Pivot is a term we have heard all too often in the past 18 months due to the Covid-19 Pandemic. We have learned how to adapt in unprecedented times. Financially, businesses have experienced extreme highs and lows. According to the Washington Post, economists say the United States is technically out of a recession but a long way from healthy. Despite all that, this may be just the right time to open a business.
One of the major lessons of every recession is how to build a business that can sustain the challenges of a struggling economy and changing spending habits. For those hoping to begin their path to entrepreneurship, it’s important to understand the economic factors of recessions and what traits recession-proof industries have, which earn them that distinction.
What is a recession?
First things first. It’s best to understand just what the economy is doing right now.
According to the National Bureau of Economic Research, a recession is a significant decline in economic activity spread across the economy, lasting more than a few months, normally visible in production, employment, real income, and other indicators. Economists say, historically, here in the U.S. there have been 33 recessions since 1854. The global pandemic is a perfect example of sharp shifts in spending. Experts describe it as economic shock. While some small businesses were forced to shut down, others were thriving based on consumer need.
But how did they pull it off?
What are recession proof industries?
It is quite interesting to see the trends in the marketplace which have carved a niche and become sustainable industry. Take the past year for example. Another buzzword we became all too familiar with was “essential.” Essential, or “recession-proof,” businesses are surviving the pandemic because they provide products or services that aren’t subject to the whims of spending habits – like grocery stores, health care, and technology to name a few.
Beyond those necessary offerings, it’s also the businesses’ models that make those products or services available.
Our lives have been revolving around our home. That’s why online businesses and those that adapted to e-commerce are not just surviving but are beating the odds and thriving even in this down time. Proving that even when finances are tight, recession-proof businesses are not impacted by economic decline. Our needs changed. Businesses that are nimble and adapt to those changes will continue to be profitable because they remain relevant and accessible.
Hobbies have been especially recession-proof.
According to the U.S. Chamber of Commerce, business that learned to “creatively adapt” are in high demand. The list includes cleaning services, delivery services, drive-in movies, meal prep services, fitness companies, landscaping, and gardening to name a few. All trending toward needs and hobbies surrounding the home.
Most successful business owners know that most economic trends operate based on the expectation of long-term growth with short term fluctuations. Realistically, a slumping economy can mean a surge in new business creation – especially in recession-proof industries, which include anything essential to the public or one focused on specialized products. Keep in mind, that specialized product could be one of the at-home hobbies that are surging, like enjoying the outdoors and nature.
81 million people, for example, feed the birds and watch wildlife in their own backyards. Birdwatching has, in fact, made a resurgence during the Pandemic. According to the TODAY SHOW on NBC, spending time with birds, whether in your backyard or a nature park, can bring much needed stress-relief.
That is why Wild Birds Unlimited is a solid investment idea for those wanting to open a business now. Experts say franchising is a good business option offering low risk and a high level of support. Wild Birds Unlimited is an award-winning franchise providing education and training, allowing you to open your own business with the assistance of a recognized brand and proven business model.
Ultimately, how did Wild Birds Unlimited pivot and become a leader of one of the recession-proof industries? We knew that during the pandemic even though social distancing was in effect, it was incredibly important to stay connected to our customers. From emphasizing online and curbside pickup to furthering community engagement with livestreams and a podcast, we made a commitment to fuel the growing interest in the hobby we love.
That commitment extends to our franchisees as well, providing its owners with support in various operations such as finance, merchandising and purchasing, HR, marketing, and software systems.
If you would like to find out more about Wild Birds Unlimited franchise training and support, visit our website today!