While the pandemic exposed flawed business models and the inability of many companies to adapt and survive, certain patterns have been discovered by identifying those that thrived during lockdowns.

Generally, organisations that manage to survive economic crises possess the following characteristics. Here are 10 unique traits of a recession-proof business.

1. The business offers simple solutions to common problems

Many successful business models were developed through solving common problems. Homestay applications such as AirBnB tackled the high costs of hotels; e-hailing apps like Grab tackled an outdated taxi platform with poor service.

The more common or persistent the complaint, the more likely it is that a solution will be both sustainable and profitable.

2. The business can be run by an individual or team without its owner

Growing a business while simultaneously becoming less involved is a skill all business owners should learn. By micro-managing or being too heavily involved in a business that takes up too much time, you become less efficient and miss out on other opportunities.

Building a system or team to run the company independently is key.

3. The business provides a service or product with little to no physical inventory

Physical inventory comes with liabilities such as insurance, storage fees, and loss of cash flow. Online services have seen tremendous growth as they are a perfect example of businesses in the digital world with minimal to no storage or inventory costs.

4. The business can create multiple streams of income

Any entrepreneur or business that relies on a single stream of income is vulnerable to threats to their industry.

Add-ons, accessories, or complementary services can bring in additional streams of income, thereby lowering risks and limiting the vulnerability of losses from relying on one business alone.

5. The business can be adapted to work globally or in multiple markets

Location-dependent businesses were some of the hardest-hit during the pandemic. A business that can adapt to offer delivery or fulfillment of products and services beyond its geographical boundaries can succeed beyond the limits of a physical location.

6. The business has a semi- or fully automated marketing, sales, and service system

One fatal flaw demonstrated by businesses is the inability to react to rapid changes and communicate this to their clients.

Companies should be able to pivot their marketing, reach a new audience, or even launch a new service in the midst of challenges. Having a system in place such as mailing lists or chatbots can help automate sales and communication.

7. The product/service has a long shelf life or expiration date

The food-production and restaurant industry often sees huge losses owing to physical inventory that results in wastage and/or spoilage. Reduce your turnover by utilising or offering products with a longer shelf life.

Services, on the other hand, are much less vulnerable and actually work better if they have an expiration date so they have to be “consumed” and, ideally, repurchased.

8. The product/service is consumable or subscription-based and provides ongoing sales

The demand for subscription-based businesses has grown thanks to advances in technology and the widespread use of digital products.

From games and software to razor blades and groceries, consumable goods and services present an opportunity to retain customers for longer periods.

9. The product/service is low-cost or affordable

As much as big-ticket items can result in huge profits, businesses that offer expensive products and services are often the first to feel the brunt of any downturn.

Ideally, you should be able to provide products and services that address the needs of your customers while being price-sensitive.

10. The product/service has a wide demographic or universal appeal

Having a wider customer base to market to – both locally and globally – allows you to increase your exposure while lowering your risk. Make full use of digital products or platforms to reach a larger audience.

Reg Ching is a walking quadriplegic (OKU), digital business consultant, medical cannabis advocate, and cryptocurrency enthusiast. Follow his journey at regching.com.