Choosing a business that is not affected by market conditions
Recently one of my friends wanted to have a discussion on this topic. We were casually interacting and started discussing about doing some business. He was very much interested in the food industry and wanted to do some business related to food. That is when we were discussing more about the pros and cons of this business. I personally don't have proper business experience or exposure but definitely have a business mind and would like to do something in the near future.
Food industry always has a demand
It is true that the food industry always has a huge demand. In spite of the fact that other businesses might get affected during a market crash, the food industry is something that would still continue to bloom. The main reason is that people would still prefer to have varieties and would not stop eating if the market went bad. Maybe there is a high chance that during a recession people might stop eating outside food because they would like to save up some money during bad times but that's not the case for everyone.
Have a backup plan during a bad market
For people who are dependent on a business that is dependent on the market conditions, it is definitely important to have a backup plan. When the market affects everything the business can also be affected. During such conditions having a backup business can help in managing the loss and help in keeping the main business going without any disturbance.
Do a business that attracts people at all times
The food business is something that attracts others. If we are good at doing innovations, people love innovative ideas and they might want to try. That's how many food business is having a good time at all times and not disturbed when other sectors are suffering. There can be instances when a demand for raw materials can arise but there would still be a demand for food and people wouldn't mind if the cost of the food is temporarily increased. They would come in huge numbers if the taste of the food is very good.
Business as a passion
I have had conversations with some of the small business people or local vendors. This is what we call Unorganized sectors in India. A huge percentage of the business population in India is still among the unorganized sectors and they make a large market cap and they also make a lot of money in what they are doing. They know their job very well and the preparations they do for a festival season and the offers they give to others are all something that should be taught in business schools.
In some places, they have been doing the same type of business for generations together. It is more like they inherit this knowledge from their fathers and forefathers and they channel it very well to their children and grandchildren. One of the biggest driving forces for them is the fact that they are doing their business as a passion and they like doing that business. In such families, there are a few children who do a professional course on something that is not at all related to what they are doing. But ultimately after a few years, they get back to their family business and start shining on that because it is in their blood.
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