Question by cabot: What would be a safe businesses during a recession?
Experts say: Healthcare, Federal Government, Green technology, IT, Sales and Marketing.
Any anusual one? 10 points to the most original.
Answer by victormajani
It feels like a recession when GDP growth slows, businesses stop expanding, employment falls, unemployment rises, and housing prices decline. However the generally accepted official definition of recession is when GDP growth is negative for two consecutive quarters or more. True recession is still to come to many economies.
The safest businesses during a recession time is Research/Development and Patenting of new equipment , technology or procedures that reduce costs, improve quality or gains some other business advantage that others cannot afford.
This business, Research/Development and Patenting, can affordably be financed by borrowing money at lower interest rates that are given to everyone during recession. Further gains are likely to be enjoyed by tax cuts given by governments during recession to stimulate spending.
The second best business during recession in my opinion is Consultancy. Everybody in recession is seeking guidance in their continued cost reduction and profit improvement strategies, reevaluating pricing structure, strategic thinking, bargain hunting, strategic investments, monitoring of cash flows, engaging employees in all process, and negotiations with banks, investors and other suppliers of capital. This is where the worlds CPAs will benefit as they spur the economy back
What do you think? Answer below!