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Just like other recession-proof industries, there are parts of the food industry that represent essential services, and others which fall under the umbrella of small luxuries. With property management, you shoulder less risk than you would if you owned properties outright, but it still allows you to https://www.bookstime.com/ reap the rewards of the real estate market during a downturn. Real estate agents are experts in the housing business, and their connections and skills get properties sold. Agents are not easily replaced, and people always need houses, making real estate agencies another recession-proof industry.
At Guidant Financial, we’re in the business of empowering entrepreneurs and aspiring small business owners like you. Let us know what industry or franchise you’re interested in, and we can help you find the best franchise — at the best price. In fact, did you know Mars Bars were invented during the Great Depression of the 1930s?
What businesses do well during a recession?
Clogged drains, pipe leaks, and electrical wiring issues can cause problems whether during a bear market recession or bull market boom. When people want to cut their spending, they first do so through food products. Even a small food stand in a central location will make people want to get food. The people on the street especially increase because they might be looking for jobs, or just wandering around aimlessly. However, you don’t have to limit your repair business to consumer electronics; you could quickly launch a business specializing in fixing people’s cars, appliances, and other mechanical possessions.
While people do typically eat out less during tough times, especially avoiding more expensive eats, food and beverage production are still among the safest businesses in times of recession. This includes grocery stores, restaurants, food delivery services, fast food, cafes, and coffee shops. And now, there are even more opportunities to provide affordable and healthy food products in consumer demand. While it can be riskier to launch a business during a recession than in a booming economy, some sectors and businesses survive–or even thrive–during economic downturns. Businesses that sell essential goods such as groceries, or provide health-care services or IT support, often continue to be in demand in difficult times. That’s because despite tightening budgets, people still need life’s necessities, whether it’s food or a car that runs, so they can get to work.
Advantages of a Recession
While you might not be able to do that, you can find other ways to help people work online. An easy option is to become a website hosting reseller and work with small business owners here. Telehealth nursing is another fantastic specialty for your recession-proof business. People may want to do more home visits to spend more time working and save money on gas. However, with a bit of research and strategic planning, you can choose a good business idea.
But a bigger part of preparing your business for economic uncertainty is strategizing. No matter the economic situation, residential and commercial cleaning businesses typically thrive. Just think of all the medical facilities that needed extensive cleaning during the COVID-19 crisis, from clinics to hospitals. Dentist offices, shopping malls, schools, restaurants, and nearly every company also required extra sanitation during 2020. During the height of the pandemic in 2020, U.S. alcohol consumption increased by 45 million cases.
Baby products and child care
If you prefer to work from home, consider going into telecommunications. Some recession-proof business ideas in this space include cell service and internet service. Startup costs include an array of considerations and the largest expense will be the cost of the location. If not, are the rents too high to make a significant profit, and are you going to get enough drive-by traffic to make it at the location?
After a global pandemic, shipping supply issues, and stock market fluctuation, the possibility of a recession has been sweeping the news. And even with the recently implemented Inflation Reduction Act, we’re unlikely to see costs drop anytime soon. There are so many different types of copywriting you could look into, depending on your areas of interest and expertise. Some of the highest demand (and highest pay) comes from digital marketing companies looking to boost their search engine optimization (SEO). Traditionally we think of the three basic needs as food, water, and shelter.
Recession Proof Businesses: 10 Good Ideas
If you want to launch a business supporting local economic activity, it’s hard to find a better option than a courier or freight service. For better or for worse, health needs do not wait for a recession to end. As such, the healthcare sector is uniquely positioned to withstand recessionary conditions. Healthcare is often one of the first industries cited for its recession-resistant characteristics, and for good reason. Recent research suggests for every 10% increase in overall unemployment, healthcare unemployment only increases by 1.27%.[1]UIC School of Public Health.
- This is an excellent choice for hotels since people may still travel for work even if not for vacation.
- The biggest factor when you start a business shouldn’t be the status of the economy; it should be your own skills, experience, and financial health.
- That said, there are actually some businesses that can thrive during recessions—often, because they’re essential businesses.
- You could provide value to these families by offering more than just corporate event planning services.
- Companies that cater to the high-end luxury market or discretionary spending should be avoided, as such personal spending is the first to be cut back during a recession.
The same principles that apply to secondhand shopping and home repairs thriving during a recession apply here. People aren’t buying new cars when the economy dips, so they’ll need to tune up the car they already have—and cars, like homes, are bound to need those tune-ups from time https://www.bookstime.com/articles/best-recession-proof-business-ideas-to-start to time. Suffice it to say that most people are not buying luxury clothes, accessories, cosmetics, and other small items during a recession. If they’re indulging in retail therapy at all, they’re being reasonable about it—which often means buying secondhand or on consignment.
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I think you’d be surprised how much people would be excited to pay you for things you already enjoy doing for free. You can make more money, meet new people, and build a community in your area. If you have a car or a bike (or you know someone that does) start doing UberEats, Instacart, Getir, Doordash. It probably goes without saying, but this is one of the lowest-friction businesses. Basically, you’ll show different versions of the menu with different dishes and price points and help the restaurant find out what makes them the most money.
- Today, hygiene and sanitation are the top priorities for many people, and cleaning services are a must-have for them.
- Not surprisingly, grocery stores are one of the top industries not impacted by recession.
- People may want to do more home visits to spend more time working and save money on gas.
- Property management firms take care of rental properties on behalf of a landlord, dealing directly with tenants and mediating with estate agents.
- Lastly, delivery companies deliver basic needs like food and health products.
Growth prospects for the business are high due to the large population of baby boomers who will eventually need these specialty services. If a beloved cat or dog falls ill, we’re not likely to scrimp on veterinary care. Americans are still estimated to spend $1.5 billion more on pet food and treats in 2020 than they did in 2019. Pets are essential to their owners’ lives and create many recession-proof businesses. Alcohol sales are another “guilty pleasure” industry that tends to be profitable during recessions.