Today, some people prefer starting their businesses. The trend started gaining popularity during the COVID-19 pandemic when many people lost their jobs or companies had to ask employees to take unpaid leaves due to quarantine restrictions.
Even after returning to normal life, people kept starting their own businesses since it was beneficial. However, many global economies are experiencing inflation, so business owners and those who want to start a business are worried about a potential recession. But should these worries stop you from launching your business? No, they shouldn’t!
This article focuses on several business ideas that may survive economic downfalls. The term “recession-proof” doesn’t exist since there are no companies that won’t be affected by the recession, but some businesses may feel more “comfortable” than others. So, keep reading if you want to launch a business but aren’t sure what industry to choose.
Pet Care Business
People love pets and tend to spend a lot of money on their small friends to make them happy. It doesn’t seem people will stop spending money on their pets, so it could be a good idea to start a pet-related business. Here are a few facts to convince you:
- 2021-2022 APPA National Pet Owners Survey states that around 70% of U.S. households have a pet, so 90.5 million homes across all states where people own pets.
- The industry is worth $110 billion and keeps growing.
- Studies report that by 2030 the industry should reach $275 billion.
Experts predict a steady growth rate of around 6%. Moreover, it is increasing every year. These numbers state that it’s an interesting business opportunity with many benefits, even if the economy enters a recession.
Check out the following pet care services that should always be in demand.
Typically, dog owners need to visit groomers now and then so they can take care of their pet’s appearance. The study shows that more people, especially millennials, are using pet services today. Professionals are better at caring for their pets, so they prefer paying for thier services. It seems like this is a good business opportunity to start a business.
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Essential Pet Products
Most studies report that more people buy pets. So, if the number of pets grows, so do their essential needs. Opening an essential pet care shop should be a safe business opportunity.
Regardless of the economic situation, owners still want their pets to stay healthy. Responsible pet owners tend to take their dogs or cats to vets for regular visits. Plus, there are always some pets with health issues or extra needs. So, even if the economy enters a recession, your vet company should survive, especially if you’re marketing it properly.
Most parents tend to cut down their own food intakes, but they rarely cut down expenses for kids. So, consider opening a shop or starting an e-commerce business selling baby products. Note: it’s not a recession-proof option, but it is recession-resistant.
Naturally, parents cut down expenses a bit during economic downfalls, but they still want to buy presents for kids to make them happy on birthdays, Christmas, New Year, etc. Consider the fact that kids grow fast, so they regularly need new clothing items.
Given all these facts, starting a business that caters to the needs of babies and kids should be a good idea. It’s more likely to survive a recession than a hairdresser shop or a restaurant.
If you’re considering choosing a tech path, an online software company may be your best choice. Think about it, during COVID-19 restrictions, and everyone began switching to work online. And who benefited the most during this time? Companies offering software to work online.
Regardless of the type of software a company chooses to develop, it should be successful, given the trend to digitize everything in our lives. Moreover, if you choose to create specifically an online company, expect less fluctuating overhead compared to many other businesses.
Developing software has more benefits than developing hardware or various devices. Developers don’t need any physical components to create a product. So, the company isn’t dependent on shipping and fluctuating costs of details. Thus, a business owner gets more benefits.
However, the type of software a company develops is important. It can influence the profits and resilience against a recessive economy. For example, developing search engine optimization (SEO) software as a service (SaaS) should offer a ton of benefits. It’s a type of software used by many businesses in different industries, so there is a huge demand.
Before choosing a type of software to develop, consider researching the industry. Learn what types of software are in demand and how easy it is to enter the industry.
Even though freelance isn’t perceived by many as a business, it still is. Freelancers are self-employed and register under a sole proprietorship business structure. Freelance is a very convenient way to launch a business in your field of expertise. Moreover, you can keep your current job too.
Many companies tend to lay off full-time employees during recessions, as happened during COVID-19 restrictions. However, these companies kept working with freelancers since it was more affordable during difficult financial times. They didn’t have to pay standard employee bonuses since freelancers are self-employed.
So, if you don’t feel safe with your full-time position at a specific company, you can consider launching freelance services. You can take a few tasks whenever you have time, so it should be easier to combine freelancing with a full-time job. And if, during a recession, a company asks you to take unpaid leave, you can focus more on freelance.
Today, e-commerce is flourishing as consumers buy online more than ever! Naturally, people use delivery so they can get their packages. It’s a good opportunity to start a delivery or courier business. Typically, courier and delivery services always enter the top recession-proof business lists. This industry is less vulnerable to recession drawbacks compared to other industries.
Yes, sales often decline as people try to avoid unnecessary spending, but the need to send packages remains. So, instead of opening an e-commerce store that is susceptible to recessions, consider delivery services.
A recession means people experience financial difficulties. So, they cut unnecessary expenses, such as clothing items, food delivery, etc. Typically, consumers try to avoid going out since it costs a lot. Moreover, after the pandemic, companies allowed their employees to choose whether to work remotely from home or go to an office.
So, the majority spend their time at home. People want to feel comfortable at home, so they invest in interior design. This fact offers a great opportunity for you to start a home improvement company. Most companies in the home renovation industry always have work to do, even during difficult economic times. This industry offers recession-resistance benefits for business owners.
Here’s an example. Andrew Porwol has a business in U.K. gardening. He’s been working for over thirty years in this business. Andrew experienced multiple recessions, and his business is still flourishing and keeps growing. It works similarly with home renovation. People will always want to spend money on their homes to feel cozy.
Accounting and Financial Services
Regardless of the state of the global economy, accounting and financial services are always in demand. Ordinary people can’t keep up with ever-changing laws and regulations, so they prefer using the services of accountants and financial experts.
Accounting or financial services business is promising since it offers high income. The statistics show the accounting revenue alone in the United States is expected to reach $142 billion by the end of 2022.
Moreover, the industry is recession-resilient since it plays a critical role for many other businesses. For instance, a software company is less likely to hire a full-time accountant. Most likely, it uses the services of professional accounting firms since the company still needs its finances in order, even if the economy is in a state of downfall.
Consider the following options:
- Accounting services. Any business needs an accountant and a bookkeeper to keep their documentation in order. Most businesses prefer to delegate the task of preparing the payroll, keeping the balance sheet, etc.
- Tax preparation. The U.S. has one of the most complex taxation systems. It’s extremely difficult to follow all the rules, and if you fail to, a business may get in trouble. Moreover, businesses are not the only ones in need of help. Ordinary users do, too, especially if they are wealthy.
- Bookkeeping. It’s critical for businesses to keep their books in order. It allows them to prepare for the tax season easily. Bookkeeping also has many other bonuses. However, not every business owner has sufficient bookkeeping skills, so they use the services of professional bookkeepers.
- Financial planning. Here’s a fact: the number of professionals employed as personal financial advisors has been growing at a rate of 7.71% since 2018. It means people are interested in the services of financial advisors. Here’s another fact: only 23% of Americans have a retirement plan. People need financial advisors, and it’s your chance to start growing a successful business.
Overall, accounting is one of those industries which will always be in demand. Yes, it isn’t easy to launch a business in the financial industry, but the outcome is worth it.
Today, we all use different devices, gadgets, and systems that make our lives comfortable. But they tend to break. Many people experience pipe leakages, P.C. malfunctioning, breakages of robot vacuum cleaners, etc.
Regardless of an economic situation, things break. So, it could be a great idea to start a repair services business. Moreover, it’s easier compared to the previous example since the industry isn’t as strict in terms of regulations.
Businesses catering to the interests of car owners and homeowners are likely to get just as much work during an economic downfall as when times are good. Moreover, the work volume may increase as instead of buying a new device, and people want their old ones repaired. Plus, such professionals as auto mechanics, plumbers, electricians, roofers, etc., are always in demand.
The statistics also show auto services tend to do well during economic downfalls compared to other businesses. So, if you are planning to start a business, car repair offers recession-resilience.
Food and Beverages
We all love delicious food and are ready to spend our money! This and some other factors make the food and beverage industry one of the most recession-resilient industries out there. Even when people try to cut their expenses on food, they still need basics to function.
The data states that between the years 1992 and 2019, the total sales of food retail services in the U.S. alone reached $6.22 trillion! So, undoubtedly, multiple economic downfalls during these years did not affect the food industry.
If you don’t have any ideas on where to start, consider the following options:
- Grocery stores. During downfalls, customers tend to shop at smaller shops since big brands sell products at higher prices.
- Vending machine. Moving a vending machine to a place with high traffic to get higher profit. People love snacks and coffee, so they are ready to pay.
- Candy. Mars Bars were created during one of the biggest recessions in the States: the Great Depression. People need comfort during difficult financial times, so they buy candy. You may also consider a healthy candy. People still want sweets even if they take care of their physical appearance.
- Fast Food. Consumers love fast food since it’s delicious and extremely addictive. The data also shows that during economic downfalls, fast food restaurants tend to gain more profit than ever.
Whether we spend our money at a restaurant or go to a grocery shop, we still spend. Consider the food and beverage industry as it’s one of the most profitable business opportunities.
Babies are born every day, but people also die regardless of the global economic situation. A funeral service business is a very profitable industry. According to recent data, the funeral industry in the U.S. generates $20 billion annually. Moreover, 2.4 million funerals take place in the U.S. alone.
Whether it’s a recession or the economy is booming, it doesn’t matter. People need the last resting place after they die, and relatives of the deceased want to organize proper funerals to say goodbye. So, funeral services are definitely a great business opportunity.
However, you should consider different options, such as traditional burial or cremation. A traditional burial may be easier to organize, but offering different opportunities could attract more clients.
Author: Charles Lutwidge