The best shield in recession times is to have a product/service that users will pay for.
But what are those services?
Asks Rajesh (@startup forum)
Now that the market is down and even India is slowly heading towards recession, I would like to understand from NextBigWhat.com readers – what is it that is a viable idea? something that people will pay for?
apart from electricity, water, rent – what do you pay for?, say:
a. Finance app that tracks your expense?
b. a social network?
c. access to recruiters?
zenx, another reader has a great response:
All big ticket discretionary expenses are likely to go down.
OTOH, small biz is likely to push harder to get walkins into their stores! They cannot afford to “close 30% of their stores” unlike big chains/airlines etc.
Consumers will also pay for feel-good stuff that comes at an ok price.
They will pay less reluctantly for “fixed cost” services. In the Indian context, especially, the consumer has always been VFM conscious, and savings rates are good – so the behaviour may not change too dramatically. The adoption of radically new ideas and/or technology, however, might be tough. People may also pay for “tiny value adds” that help them justify/rationalize emotion-led purchases – say – cheap wireless TV multiplexers for cable connections (no need to buy 2 set top boxes!) when they buy that LCD/Plasma/Projector.
What one needs to keep in mind is that even if the service is free for consumers and advertisers area ready to spend money, you are just fine! – But what’s the likelyhood (given that ad spends too are being curtailed).
Interesting discussion – hop onto the startup forum and continue the discussion.