Many countries around the world have been raising alarm over the pending recession that is expected in 2023 and advising their citizens to prepare accordingly.
The CEO of the largest eCommerce website in the world, Amazon’s Jeff Bezos recently advised people to save their money and not spend on unnecessary items. Here in Nigeria, most people have been feeling the effect of our very bad economy, and it’s most likely not going to improve in 2023 (regardless of who wins the election!).
So, before you start that new business, you must consider whether the economic situation would be favourable or will the economy spell doom for your investment.
Here is a list of businesses that you should think twice about starting in 2023:
1 Restaurants/catering:
We have all heard the popular Nigerian saying “there is rice at home”. Well, many people are about to start using it more in 2023. The price of food keeps skyrocketing which means restaurants and all catering-related stores like cakes, snacks, etc, will have to keep increasing their prices to make any sort of profit.
This would mean that more and more people will no longer have the additional funds for leisure activities like eating out and treats. So, any new restaurant business without a loyal customer base would struggle to stay open.
2 High end fashion
Just like the restaurant business, the clothing industry is going to struggle as well. Stores selling high-end clothing will do worse off. People will still buy clothes, but most people will not be able to afford high-end clothing.
Building a customer base will be quite difficult (not impossible though). So, unless you have direct and easy access to the high-end customer base, I would advise you to avoid this business.
3 Cleaning services
Services such as professional cleaning might see a reduction in customers as more people would opt for cheaper options like cleaning their homes and spaces by themselves. When people have less disposable income, they eliminate expenses that may seem like a luxury and things that they can do on their own. This might also include businesses like a car wash.
4 Beauty and skin care
The beauty and skincare industry would also experience a decline as fewer people will have the disposable income to pamper themselves. The highest hit might be SPAs and massage parlors, High-end beauty products, and cosmetics.
More people would opt to do their beauty care at home with affordable products. Hair products and salons might see a decline as well but not as severe as skin care.
This is not an exhaustive list, but this should give you an idea of some factors to consider before starting that new business in 2023.
