What to Sell When Other Things Fail
What to Sell During Economic Downturn.
Are you looking for what to sell during this economic downturn that can guaranty regular cash flow? If yes, I will say that you are not alone. The issue of what to sell considering the prevailing situation in Nigeria was the subject of our discussion when I went to pay a friend of mine a visit over the weekend.
If you live in Nigeria or have been following the economic trend in Nigeria, you will agree with me that business in general has not been moving. It is like everything just stands still. Many factors are responsible for this but this is not the avenue to discuss that. It was not long I got to my friend’s place that his wife strolled in. We exchanged pleasantry. Being a business woman (she sells fabrics), I asked about her business. “Business has been slowing down”, she responded. She complained that people have not been buying her merchandise. She mentioned that the only saving grace she has is that, she introduced sale of vegetable oil just of recent. That has been the only thing that has been sustaining her. This brings me to the topic I am about to share with you today.
Whether you are in Nigeria or India, it does not matter which part of the world you live, anytime there is economic recession, business does not move fast. Things tend to slow down. Nevertheless, there are certain businesses that will not to be that affected. Even if they are affected, the impact is not as drastic as much as other business lines will be affected. The businesses that not usually affected during recession include business that focuses on basic needs. Among basic needs, there is still a business line that I will rank most as the business to do during economic downturn. It is the sales of foodstuffs.
Actually, I have mentioned in one of my past articles on how to start a restaurant business that restaurant business is a good business to start during recessionary economy. This is true but in term of hierarchy, I will put the sales of foodstuffs above restaurant business. Why? During recession, some people may like to save costs on feeding by cooking for themselves instead of buying food from restaurant. Of course, a personal finance expert will tell you that it is cheaper to cook by yourself than to buy food outside. Therefore, restaurant business can be affected somehow too during economy recession. But one thing is certain. Whether you want to cook by yourself or you choose to buy food from a restaurant, it still involves somebody buying foodstuffs. This makes sales of foodstuff to be a hot business to start during economy downturn. Everybody just needs to eat to keep soul and body together.
Read Also: How to start a restaurant business
So, if your business has not been moving and you are wondering about what to sell, I will suggest you give sales of foodstuffs a consideration. There is nothing bad in diversification. Or what do you derive in tying down your working capital in inventories that don’t sell? If you start selling foodstuffs, you can be guaranteed that customers will patronise you. Nonetheless, you still need to plan before you rush into foodstuff business. Below are basic steps you need to take before you venture into the sales of foodstuffs:
Conduct market research
You need to conduct market research to determine the type of foodstuffs that sell fast in your area. You will need to determine the market size and the number of competitors you have. Find out what your competitors are selling. Find out their source of supplies. Consider the possibility of getting the foodstuffs from a cheaper source. Consider whether your current location is suitable for this new business idea or you need to secure a new place. The outcome of your market research will determine the type of foodstuff to sell.
Read Also: Why Market Research is Important to Small Business
Don’t sell on credit
Even though foodstuffs sell despite the economic recession, a lot of people may not have money to pay you. As a result of low disposable income, there is tendency for people to buy on credit. If you start selling on credit, you will soon realise that your working capital will be hanging in customers’ hands. This will be like jumping from frying pan into fire. What you are trying to avoid in the first place is that you don’t want your money tied down in inventories that are not selling. If you start selling on credit, your working capital will be tied down with debtors. Your purpose for diversification into foodstuffs business will be defeated.