There’s an economic downturn coming. Signs show economic growth is cooling off, and it’s time to batten down the hatches of your small business and prepare for tough times ahead. If you are in a recession-proof business like beverage alcohol or a tattoo shop, you are going to do just fine. If you aren’t, it’s time to reevaluate your position.
Economic Downturns Present Opportunities To Do Better
It’s time to cast off all the extraneous business that doesn’t truly have to do with your company’s core competencies. Before the economy swings downward, focus on your strengths and market those. But there are plenty of other ways to remain competitive during an economic downturn.
Franchises are a great way to ride out a coming economic storm. These businesses are built upon an existing support network, which means that you won’t have to worry about certain elements of your business alone.
Fast casual restaurant chains are one type of franchise, but there are also auto maintenance chains, construction business chains, and more.
The Construction Business Can Hold Its Own
Though real estate is often pummeled by economic downturns, certain areas of the construction business often do very well. People will always need plumbers, HVAC repair and replacement, new roofs, new siding, and more. Renovations are often a way to make do with what you have during an economic downturn, which means that certain parts of the construction industry will continue to do well.
Renovations are costly, but at least half of homeowners have home improvement projects in mind. Only 36% plan to leave it completely to the professionals, while 30% plan to get professional help but supplement with their own labor.
Nearly half of homeowners plan to spend $5000 on their next home improvement project. While many plan to skimp on interior designers and architects, these professionals can prevent hidden issues and costs before they happen. The most common budget breakers are:
- Choosing material upgrades
- Products and services cost more than estimated
- Project changes midstream
- Project increases in complexity due to unforeseen circumstances
- Unexpected construction issues
In the long run, it’s often cheaper and easier to leave most projects to the professionals, which means construction is a fairly safe bet for the coming economic downturn. Professionals often know ahead of time what’s in the walls, so they are unlikely to screw into a water pipe or take a sledgehammer to an air duct.
Common Renovation Mistakes Are Costly, And Professionals Know Better
Most homeowners don’t know the difference between plaster and drywall, let alone how to patch a hole in drywall. Three in four first time homebuyers have no experience with home renovation projects, while even one in three long-term homeowners are in the same boat. Homeowners will always need construction professionals.
If you are looking at a business that may be able to ride out the coming economic downturn, look toward commonly needed construction services. Learn more about common home improvement projects, the costs associated with them, and the likelihood that homeowners will need to hire a professional from the infographic below.
