Business Ideas That Make Sense in a Down Economy

Financial situations change every few years, and the last part of 2022 has been one featuring rising inflation, high-interest rates, and an anemic stock market. What business ideas show the greatest profit potential in this kind of environment? Fortunately, there are several options for hard-working, diligent owners who are willing to put in the time and research required for success. The following are among the most potential ideas as 2022 draws to a close.

Rent Out Property You Already Own

A generation ago, the only way to earn income from rental properties was to buy one and put it on the market. Fortunately, that scenario has changed, and many more options are available to people nowadays. For instance, you can rent an owned property for one or more days in an Airbnb-type arrangement or specifically as a vacation home that people reside in for a few weeks instead of renting it long-term. However, being a renter can be a complex situation. In addition to the federal tax question, owners must deal with local ordinances, management regulations, local tax laws, and similar pesky details. The most productive way to get started is to review a guide that explains all the pertinent tax implications on vacation rentals and how to make the most profit from any property you invest in.

Start a Job Finding Service

When the economy performs poorly, millions of people switch jobs and look for second ones. People want to save money and time, which is an opportune time for startups offering job finding services. In addition to writing resumes for candidates, consider structuring your new business to help with interview coaching, do extensive online searches for employment openings, and offer to counsel those looking for their first position after college. A job finding business can operate online or do some tasks in person. Even when the economy picks up, there are always plenty of new graduates and mid-career adults looking for work, so the idea offers long-term income potential for owners. Start by making a detailed two-year business plan.

Open a Home Inspection Company

Home inspecting is one of the best one-person businesses you can start from home. The main benefit is that it’s possible to outsource 99% of the work and operate the company as a remote manager. Still, local authorities need to apply for permits, which usually takes a month or so. Next, you’ll need to hire licensed inspectors and agree to a fee schedule that makes sense after computing your profit percentage. The biggest chore for the business owner is finding clients.

Expect to invest a modest amount for advertising to banks, real estate agencies, mortgage companies, and others who might need a documented inspection. After local businesses know you exist and offer competitive rates, it’s not difficult to build a base of repeat customers who require regular home inspection services. To supercharge the company’s profitability, consider earning an inspecting license so you can do some day-to-day work yourself and not share the profit with anyone else.