Ways to Make money during a recession

There are ways to make money during recession. Examples abound of businesses that are
businesses have suffered this year, Wal-Mart has been doing well. There are opportunities in
recession and targeting the right ones can do the trick. Understanding the basics of
economics can always help. The economy goes through a business cycles (boom,
recession, recovery and then boom again). Historically, this trend has repeated itself many
times and can be mapped and easily seen. In every stage of economy, there is a demand for
certain products. People continue spending and businesses do make profit.

Understanding human behavior and their needs during recession is critical. Recession
spreads fear among consumers. They are more focused on preserving stuff than spending.
And that is where entrepreneurs can find new opportunities. For example, consumers may
not go to coffee shop as they used to, but instead they prefer to make coffee at home;
people are likely to spend less money on designer jeans, but instead purchase more
affordable jeans or they try to preserve the old ones, which leads to higher demand for
sewing machines and accessorizing tools by consumers.

During a recession, consumers are in less hurry to make purchasing decision. People
compare prices looking for a better bargain. So on the retail side, online retailers are
generally doing better during the recession compared to local retail stores. This is partly
because online retailers provide better deals and the format allow consumers to compare
prices with other online retailers and go for the best bargain available. Another example,
students increasingly use Amozon and similar websites to purchase and sell their used text
books. Many thrift stores and students themselves have started to put their old books online.

Another common trend is that consumers prefer to rent than to purchase. Some have noted
that in China rental video game businesses have seen an upswing in recent months. Their
businesses are booming because they provide unique services in high demand. First, they
are renting video games at a very low cost. Second, due to higher unemployment rate and
lay-offs, more people have free time to play games.