Businesses that make money during a recession…
This article is about how I bought a business during a recession. But then I also look at businesses that make money during a recession, as it was important to me to make sure that the business I bought would be recession-proof.
ENTREPRENEURS looking for corporate ‘bargains’ over the festive season have been in luck as thousands of businesses are up for sale across the UK.
Are you looking for businesses that make money during a recession?
I found myself looking for businesses that make money during a recession…because I was looking to buy a business in a recession.
It was found to be interesting enough for the Financial Mail to interview me about what I was doing too…see more of the below.
The are a number of businesses that make money during a recession, and although I didn’t have a list, I had set criteria for when I was looking…I wanted a ‘recession-proof business’.
If you are looking for businesses that make money during a recession, here is a short list…
Businesses that thrive in a recession…
If you are looking for businesses that make money during a recession, here are two to get you started…
Accountants and Accounting firms
Accounting firms work in all economic cycles. Even during a recession businesses still have to prepare their accounts, they must pay their taxes, and require professional advice. It could be argued that accounting advice is even more important during a recession. When finances are tight, business need to keep a close reign on finances.
However, in order to run a successful accounting business, you will usually require some form of accounting qualification. This may therefore prevent most people for buying an accountancy business.
Elderly care homes and home-care providers
Elderly care businesses tend to thrive in all states of the economy. If an elderly person needs either care at home, or is in a position whereby they need to be looked after in a care home, they cannot change this situation just because of a recession.
This sector is riddled with legislation and regulation, probably too much in my opinion. But if you have a business in this sector, you will be happy to know that it will thrive in a recession.
If you are happy to buy a business during a recession, you may be able to pickup a bargain…
Entrepreneurs looking for corporate ‘bargains’ over the festive season have been in luck as thousands of businesses are up for sale across the UK.
Those with ready money have been able to pick up businesses cheaply from specialist brokers and listing agents.
Business Sale Report, a leading listing service, has seen a 30 per cent rise in the number of owners advertising in December compared with November. Director Robert Moore says in addition to sales of distressed businesses, entrepreneurs who previously held back because the market had been depressed are now selling.
‘If you have cash and are able to move quickly, it’s a good time,’ he says. ‘Any business where it is easy to see future cash flow is in demand.’
Chartered accountant Russell Bowyer, 47, from Linton, Cambridgeshire, is convinced that doing deals in a recession is a good idea and he is negotiating to invest in Deep Clean, a nationwide cleaning firm that specialises in commercial kitchens.
Bowyer has a long record of business ownership, albeit in the care and accounting sectors, and he has been looking to expand his portfolio for some time.
He believes Deep Clean fits the bill because insurers require all commercial kitchens to be cleaned. There is competition, of course, but Bowyer says: ‘There is a good market.’
Bowyer, who is a client of Sunbelt, adds: ‘There are thousands of businesses for sale and far fewer buyers.
‘Interest rates are also lower so, in theory, you can get cheap money. If you buy in a boom, there is more competition from other buyers and interest rates are higher.’
Copyright over this section of the article belongs to The Daily Mail
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