Taking the leap of faith required to start a business is no easy feat. A missed business opportunity can be an expensive mistake, and even though global unrest and financial uncertainty make it feel daunting to start a business if you look at the data and listen to people who made it, now could be the opportunity you`ve been waiting for.
It might seem daunting to start a photo booth business when the world’s financial future feels uncertain, but the risk is often worth the return. Rather than continue about life as you have been, taking a leap of faith can create the opportunity you’ve been waiting for.
Did you know?
According to CEO World, The US currently occupies the #1 spot on the “World’s Most Entrepreneurial Countries” list, making it the best place to start a business in 2022.
Don’t forget, some of today’s most thriving businesses began during the last recession.
So, the question remains, is now a good time to start a business?
Let’s take a closer look and find out…
When is a good time to start a photo booth business?
Most people assume that the best time to start a business is during a booming economy. However, statistics prove that times of economic downturn (like the 2008 financial crisis) can actually be instrumental in innovation and new business creation.
World-renowned entrepreneur and found of Virgin Group Richard Branson explains:
“In times of recession, there are massive opportunities and fortunes to be made, so for new up-and-coming entrepreneurs, this is the time to start a business.”
Some of the most innovative and successful companies founded during the great recession include:
- Airbnb (2008)
- Uber (2009)
- Groupon (2008)
- Square (2009)
- Slack (2009)
- Venmo (2009)
It’s worth noting that these are all digitally based companies, so you might be more recession-proof if your small business idea doesn’t require too much overhead. That doesn’t mean you need to keep everything online though. You just need to follow the pattern of providing something that serves an existing need.
According to Global Market Insights the photo booth market is only expected to grow, especially when you consider the over four billion users on social media today. Photo booths are often a non-negotiable element at celebratory events, so even if someone is trying to cut expenses, chances are your photo booth business will make the cut!
On or offline, successful businesses provide products and services people need, which applies to every market during an economic downturn. At a time when more people than ever are DIY-ing events, photo booth businesses just make sense.
Why 2022 is a great time to start a photo booth business
Since 2020, the number of people leaving their traditional jobs to start their own business is steadily increasing—and the data shows this trend is only going to grow. 2020 already set a record with 4.4 new business applications filed throughout the year, but that was quickly overshadowed by a new record of 5.4 million in 2021.
Let’s look at data over recent years:
- During the pandemic there was an explosion in start-up business applications, with almost 4.5 million by year’s end.
- 24.3% increase from 2019
- 51% higher than the 2010 to 2019 average
In the spring/summer of 2021, the Wall Street Journal shared the following data with regards to job resignations:
- 60% increase in job resignations compared to the same period in 2020.
- 12% higher than 2019–which was the hottest job market in 50 years.
(Read more about “The Great Resignation” here.)
Ultimately, workers were extremely unhappy and saw a new opportunity to create a better work-life balance and exercise more control over their time.
According to government data, over 400,000 new business applications were filed by August 2022, proving that American entrepreneurs believe 2022 is an excellent time to start a business.
Of course, we can’t predict what’s going to happen 100% of the time, however, there’s plenty of data to show that there’s promise in starting your own business even during times of extreme economic uncertainty. In fact, a 2021 survey shows that a whopping one-third of people quitting their jobs want to become entrepreneurs.
You might even be surprised by some of the industries that do well during this time—from home repair services to photo booth freelancers, the opportunities are diverse and ever-present!
Considering the photo booth market is projected to grow, it’s a great time to invest in a small business of your own, without worrying too much about overhead costs.
Why Do Some Industries Do Better During Recessions?
Most businesses suffered during the 2008 recession--small businesses in the United States experienced astronomical declines, with over 1.8 million closing down. Some of the contributing factors included economic uncertainty, poor sales, lack of cash flow, and unavailable funding. However, weak consumer demand for non-essential products and services was the main culprit.
Despite the immense struggle during this time, other businesses flourished, so it’s important to note what products are considered essential if you want to build something sustainable.
Home repair and home improvement supply business
During times of economic stress, it’s more common for people to buy homes rather than build new ones. In the past six years, Americans purchased over 39 million existing homes. The 15-year record was hit in 2021, boasting 6.1 million homes purchased.
Of course, when people buy homes, they invest in several other kinds of products and services associated with being a new homeowner. Handymen, interior decorators, landscape gardeners, and construction businesses are doing extremely well due to the housing boom.
With time those same houses will need tweaks and repairs, creating a sustainable trail of business for home repair services.
Many people believe in fixing what they have in favor of discarding it for something new. When it comes to automobiles, it’s much cheaper to replace a cart part or pay for repair service than it is to get a whole new vehicle.
Discount stores and eCommerce resale
It’s no surprise that discount-oriented businesses tend to see a boom during difficult financial times.
The good news is, you don’t need your website to be Amazon if you want to be an eCommerce entrepreneur, especially during a recession.
- During the 2008 Financial Crisis, secondhand stores saw a 35% sales increase; reselling items will happen online in the next downturn.
- Sites like Poshmark, Depop, The RealReal, thredUp, and eBay enable you to set up a profile and sell within minutes. All you need are the used items, brilliant images, and informative descriptions, and you’re in business. Check out your local Goodwill outlet if you have one or go to garage sales!
Freelancing and consulting
When you work as a freelancer, you aren’t at the mercy of someone else’s success. If someone goes out of business, you can always find a new client. It also tends to be a lot cheaper for companies to outsource certain kinds of work, rather than having full-time employees.
“DIY” event services like photo booth rentals
Since the pandemic, many people are changing the way they throw events. If people are trying to be financially conservative, it’s always great to get into a business that offers something convenient and affordable. Many event entrepreneurs are turning to photo booth rental businesses as a stream of income that requires very little investment.
The great thing about a photo booth rental is that it doesn’t cost nearly as much as a photographer, and it’s a great way for guests to make authentic memories to share for a lifetime. If you decide on a photo booth rental business, you can sell your services for weddings, birthdays, corporate holiday parties, and much more!
eLearning is a huge industry that has been ferociously growing since 2020. Think about how many times you’ve seen an ad for an online course—it may have even been served to you through social media, from an influencer you follow!
Any kind of tutoring or learning that takes place online falls into this category, so whether you teach foreign languages or sell courses on personal finance, you’ll be good to go.
We’re a nation of pet lovers and spend a lot looking after them. Check out these statistics; they’re impressive:
- A 2021-2022 National Pet Owners Survey found that 70% of US households, or around 90 million US families, own a pet
- According to the American Pet Products Association, pet industry sales grew from $103.6 billion in 2020 to $123.6 billion in 2021
And the pet industry has so many business opportunities; you can walk, feed, groom, train, cloth, or care for them.
Even in a weaker economy, you can start a business. If you choose an in-demand and flexible niche, you should be able to create a sustainable stream of income and free yourself of the traditional shackles of a 9 to 5. Let’s get into how you can start your own business with photo booth rentals.