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Similarly, people might be more eager to sell a defective item if they stand to profit financially. Both scenarios are not implausible in prosperous economic times and will undoubtedly occur more frequently in a recession. Even though https://www.bookstime.com/articles/best-recession-proof-business-ideas-to-start other people might think you’re crazy, a downturn in the economy can be a fantastic time to launch a business. A great example of an affiliate program that sets up a win-win for you and your customers is the one offered by Spotz.
You only need to be professional and respectful, and you’ll have a constant workflow and an excellent income. But there are certain kinds of businesses that thrive in good times and bad. Even in times of financial crisis, recession-proof businesses continue to operate and make a profit. This article addresses starting a business during a recession and what types of businesses are recession-proof. Another definition is that recession-proof businesses meet customers’ inelastic or unchanging needs.
One response to “23 Profitable Recession-Proof Business Ideas”
They have characteristics that make them successful during tough times, such as being able to pivot quickly and adapt to changing circumstances. Wedding planning is a great business to start, especially if you’re trying to find a recession-proof business idea. The market for wedding services is vast and only growing larger, and even in a bad economy, people will still be getting married. So, you can provide services like wedding invitations, photography, decorations, catering, etc. Like refurbishment, people concerned about the economy’s state are more likely to have their devices repaired than buy new ones. You could launch an electronic repair business that fixes people’s gadgets for money.
As a recession becomes more likely, the chance of individuals seeking financial planners increases. This type of business will be beneficial to clients looking for help to rebalance their portfolios, revisit budgets, convert funds, pay off debt, and more. All types of businesses can be “not recession-proof.” If your business does not have cash reserves or a strong business plan, it can suffer during a recession. However, specific industries survive better than others in recessions. While most analysts define a recession as two consecutive quarters of negative growth, other indicators can point to a recession. These include a reduction in GDP, fewer retail sales, higher unemployment, and slowdowns in manufacturing.
What makes a business recession-proof?
People order products while couriers, freight, and logistic companies deliver the packages. As such, they still use domestic courier and freight services to deliver their products to customers. To ensure your healthcare company remains recession-proof, understand customer demand. Patients need transparent and convenient care; hence meeting community needs is critical for long-term success. Over a decade later, the pandemic had a significant impact on the global economy, with many businesses struggling to survive. The economic recession caused by the pandemic highlighted the importance of having a recession-proof business.
Nearly everyone lives with wireless technology, from sound systems to streaming. The number of smart homes is slated to be more than 400 million worldwide by 2024, according to Statista. Smart devices regulate heating and cooling systems, wireless gadgets, and appliances, including home security systems. Businesses—virtual or in-person—that cater to homeowners with smart device installation or maintenance needs will likely have a robust consumer base during any type of economy.
Software as a Service (SaaS)
Employment figures are an indicator of how well an industry is performing. If the healthcare industry doesn’t need to reduce staff at the same rate as other industries, evidence suggests the health sector outperforms other sectors during economic struggles. This can also be applied to providing residential cleaning services, as more people are aware of health and sanitation and are willing to pay for someone else to do it right.
- There is continuously increasing demand for care workers as an ever-higher percentage of the US population gets older and lives longer.
- Likewise, businesses may search for more affordable materials and suppliers.
- Food delivery services are recession-proof—just like lipstick, they represent a small luxury that most people can indulge in.
- Though the Great Recession in 2008 was caused by a property crisis, this is by no means the case for every recession.
- This way, you will be ready even in the face of a sudden recession or economic crisis.
Today, the global smart healthcare market size is USD 178.5 billion. Food delivery is one of the most profitable https://www.bookstime.com/ businesses in this era. In the US, the revenue from food delivery services was $22.4 billion in 2021.
Repairs
A fitness app provides users multiple exercise options, fitness tracking, calorie burn count, etc. Launching a fitness app is a great business idea, especially during a recession when people wish to cut their spending. When Matej Kukucka, founder of Marketing Player, worked for a customer service software company during the pandemic, he noticed a lot of growth. E-commerce is possibly the best industry to start a business during a recession. People are constantly shopping online, especially during a pandemic.
