Best Online Business To Start During A Recession (2023)

look the cost of living is going up inflation 
is rising every day rising at a faster rate than   monthly salaries even including pay rises 
and this problem could be catastrophic   for people relying on just one source of income 
the situation is gonna get worse and worse and   by the looks of things the cost of living for your 
daily goods your food your gas and your day-to-day   expenses are gonna continue to rise and if you're 
still relying on just one source of income you're   sitting on a ticking time bomb you probably only 
have a few months left before things really go   downhill but the real question is what the [ __ ] 
are you going to do about it how are you going to   continue providing for yourself and your family if 
your monthly income soon barely even scratches the   side of your outgoings what you need to do is pull 
your finger out and stop panicking because nobody   can change your situation but you so if you're 
worried about your financial future right now grab   the bull buy the horns and start focusing your 
time on money generating activities scrap netflix   for a few months get up earlier work late at night 
and hustle there are no ifs and buts this is what   you've got to do to get out of your situation this 
is your only option so start now before it is too   late and i can say this as somebody that has been 
in thousands upon thousands of pounds worth of   debt now thankfully that wasn't coming up to 
a recession and in that time i just needed to   pull my finger out grab the bull by the horns and 
learn a new skill and for me that was jumping into   corporate sales i was terrified i used to walk to 
the edge of the office and tremble in fear with   my script in my hands and every single day i was 
worried about getting sacked at the start because   i was so useless on the phone but within three 
months of being in that company i was in within   the top three sales performers internationally 
because i learned a new skill whilst i was pushed   against the wall because i was in so much 
debt that i couldn't even tell my friends   and my family about it because i was so ashamed i 
could only get myself out of that situation and if   i can do that you guys can as well and i'm warning 
you that if you are in financial difficulty right   now it can only get harder in a recession and 
look i don't want to help you today to just get   yourself out of financial difficulty because i 
know what that is like and it's a huge relief   but after doing that i decided i wanted to work 
for myself i didn't want to work for other people   and so i started my first online business and now 
fast forward to today i have multiple companies   generating seven figures on a yearly basis now i'm 
not saying that you're going to achieve the same   thing before this recession starts but if i can 
at least help you guys create a new income stream   so you can actually be financially better off 
at the end of this recession and take advantage   of the massive discounted opportunities that 
we're gonna have when it comes to investments   then i would have at least achieved something so 
that's what we're gonna be going through today   the best online business models that you can start 
before or even during a recession so let's talk   about some of the types of businesses that you 
could start right now to both earn some extra   income but also hopefully replace your 905 job and 
it's not just important for us to pick something   that you have a personal interest in and something 
that makes you the most money and cost you the   smallest amount of time and skill set to start 
off with but specifically in this case we need   to start something which is somewhat recession 
proof because in a bad economy especially in an   inflationary environment business models that have 
low capital expenses and high profit margins and   cash flow tend to be the businesses that fare 
better because they have more pricing power   and they don't need capital to put back into the 
business for it to expand so this is the formula   that we're going to be working with today high 
cash flow plus low capital expenses equals as much   of a recession-proof business as you can possibly 
get and i'm going to be ranking them based on how   quickly you can start getting cash flow and 
how much money you need to invest to actually   get started because these points are incredibly 
important especially if in your position you might   be hard up right now and you don't have an awful 
lot of money to invest in actually getting started   so what types of business models could we actually 
start and i'm gonna be going through these in   no particular order and we're gonna start off with 
investing and i'm gonna get this out of the way   first because investing is not a business model 
but i always get people mentioning a lot when   i create any videos like this and investing in 
stocks and shares and crypto and any other assets   as well will be a really valuable way for you to 
make a lot of money during the recession right but   it only works if you have a lot of free capital to 
invest and actually put into places in the first   place right if you want to see life-changing 
returns you're gonna have to invest thousands   upon thousands of pounds or dollars to actually 
see those kind of returns if you've only got a   hundred dollars here or there you're really not 
gonna do anything that's gonna change your life   so what you're much better off doing is focusing 
your time on a real business during this okay a   real business that's going to help you make those 
thousands if not tens if not hundreds of thousands   that you can invest in assets and then make 
life-changing returns if you don't have large   amounts of capital to invest then there's no point 
wasting your time and thinking of where to put it   right now okay we might hear stories about people 
making 100x games those are unicorn cases it's not   going to happen to you well the chances are it's 
probably not going to happen to you so just focus   your time on starting a real business so what is 
a real business first one we're gonna go into is   amazon fba now fba means fulfillment by amazon 
and it's essentially the act of getting products   listed on the amazon marketplace so you would 
pick a product that you want to sell you would   source a supplier over in china or another country 
where manufacturing costs are low you could use a   website like aliexpress or alibaba to find those 
suppliers then you would brand that product for a   process called white labeling and then they would 
send the product out to amazon who would store the   product and send it out to your customers when 
they actually purchase it so let's say you've   picked a hairdryer as your product and it cost you 
10 from china you could sell up on amazon for 30   and in theory you've just tripled your money but 
the thing is you've got to pay for shipping costs   from the supplier to amazon you also have to pay 
amazon for their fba fees and you also got to pay   advertising costs for you to even get the customer 
in the first place but that being said you should   still at least double your money or aim for that 
now the average profit margin for an amazon fba   business is between 30 and 50 so with that in 
mind how much cash do we need to actually get   ourselves started well the main cost when you're 
first starting is stock and most suppliers have a   minimum order quantity and this can range anything 
from 100 to 5 000 items when you're first ordering   with a supplier so the initial cost to start an 
amazon fba business can range from anything from   500 to 10 000 plus so it's not exactly a cheap 
business to get started with and there are also   huge wait times when it comes to your stock 
from suppliers and in some cases you can wait   months just for your stock to arrive in the amazon 
depot and after that you've still got to get that   product listed on amazon and start bringing 
in those initial sales so it could be six to   12 months before your first paycheck even comes in 
and what about if you don't pick the right product   you might not make any sales at all now this isn't 
an issue in the grand scheme of business and i do   believe that amazon fba is a great business 
model for people who know what they are doing   but i do not think it's a suitable business for 
you to start before or during a recession so my   overall recession proof rating for amazon fba 
would be four out of ten the next business model   is drop shipping now drop shipping is similar to 
amazon fba but instead of storing products with   amazon and shipping them through amazon you would 
create your own e-commerce store using a host   like shopify and the supplier would then send 
products directly to the customer instead of   amazon sending them so similar to amazon let's 
say we picked a hairdryer as our product and we   were paying ten dollars in china for the product 
we could sell it on our hosted e-commerce website   for 30 and in theory we're tripled our money but 
we have to pay the supplier to actually send the   product out to the customer and because of these 
international costs these can really rack up and   you'll also have much greater advertising costs 
when it comes to drop shipping stores because   you cannot rely on amazon for their traffic now 
because of these large advertising costs the   average profit margin for a drop shipping store is 
between 15 and 20 so how much cash do we actually   need to get started well unlike amazon we don't 
need to buy a bulk of stock to send somebody to   send out right because the supplier already stocks 
this stuff they manufacture it themselves with the   majority of drop shipping stores especially in 
the initial stages you don't even need to brand   those products and incur the cost to do so but you 
will need to invest heavily into advertising and   i'd recommend anybody who's thinking of starting 
a drop shipping store to allocate at least   two thousand dollars for your advertising budget 
for that first month to get the store off the   ground and this is the reason why the majority of 
drop shipping store owners fail because they do   not allocate enough advertising budget to actually 
test enough to get the store off the ground   and to start bringing in those first sales now 
your cost of starting could actually be much   greater than this you could have already spent 
hundreds on advertising before you realize   that you've picked a bad product and then you 
have to start from scratch again and reallocate   funds into your advertising but that being said 
if the product is right you can start making money   very quickly and within the first month you could 
start making profits so if you know what you're   doing drop shipping could be a great opportunity 
for you but none of us truly know how e-commerce   will be affected when this recession comes so 
because of that uncertainty and the risks involved   with the initial investment my recession-proof 
rating for dropshipping would be six out of ten   the next business model is an agency and 
this is simply a business in which services   are exchanged for money and this was my first 
successful online business and in my instance i   approached local businesses and provided facebook 
ads to them in order to help them increase their   monthly sales for example you could reach out to 
local dentists and you could offer facebook ads   and charge them in excess of one thousand dollars 
per month for this service and bring them in tons   of new customers every month now because of 
this the average profit margin in an agency   is around 90 when you are starting off and an 
established agency making over 100 000 a month   should still be able to retain good profit margins 
of between 50 and 80 now you will of course need   to learn a new skill set but with the amount of 
free resources available to you online on places   like youtube this should only take you a couple 
of weeks to get started you also don't even need   to provide these services yourself when you're 
first starting if you don't want to you could take   a cut of your monthly client retainer and give 
it to somebody else and outsource that service   to somebody with more experience than you the 
agency business model takes a very short amount   of time for you to start profiting with the only 
major investment is your knowledge and your time   in the initial stages so you could easily sign 
your first client within the first 30 days of you   starting now in my instance i was making 10 000 
a month within my first three months of starting   and i had a full-time job when i first started 
my agency so with this in mind considering the   profit margins and the low expenses i would give 
the agency business model a recession-proof rating   of nine out of ten the next model i want to go 
through is personal branding now personal branding   is simply the act of creating a brand around 
yourself like this youtube channel of me that   you're watching right now and you would pick an 
industry that you have a personal passion and   interest in and you would start creating content 
around that industry or niche now of course you're   not just limited to youtube but you can create 
content on places like tiktok on facebook on   instagram or any other social media platform for 
that matter or you could even launch a podcast or   start being a blog writer now people with personal 
brands make their money from both platform revenue   like youtube adsense but also through affiliate 
marketing where they would promote other people's   products or services in exchange for a small 
percentage of that sale now this can be very   lucrative if done correctly for example youtube 
have paid me over two hundred thousand dollars for   uploading my weekly videos over the past few years 
alone and i've also made over one million dollars   from various affiliate deals over my personal 
brand and with the only investment being time   that's all 100 profit now this all sounds great 
but personal brands take a lot of time to get   off the ground and to build and as we've already 
established time isn't something we have an awful   lot of right now it'll take months for your brand 
to be at a position where you can even monetize   it and that cash in the initial stages is going to 
be nothing to shout about and it'll take years for   your brand to truly take off so with that in mind 
i would give personal branding a recession-proof   rating of 5 out of 10.

That being said i would 
recommend all of you to start a personal brand   it's one of those things that chips away over time 
and before you know it you're going to look back   in amazement at how much it has grown and the 
opportunities it presents you with and if your   niece suits it i would recommend starting off on 
tiktok because even still right now the algorithm   is ridiculous now the final business model i'll 
talk about today is consulting and consulting is   a business model in which you would offer your 
knowledge in exchange for money for example if   you're a personal trainer you could start an 
online consulting business where you consult   people over the internet on their health and their 
fitness now consultants charge anything from one   thousand dollars to fifty thousand dollars for 
their knowledge in some instances depending on   their skill set level and unlike to agencies 
because they're offering a service essentially   their profit margins are incredibly high around 
50 to 80 percent now not all consulting comes   in the form of coaching in fact many people will 
create online courses in which they would record   a series of videos and package them up under one 
price now of course you do still have to invest   in your advertising and getting customers and i'd 
recommend anybody starting off in consulting to   budget at least two thousand dollars a month in 
their initial stages just for their advertising   spend now this business model is great if you have 
a pre-existing skill set and you feel confident   enough to teach it to other people but it's not 
suitable for you if you're simply faking it that's   just fraud so to be a successful consultant you 
need to be a master in a skill set so master it   first before you then go ahead and teach it to 
others and this can take months or even years for   you to do this so with that in mind as a business 
model i would rate consulting an 8 out of 10 but   only for those people who qualify for it cool so 
i'll get all of those business models up on screen   right now along with their ratings so you can see 
them in order and as you'll be able to see in my   opinion the perfect business model for people to 
start right now during or before the recession   if you want to make as much cash as quickly as 
possible is an agency now call me bias because   that is the business model that i first started 
and what made me successful in my initial stages   but factually this is the business model that has 
the lowest capital expenses and the highest cash   flow and that is the formula we were aiming for 
at the start of this video and if you want to get   started today you want to look into starting 
an agency of your own you want to learn about   that business model then i'm going to put a link 
somewhere around this video and in the description   where you can learn how to start an agency of 
your own right now and get started today and   for those of you that want to take the elevator 
and not the stairs look into the affluent academy   which is our done with you mentorship program 
that will teach you how to build an agency to 10   000 a month in as little as 90 days but 
to be honest with you i don't really care   what business model you start just as long as 
you start something this upcoming recession will   make or break people it is your opportunity to 
create life-changing wealth just do not sit on it

As found on YouTube