Businesses that make money during a recession…
This article is about how I bought a business during a recession. But then I also look at businesses that make money during a recession, as it was important to me to make sure that the business I bought would be recession-proof.
ENTREPRENEURS looking for corporate ‘bargains’ over the festive season have been in luck as thousands of businesses are up for sale across the UK.
Are you looking for businesses that make money during a recession?
I found myself looking for businesses that make money during a recession…because I was looking to buy a business in a recession.
It was found to be interesting enough for the Financial Mail to interview me about what I was doing too…see more of the below.
The are a number of businesses that make money during a recession, and although I didn’t have a list, I had set criteria for when I was looking…I wanted a ‘recession-proof business’.
If you are looking for businesses that make money during a recession, here is a short list…
Businesses that thrive in a recession…
If you are looking for businesses that make money during a recession, here are two to get you started…
Accountants and Accounting firms
Accounting firms work in all economic cycles. Even during a recession businesses still have to prepare their accounts, they must pay their taxes, and require professional advice. It could be argued that accounting advice is even more important during a recession. When finances are tight, business need to keep a close reign on finances.
Where accounting firms also benefit from recessions, especially those that offer solvency and insolvency advice, is more business go bust in a recession and need support and advice.
However, in order to run a successful accounting business, you will usually require some form of accounting qualification. This may therefore prevent most people for buying an accountancy business.
Elderly care homes and home-care providers
Elderly care businesses tend to thrive in all states of the economy. If an elderly person needs either care at home, or is in a position whereby they need to be looked after in a care home, they cannot change this situation just because of a recession.
This sector is riddled with legislation and regulation, probably too much in my opinion. But if you have a business in this sector, you will be happy to know that it will thrive in a recession.
If you are happy to buy a business during a recession, you may be able to pickup a bargain…
Entrepreneurs looking for corporate ‘bargains’ over the festive season have been in luck as thousands of businesses are up for sale across the UK.
Those with ready money have been able to pick up businesses cheaply from specialist brokers and listing agents.
Business Sale Report, a leading listing service, has seen a 30 per cent rise in the number of owners advertising in December compared with November. Director Robert Moore says in addition to sales of distressed businesses, entrepreneurs who previously held back because the market had been depressed are now selling.
‘If you have cash and are able to move quickly, it’s a good time,’ he says. ‘Any business where it is easy to see future cash flow is in demand.’
Chartered accountant Russell Bowyer, 47, from Linton, Cambridgeshire, is convinced that doing deals in a recession is a good idea and he is negotiating to invest in Deep Clean, a nationwide cleaning firm that specialises in commercial kitchens.
Bowyer has a long record of business ownership, albeit in the care and accounting sectors, and he has been looking to expand his portfolio for some time.
He believes Deep Clean fits the bill because insurers require all commercial kitchens to be cleaned. There is competition, of course, but Bowyer says: ‘There is a good market.’
Bowyer, who is a client of Sunbelt, adds: ‘There are thousands of businesses for sale and far fewer buyers.
‘Interest rates are also lower so, in theory, you can get cheap money. If you buy in a boom, there is more competition from other buyers and interest rates are higher.’
Copyright over this section of the article belongs to The Daily Mail
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The last time the US was in a recession, as I remember as a young child was in the early 90’s under the first Bush. I don’t understand how exactly a recession affects the economy, and how it differs from a depression.
You’re better off hiring an M&A advisor to do this for you… Unless of course you don’t mind if all of your competitors know you are in the market to sell you business. If you send out letters to all of your competitors, it won’t be long before your employees know the business is on the market.
It’s quite interesting because many magazines, newspapers, etc are now actually looking for their new writers via blogs
This post was very interesting as it highlighted a key issue within the buy business market, which is whether it is a good time to buy a business in a recession. I strongly agree in researching the business you are thinking of buying, as this will inform you as to the current health of the business and will ultimately help to decide whether or not the business is worth buying. I would recommend reading up on the best ways to buy a business as the better prepared you are the more likely you will succeed and make the business you choose work for you.
Agreed,! , where is the internet business ideas? We run a 1 day intensive course that can guarantee an income from niche internet sales, its all about finding the niche, people always enjoy their passions and will always be interested in their niche, and spend money indulging it
I like your articles and views. I will reflect on this issue.
Good insight.
But I think one should be risk aversive during recession time
Interesting post, it’s good job