Times of high inflation can be so perplexing for the business community. Operating costs have a tendency to skyrocket and this translates into downsizing of operations due to reduced demand. Some business operators end up laying off employees in a bid to reduce operating costs. Costs of goods and services also end up surging as businesses will try to recover costs and make a profit. Buying power of consumers also dwindles and this deals a heavy blow to the sales side of businesses. All this can warrant a pertinent question as to which businesses are inflation-proof. The general crux in the business ideas I shall discuss is that the demand for the goods or services they offer never dwindles – which means pricing can always be adjusted to factor in inflation. Even when that’s done the demand still remains high. Herein I explore some business ideas that are inflation-proof.
What Constitutes An Inflation-Proof Business?
This is a business whose goods or services offered are termed essentials – examples being medicare or education-related businesses. Another characteristic lies in a business that is able to price its goods or services in such a way that thwarts competition and dominates its realm. The third aspect has to do with a business’ ability to stay current and up-to-date with respect to socio-technological trends. The final attribute being a business whose goods or services sell no matter what. So let’s look at some of such business ideas:
Funeral Services
Ghoulish as this might sound but this one business idea that always thrives even in times of hyperinflation. So the entry point can be opening a funeral home and giving people a platform to have a funeral cover. You could be involved in providing related services such as design and making of tombstones or design and the making of coffins/caskets. With an increased incidence of people passing on this means the demand for funeral services will always be high.
Medicare Services
Since most public hospitals generally lack adequate resources this presents business prospects in healthcare. Despite whatever phase a nation goes through, the need for Medicare will always be there. So in times like these and resource-willing, you can still operate hedged from inflation. Essentially during inflation, some things normally known as basics become non-essentials. However, healthcare still remains an on-demand service despite high inflation. The crux here will be to provide affordable services so as to carve out a significant market for yourself. So starting a private clinic, opening a pharmacy are some of the angles you can approach this from.
Food And Beverages
The demand for food and beverages be it fast foods or retail is always high. Even in the leisure and entertainment arena the demand for food and beverages still remains high. So starting a fast food joint or a drinking joint will thrive under hyperinflation. On the fast foods front, you might want to consider healthier food alternatives such as native Zimbabwean dishes (stuff like traditional cuisines). With the right framework, you can even go into wholesale or retail – though there’s always risk involved it works.
Repair And Maintenance Services
Here you have the liberty to choose which area of specialization you want because there are many from domestic to industrial. Vehicle repair and maintenance is one such area which is inflation-proof. Varying types and brands of vehicles will always need repair and maintenance from time to time. You’re sure to realize income on a daily basis especially when you incorporate other value-added such as car washing and tyre services.
Tutoring Services
I recently did an article on how to start a private tutoring business. It’s another type of business that thrives well under high inflation because of the many people now pursuing academic qualifications. So be it academic studies or vocational studies you can offer tutoring services and stay afloat in times of hyperinflation. Most teachers and lecturers alike have always used tutoring as a means to boost their incomes, especially in times like we are in now.
Cosmetics
How you want to approach this is solely up to your discretion. You can focus on the retailing of diverse types of cosmetic products from the skin to hair care products. People will still want to have their hair, skin or nails done amongst many other cosmetic elements. You can incorporate that with beauty parlour, salon, barber or such like services. Such types of businesses always thrive in times of inflation as is well evident if you do a snap sweep across any CBD.
Events Planning And Management
The planning and holding of events never cease no matter what. Various types of events spanning from gigs, parties to weddings, amongst plenty others, are held every week. So this is one business area in which money can be made despite inflation.
Mass Transportation
You need only go outside to see how people still travel to various destinations despite high inflation. It can be intra-city, inter-city or even across borders; people never stop moving from point A to B. That’s why Public Service Vehicles (particularly the servicing of common busy routes), haulage, vehicle hire or rentals or taxi services never run dry.
Horticulture
Not too long ago I did an article on 10 horticulture business ideas for Zimbabwe10 Horticulture Business Opportunities In Zimbabwe. Horticulture is one of the thriving business ventures in the country right now. Most people I know who are fully engaged in horticulture at the moment are making lots of money. I know of one guy who majors on tomato and watermelon farming that is enjoying good returns. The approach is to just focus on essential food crops that constitute the meals of the average Zimbabwean; examples are tomatoes, green vegetables, onions, just to mention a few.
Just because I’ve mentioned that these businesses are inflation-proof doesn’t mean you just jump into doing them. The element of risk still applies just like any time you’ll ever think of doing business. This means you still must do your homework to do market research and all other important elements of setting up a business.
