What is the stagnation in the economy’
The sluggish economy is a state economy in which growth is slow, flat or declining. This term can refer to the economy as a whole or component of the economy, such as weak housing.
Breaking down the ‘sluggish economy’
When the economy is in a sluggish state, it is generally bad for business, as consumers and other companies are less likely to buy its products. The sluggish economy also has a negative impact on the labor market, as businesses are reluctant to hire additional employees in periods of weak economic growth.
The financial media often use the term “stagnation”. For example, it is common to see headlines like “the Economy is sluggish because of rising oil prices.”
Good business to start in a sluggish economy
It may sound counterintuitive, but a sluggish economy is actually the perfect time to start certain types of businesses. Less competition for consumers and reduce the cost of marketing can create the favourable conditions for success. Here are some of those types of businesses:
- Debt collection: when collecting a debt is not an especially pleasant business, it is one that, as a rule, well during economic downturns.
- Medical goods: population ageing, health deterioration occurs, the purchase of medical goods and services—recession or not.
- Job search Agency: when people lose jobs, they often turn to employment agencies or job search firms.
- Mediator: in difficult economic times, many people are turning to mediators instead of lawyers to settle disputes simply because they are cheaper. If you are skillful in negotiations, it can be a solid business opportunity.
- Security company: security company, as a rule, is experiencing a boom at the time of stagnation in the economy. Business security is not just guards, but also on the implementation of the program for employers.
Marketing during a sluggish economy
Struggling economy actually presents an opportunity for marketers. In such cases, people are looking for reasons to feel good and in difficult economic times, probably thinned the competitive marketing and advertising efforts. This is a great opportunity to be heard in the market. They key is to provide attractive offers, both in appearance and values, and use creativity to meet their needs, making them smile and relieve stress. If the company can achieve such a result, even if the client is not ready to buy, once their finances improve, they will remember how you made them feel through your marketing efforts. Marketing campaign that elevates its potential customers can be different from goods that are otherwise the same. It’s all about give your audience a reason to buy from you.