If you could create your own fantasy board of directors, who would be on it? CO— connects you with thought leaders from across the business spectrum and asks them to help solve your biggest business challenges. In this edition, we ask an expert about why it’s important to invest in a business idea that will sustain a recession.
In this edition of “Ask the Board,” we feature Kelly Tope, Senior Director of Franchise Development at FullSpeed Automotive®, a premier automotive aftermarket services platform offering a variety of services, such as oil changes, tire sales and rotations, and car washes. She explains why business owners must choose a concept that can withstand a recession.
Recessions are inevitable. If you’re a small business owner, it’s important to plan for them accordingly. One way to do so is to choose a recession-resistant business idea. Here’s why:
Steady demand
Recession-proof businesses provide essential goods and services, such as health care, groceries, and car maintenance. This means they maintain consistent demand even during uncertain economic conditions.
Lower risk
From a proven business model to a wide customer base, recession-proof concepts are built to generate sustainable revenue despite fluctuations with the economy. Investing in these companies can significantly reduce risk compared to newer or unproven businesses.
Strong support system
Recession-proof concepts often come with a comprehensive support system including training and marketing. This proven model helps owners and managers navigate challenges in real-time more effectively, leading to a greater chance for success.
Recessions are inevitable. If you’re a small business owner, it’s important to plan for them accordingly.
Kelly Tope, Senior Director of Franchise Development at FullSpeed Automotive®
Long term growth potential
Investing in recession-proof brands not only provides financial security but also positions franchisees for sustained long-term growth. This is proven through the ability to supply essential products and services, adapt to market trends, and provide consistent expansion opportunities.
Improved adaptability
The reality is that operations that can pivot to the conditions during recessions have a higher percentage of getting the best from an unpredictable economy. That may come, for example, in the form of being able to tighten the number of employees per shift or focusing on the part of the business that’s essential to temporarily grow that section.
Examples of recession-proof concepts
If you’re an entrepreneur searching for a recession-proof idea, here are several ideas Tope recommends:
- Essential goods and services: These offerings are often needed, even when budgets are tight and may be car maintenance and repairs companies. Think about it: Consumers generally have no choice but to repair their cars if they break down, even if doing so is financially challenging.
- Technologically advanced businesses: Businesses that stay on the forefront of technology in their industry can thrive during a recession. This could be a company with the most updated technology to help manage different pieces of the business during a recession or actual IT service companies that are essential to helping keep those businesses running smoothly.
- Critical home repairs and services: HVAC, plumbing, and fixed services like garbage removal are examples of critical services. Homeowners have little flexibility to push off emergency repairs, making your business valuable as a result.
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
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