When money is tight, people think more carefully about where they spend. That gives small, nimble entrepreneurs a chance to meet people’s specific needs and offer real value. Starting an online business lets you test your ideas without spending too much, and scale up as you learn what works.
Here’s how you can get started, and why now might be the right time.
Why a down economy can be the right time to start
When the economy slows down, large companies often cut budgets, pause new projects, or lay off workers. This can open the door for small businesses to step in and meet people’s needs in new ways.
You might find there’s less competition in niche areas, or that some customers are being overlooked altogether.
Start-up costs can also be lower during an economic downturn since many vendors offer deals on tools and services. And because people are looking to save money, time, and stress, they’re often more willing to try something new.
If you’ve recently lost work or had your hours cut, starting an online business can give you back a sense of control—and a chance at a new source of income.
Explore business ideas with low start-up costs
You don’t need a big budget to get started. Many people launch online businesses with just a laptop, a good idea, and some determination. Here are some proven models that don’t cost a lot to start:
- E-commerce—Sell things you make yourself, or buy products to resell. Dropshipping (where you sell products without having to keep them in stock yourself), and print-on-demand (where you print T-shirts or mugs only as orders come in) help keep your costs low.
- Freelancing—Offer services like writing, design, web development, or translation. Freelancing platforms make it easy to connect with clients around the world.
- Digital products—Create planners, stock photos, templates, e-books, or courses that people can download. Once you’ve made them, digital products can generate an ongoing passive income.
- Subscriptions or memberships—Share curated content, exclusive content, or memberships. These models bring in recurring revenue and help you build long-term relationships with customers.
Not sure what online business idea to pursue? Start with what you’re good at or what people already ask you to help with.
Looking for inspiration?
Use these questions to reflect, brainstorm, and help shape your online business idea:
- What are people always asking me for help with?
(Think skills, knowledge, or services you already provide informally.) - What kind of problems do I enjoy solving?
(Your online business should help people overcome something they find frustrating or time-consuming.) - What could I create once and sell again and again?
(This could be a digital product.) - What do I wish existed, but haven’t found?
(You might not be alone in that! This can spark a great niche idea.) - Who do I want to serve, and where do they spend time online?
(Your marketing and messaging will come together faster once you can picture your ideal customer.)
Use platforms that make it easy to launch
You don’t need to build a website from scratch or be a technical genius. Many platforms are designed to help small businesses get up and running quickly:
- Etsy is an ideal platform for selling handmade goods, digital downloads, or creative products.
- Amazon is a powerful way to reach millions of customers if you’re reselling physical products.
- Shopify is a user-friendly e-commerce platform that’s Canadian-founded and can grow alongside your business.
All three offer built-in tools for sales, shipping, and marketing. You can start small and inexpensively, and only pay more as you grow.
Find the right niche
Before you commit to a product or service, take time to understand your target customers. Who are they? What are their challenges? What do they need? In a tough economy, people are often looking for ways to save money, reduce stress, or solve everyday problems more efficiently. Instead of trying to serve everyone, focus on a specific group whose needs aren’t being fully met. That’s your niche—and a good one can make all the difference.
You’re looking for areas with strong demand, but limited competition. To find those sweet spots:
- Dive into online forums, Reddit threads, or social media groups related to your area of interest. Pay attention to what people are complaining about or wishing existed.
- Use free tools like Google Trends or Ubersuggest to see what kinds of questions people are asking and how popular certain topics are. Even typing a few words into Google’s search bar can be revealing. The suggestions that drop down are based on what other people are searching for. This can give you clues.
- Check out reviews of similar products or services. Are there consistent complaints or missing features? That’s an opportunity for you to do better.
The goal isn’t to create something flashy for everyone. It’s to offer real value to the right people. If you can solve a specific problem for a specific group, you’ll have a strong foundation to build on.
Keep marketing low cost and effective
Marketing doesn’t have to cost much. You can invest time instead of money. Here are a few ways to get the word out without breaking the bank:
- Start a social media presence on the platforms where your target market hangs out. You don’t need to be everywhere. Just be consistent and helpful.
- Use email marketing to build relationships and stay connected with customers. Free tools like Mailchimp can help you get started.
- Tap into community groups on Facebook, Reddit, or Discord where your niche audience spends time.
- Ask happy customers for reviews and referrals. Word-of-mouth remains one of the most powerful tools, and online feedback carries influence.
- Create useful content, like a how-to guide or tips, that positions you as a helpful expert in your space.
Need more ideas? Alberta’s Digital Economy Program offers support for small businesses wanting to improve their digital marketing.
Manage smart and stay lean
In a down economy efficiency is everything. A lean business can survive market shocks and grow sustainably over time. Here’s how to keep your online business nimble:
- Create a tight budget and revisit it monthly. Use free or low-cost tools like Wave, which is built in Canada, for bookkeeping.
- Avoid debt early on unless you’re sure of your cash flow. Look for grants, small business competitions, or business incentive programs to get started.
- Keep overhead low by working from home, using contractors instead of employees, and delaying big purchases until you have steady revenue.
- Automate tasks like email responses, social media scheduling, and inventory tracking. Many platforms offer built-in automation—or you can use tools like Zapier or Notion to streamline your workflow.
- Use AI to work smarter, not harder. Tools like ChatGPT (for brainstorming), Grammarly (for editing), and Canva (for design) can save hours and improve quality.
The goal is to do more with less, without burning yourself out.
Alberta supports entrepreneurs
Starting a business in an economic downturn is about spotting real opportunities and building thoughtfully. In Alberta, you don’t have to go it alone. You can access free or low-cost support from many organizations:
- Business Link offers free advice, workshops, and startup resources tailored to Alberta entrepreneurs.
- Futurpreneur Canada helps young entrepreneurs with business plans and financing.
- Alberta Women Entrepreneurs provides training, networking, and funding support for women in business.
- Startup Calgary is a hub for early-stage tech entrepreneurs in the province.
- Community Futures helps rural Alberta entrepreneurs with guidance, business loans, training, and free resources.
- Local economic development committees. Most towns in Alberta have these organizations, and many others, can help you validate your idea, write a business plan, and connect with a supportive network of fellow builders.
Now is the time
A recession might feel like the worst time to start a business. But history tells a different story. Many well-known companies, such as Airbnb, Mailchimp, and Shopify, were born in tough economic times. Their founders saw a need and responded with creativity and grit.
If you’ve got an idea and the drive to make it happen, now might be the right time to start your online business.
With low start-up costs, flexible tools, and real support here in Alberta, the barriers are lower than ever. There’s real potential here.