Business during a recession in Nigeria is no easy fit but can be achieved. According to the Oxford Advanced Dictionary, Recession is a ‘period of temporary economic decline during which trade and industrial activities are reduced, generally identified by a fall in GDP in two successive quarters.’ In simpler terms, a recession is that period when the economy is experiencing a downturn. Basically, the economy of any country determines the standard of living of its citizens and a downturn in the economy only naturally spells doom. Every country is wary of recessions. Recession presupposes difficult times- people losing their jobs, companies folding up, people losing shares and likes.
A nation experiencing recession is basically like one with a dark cloud hanging over its head. The truth is no one prays for a recession because we all like comfort and security but these things happen and the best we can do is to prepare for it.
Nigeria has had its fair share of recession. In mid-2016, shortly after the 2015 general election that brought in President Muhammed Buhari, Nigeria slipped into recession and maintained it throughout that year, things were indeed hard. In a country like ours, the main causes of the recession include but is not limited to; high-interest rates, accumulation of debts by the federal government, increase in the unemployment rate, loss of confidence in our government amidst others.
Economics and business gurus have opined that as bad as recession periods may seem, it is in fact the best period to start up a business. The following is how you can start a business even during a recession.
- Recession is a problem and every problem is potential business. In fact, businesses are created simply because problems have been identified. No business will last that is not addressing a problem.
- Everyone is looking for an answer. Once you have identified one of the numerous problems a recession has created, then it is time to come up with innovative solutions. People will buy whatever you are selling that is a solution to their problem because they won’t have a choice. In fact, they would see it that you are trying to help solve a problem and not necessarily that you are out to set up a business for yourself. In a nutshell, be a solution provider.
- Make whatever you are selling affordable and you will have high turnovers. Why? Things will be cheap as well, and a lot of people will be looking for solutions that are pocket-friendly and still meet their needs. People will want to save, so price your product in such a way that when people are thinking of affordable solutions for their personalized needs, they are thinking of you.
- You won’t have too many difficulties finding the right people to work for you because a lot of people would have been laid off and you would have the opportunity of choosing people more than qualified for the role you want them to fill as well as you get to pay lesser than the regular remuneration. More savings for you.
- Cost of production will be cheaper if the business you are venturing into is production-based. Everything will be cheaper and so you enjoy a lot of capital maximization.
- For big companies that do not plan ahead, recession poses a lot of risks and small-scale businesses have the opportunity of shinning. Big companies are at a risk, so it is a big opportunity for small startups.
Recession offers a lot of opportunities. Even when you do not want to venture into a business, you could decide to invest, knowing fully well that you would get your interest when the market picks up eventually. Though I must mention that before you get involved in any investment, make sure you are clear on how it works, except it is an investment in real estate because real estate is profitable any day, anytime.
The IMF has predicted that as a result of this COVID-19 lockdown, Nigeria might just be heading to its worst recession in over thirty years. In the words of Robert Kiyosaki-
‘Smart investors make fortunes in crashes… as long as they stay aware and prepare.’
Now that you are aware of an impending recession, are you preparing?