How to Profit During a Recession or Depression

Recessions and depressions can motivate entrepreneurs to explore their talents and brainstorm new sources of income. Once they have a plan in place, entrepreneurs take the calculated risk of putting their products or services on the market. Follow the steps below to take your plan to market.

Things You'll Need

• Computer
• Printer
• Word processing software
• *Website designer
• *Supplies needed for service

Instructions

How to Profit During a Recession or Depression

1. Brainstorm all talents and skills you possess that have the potential for making a profit. Select three top skills that require a minimal start-up investment.

2. Brainstorm of all of the places where the top three skills can be marketed. Suggestions include neighborhood, apartment complex, community center, schools, internet/online, local government, and senior centers.

3. Research similar businesses in your area. Note what these business charge for their goods or services. Select which of the top three skills you will utilize for your business, and then set prices that are competitive with the market.

4. Contact 25 of the top locations from your marketing list to see if they are interested in your services or are willing to let you advertise in their space. Record conversation notes, leads and contact information for all prospective customers.

5. Create an advertisement for services. This can be as simple as a flyer to post around the neighborhood, or you could spend more time creating a website. A simple flyer can be created using word processing software on your home computer. Use an image on the flyer that represents the service, and then make sure it includes the service offered, the fee, and contact information. If creating a website is an option, provide the selected web developer with all relevant information and work with them on the site design process. The website should be professional and have the ability to take payments. Determine which option is best, keeping your budget in mind.

6. Purchase any supplies needed for startup. This varies depending on the service or skill and may include office supplies, postage, or any materials needed for the creation of the product.

7. Take care of the legal aspects that go along with putting a new product or service on the market, which may include setting yourself up as sole proprietor or limited liability corporation. Save money by going to a place like LegalZoom.com for a reduced fee on filing and document processing.

Tips & Warnings

• Use free government resources like the U.S Small Business Administration (SBA) for additional information. They may even help you secure a start-up loan or a loan to help expand your business.

• Ideally, the legal aspects of the business should be set up before going to market. If this is not possible, set up the legal aspects as soon as possible to avoid issues of liability.

References

• Startup Nation
• Small Business Administration

Resources

• Open Small Business Network