A few days ago, I received several questions from my friends about what kind of business would be suitable to start given the current economic conditions. Let me explain the economic situation around me. As of August 25, 2026—the day this article was written. I’ve heard many complaints from my colleagues. They’ve started complaining about why sales have dropped and how hard it is to make money. Some have even said that it was easier to make money during the COVID-19 pandemic than it is right now.
If we were to complain, I think there would be plenty to complain about, especially government policies that do not favor various segments of society. Instead of complaining, why don’t we try to learn to understand the current situation, recognize our potential, and ask ourselves what we can do under these circumstances?
Outline of Economic Conditions
I live in a small regency that, if I mentioned its name, you probably wouldn’t recognize where it is. Since where I live is a transit town connecting two major cities, my town isn’t a top choice for vacations. Most people here work in agricultural sectors, and this month we’ve been hit by a long period of drought; many farmers aren’t farming, nothing is being planted, so the farmers have no income. And interestingly, farmers are the biggest driving force behind the local economy.
This year, politics has truly shaped the cash flow in my hometown. There have been many efficiency measures implemented in the government sector. Of course, this has also affected the cash flow here. The already limited funds have become even harder to circulate. People tend to hold off on purchases and prioritize meeting their basic needs first. Yet the government sector is a segment of society with higher incomes compared to other segments.
Because of these conditions, many young people are seeking better income opportunities outside the city or even abroad. Many of my friends have chosen to work abroad because it is the most rational option given the current economic conditions. They plan to work for a few years and save up to build up capital. With sufficient capital, they hope to start a business that can serve as their primary source of income.
Trends in mainstream society
With so many people working abroad and saving money, there’s bound to be a lot of cash they’ll want to convert into a business. It’s very difficult for someone to live their entire life relying solely on their savings without any other source of income.
Most foreign workers who save money and accumulate significant capital generally have no experience running a business, so they rely on intuition when running their businesses; however, the intuition of someone who lacks enough experience is often misguided. They generally target B2C business models—for example, opening a coffee shop, a gym, or a restaurant.
Businesses that target consumers directly (B2C) have quite unique characteristics. For a business to run smoothly, there are many factors that need to be considered. For example, whether the products offered are accepted by certain segments of the population, how waste is managed, and how to deal with sales uncertainty.
Similarly, if you want to start a business using a B2B model, the first obstacle you’ll face is capital. B2B businesses tend to require more capital because you have to offer products at lower prices than your competitors so that customers can resell your products.
Guidelines
To run a business successfully and gain customer acceptance, the concept is quite simple. The first question you need to ask yourself is: Why do you want to start a business? The answers may vary widely—from fulfilling personal needs to making the most of your savings. But one thing is certain: everyone wants their business to attract many customers. To reach the point where customers seek you out, your product needs to solve a problem in the market, or at the very least, offer greater value than your competitors’ products. Here are a few things to keep in mind if you’re looking to start a business.
Find a small pool that you can dominate
“Pool” is a term I use to describe a market segment you can target. A pool can arise from a problem faced by a market segment that you solve, or you can create your own market segment. But the easiest way to find a pool is by solving an existing problem.
The problem here doesn’t have to be a complicated one. When you first hear the term “problem-solving,” what likely comes to mind is a solution that addresses a major societal issue—for example, finding a treatment for cancer. But solutions aren’t always about big problems. They can simply be a more effective way to handle an existing process. Let me give you an example. Suppose there are many doctors in your area who still use manual record-keeping; you could create an app to help doctors manage their clinics.
To start a business, the first step we need to take is to find a small market segment and then dominate that segment. In other words, we must find a small but valuable niche—small enough for us to conquer and valuable enough for us to pursue. For example, if the market segment you’re targeting is one you can dominate but doesn’t yield significant profits, it’s only a matter of time before you run out of all your money.
Follow the money
As discussed above, you already know that the economy is currently slowing down, and most people tend to hold off on purchases and focus instead on meeting their basic needs. So how can we still succeed under these current conditions?
People are indeed shifting their purchases toward essential goods. Why don’t we focus our energy and capital on responding to existing market demand? After all, it’s better than creating new products that may not necessarily succeed.
Open a rice store and become a distributor that can offer competitive prices compared to other grocery stores; supply rice to various grocery stores in your neighborhood. Don’t have much capital? Don’t worry—just because your capital is small doesn’t mean you can’t get started. You can still open a grocery store, provided you don’t focus solely on selling rice. You may not be able to win on price alone, but you can win by offering a wide variety of products.
In the middle of an economic slowdown like this, it’s best not to be too aggressive in running your business. Operate with low margins but consistently set aside profits, and if you have the opportunity to expand your business, take it. Don’t forget to set aside a few percent of your capital as a safety net that you can use if your business doesn’t go as planned.
Decide your positioning
Positioning in business has a huge impact on the sustainability of your business. If you misinterpret it, your business may fail to grow, and the possibility of it going bankrupt is greater. In business, positioning is a strategy for establishing a product, service, or brand in the minds of consumers.
To determine your positioning, you need to conduct market research and identify your competitors’ strengths and weaknesses. After that, you need to assess your own capabilities, and with all that knowledge, you need to position yourself appropriately. The following are several business positioning strategies based on the end consumers of the products you sell.
- B2B (Business-to-Business)
A B2B business model refers to the sale of products and services between businesses or business entities, rather than directly to end consumers. In other words, this type of business targets other businesses as its primary market. For example, if you own a chicken-processing business and supply various restaurants.
- B2C (Business-to-Consumer)
A business model in which a company sells products or services directly to end consumers. An example of this business model is, for instance, opening a restaurant that sells grilled chicken directly to customers.
By understanding your positioning, your business operations will be more effective. For example, if you start a distribution business and your warehouse is located far from the main road, you don’t need to worry too much about your warehouse being quiet because your core business activity is shipping via truck.
By understanding that your positioning is as a distributor whose target market consists of other, smaller stores, you can focus all your efforts on finding additional customers, securing orders from other stores, and ensuring that every item is shipped as agreement.
Conclusion
By following the guidelines I’ve outlined—such as understanding your positioning, knowing what your target market wants, and mastering a small market segment before expanding—your business is more likely to grow. I know that the business world is vast, and a single opinion cannot solve a thousand problems. So you shouldn’t rely solely on my writing as your only guide when running a business. However, if my writing can offer you even a little insight, I think that’s enough. If you have any feedback, please contact me via the email address I’ve included on the homepage.
Also read: “Book Review Series: “Crossing the Chasm”