In 2007 I started my own home based mortgage broking business. I have always worked in financial institutions and the idea of helping people buy their dream home always appealed to me so I started a finance and mortgage broking business part-time right out of my home in Melbourne. It didn’t do too badly either, despite my only customers being friends or family. By 2008, I had built up quite a good little referral source and had a steady flow of customers that could see me going full-time. Little did I know that a catastrophic event would soon see the end of my business and crush my dreams. I am, of course, talking about the Global Financial Crisis. Literally overnight, multi-billion dollar financial corporations collapsed, so what chance did my little mortgage business have? As consumers pulled out of the property and share market, and buyer’s confidence with small mortgage broking firms diminished, my business dried up and I soon learned a very valuable lesson.A home based business should be RECESSION PROOF!So soon after the GFC, consumers are still struggling to make ends meet. People are cutting back on the “luxuries” that are herbs, make-up, fancy appliances, self help seminars etc. If you are looking at a home based business that sells a product, ask yourself 3 questions.1. Is the product used everyday by everyone?2. Is the product a necessity – something people can’t live without?3. Does the product have to be purchased over and over again?If the answer to those 3 questions is YES, then you are onto a winner. If any of the questions are no, I would keep looking for another business.