Operating a Business in a Recession
With the Covid-19 pandemic and recent world events in mind, it makes sense that the savvy business owner would want to pursue business activities and opportunities that aren’t as reliant on economic health. Despite all businesses being inextricably linked to the ups and downs of business trends, there are a select few industries that, by and large, seem almost immune to these swings.
While investing today might seem like a scary prospect for many entrepreneurs, the UAE has made careful strides over several decades to reinforce confidence in its business market. By adopting business-positive regulations and enacting relaxed immigration and tax benefits, investors and business owners can maximize profits while minimizing overhead costs.
According to MUFG, the largest lender in Japan, the UAE economy is expected to grow by nearly 4.5% in 2022. This estimate sits higher than previously predicted forecasts.
But what happens if the UAE enters into a recession? While not likely anytime soon, it’s never a bad idea to be prepared to weather a potential storm. In the UAE, there are several business activities an entrepreneur can choose to weather recessions, economic downturns, and pandemic-related shutdowns. Below, we’ll dive deeper into these industries and how to take advantage of them. From business setup in Dubai to visas and consultancy help, let’s talk about operating a recession-proof business in the UAE.
What Is a Recession-Proof Company, Anyway?
Despite potential economic shifts that might have financial consequences for businesses, the UAE is a fantastic place to form your own company. After all, this region is known worldwide for its business-positive market and carefully crafted regulations that allow investors to maximize their profits. But even in the best business market, recessions and world events can cause tremendous stress on specific jobs.
However, a wide array of business activities can survive and continue to be profitable, regardless of the region’s economic health. These industries are like most others, and anyone can form one. So what makes a business recession-proof? During recessions, some services will inevitably hold the same rate of demand. You tend to see this in many mainstay services such as automotive repair, healthcare, plumbing, and education.
Additionally, a number of industries produce recession-resistant products, such as healthcare supplies, food products, and cleaning supplies.
Recession-Proof Company Ideas
If you have the right entrepreneurial spirit, you can choose several business activities that will provide you with profitability irrespective of the economy. So, if you’re interested in company formation in Dubai, these industries might be suitable for you:
1. Food Delivery
Food businesses are virtually immune to economic shifts. For example, fueled by lockdowns and quarantines during the pandemic, food delivery services, and mobile ordering became increasingly popular. E-commerce and food delivery businesses have low start-up costs and lower involved risks, making them far easier to manage during inconvenient market shifts.
Everyone needs access to healthcare. This fundamental need will continue with little worry about market health. And during pandemics, comprehensive healthcare services are a necessity.
There will always be a great need for tutors in the UAE’s academic and vocational fields. Even if the economy were to turn, the demand for educated professionals would persist, allowing business owners in this field to maintain a constant income. And in addition to a steady workflow, pay rates for tutors can be financially rewarding with minimal risk.
4. Bookkeeping and Financial Services
From accounting to tax services and business setup consultants in Dubai, the need for responsible, educated fiduciary professionals is paramount for the health of the UAE. In addition to being a highly profitable venture, business setup costs in Dubai are typically low for these industries.
5. Cleaning Services
Whether it’s cleaning homes, office spaces, or businesses, cleaning services are a fundamental need that won’t change anytime soon. Cleaning companies, car detailing, and handyman services will always be in demand. It also requires a minimal upfront investment, aside from licensing costs.
6. Automotive Repair
With vehicles being a major mode of transportation, citizens owning vehicles will always need to keep them maintained. Even during times of economic strain, cars, trucks, and other crucial vehicles will require maintenance.
Why Some Businesses Are Better to Start During a Recession
While recessions are a normal part of any nation’s business cycle, it’s crucial to plan for them financially. As a potential investor, it’s vital to perform the necessary research to find an industry that shows a history of weathering economic changes. A factor that seems to unite these businesses is their immediate consumer demand. Irrespective of the economy, the need for these products and services is constant. There will be a need for food, medicine, and auto and home repair.
By choosing the right venture, entrepreneurs and investors can benefit financially and enjoy the safety of knowing their particular business activity will always be in demand.
Many businesses will seek the help of third-party consultant experts like MSZ Consultancy. These business professionals possess the innate knowledge of how to operate a successful business in Dubai or the UAE at large. They’re skilled at helping new entrepreneurs form their businesses, secure the proper licensing, and stay abreast of constantly changing regulations.
MSZ Consultancy is Your Trusted Name for Expert Consultant Services
Whether you’re interested in company formation in Dubai, the visa application process, or finding qualified candidates to manage your day-to-day operations, MSZ Consultancy has the experience and knowledge to help. We have years of experience helping clients navigate the business market in Dubai and the UAE. From handling government interfaces to managing necessary renewals and staying updated on business regulations, you need the assistance of business professionals that can take the weight off your shoulders.
Give us a call today at +971 52 544 1248 and let our team of business and legal professionals help you choose the right business activity for your needs. From concept to creation, MSZ consultancy can help you supercharge your business potential!