Sometimes aspiring entrepreneurs pause their plans to start a business if experts predict a recession is looming. They’re worried a brand-new startup won’t survive economic hardships. However, not all businesses fare poorly during periods of economic decline.
Choosing a recession-proof industry will make you better equipped to handle whatever the economy throws your way. Your dreams of business ownership don’t have to wait. Consider opening a business in one of these recession-resistant industries.
1. Automotive repair
Consumers are less likely to make big purchases like vehicles during a recession. They would rather preserve the vehicles they already have than commit to a new purchase. For this reason, automotive repair is considered a stable industry during an economic downturn. Consumers keep their cars for longer, which increases the demand for repairs and general maintenance. Outside of economic turbulence, people still need maintenance, too.
2. Business consultation
Business consulting companies usually fare well, no matter the state of the economy. During good times, a consulting firm can help businesses maximize profit and expand their operations. When a recession hits, struggling businesses turn to consulting firms for ways to reduce costs and make the most of a limited budget. Businesses will always need support, whether they’re looking to thrive or simply stay afloat.
3. In-home senior care
Demand for healthcare professionals is on the rise. The generation of Baby Boomers is well into retirement, increasing the need for caregivers and in-home health staff. The U.S. population will continue to age, regardless of an economic downturn. A business providing senior care services will maintain steady business during a recession and maintain opportunities for growth well into the future.
4. Candy and liquor stores
It may seem odd that non-essential industries would thrive during a recession. However, consumers seek pleasure in all economic climates, and they’ll make room for those little luxuries, even on a tight budget. In fact, candy and alcohol sales are higher during recessions because consumers replace large expenses with more “affordable” luxuries and vices. And, of course, consumers are going to treat themselves to their favorite food items when the economy is doing well.
5. Consignment shops
Resale and consignment stores offer a steady flow of revenue when times are tough. With limited money to spend, consumers are more likely to purchase used products than new ones. Resale is also in high demand during recessions because people want to make a quick buck selling goods they can live without. The eco-friendly aspect of consignment will encourage consumers to visit your store during economic highs, as well.
6. Grocery and convenience stores
Grocery stores are recession-proof because the food and beverage industry maintains stable demand regardless of the economic climate. People need to eat, so opening a grocery or convenience store will attract steady business. Plus, these are good franchises to start in the middle of a recession because you’ll already have an established brand by the time things start to look up.
There’s no need to put your business dreams on hold. Entrepreneurs can become successful business owners during an economic downturn if they pursue a recession-proof industry. The consultants at Tenet Financial Group understand how a recession can impact your startup funds. Reach out today for financing options that will allow your new business to really take off.