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There is no better recession proof business than one that sells products or services the buyer is legally required to buy. For decades the automobile insurance industry has been among the most stable of all industries for exactly that reason. The problem with insurance in the current environment is competition. There are simply so many insurance companies out there. Competition is fierce. The television and web commercials make their strategy clear. The auto insurance companies are competing on price. It is difficult to break into a market that has matured to the point that the players are competing on price. New start ups need other competition points such as quality, customer service, and national presence. Industries with mandated services generally fall into one of two categories: public health and public safety. Some that are open for growth include trash collection and restaurant services. For exampls, if you have never owned or managed a restaurant, you may not be aware of the multitude of required services public health dictates to dining establishments. These can vary from state to state, but often include disinfection, pest control and grease trap maintenance. The National Fire Protection Act 96 governs ventilation hood maintenance. In most business start ups, the entrepreneur looks for a product or service that is currently not being offered in his area. With mandated services, that is never the case. If the law requires hospitals, public facilities or restaurants to use the service, there will already be someone providing it. The key is to find your edge. If you are able to buy a franchise and bring in a national brand, that is a very powerful edge. But there are other ways to discover or create an advantage for yourself. To take advantage of mandated services, follow three simple steps. 1. Check with your state, county or municipal public health department to find what services are mandated in your area. 2. Search for competition in the Yellow Pages or online. Ask yourself, “Is the market truly saturated?” Call some existing providers and ask them how far in advance you will need to schedule their service. If they tell you that they can’t get to you for 30 days, you may have found a market that is ready for another player. 4. Ask consumers of mandated services if they are satisfied with the quality and service of their current provider. Often mandated service providers get lazy and leave the door open for competition. There are no certainties in life or business, but offering mandated services is a great way to ensure yourself customers in a recession. The rest is up to your business acumen, quality of work and customer service. For a list of franchised businesses that are highly recession resistant see: http://www.wfafranchiseconsultants.com/Recession_Resistant_Franchises.html Ed Wills is a franchise and small business startup consultant with WFA Franchise Consultants. He specializes in helping people identify business opportunities that will help them reach their personal and financial goals. He writes, speaks and coaches on a variety of business and success topics. You can learn more about his services or request a free consultation at http://www.WFAFranchiseConsultants.com.
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