With increased layoffs and pessimistic economic conditions, millions of people are concerned about staying afloat financially. Some entrepreneurs may even wish to capitalize on desperate economic times. As such, It is wise to consider how to make money during a depression with foresight. Whether you are considering a career switch or embarking on a home business, or both, these tips can help secure such plans for a more secure future.
How to Make Money During a Depression
Gain a basic understanding of the economic conditions and the potential for a forthcoming worsening or improvement. Look to stock prices, media advertisements, sales fliers and classified ads to guide your choice on how to make money during a depression. Review what consumers are buying, how much they can afford, and what job positions remain in demand.
Recognize that people with substantial finances often retain considerable wealth, even during a depression. For example, sales of luxury items and travel, while damaged, usually continue but remain competitive. While the middle class and upper middle class may be struggling, most households still have certain needs. Look to home maintenance basics such as plumbing, electrical work and home repair as well as the increased demand for DIY projects—think training materials (e.g. videos, books) and cost-efficient alternatives. Don't rule out inexpensive and home-based entertainment or discount health and beauty as industries. Consumers make a point to get their minds off of troubled times, even while struggling financially.
Consider filling unmet local needs first, which may prove more cost-effective and better promote new customer acquisition. Should an online business be entertained, learn e-commerce essentials such as, “How to Start a Small Business on a Small Budget” (See Resources).
Work on a Plan B. Look for alternative sources of income, even if the employment is undesirable, to help meet the basic living expenses. Online job search websites such as SnagAJob.com or Indeed.com may prove useful as well as freelancing websites. More companies are hiring independent contractors to lower costs. Ensure that your résumé is up-to-date.
Save money when attempting to make money during a depression. Use every free and deep-discount option available for supplies and personal needs. Try online classifieds and forums that focus on bartering, personal sales and “free items.” Try sources such as Craigslist, Freecycle.org and thrift stores. Such savings serve as if income. Investigate if a business partnership, to split costs, may be a wise move.
Market wisely. Rigorous or expensive advertising may negate efforts to make money during a depression. Generally, people are ignoring typical sales ads, unless the source is known to save substantial money on need and in-demand low-cost goods. Use conventional budget advertising via local classifieds and shoppers, fliers, business cards and word-of-mouth first.