Good Investments in Hard Times
When the economy begins to go downhill, it’s natural to feel like you need to store your cash under a mattress and pinch pennies. It’s true that spending frivolously will only aggravate the situation, but there is a difference between shelling out $5 for a latte every morning and making a wise investment. In tough economic times, think about putting your money where it can really benefit you.
Investors should consider which items and services consumers will continue to use, or convert their spending money toward, and delve into those industries. Here are a few ideas to spark your imagination.
Storage Units
Economic struggles can mean downsizing. Whether it’s a home or a business, people want to cut down their daily or monthly expenses; they may move from a single family home to a condo for instance. But there’s this thing people carry with them; it’s called baggage. Not the emotional kind—the material kind, their “stuff.” People want to spend less on their energy bills, their mortgage, and other routine maintenance but they don’t want to give up their stuff. Consumers are deciding to make a monthly payment to store those items rather than renting or owning larger homes.
Unified Communications
A growing technology that merges humans and devices, UC speeds up response time, and thereby the resulting actions. Look for new businesses that combine email, fax, and scanning with IP Telephony, data sharing, and Internet whiteboards. Look for solutions to business needs, and follow the trail to new tech embryo companies.
Sports Facilities
In tough times communities really throw their support behind local sports teams, college teams, etc. They need heroes and role models for their kids, and athletics has always provided this. America loves its sports heroes and the fact that since Katrina’s hurricane took down a large part of Louisiana’s Superdome, our nationwide facilities have taken a downturn in backing.
Revenues are huge from games and events held at sports arenas, stadiums, and the like. It’s also a great way to bring in tourism dollars and new college pro athletes who bring in dollars as well. A refurbished stadium can give a much need “shot in the arm” to a community, while earning more than respectable incomes for its investor/developers.
Car Share Businesses
Look into a local take on a service like Zipcar.com. That company, for instance, operates in a very few cities and yet it is genius. They provide the insurance, the gas, and the vehicles. The cars have dedicated parking spaces, in high use areas, so you can merely reserve online (computer or your smartphone) and walk a few blocks, wave your “zipcard” at the windshield, hop in and drive.
It’s a great idea and one that has much room for expansion; especially to cities like Las Vegas, which has a very poor transportation system and has a sprawling land area. This criteria is perfect for a car share company. Think about bike-share as well, in the more compacted city areas with parking challenges. All of this helps the environment, the budget, and provides convenience; all popular concepts in today’s world.
The old saying, “Necessity is the mother of invention,” is very relevant today. Basically an investor only needs to look for problems, and then offer real solutions; in the private and business sector there is always room and appreciation for innovation.
Photo credit: Queens, NY, Storage Units by Brian Pennington/flickr.
Steven Conners is a content contributor for companies offering interest only mortgages, and she insists that cheap mortgages are still available for all types of borrowers.