Six Ways to Make Money in a Bad Economy

Is an economic downturn really negative? Some argue that a struggling economy can benefit businesses, but how is that possible? Many people think a bad economy is harmful to everyone. While this is true for most workers in large and small companies, it might actually be a great opportunity for entrepreneurs to start or expand their businesses.

  1. A weak economy means competitors are cutting costs and probably spending less on marketing and R&D, making it a good time to enter a new market. In a strong economy, customers don’t spend much time searching for better deals. However, when the economy is struggling, customers are more open to considering new and often cheaper options. Times of economic downturn are some of the best opportunities to grow your customer base.
  2. During a bad economy, suppliers are more willing to take on new business customers and extend discounts they would never offer during good times. Accordingly, a poor economy is often the best time to sign up new suppliers.
  3. During economic downturns, commercial real estate landlords have greater vacancy rates. They are more willing to lease space at below market value and provide expansion space just to keep the lights on.
  4. During times of high unemployment prospective employees recognize they may have to take a lower wage, so it is a good time to hire new employees.
  5. When laid off, many former employees resort to starting non-employer type businesses (businesses where there are no employees other than the owner) so it is a good time to hire independent contractor workers.
  6. And finally, a bad economy often means early retirement packages for some very talented and senior workers, so now may be the time to grow and expand your business.

If you have the ability to act on new business opportunities during an economic downturn, great fortunes may await you. You will find yourself in good company; over half of all the fortune 500 companies were started in a bad economy.

Is it time to work on that business idea to take advantage of the fruits that a bad economy has to offer?

Read more: What Exactly is Money?