How to Start a Successful Business During War?
There’s no question that war creates a difficult environment for business owners, but it doesn’t mean that businesses can’t thrive. In fact, many entrepreneurs find opportunities to start and operate successful businesses during the war. This is due in part to the essential services that are often in high demand during these periods. Health care, grocery stores, and home maintenance are just a few of the essential services that entrepreneurs often seek out during the war.
When a country is at war, citizens may be confined to their homes or subject to early curfew times. This can create a boom for businesses that offer streaming services, digital video games, computer equipment, and other forms of entertainment. Additionally, businesses that provide cybersecurity and IT support often find themselves in high demand during war times.
There is a fear that essentials may become scarce; therefore, ‘luxury’ businesses such as restaurants and fashion retailers may take a hit. With these obstacles in place, entrepreneurs will likely find it tough to break into the market during times when there’s lots of competition for customers. Remember: no business idea is guaranteed to succeed. So, choose industries where there is significant demand to provide successful outcomes more often than not.
1. GROCERIES
Citizens in a war-torn country need a constant supply of food and other essential items to survive. Providing them with a secure and convenient way to get these supplies is almost guaranteed to be profitable for businesses. There is always a demand for food among the population, but during times of conflict, people are more likely to cook at home instead of eating out or ordering takeout. Grocery stores that offer extra value-added services such as delivery are likely to do well in such periods.
2. HEALTHCARE
Healthcare services are an essential part of any society. In the event of a national crisis, healthcare professionals may be compelled to go to war. This requirement can leave the local population without adequate access to healthcare services. Health care is a necessity for citizens not only to survive but also to have somewhat of some peace of mind. During war periods, the demand for health care services usually spikes because people are more prone to injury and mental breakdowns. Unfortunately, these same people who need healthcare the most during wartime are often the ones left without it due to their lack of resources (money, transportation, etc). Healthcare is a service that people need, no matter what the cost.
3. RECONSTRUCTION
Reconstruction contracts are a highly sought-after field during a war. There are a lot of resources being invested in rebuilding structures as fast as possible.
Reconstruction involves reconnecting water supplies, repairing bridges and roads, reestablishing communication networks, clearing debris, and constructing or repairing buildings damaged by war. The lack of government oversight results in significant waste, fraud, and abuse. Since 2003, the Pentagon, State Department, and U.S. Agency for International Development have paid nearly 100 billion dollars to contractors in order to rebuild infrastructure projects in Afghanistan and Iraq. The main portion of that money has gone to foreign firms, and a lot of the work has not been completed.
4. LOGISTICS
Logistics companies are highly profitable during the war. They are responsible for organizing and transporting troops, supplies, and equipment. The chaotic environment of war often leads to high demand for their services.
5. WEAPON SUPPLIERS
The arms sector is the key driving force behind all commercial activity during a war.“One-quarter to one-third of all Pentagon contracts have gone to just five major weapons contractors: Lockheed Martin, Boeing, General Dynamics, Raytheon, and Northrop Grumman”. In the period from FY 2001 to FY 2020, these five firms have split more than $2.1 trillion in Pentagon deals (in 2021 dollars).
7. PRIVATE SECURITY CONTRACTORS
Private security contractors have been able to make a lot of money from wars. They provide protection for embassies, bodyguards, oil pipelines, and other infrastructure projects. They also train individuals in security procedures. In the war-torn Congo, where militias still terrorize civilians and fight each other for control of mines and other resources, private security companies have soared in recent years to provide protection for businesses and NGOs.
8. BEER, WINE, AND LIQUOR
Selling alcohol is another war-proof business venture targeting the “guilty pleasure” industry. This product is commonly associated with profit during the war as people drink to forget about their troubles or to celebrate victories. When individuals are unable to engage in leisure activities, they are more inclined to consume alcohol as a way of dealing with their problems. The citizens consoling themselves with alcohol is an unhealthy trend; however, it can be profitable during a war.
9. DISCOUNT RETAILERS
Consumers are often forced to cut down on luxury goods when there is a war. Therefore, a manufacturer offering relatively low prices is more likely to succeed. Fashion, jewelry, and other nonessential goods traditionally experience losses during the war. To achieve such low prices, a business typically requires large amounts of capital. Capital will help to generate better economies of scale for the company. This advantage allows for the business to offer lower prices than its competitors.
10. FINANCIAL ADVISORS AND ACCOUNTANTS
During periods of uncertainty, consumers will likely seek solid financial advice to protect their investments. The chaos caused by periods of war can cause anxiety for investors. These environments are often unpredictable, and the economic future of citizens is often not guaranteed. Investors usually take swift action in these periods to protect their investments, diversify or invest in new opportunities. To ensure that businesses remain afloat, they will likely seek guidance from accountants. These valuable skills are critical to organizations during a war to help them survive possible tough times.
11. CYBERSECURITY AND TECH SUPPORT
Wars not only have the potential to cause physical damage, but they also pave the way for other nations to spy on a country’s citizens. With so much business and communication taking place over the internet via electrical equipment, it is now easier than ever for criminals to gain access to private data. . Information on the general public’s shopping, working, sharing, and streaming habits can be obtained. As a result, citizens must keep up with current trends and implement security precautions to avoid cybercrime. Given the high percentage of remote office employees during a war, there will almost certainly be a requirement for tech support.
