The global financial crisis caused by the crash in the value of crude oil has caused an economic recession in many countries around the world. This unfortunate economic crisis has triggered the inflation rate in these countries to rise to abnormal heights. The situation hasn’t just caused a currency crisis in countries like Nigeria for instance, but has caused a financial meltdown for many small, medium, and large businesses.
Large companies like PZ, Woolworth, and the likes are grumbling exorbitantly about the policies placed by various federal governments (especially Nigeria’s) during this economic recession, and have no other options than to find ways to either acquire foreign exchange at ridiculous prices from the parallel market, or halt operations altogether.
How then can businesses make money in a recession? What measures have to be taken to ensure your small business doesn’t fail during an economic recession any where in the world? How can you make money in a recession?
Here Are 7 Ways To Make Money In A Recession Anywhere In The World:
1). Buy Shares That Profit In An Economic Crisis:
During an economic recession, many people tend to start selling all their stocks, properties, and more to get a hold of the little they can, just incase the economy takes forever to recover. The unfortunate nature of this practise is that people are doing the exact opposite of what they ought to be doing.
Like many world billionaires would say, “when people are selling, start buying”. A recession provides a great opportunity for entrepreneurs and visionaries to get a hold of as many low cost properties, businesses, and even stocks from the stock market.
The stock quotes of businesses that are majorly focused on medical services for instance usually appreciate during an economic crisis. Spotting these businesses by daily following the stock market news, can help you take advantage of these stock opportunities.
While the stock market today may seem scary to venture into because of the global financial crisis been experienced in most parts of the world, constantly studying the stock market and taking advantage of unpopular stock opportunities as they arise is one way to make money in a recession.
2). Take Advantage Of Deals Offered By Struggling Retailers:
In any economic recession, retailers try to do everything possible to maximise their sales. They try to achieve this benchmark by improving their customer service, offering great incentives, and even offering extremely low discounts.
Taking advantage of the extremely low discounts offered by most retailers in a bid to sell their merchandise fast, is a smart move to make; especially if you have clients or customers that may need those items, and would naturally pay a higher fee for them because they already trust your brand.
In an economic recession, you need to be on the lookout for businesses offering mouth-watery deals. What’s better than an amazing discount is a business closing up and trying to get rid of their items at any cost. If what they sell are in line with your own product offerings, then acquiring a bulk of their merchandise at the cost of nothing is a good bet to make.
3). Start A Money Lending Service:
In an economic meltdown, banks give out lesser loans and increase their interest rates. This poses problems for many small businesses and individuals seeking loans to carry out some transactions and make some capital ends meet.
Employees for instance seek out payday loans because the value of their expenditure rises during an economic recession, and as such, have to make ends meet much earlier than anticipated. This need for payday loans drives them to approach professional money lenders for a cash advance. These short term loans are usually expected to either be repaid as soon as they get their salaries, or after a few months.
The need for quick cash loans by individuals and small businesses during an economic crisis creates a unique opportunity for individuals with excess cash to take advantage of. Giving a payday advance loan or small business loan to people who need them, to be repaid in a short time with a reasonable interest is a good bet. You could provide your credit service as installment loans, so you can directly ensure the cash loans gotten are adequately used at the right time, and for the right purposes.
4). Store Away Your Hard Currency:
If you’ve got hard currency in cash, or in a dollar debit card, an economic recession is the time to spend it extremely carefully. Paying a close attention to the inflation rate should help you determine when to convert some of your foreign currency into your local currency for capital expenditures.
As the inflation rates show a pointer indicating that the devalued state of the local currency may start regaining its value, converting some of the hard currency to the local currency for your business investments and basic needs would give you a much higher valued deal.
See Also: 6 Startup Tips for Women Entrepreneurs
5). Sell Your Old And Unwanted Items:
One way to make money during an economic recession is to sell your old and unwanted items; especially items lying around the house. These items could range from household appliances to old clothing, utilities, and more.
A good incentive to place your used items for sale is because, people would be more inclined to buy old items during an economic crisis than in a period where the economy is stable.
You can sell online on various market places like OLX, Konga, Ebay, and the likes. Selling online would not only help you make money in a recession, but would also help you get rid of unwanted items faster than if you only tried offline channels.
6). Rent Out Parts Of Your House:
Owning a home during an economic recession could be one of your most valued assets. If you own a building with apartments, you could rent out some of the apartments to people seeking accommodation. If where you live isn’t an apartment but a detached house, you could rent out a room or two in your house to squatters.
Putting up apartments for rent, rooms for rent, or houses for rent is a great way to make money in an economic recession. You can place ads for your rental properties on an apartment guide. These real estate magazines will help people know more about your home rental business faster.
7). Invest In Government Bonds:
The best place to protect and increase your assets during an inflation is to invest in government bonds. While all other investments have high-risk profiles because of an economic crisis, government bonds are the safest place to protect your investments for long-term growth.
You can find full information on how to invest in the Nigerian federal government bond market here http://www.dmo.gov.ng/hifb.php.
Where ever you are in the world, investing in bond markets is your safest bet to not just secure your investments, but to also grow them.
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What are your thoughts on how to make money in a recession? Let me know by leaving a comment below.
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