In this business article, we look at 7 of the most profitable recession-proof businesses you should look into as we await a solution to the COVID-19 pandemic.
Isn’t it obvious that there are profitable businesses that are surviving the COVID-19 enforced recession? There are definitely going to be losers and gainers in this new economy.
A lot of businesses are shutting down and others losing their staff strength.
There are a lot of new businesses that are cropping up while a few others that has been around are gaining grounds as they undergo a restructure of existing business models.
You are sure to get a sneak peek into those businesses as it concerns Nigeria and the probable amount you need to kick start any of them you choose.
What Is A Recession?
There is a definite uncertainty that surrounds world economy and Nigeria is no exception.
A recession is a period of temporary (to be optimistic) decline in economy during which business and industrial activities are reduced or even brought to a halt in some key sectors which lasts for months or years.
There are hardly businesses that turn over profits during a period of recession but with the massive growth of technology and its integration into business, we have seen a lot of businesses and business owners turn out massive profit during the covid-19 enforced recession.
The trouble is in figuring out which of those businesses to establish or invest in, not forgetting that government policies keeps changing in the face of economic uncertainties.
7 Most Profitable Recession-proof Businesses
Below are 7 of the most profitable recession-proof businesses to start now.
They are not arranged in any order and so, no emphasis is laid on which is more profitable than the other.
1. Courier And Delivery Services
Everything went digital!
With corona virus ravaging the society, people are forced to stay indoors mostly, leaving a vacancy for smart business people to exploit. Online shopping noticed a great rise in patronage and that gave rise to the demand for delivery services.
Building a courier and delivery services business in Nigeria can be fun, not minding the number of people in the business already. You would need at least a motorcycle, a plastic carrier, mobile phone, legal registrations, among other things.
Starting a courier and delivery service business would consume at least 500,000 Naira. If you have up to that amount, you should go for it. The profit potential is huge.
2. Social Media Manager
Do you know how to navigate the social media and create engaging content? This is for you. This is one of the cheapest online businesses to start.
A Social Media Managing Business has a twist in that you need patience to build your profile as someone who can influence social media engagement.
Your ability to influence engagement is what would convince people to allow you manage their social media pages.
All you need is a smart phone and a fast internet connection to start. You also need to have a little graphic design skill so that you can easily create compelling visual content. To do that, you should download Canva or PixelLab from google play store and learn the ropes.
This business model is highly rewarding because your only source of expenditure is in data subscription.
3. Organic Products
There is a very large increase in demand for hand-made organic soaps, scrubs and cream.
Nigerian ladies are no longer interested in using foreign cosmetics these days and have resorted to using local hand-made organic cosmetics.
It is clear enough that this is a very profitable business to venture into since there are a great number of Nigerian celebrities using and promoting several organic products.
You can start with less than 50,000 because from research, you can learn the ropes with at least 25,000 and use the remaining to make your initial purchases.
Be careful enough to follow health standards and precautions because when you fail, you put people’s lives in danger.
Have you not heard how people are making money off businesses without having shops they own? In the business ecosystem, people sell things on behalf of shop owners and make profits as they sell.
The business model has changed! Now, everything is done over the internet. For you to start Dropshipping, you need a manufacturer or even another reseller who would give you products to sell.
There is a provision for you to promote products at your own price online and at your own pace, and when orders come in, you reach out to the manufacturer or reseller with the order details.
They send the products while you pay them their due amount and retain your profit.
There is no need for you to own a shop and border about rent payment and stock keeping. All you need is a good eye for highly profitable products and a good sales strategy.
- How To Choose A Perfect Dropshipping Niche
- Top 6 Most Profitable Online Businesses You Can Start With $100 Or Less Now.
5. Laundry Service
As traditional as it may sound, laundry business is still cutting through its profit line year after year.
Laundry service business has a good potential and to make something better out of it, you need to move online and figure out better ways to render your services to premium clients.
Also find complementary services to attach to it and beef up you packaging. Complementary services like mending torn parts of dresses, home service and delivery, giveaway handkerchiefs and a lot more.
The difference is that you are servicing premium clients and also adding complementary services.
Learn the best ways to package your deliverables and also project yourself as a professional at what you do. This is one business where your branding matters most.
6. Blogging As A Recession-proof Business
This Blogging business looks complicating and no matter how complicated it looks, it is quite easy to learn.
When you approach blogging the right way, it is a highly profitable business to do.
It does not cost so much to start blogging. You basically need three things you need to start blogging: domain name, hosting plan and theme.
There are however, things to learn like how to focus your blog on a niche so that you ca gradually build influence and authority in your chose niche.
In Blogging, there are numerous ways to make money from blog, ranging from affiliate marketing, through selling advert spaces, down to sponsored posts.
You can start blogging with 50,000 Naira or less, and when you model a successful blog or blogger, the success rate is increased drastically.
7. Affiliate Marketing
While talking about blogging, I mentioned that affiliate marketing is one way of making money in a blog. Let us talk more about it.
Affiliate marketing means selling a product or service for an owner at the price they fix and then, make a commission off every sale.
A striking difference exists between Affiliate Marketing and Dropshipping.
The difference is that you determine the amount of a product you are reselling and do not receive commission off every sale but in affiliate marketing, your payment is commission-based.
It is quite easy to figure out what products to sell through affiliate marketing. One of the most basic ways is to promote products you are convinced about its effectiveness or functionality.
People who may end up buying the products you promote have their ways of sensing uncertainty in your sales copy and if you are not convinced about the product you are promoting, you may be leaving money on the table.
8. Graphic Design And Printing
This is another recession-proof business.
Do you have a keen eye for beautiful designs? Can you pass a clear message through neatly designed graphics? You are leaving money on the table!
While you may make some good money designing graphics for social media or any kind of purpose, have you considered going into printing? You make more money printing when you negotiate better with your client.
The amount of money you can make from one project cannot just be stated because it varies but if you know what you are doing, you can make more than 50,000 Naira regularly per month.
There is no gain saying the fact that as the pandemic is grinding so many businesses to a halt, a lot of other businesses are springing up and maintaining a steady flow of income.
The question is: would you key into any of them to make more money for yourself?
PS: Devote enough time into learning any of the 7 recession-proof businesses because rushing into any business without adequate knowledge in it would lead you into great loss.
Which of the businesses would you try out?