their car before they rent. But we have found that it seems most folks are perfectly willing to rent an apartment. Rarely is there a renter shortage.

I do understand that a depression could become so totally bad that even rentals would become a bad investment. But that would mean 80% unemployment. In that circumstance I do not think that any business would survive well.

[Philip T]

Originally Posted by sunflower101

Would you need curtains during a recession?

Probably not. In terms of "need" it would doubtful anyone might. You have to keep in mind that fools and money part company early. The folks that would be foolish with their money run out quickly in hard times.

Let's maybe start with some business basics:

1. The customer must have money.
2. The customer must be willing to part with their money for your goods or services.
3. You must be able to produce or provide the goods or services for less than what the customer is paying you.

Applying that:

1. Few(er) customers have money during a recession.
2. Those that do are not the folks who may choose this good or service
3. As you will have fixed expenses with likely few customers the likelihood of profitable operations is slim.

This proposed business does not fit the model of a likely successful business targeted for recessions.

It is that hard to choose a business that is likely to work?

[LM1]

You're in an insanely recession sensitive business, no different than an art dealer.

There is absolutely no way to "recession proof" a business that is inextricably tied to disposable income. "Recession" is simply a cost of doing business in that field... When things are fat, you get to make a lot of money by providing a non-essential service of limited "productive" value while others have to work hard in more viable and stable industries, only to earn less. That's the luxury you've enjoyed.

When things are lean, services like yours become expendable. That's the cost you're facing now.

You can either make a dramatic shift upmarket and pray to god you find a benevolent rap star or athlete willing to throw money at you or fold up shop and reopen again when the economy returns to hordes of people are tapping into their home equity to pay for "decor".

I hate to be the lemon here, but honestly, services like yours were peering over the edge of a very, very steep cliff starting in late 06.