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