With the current state of the economy, it’s easy to get sucked into all the doom and gloom being reported in the media. News of the recession, redundancies, mass bankruptcies and so on can spread fear and despair around the country. Quite often people feel so depressed by this news that they don’t even bother to try to make money. However, for those who refuse to be hypnotised by media gloom m there are always ways of coping and even doing well in these depressing times.

• Sell your junk
• Buy bankrupt stock
• Rent out everything
• Undercut the market

There are some business that actually do better in a recession than usual. This is because people often have different need during an economic downturn and anyone who notices these gaps in the market and fills them can make some cash.

There are auction houses all over the country that sell bankrupt stock. All you have to do is find your nearest one and get there quick! Charles Taylor in Manchester update their site every week with new information on forthcoming auctions, as do Frank G. Bowen, London and Walker Singleton. For other auction houses, such as Crossgar Auctions (Belfast), you just have to pop along and see the stock for yourself.

If you don’t fancy that auction room atmosphere, Centaur Auctions have set up an online auction house where you email your bids to them and they accept if they think it’s high enough. The waiting time on your purchase is dependent on whether they think they’ll get a better bid. If they think it’s high enough, they’ll usually email you back right away.

Once you’ve made your purchase you then have to go to their stockrooms in London to check out your purchases. If you’re not happy with the product and don’t feel it matched the description in their site, you don’t have to buy it.

Bear in mind that because these auction houses deal with bankrupt stock from anywhere, they can have some bizarre products on sale, especially if they are dealing with stock from bankrupt factories.

Eddisons in Leeds and Manchester, for example, often sell things that are somewhat out-of-the-ordinary, like travelling overhead cranes, along with more useful stock, like sportswear. So you may have to sift through a lot of stuff before you find something you can sell.

Rent, rent, rent

We all know that people are now more into renting than buying property, but there are also many other things that can, and should, be rented rather than bought when times are hard. This is another area where you can cash-in.

Driveways

For a start, do you have a driveway or garage you could rent out? There are a few websites now that will advertise your parking space to drivers. Parklet, Parkatmyhouse and Gumtree all offer this service as we explain in our article on making money out of your driveway.

Spare rooms

It’s so obvious that we hesitate to say it again, but if you have a spare room then now is a good time to rent it out and make some tax-free money from it. Under the Government’s Rent-a-Room scheme you can make up to £4,250 a year tax-free from renting out your spare room.

If you can’t bear the idea of having someone else in your home 24/7, go for the short-term option of renting to foreign students. We have all the details here in our article on hosting students for cash.

Everything

Then there are other things you could rent out like your car, your power tools, your clothes, your accessories and even your toys. A few rental websites have sprung up recently that aim to match owners with potential renters. Zilok and The Hire Hub both offer this service. It’s a new concept so you may find it slow to start, but if you put your items on both you will have a better chance of renting them out and making some money.

Undercut the Market

Everyone is looking for cheap ways to get things done. Of course, for most people price has always been an issue, but it’s even more critical now. If you can offer services locally at a much cheaper rate than proper businesses, you could get even more work than before.

For example, find out how much window-cleaning companies in your area charge and offer your services for 20% less.

Or if you’re at home looking after your children, register as a child-minder. Many families who used to employ nannies or a private nursery will be looking for cheaper options now and there should be more of a demand for childminding (see our article about childminding here).

If you’re a cleaner and you’re worried about being dropped because of cost-cutting, offer extra services such as cooking and filling the freezer for your clients.

If you have secretarial skills, offer your services to businesses around the world as a Virtual Assistant (we have an article on how to be a Virtual Assistant here). Learn book-keeping as well and you will have many more work opportunities as you undercut the market.

Are you good with computers? Offer your services as a computer trouble-shooter at a knock-down rate in your local area. Whereas people used to simply throw away their computers when they went wrong, as times get harder they are starting to get things mended. Computer mending can be expensive, so if you can offer a cut-price service there you will be increasingly in demand.

Think about what people need to have done – or would like to have done – but don’t have the money to pay. Mending and repair services will be in greater demand, but people will be looking for the best price they can get. If you’re good at altering clothes, DIY or repairs to household goods, your services will be needed more and more if your price is right.

Don’t think for a moment that an economic downturn needs to be bad news for you and your family. There are always opportunities if you look. In fact, for some, it can mean more business and a greater income, not less.

Looking for other creative ways to make money? Visit our Facebook page and ‘like’ us to receive a free copy of Jasmine’s bestselling eBook 50 Moneymaking and Moneysaving Tips – just click on the ebooks tab on the left hand side of the page.

3 Responses to “How to make money in a recession”

1. Catherine Walsh says:

   August 17, 2010 at 8:29 pm

   I started an ebay hobby into a successful online business http://www.camouflage-cosmetics.co.uk and now I am about to start wholesaling my own products. I sell tattoo and scar cover cosmetics

   Reply
2. Phil Bailey says:

   June 30, 2010 at 3:42 pm

   I see many examples of companies searching for quality in these tough times. During the heady days of the mid-2000′s many companies were losing productivity, in an attempt to increase growth and market share. This led to a huge amount of flab growing around the mid-riffs of many small businesses. As soon as a recession was declared these small companies turn their attention to their productivity, trying to squeeze more from their existing business structure. Just a the general population turn to more healthy pursuits during recessive times, so do businesses.

   So, it’s not about investment in a recession. If we can just squeeze another 10% from our existing workforce, by thinking about their skills, personal qualities and their current undertakings, we will come out of this recession running and will soon return to growth.

   I’m very positive

   Reply
3. balloons says:

   June 3, 2009 at 10:49 pm

   We were waiting for a crash with our business, but surprisingly the reverse has happened – and we have never been so busy. We run children’s parties and balloon decorate large events and weddings. It seems that people need a pick up in a recession and throwing a party and self-treating businesses work well in a recession. Retailers may try a few new marketing tricks in a recession, this includes using balloons for product launches and printing logos onto balloons. I hear Chocolate sales are up for cadbury and make-up sells do well for max-faxtor. Some Weddings looking cut costs have used balloons instead of flowers or find a cheaper place to hire (such as a church hall instead of a hotel room) and use balloons to brighten the room.

   Reply