Profitable Business Ideas For The 2022 Recession
During the past year, the world has been largely defined by the severe pandemic that was caused by the COVID-19 coronavirus. Though there have been some signs that the economy is beginning to improve, especially in countries that had strict containment measures put in place, the effects of the pandemic are still being felt worldwide. In the coming months, the world will have to confront a more daunting task: getting back on its feet from such a massive loss of life and livelihood.
In the middle of this global health crisis, it was revealed that the economy would have to make some major adjustments to return to “normal.” For example, while in most places social distancing was successfully implemented as a means of containing the spread of the coronavirus, in some countries, like the U.S., there were shortcomings in terms of putting these measures into practice. In fact, in the U.S., the number of cases and deaths due to COVID-19 were higher than expected, which resulted in the federal government declaring a national emergency.
Even before the pandemic, the U.S. economy was already in a state of flux, with more and more businesses choosing to close shop rather than continue operating during the pandemic.
Many businesses, both big and small, were able to ride out the pandemic thanks to existing customers who remained engaged with the brand, and suppliers who were able to renegotiate pricing on bulk purchases.
Though many businesses were able to weather the storm, the pandemic laid bare the inherent risks businesses face in terms of the economic health of the country and the world. The global community is still struggling to rebound from the pandemic and implement new measures to ensure the spread of COVID-19 does not become a pandemic again. In the meantime, a significant number of businesses have had to close their doors forever.
As the economic landscape shifts back to normal, the question now is: What will the “new normal” look like? Will consumers continue to have less money to spend, as they dig out of debt? Will industries suffer as a result of lost consumer spending? Are businesses that rely on one-to-one interactions with consumers (e.g., retail and healthcare) safe from the effects of the recession?
Below we highlight ten business ideas that are likely to become more valuable in the post-pandemic world.
1. Online Shopping
During the pandemic era, people were forced to stay at home and avoid public places, which caused a huge blow to online shopping. Consumers were unable to go shopping for clothes, accessories, and household items, which greatly reduced the demand for online shopping platforms.
However, during the pandemic, online shopping became a necessity for many. For instance, the lockdown rules that were put in place in many countries limited the number of trips that individuals could make outside of their homes, which made online shopping a convenient option.
The good thing is that as the world moves back to “normal,” more and more people will have the disposable income to spend on lifestyle purchases, including online shopping. According to a Nielsen survey, 40% of respondents say they have increased their online shopping as a result of the pandemic. This is good news for business owners who offer online shops, as well as for those who sell product online. In the coming months and years, online shopping will continue to grow, as more and more people want to get their goods and services quickly and easily, without leaving the comfort of their home.
2. Product Review Sites
Product reviews are very useful tools for busy shoppers who want to find the best products to fit their needs. Product reviews allow customers to find information about a product from various perspectives, which in turn, can help them make better-informed purchasing decisions.
However, product reviews can be very time consuming to research and write. A recent survey revealed that 43% of respondents spend two hours or more per day just to find the information they need about a product or service.
The good thing is, with the advent of the digital nomad lifestyle, there is now a way for business owners to monetize this time and effort spent to provide useful information. For example, today, you can create a digital nomad website that runs on a product review platform like ReviewBuzz or Shopify. On these websites, you can engage with customers by answering questions about the products you've reviewed and offering advice on what they should purchase, based on your experience.
The key to successfully implementing a product review site is to ensure that the content that you put out is useful, well-written, and objective. In addition, make sure that the website is designed in a way that is easy to navigate and user-friendly, which makes it accessible to a wide audience.
3. Home Delivery
Home delivery allows businesses to engage with customers by offering them products that they can't get anywhere else. However, many customers still prefer to go into a shop and choose the products they want, rather than having them brought to their homes. But that doesn't mean that the option isn't profitable.
According to a recent report from the United Kingdom's Office for National Statistics, the home delivery market in the country was valued at £22 billion in 2021, up 12% from 2019. In the U.S., the delivery market was valued at £9.9 billion last year, up 5% from 2019. This trend is being repeated around the world, as people are realizing the benefits of having purchases delivered straight to their homes.
If you're looking to enter the home delivery market, consider starting a small-scale trial program in select cities. In the U.S., for example, DoorDash is a well-established food delivery company that started out as a home delivery service and has since extended its reach to almost every major city in the country.
The key to making home delivery work for your business is to ensure that the customer experience is positive, which means that you must choose experienced couriers who know how to promptly and politely deliver the goods, and ensure that the delivery itself is done accurately and in a professional manner.
For instance, if you're doing home delivery of groceries, it's key that the food is well-packed and the customer is not forced to unwrap various boxes and packages to find what they want. This leads to a higher chance of the customer experiencing damage during delivery, which in turn, can create a negative impression that will outweigh any benefits of home delivery, which might otherwise encourage the customer to try it again.
4. Virtual Shopping Assistants
Even during the pandemic, an additional 19% of respondents in a Nielsen survey said they used online shopping resources to help them find products that they weren't able to find in physical stores.
Though many retailers do their best to stock all of their products online, especially during the pandemic when physical stores were closed, there are still some products that online shops cannot source. An example of this is vitamins and supplements, as most online retailers can't provide these items in large quantities. As a result, many people are turning to online shopping resources to find the products they need to stay healthy.
If you're looking to enter the virtual shopping space, consider setting up a virtual store where customers can purchase the products that you cannot source in-house. You can also set up online shopping carts for each product that you offer so that customers can have all of the necessary information at their fingertips, including pricing, and be able to make a purchase whenever they like.
The key to a successful virtual shopping experience is to ensure that the website is secure and that all necessary information is available in an easy-to-understand format. In addition, ensure that the website is functional on all devices and browsers, and has a nice design that is engaging and makes the customer feel like they're a part of the company they've engaged with.
5. Product Demographics & Analysis
Products that are targeted towards a certain demographic will always be more lucrative than those that are not. In the coming months and years, demographers will have a much better sense of what products will be in demand, which in turn, will help business owners choose products that are more lucrative.
The key to choosing a profitable product is to find a product that will be in demand by a certain demographic, rather than simply choosing a product because it is popular among a certain group of people.
6. Online Communities
In the past, social connections were largely defined by geographical proximity, as businesses would only do business with other businesses in their local area. However, with the rise of the digital nomad lifestyle, businesses can now create communities across the globe, which in turn, can create a platform for customers to engage with the brand.