Due to the ongoing pandemic, corporate cleaning services remain in high demand. Businesses regularly need cleaners to sanitize and disinfect lobbies, bathrooms, employee workspaces, and other public areas. However, it’s possible to start small and offer personal cleaning services to your neighbors or small businesses first.
TJMax and Dollar Tree grew tremendously during the 2008 – 2009 recession period. At a time of recession, people surely visit candy stores often as they crave sweetness. Candies and chocolate apparently calm your nerves and stress by giving you that sugar rush. Pizza is a type of fast food which everyone loves to eat whenever they crave it. So, pizza delivery businesses won’t drop even in a recession as its simple for people to call and order pizza and get it delivered at your doorstep.
Traditionally, many entrepreneurs assess their current business expenses to identify areas where they can save money. Many businesses may take the initiative to invest in technology to help automate processes and reduce waste. Likewise, businesses may search for more affordable materials and suppliers. Assessing variable costs can help you save significant money and emerge from a recession even stronger. Sadly, families require funeral services, regardless of the state of the economy.
Businesses that modernize how businesses communicate, store information, and operate typically survive a recession by helping other businesses survive a recession. Businesses within the courier, freight, and logistics companies now benefit from access to extensive data that helps them strategically adapt services to market demands.[4]The Motley Fool. With eCommerce positioning itself at the forefront of the economy, the freight industry is essentially the backbone of the economy.
Since the introduction of fast-food chains, people have constantly turned to this comfort food in times of trouble. You don’t need any specific expertise to become a fast-food supplier. And if you provide tasty food at affordable prices, you’ll be able to earn a decent income soon. Online reselling of luxury bags, clothes, and accessories is common during an economic downturn. Thanks to eBay, Poshmark and thredUP, it’s easy for anyone to resell items online and ship the products to consumers. According to Forbes, around 33 million consumers purchased pre-owned clothes for the first time in 2020.
What is a recession-proof business?
While spending at restaurants may decrease, the number of home-cooked meals usually increases, leading to stable business for markets. Starting a new business can be overwhelming, and starting a new one during a recession can feel even riskier. Whether you’re a small-time seller or a more established merchant with multiple locations, our article detailing the best eCommerce platforms has options that fit your business needs. Granted, this wasn’t a traditional recession but a different kind of disruption.
Understanding which industries fare the worst in a downturn can help increase your new business’ chance of success. Recessions are uncomfortable for most, and it can be difficult to plan for hard times when things are going well. In addition to financial uncertainty, the added stress of a recession can mount to create heightened tensions. The good news is that there are many business opportunities that can help you weather a recession depending on your skills and interests.
If you’re a skilled worker, you can start such a business and be sure that you’ll never be out of work. Since there is a constant demand for these services, profits are guaranteed. Baked goods will never go out of business; people are constantly buying bread, cakes, and other baked goods. The baked goods industry is one of the industries that do well in recession—perhaps even better than a typical situation. The upside is that you don’t need to have any specific qualifications to open a bakery—although a love for food and some managerial skills might be a plus. The startup expenses of this business aren’t too substantial; you only need several employees, to begin with.
Recession-Proof Business Ideas
If you solve a specific problem for a specific customer, you’ll set yourself up for success. Home-based daycare business is trusted more by people during the crisis period, and by far daycare is recession proof business. Death is a natural phenomenon and can occur at any time in a man’s life. So, even during recession people die and death care services business remains in demand even then.
- When people can’t find work, many end up going back to school to level up their skills.
- These are stocks of companies whose products and services will remain in demand regardless of the economic climate.
- This allows you to add the benefits of tangible real estate to your portfolio — without the headaches of managing it yourself.
- Cleaning services have minimal startup costs and charge anywhere from $ an hour, depending on location and complexity of the work.
- People prefer to stay clean and wear fresh clothes even at the time of recession.
Instead, they’re more likely to seek out professionals who can offer help with tax preparation, accounting, financial planning and bookkeeping. At 43%, bookstores saw the biggest increase in the number of businesses during the latter part of the pandemic. The best strategy for protecting your business depends on the type of recession, your industry, and a host of other factors.
During the last recession, thrift stores saw increased sales as people looked to save money on their wardrobe. These kinds of services are needed more than ever in the recession period. A debt counseling business or debt collection/repossession services will thrive because of their increasing demand due to loan payment defaults etc. In most cases, highly skilled and experienced workers laid off by companies trying to afloat will migrate to the freelancing sector. Recent economic uncertainty due to the global health crisis catalyzed mass layoffs and migration of experienced employees into freelancing leading to an increase in the supply of cheap freelancing services. Also, people make various chocolate desserts at home no matter how hard the times are.
Accounting and Tax Services
So many of the business ideas on this list can be launched and run totally from your own home, but those that require in-person interactions are conducive to social distancing measures. And they all require very little or no initial investment—and very little or no overhead once you’ve launched. So, there’s no need for a recession to quash your entrepreneurial spirit. Read on for 10 of the best recession-proof businesses you can start today. 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.
Plumbers and electricians provide valuable work that continues through almost any type of downturn. When things break down and money is on the line, it’s more important than ever to have qualified professionals ready to assess and repair the problems. Children need supervision, no matter the economic climate, and parents need to work. While the Internal Revenue Service (IRS) has granted extensions in the past, the agency is not known to grant wide exemptions from filing taxes in the face of a recession. Discover BusinessLoans.com’s lender network offering up to $3M in funding, no minimum credit score required. During a recession, workers may be forced to relocate to new job opportunities, which means putting their house on the market.
Best Recession-Proof Businesses in 2023
However, it highlighted the importance of adapting to new conditions. Retailers that could not adapt to new realities struggled or went under. Retailers that pivoted to meet consumers where they were survived and thrived. Tough economies pose special challenges to entrepreneurs looking to start recession-proof businesses.
Repair and Maintenance Services
Despite a looming recession, many remain motivated to pursue their careers and seek help when it comes to caring for their young children. With a valuation of $54.3 billion in 2019 the child care industry is expected to continue to grow at an annual rate (CAGR) of 3.9% from 2020 to 2027. PR agencies like Potts’ recorded at least some growth in all categories, a low startup cost (under $10,000) and high wage growth during the Great Recession (+23%). But, according to our analysis, bookstores shine brightest among recession-proof small businesses.
If you succeed during a recession, you’ll excel when the economy becomes optimal. You could focus on low risk business ideas and consider clients’ needs caused by the current situation. Then, if you manage to solve the problems people face, you can make a significant profit. Here are seven creative ways to cut down on costs and increase savings.
As consumer confidence is often at all-time lows during recessionary periods, it can be challenging to build a customer base at this time. Whether or not starting a business in a recession is a good idea largely depends on your industry, resources, and other economic factors. Telecommunications is another industry usually performing well during economic downturns due to little fluctuation in demand. Whether via broadband, phone networks, or any other telecommunication channels, individuals still need to communicate, socially and professionally, despite poor economic conditions. Even when the economy struggles, recession-proof businesses typically fall within specific industries not prone to experience considerable downturns. E-commerce is possibly the best industry to start a business during a recession.
There are many old homes almost all over the world, and these homes always need people to provide their services, recession or no recession. This is a kind of business from which you can earn anytime, even in the recession. With good photography skills, people will hire you for various events, and you can even earn through freelancing. Event management business is rarely affected by a slow economy, as people and businesses promote positivity through various events and hire an event management team to construct a successful event. Real estate agents will hire property stagers even at the time of recession to make the house look presentable, so they are able to sell it.
As a business owner, you have many options for paying yourself, but each comes with tax implications. Vehicles will still need servicing throughout a recession as people continue to commute to and drive for their jobs. Babysitting agencies, daycares, and nanny businesses still see high demand. Here is a list of 10 recession-proof sectors to consider so you can start a business on more solid ground. Customers and employees have an expectation of cleanliness so this is considered an essential service in most retail and commercial settings.