Even during a recession, people need comprehensive treatment and preventative health care services. With so many businesses operating online, the importance of digital marketing is only going to increase. Starting this kind of business opens up many opportunities which will still be there during a recession.
One option is opening a grocery store chain since people will always need to shop for food. A cleaning company may also maintain demand through an economic recession. You can focus on corporate or personal cleaning services or do both to expand your business. Technology issues will probably increase people working from home or spending more time at home, so you can offer IT support to help individuals and small businesses stay online.
A lot of people will be losing jobs and trying to retrain in another area which immediately boosts the amount of consumers available. There continues to be a lot to do for staffing agencies even when many companies are cutting costs and laying off staff. As more and more mothers are empowered to continue their careers after child birth, the child care market will only increase in value. As real estate includes any property consisting of land and the buildings on it, ultimately it is an industry with an essential and very valuable product. Recessions can actually be good for the real estate and property management sector, as it is often the best time to invest in property. The SaaS industry is another with little to no overhead, making them easier for businesses to maintain during a recession.
However, convenience stores such as 7-Eleven can typically be started with far less capital. Budget constraints often cause people to repair items that they otherwise would have replaced. Button-down shirts that have frayed get mended, appliances that don’t quite work get repaired, and cars end up at the mechanic. People may stop eating out or cancel cable during a recession, but most won’t stop going to the doctor or paying to get their taxes prepared. That said, if you can’t start the perfect type of business, Pon recommended keeping costs down.
Children need supervision, no matter the economic climate, and parents need to work. Financial planning services won’t be within reach of everyone, but for many, they’ll feel essential for planning. Getting started during a recession will also set your business up well for the long haul. Established suppliers, manufacturers and vendors that you may need to work with to start your business will be more likely to negotiate on their rates during a recession.
Regardless of what products or services a business sells, the keys to weathering a recession are agility and adaptability. Here are some ideas for businesses that can survive and potentially even thrive in a poor economy. Starting one in an economy verging on a recession can seem close to impossible. Melissa King is a freelance writer who helps B2B SaaS companies spread the word about their products through engaging content. Outside of the content marketing world, she sometimes writes about video games. Look for a software niche that people will invest in during any economic period, especially niches that serve as an alternative to more expensive services.
Companies should ensure that their methods of production have a degree of flexibility and malleability, either to be deployed into other activities or be subcontracted elsewhere. The standard trope for dealing with human capital (i.e., staff) during a recession is to question how easy it is to retrench workforces quickly. A far more optimistic outlook that I espouse is to ensure that staff are cross-functional and can wear many hats, allowing management to seamlessly shift strategies on a dime when required.
For example, cleaning businesses servicing commercial clients operating in recession-proof industries experience reduced exposure to a recession. However, cleaning businesses servicing a base needing to cut costs during a recession may suffer when the economy experiences a contraction. People will always need to eat, meaning the food, grocery, and beverage industry is very recession-resistant. However, not all businesses in this space perform well during recessions. In 2009, during the Great Recession, restaurant earnings as a whole were “dismal.”[3]New York Times. With many analysts predicting an economic recession in the near future, the idea of a recession-proof business model may have piqued your interest.
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While no business is truly immune to recession, there are many recession-proof businesses that continue to operate normally during a recession—or even benefit from economic downturn. These are typically businesses or industries that are “essential” or that have an ever-present demand for goods and services. As the economic hardships continue to mount in 2023, it’s looking more and more like the economy could be headed for a recessionary period.
Doing food delivery or grocery delivery can be an excellent, flexible way to make money. You can invest in stocks for companies in recession-resistant industries. Then, you can compare recession-proof business ideas to decide the right choice for you. If you start or run the right type of business, you could thrive during periods of financial stress.
Recession-Proof Industries
Passion is certainly important when it comes to starting your own business, and it’s equally important to examine historical data to forecast how your business might perform during a recession. “In my 20-plus years in this industry, it’s known that we are the first durable goods retailer to experience a decline in sales during a recession,” says Werner. When business is booming, business owners have the ability to set aside funds only to be used for emergencies, one of them being slumped sales.
However, if you operate in more cyclical sectors, there is a range of initiatives that you can implement to make your business more resilient to economic shocks. With NetSuite, you go live in a predictable timeframe — smart, stepped implementations begin with sales and span the entire customer lifecycle, so there’s continuity from sales to services to support. Not every business can be countercyclical or recession-proof, but companies can still protect themselves during economic turmoil by thinking in advance about how they can adapt to various scenarios. When it comes to staying agile and managing cash flow efficiently, NetSuite Financial Management software has every tool your business needs in a single application. NetSuite financial management solutions expedite daily financial transactions, reduce budgeting and forecasting cycle times, ensure compliance and accelerate the financial close.
Businesses that provide affordable food typically thrive during a recession. While there’s no doubt the occurrence of some medical services may decrease during a recession—such as cosmetic procedures and other elective treatments—healthcare is a historically recession-proof industry. For Recession proof businesses 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.
- You won’t need to worry about whether your investment has staying power.
- Home improvement companies still have plenty of work to do during tough economic times—which makes them great candidates for recession-proof small businesses.
- Ensure that you are financially prepared at all times for economic troubles.
- You can become a car mechanic after completing an apprenticeship under a current mechanic.
- But while the consumer demand for auto repair and maintenance remains strong, the industry is facing supply chain problems on top of rising costs.
And 29.4 percent expect finding affordable parts to be one of their biggest challenges in 2022. Should you wait to start your business with a possible recession on the horizon? If you’re still in the market for a business or franchise, you can consider finding or starting one that’s already recession proof. While a recession is a daunting prospect, starting a recession-proof business may be the solution to tightening margins and declining sales as consumers cut back on their spending.
Online teaching
The businesses listed here serve a need that persists even during times of economic hardship. People look for cost-effective, convenient options, and these businesses cater perfectly to that demand. In contrast, mid-range restaurants, which strike a balance between quality and affordability, can face challenges.
Products or services required by law or by certain institutions will always be in demand, regardless of recession. States require car insurance, for example, for individuals and businesses that require transportation. For businesses, permits and safety regulations require investments in and regular maintenance of equipment. Businesses or organizations that provide products or services related to these mandates will typically not see a drop during recessions.
Most Recession-Proof Businesses In 2023
Once the economy stabilized, he could then appeal to the other side of the market—businesses looking for talent—through a job board and freelance marketplace. No matter the state of the economy, people will still look out for personal well-being. That trend — coupled with a need for consistent advancements in science and medicine — makes companies in healthcare services some of the most reliably sustainable businesses through economic turmoil.
And of course, people will always need toothpaste, laundry soap, and other staples no matter the economic situation. That means recessions can impact a wide variety of industries across the board. Which is why it’s important to consider businesses and industries that are recession proof. And history proves that businesses can prevail, or even thrive, during them. If you’re ready to own your own business — and be your own boss — you can, especially if you find the right opportunity. From candy to beer to poker, you can count on vices to drive business — even in times of economic uncertainty.
‘Recession-proof business’ is a relatively loose term used to describe certain companies, industries, or assets that are better equipped to economically weather the impact of a recession than most others. Surprisingly, self care and beauty make the list for a recession-resistant business. While they aren’t necessities, beauty salons are popular even during recessions. Technology support for at-home services and companies is also becoming recession-proof businesses.
A total of 263 stores responded to the survey, with more than 64.1 percent stating that sales increased. Store owners have noted that the increase was approximately 31 percent. There are a variety of recession-proof businesses you can run that require little money to get started, or fewer necessary skills, and even less formal education. Due to the wide variety of recession-proof businesses you can choose from, most of them can be started with a little research, some upfront planning, and a good positive attitude.