COVID-19 has changed how people react to businesses. The times have changed and the economy worldwide is no longer robust. Supply chains are broken, economic fallout from COVID-19 made most poorer, since they lost their job. So the question is, what is (or are) best business in recession post COVID-19?
Table of Contents
Video Summary
The Key Is To Be Essential
The short answer is simple. Essential business, or businesses that make essential tasks and items more effective. More effective greatly, not marginally. The good thing is, companies that sell essential goods and services will see good demand even in changing circumstances. This goes beyond being the best business in recession.
Recessions change buyer behaviour drastically. Starting any business is hard, even if you have a great idea, and the property market is hit hard too. The Internet and Digital Advertising is your key to making money in this time.
In order to thrive, be vital, be essential to your customers and clients.
What Not To Do
Before we explain what businesses and how to identify good models during this period, we need to explain one clear thing. Do not be overly opportunistic. Google and Facebook have banned the sale of hand sanitiser and face masks online except to older advertisers, see Search Engine Journal’s Article.
You cannot make a quick buck even if you tried, you’d just waste money and get shut down! Instead, focus on industries of growth.
Primary Methodology
We will primarily be using Google Trends to do our assessments and analysis, which is measured by the number of searches on Google, the most popular Search Engine and website in the world. Google Trends, identifies trends in demand, globally, in most countries.
We will be using case studies to help you formulate your own ideas on what is the best direction for you to take in business. There is no straightforward answer for what is the best business in recession, we want you to become independent thinkers.
Examples Of Essential Goods
Dog Treats
We will start with what are essential goods. Essential goods, are goods you cannot do without. Dog treats, underwear and health supplements. Have a look at these Google Trends:
Now admittedly, the demand has dropped in recent weeks, but overall the demand is elevated:
Dissecting The Trend
During a COVID-19 lockdown, people cannot get to the pet store. Therefore getting dog treats is a great inconvenience and people have a hard time getting it. Hence, they naturally go online to get these things. That is a prime example of essential goods.
Health Related Goods
Health supplements are an essential good. We sell ionic silver for a client, and look at their return during the peak of COVID-19, which is a case study of ours. 1234% Return-On-Ad-Spend (ROAS)! That means a more than 12 time return! See snapshot below:
When you provide healthcare products, not luxury goods like Mercedes, BMW and Rolex, you will fare well in this recession.
Dissecting The Trend
COVID-19 is a health related crisis. Therefore, maintenance of health is seen as a top priority by a lot of people. This is essential.
Examples Of Essential Services
Solar Company
Look at this:
Solar panels are on demand now. As you can see, demand is spiking.
Dissecting The Trend
Why is solar doing so well? Well, in Australia, electricity is expensive. The recession is causing worry over household bills. Therefore, people are trying to save money with solar panels. Not essential, but helps cut cost, which is essential.
Family Lawyer (Divorce)
The term family law is related to divorce. However, there are many related services like child support, domestic violence, etc. As you can see, only until recently, the demand is increasing sharply.
Dissecting The Trend
Unfortunately, the sad reality is that families tend to have severe conflict during times like these, so this legal service is going to be frequently used. Moreover, child support and co-parenting issues that arise from separated or divorced couples, will cause the demand for these lawyers to go up.
Examples Of Affected Businesses
Martial Arts
Martial arts is good self defence and exercise, but during COVID-19 lockdowns, it does not matter enough. People are not interested because they are worried about other things – and cannot train. Martial Arts Schools have it really tough.
Gyms
Gyms are in a similar position to martial arts. You can see the dip, when it is actually a very consistent, in-demand industry. However, gym franchise owners are having relief, with demand improving slowly. Things are not that bad once lockdown is over. Notwithstanding events like COVID-19, gyms could be on of the best business in recession because of its stability.
Hair Extensions
What woman doesn’t want to look pretty? However, looking at the hair extensions trends, during the height of the lockdown, there was a sharp drop. Nevertheless, women’s need for beauty means that solutions which help them get these delivered will succeed online in eCommerce.
What Should Business Owners Or Aspiring Business Owners Do?
The financial security of employment is set to have increase in demand. However, many business owners, in retail stores, services like cleaning, car sales, are suffering a depression. There are ways to compensate to such market changes, like better, more affordable offers, a discount, better overall prices, and so on. Opportunities must be created if the business owner is to plan effectively. Pay day is no longer going to be that great for at least a while, and many business owners would feel like giving up and getting jobs.
The most important thing is to identify growing trends. In this example, Google Trends is a really useful tool to see demand trends. In an industry like ours, we see a growing trend towards data science:
People are very interested in this sector, and we believe it is set to rise. As Advertisers and Analysts, this could be the next big thing to invest in. The future does not belong to senior players in the industry, but the new upcoming freshies who are riding and creating sustained demand for trends like these. Businesses who require such skills may be booming in the next decade.
Offering the service of the future as a first mover is an ambition of this agency. We want to be a brand on the forefront of new developments, without investing in shiny objects.
Do you need any advertising? See our methodologies here:
All discovery calls are confidential
Where Can I Get More Data?
We recommend the following companies to get more industry data, that we would use ourselves. They are:
SimilarWeb
SimilarWeb is a secret of top agencies. The comparative data is so detailed, this tool does not come cheap. Even we do not have it. Each year, this tool will set you back around $7,000USD/year.
GlobalWebIndex
GlobalWebIndex does some interesting research internationally and produces some really cool infographics. Highly recommended to identify global trends.
Conclusion
While government is doing many things to boost the economy around the world, such as cash flow boost, improving medical facilities (to prevent future crisis) and driving improvements to technology, business owners must take control. Franchises around food will struggle, at least for now. Steady income is a luxury for the few. Social distancing is making it hard for physical commerce to be conducted. Opportunity does not wait. It must be found and taken, and then you have to be out selling it actively. Debt is a choking hazard and tax should be optimised. The best business in recession is also the best managed.
We hope this original research and analysis will demonstrate our expertise and skill. Please feel free to book a strategy session if you need digital marketing services in Australia. Do you need marketing for your business or business venture?
All discovery calls are confidential
What is the key to be successful online in business or starting a new business post COVID-19, during recession?
Be essential, or greatly assist essential services and items/needs. If you are essential, recession or no recession, you will succeed online
What online business should I not do post COVID-19?
Anything that can be construed as taking advantage of the situation, e.g. hand sanitisers, face masks, etc.
How do I identify market trends easily?
Google Trends can help you identify current trends and make educated predictions of future activity
Where can I get more data on business trends besides Google?
We like SimilarWeb and GlobalWebIndex
Clarence Ling is the Founder of Marketlytics, and a guerilla marketer. Initially a trained Lawyer and Practice Development Manager, he contributed to the growth of his firm, including implementing software.
Clarence Ling is a Digital Advertising and Analytics Expert. Having a wide range of advertising experience ranging from international real estate, to legal and previously worked in full service marketing agencies, Clarence is a diligent marketer with an eye for detail and a talent for numbers.
Clarence can carefully plan out the best budget levels for the desired outcomes with projections that are more accurate than most.
His background in Analytics enables a clear, big picture assessment of both organic and paid campaigns, enabling maximum efficiency of those digital campaigns. His analytical background brings precise clarity of client or customer interaction and behaviour on online assets.
Clarence’s four fields of practice are Search Engine Marketing (SEM), Search Engine Optimisation (SEO), Social Media Marketing (SMM) and Email Marketing (EDM). He is best as an Advertiser and is an avid collector of Software As A Service (SaaS) Products, avidly investing in both technology and human capital of Marketlytics.
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