So there’s lots of talk on building a multi million dollar company . I’ve believe that’s very possible , but can it be done recession proof ? If so how ? Any thoughts ?
My personal belief is that no business is recession proof after seeing the last recession.
It just is what it is.
5 Likes
The reality is, when there’s a recession, the small guys get crushed and the dominating company gets everything. To be recession proof you need to dominate your area. You can’t compete with others.
2 Likes
What do you mean by “dominate”? Legit question, just curious.
1 Like
2008 was my best year till that time bought a house a month before the crash, 2009 was down a bit 2010 was record year. I lived ground zero of housing bubble.
Do your thing be scared of a recession if you live in a area with a economy that isn’t diverse. If it’s broad base you’ll be ok
2 Likes
How come the word dominate triggers the thought bondage and the first image in my mind is @ReachIt Mini?
You do you Perry. You do you… I got my pole the other day and wow… Fetish much?
2 Likes
I always have those, but some are better left unsaid. This one though… It depends.
Are you residential mostly?
I mean… I try to target super high end homes. Disposable income in any economic climate.
One might say a high end residential window cleaning company would absolutely be recession proof.
Was a darn good year for me too. Back then I was rocking my squeegee and smiling while other people were all stressed out. Dude. I was strictly upper middle class and up. Increased marketing and didn’t miss a beat. Best time ever… Riding my scooter through the neighborhoods. People laughed at me so hard… Especially in Oklahoma. A man don’t ride a scooter in Oklahoma.
I got so many compliments on that one though. People would say, “I saw you riding your scooter up the drive. I thought that was just clever… When can you come and give me an estimate?”
Anyway… 2008 was AWESOME! Loved it…
1 Like
When I hear the word dominate , my understanding is that they have that area on lockdown . Meaning a new guy/company would have to spend lots of money and effort to have those clients leave that dominant company . Or they call the new company when they have a complaint with the dominant company . I only see this happening in a small town or an exclusive community . Like how a realtor will dominate or have on lockdown a private community, where he’s everybody go to guy. Now is that ressiosion proof ? Having an area on lockdown ? Well you’re better off than the newer guy , that’s for sure
That’s good to hear that you did well during 08-10. I personally took a big hit during Thoses years . That why I’m very hesitant to grow and then be force to reduce or even worse close my business .
Exactly ! No business is ression proof . But there’s a smart way to grow and not be force to lay off and sell assets to stay affloat when it hits the fan again . I’m just trying to find that way, so I don’t get burned again
Nothing has happened yet
That’s exactly what dominating your market means.
When times get bad two things happen. Tons of people contract and a few people expand. The people who contract do it out of fear. The people who expand do it because they see an opportunity. A recession is actually a great time to crush everyone. When your competition stops marketing and laying people off, you market more. If you expand while people contract you will dominate your market.
4 Likes
Interesting take. Sounds very similar to the stock market. Buy up when others are panicking 
That reminds me: time to finally start that ‘retirement’ fund…
I think the key is to keep up the marketing, try to purchase all assets cash that way you don’t have any outstanding loans and get more aggressive than the competition.
3 Likes
I have found the opposite to be true. If you are small and have good customer service and have built relationships with people then you can grow during a recession. If you are a large company who has many employees and lots of commercial accounts then a recession can screw you bad.
1 Like
Not a million dollar company, but we started in spring of 2008 and doubled our sales the first 3 years with great growth every year since… rich people always stay rich… its the middle class people that take the hit during a recession…
3 Likes
I think that’s key , keep your debts to a minimum
1 Like
We are looking to add a portfolio of assets to our company over the next 5 years. We plan on stop renting and buy our next shop this year or next. I am also looking to put money away into some conservative mutual funds.We have a few other ideas but we dont want our money just sitting in the bank and savings all year… we want it to work for us with minimum risk.
1 Like
I’m largely in a non-diverse economy (oil, gas, coal) and it’s in the tank right now. Oil companies are shutting down or cutting back on employees and or hours, retail is down, construction has been cut way back, it’s just plain ugly. This is probably the 2nd big energy recession I have gone through and I can honestly say it has not had much of an impact on my bottom line. Most of my customers are people who have for the most part already made their money in the energy sector and have positioned themselves financially. It’s the guys in construction and support business who go out and blow all of their money when times are good and then scrape by when people no longer have money to spend on big ticket items.
2 Likes
