10 best recession-proof business ideas
Recessions are nothing new in the U.S. We’ve experienced three over the last three decades. And in 2020, the International Monetary Fund (IMF) declared that the global economy had just entered a new recession as a result of the spread of the coronavirus.
This economic downturn might be the toughest we’ve undergone yet. But while millions lost jobs and found themselves unemployed as a result of the pandemic, there’s also a ray of hope. Certain businesses are actually hiring right now, and these businesses are even having difficulty filling their staff positions. This is especially true of the businesses that provide what are now known as “essential services.”
Those that are hiring can be classified as “recession-proof businesses.” Of course, no business is completely immune to a recession. However, the success of these businesses, even during hard economic times, can give you some ideas you may want to consider for your career or startup.
What is a recession-proof business?
Recession-proof businesses are typically in industries that either aren’t affected by the state of the economy or that often thrive during financial crises. These businesses don’t experience losses during these hard times and, as a result, don’t lose value.
If you’re looking to start a recession-proof business, start by identifying the industries that we rely on, even in the midst of an economic crisis. For example, home and auto repair are services that will always be in demand, especially if car owners are trying to make their old vehicles last to avoid buying new ones. Plumbing, heating, electricity, grocery stores, and pharmacies will also see typical demand, since these are services that we can’t do without.
Once you’ve identified a recession-proof industry, think about the specific needs within that industry that won’t decline even in economic hardship. Then design a business that meets those needs, and you’ll be working with a recession-proof business.
Here are 10 of the best recession-proof business ideas.
No longer viewed as a luxury or added convenience, home delivery is increasingly in demand. Companies like DoorDash, Instacart, Shipt, and others are doing extraordinarily well primarily because, during this recession, people needed to stay home in order to flatten the coronavirus infection curve.
Even after the shelter-in-place mandates were lifted, the increased number of employees working from home or pursuing freelance careers means there’s continued demand for home deliveries.
2. Repair or maintenance services
When things break, they need to be repaired. After all, we depend on our work devices to continue making money and our kitchen appliances for food storage and preparation, and so on. Even when money is tight, people will find a way to get these items repaired.
3. Essential services
Even during shelter-in-place orders, our federal and state governments mandated that certain important services remained operational and/or available. These essential services include utilities, public works, grocery retailers, and food manufacturers. Other services, such as education, moved online and then back to schools and back again as infections rose and fell.
If you can provide products and services in any of these areas, you’ll be able to ride out the recession. For example, if you create educational content or educational apps, your services may be in high demand. And if your technology solution can cost-effectively manage utilities, then you may also be able to carve out ongoing work.
Healthcare is an essential service that’s especially critical during this pandemic-caused recession. The healthcare industry offers many opportunities to continue working, no matter what type of recession hits. After all, everyone needs to maintain their health, and those with underlying conditions must receive critical care.
Consequently, physicians, ambulatory care services, nurses, and specialized care providers will remain recession-proof. Home healthcare providers and veterinary services also fit this category.
As the current pandemic shows, many companies are pivoting to provide much-needed equipment like respirators. And future recessions may create a demand for other medical devices or services.
5. Accounting and financial services
Businesses and individuals still need to complete their taxes and make financial decisions. While some will continue to tackle these tasks themselves, others will look for expert advice to help save money or reduce their tax burden. That means accountants, tax professionals, and financial advisors will continue to do well.
6. Baby products and services
Parents will continue to have babies, and they will need supplies and services that help provide necessary care. That means baby formula and food, diapers, bathing and care products, and even toys. Daycare is also critical because parents who are fortunate to have a job during a recession need to work.
7. Cleaning services
While some may give up their home cleaning service and do it themselves, other cleaning services continue to be vital. Even in a recession, a business or other commercial facility must ensure clean and sanitary conditions to maintain a safe and hygienic environment. This includes hotels, schools, and other places where many people congregate.
The coronavirus has only increased the need for cleaning services.
8. Property management
Often, recessions can increase the number of people looking for a rental because they may no longer be able to afford their mortgages. And rental properties like apartments, condos, and houses need someone to serve as an intermediary between the property owners and the tenants, collect rent, and maintain the properties.
9. Death and funeral provisions
Although it’s not something anyone wants to think about, the reality is that death is inevitable through all economic cycles. That means funeral homes, mortuaries, and cemeteries are essentially recession-proof.
10. Security services
Recessions often make people feel increasingly desperate and can lead to increased criminal activity. Businesses need to protect their assets, so security guards and security equipment become more important in these economic cycles.
Things to consider
When preparing for any recession, consider why certain products and services are considered necessities versus luxuries. Also, think about your typical customers and how they make purchasing decisions.
Focus on the areas that remain critical, even during hard economic times, and your business will sustain itself through all economic conditions.
A most definite recession-proof for the specific situation we are living on now where we are mostly around the world ordered to stay at home is to sit in front of a PC with internet access and open a "business that you can run 100% online".
Some examples may include selling your own digital products (i.e software, ebooks etc.). For example, since people are just sitting around the house, some may grow interest in home gardening for their own foods. So having an ebook on home gardening may be a good idea. If you do not have your own e-book, you can also choose to sell other people's product via an affiliate program.
Nowadays you do not even have to learn how to code a website. It makes no sense. It is overkill. For example, for my website at , I used a system called SBI where within the same system I was able to domain-register, web-host, site-build, and site-market my website. It is probably the best Site Builder System out there that offers all of those packages together.
If this corona virus has left you jobless, pursue a career online.