Are you looking for ideas for businesses to start in a crisis?
Being in a crisis is actually one of the best times to start a new business. If you follow the stories of our wealthiest individuals and largest companies, their success was frequently, if not almost invariably born out of moments of crisis.
Here are some ideas for businesses to start in a crisis, and the thought process behind them.
Debt Investing & Lending
In times like these everyone needs more money. They are desperate for more credit. Traditional lenders and banks normally pull back and leave a huge void or worse, rescind existing credit. This leaves a huge void in extending new financing.
Simultaneously, the side effects of these actions by banks mean they are also mounting up on tens of billions of dollars in defaulting debt which is a big liability for them.
In turn, entrepreneurs may acquire these debts and income streams at substantial discounts, and collect on them.
Also while we are in the investing topic you need to remember that if you want to build something big you will need to go out and do fundraising. In this regard, storytelling is everything. In this regard for a winning pitch deck to help you here, take a look at the template created by Silicon Valley legend, Peter Thiel (see it here) that I recently covered. Thiel was the first angel investor in Facebook with a $500K check that turned into more than $1 billion in cash.
Remember to unlock the pitch deck template that is being used by founders around the world to raise millions below.
Crises and periods of economic downturn typically see a surge in demand for discount products. Almost everyone is cutting back on spending and looking for bargains. This one may be one of the best ideas for businesses to start in a crisis
So, in addition to investing in mobile homes and loans on mobile homes, during 2008, Warren Buffett saw his wealth saved by investing in services that supported discount retailer Walmart. Dollar stores and pawn shops also historically have done very well during these periods.
Vice based businesses have also proven to do very well during these times. No matter how tough personal finances get, people always find money to spend on their vices.
Embrace New Priorities
During times like these many people re-prioritize their lives. They spend time reconsidering what is most important to them, and what really matters. For many that is back to the basics, to spending time with family, getting back to nature, and being grateful for the little things. Businesses around these re-focused priorities can do very well.
Perhaps only second to the vices are the must haves. The biggest and best businesses are built not on trendy tech, but on the things that are not going to change.
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