Businesses that do well in a recession

[pgilc1]

More of a point of discussion than a question, but given we're probably heading towards a recession, historically, what businesses have done well during those times?

We do work for a major online dvd / cd retailer, and interestingly even though people are tightening their belts, they have found their business is 'up'. The theory being that people are more likely to buy a dvd and have a night in than pay to take the whole family to the cinema etc...

[Swoxy]

Pawnbrokers.
One was on BBC News last week saying how well the industry was doing.
I know someone who has just sold his successful corner shop in order to open a Pawnbrokers.

Edited by Swoxy on Sunday 24th August 20:23

[deevlash]

discount food stores, my lidl is doing £35k more per month than last year.

[playerone]

Swoxy said:

Pawnbrokers.
One was on BBC News last week saying how well the industry was doing.
I know someone who has just sold his successful corner shop in order to open a Pawnbrokers.

Edited by Swoxy on Sunday 24th August 20:23

Guy I know sold his pawnbrokers last year to concentrate on buy to let packaging and broking. Whoops!

I do small cash loans and have increased the quality of my customer base. Lots of people being turned away by banks.

[Road Pest]

Debt Management and IVA companies would be doing well at the moment I'd have thought.

[playerone]

Road Pest said:

Debt Management and IVA companies would be doing well at the moment I'd have thought.

This is a funny one as every one jumped on that bandwagon a couple of years ago when the fees were massive. Creditors objected to the fees charged and drove them down. With the cost of aquiring customers shooting up quite afew of them have pulled back from the market.

The other problem is there is a growing number of people who are so deep in it they dont have enough disposable income to enter into an IVA, one that is acceptable to the creditors anyway. Bankrupcy will increasingly be the only option.

[muppetdave]

Debt collectors.

[shadowninja]

Apparently, rental properties as people are forced to sell up. Also, nannies, as ladies of leisure are dragged to work by their over-worked husbands.

[muppetdave]

Yes, rental market seems to be becoming busier - we're wondering about the possibility of getting the house on the market and renting/living with parents for a while to see if prices drop and we can maybe move to a better area.

Also, my company is on the up in respect of refurbishment work in the building industry. We're not in to new build which we all know is struggling. So people are looking to money in to existing assets and make sure they earn their keep.

[jamesuk28]

muppetdave said:

Debt collectors.

Busy yes, raking it in through extra work? not really. As we operate a no recovery no fee policy, we only get paid if our client does. With more and more debtors going bankrupt or into an IVA its not the bed of roses people imagine.

[Puggit]

I work for a company selling virtualisation software in IT. The idea is that you place many operating systems on to one piece of hardware, instead of wasting one OS per server.

Business is booming, I got a 23% pay rise on Friday

[johnfm]

Puggit said:

I work for a company selling virtualisation software in IT. The idea is that you place many operating systems on to one piece of hardware, instead of wasting one OS per server.

Business is booming, I got a 23% pay rise on Friday

That's a below inflation pay rise.....

[stuart-b]

Aparently IT is up 35%, due to companies investing in IT to save money and be more efficent.

[Road Pest]

stuart-b said:

Aparently IT is up 35%, due to companies investing in IT to save money and be more efficent.

+1 not suprised by that at all, we're updating software, phones, etc for that very reason. Just had all the plants taken out of the office last week, so I bet that type of business is probably not doing so well as places continue to streamline.

ETA Plants as in the green things not the employees!

Edited by Road Pest on Monday 25th August 18:09

[The Ben]

muppetdave said:

Yes, rental market seems to be becoming busier - we're wondering about the possibility of getting the house on the market and renting/living with parents for a while to see if prices drop and we can maybe move to a better area.

Does this then that people cannot get mortages/people cannot afford their current mortgage, then cannot afford to rent a decent sized house??


eeeeeeeeeek.....

[wizzbilly]

boarding up premises

dept cllectors ,solicters etc

[ukvoyager.info]

Apparently it is easier to manage a business downward growth than it is upward growth.

I have only ever worked in high growth companies so I couldn't say...

I do feel for estate agents and removal firms. To have 70% of your revenue end over night must be pretty hard to deal with on an emotional level!

[sparkyb999]

engineering is particular busy at the moment, hitting record months at the moment

[amir_j]

Investment companies who know what they are doing- not an easy find. The one im currently working for raised a further 5 billion in investor funds last month! Unstoppable financial juggernaut to quote the FT.

[Dick Dastardly]

ukvoyager.info said:

I do feel for estate agents and removal firms. To have 70% of your revenue end over night must be pretty hard to deal with on an emotional level!

One of my clients is a removal firm and two others are estate agents. All just trying to survive at the moment, not even holding out hope of profitability.

Good place to be during a recession is the sex industry. People can't afford to go out so much so stay in and buy more saucy outfits and DVDs and stuff. Single blokes get depressed so call chat lines for a quick pick me up. It's proven a winner in every downturn.