When we hear the word “Recession”, the first thing that comes to mind is the collapse of the economy. In more technical terms, a recession is the period of an economic downturn in which the Gross Domestic Product (GDP) drops in two consecutive quarters.
During economic downturns, many businesses, whether big or small, are affected. Some companies may have more significant impacts than others. Since people will have less money to spend with, non-essential products and services will be severely affected. On the other hand, essentials, like food, water, and medicine, suffer less during an economic downturn.
Recession-Proof Businesses
Contrary to what most people think, not all businesses crumble away during a recession. The truth is, some may even be more profitable during a downturn. Here are some of them.
- Food Business – Foods are essential items. Even in the worse economic downturn, food businesses will continue to do well. Bakeries, coffee shops, grocery stores, food deliveries, and other related services will continue to thrive during a recession. Fast food, which is known to offer a more affordable price, will also do well. However, since people will be inclined to spend less, they will prefer cheaper options. It’s an excellent opportunity for smaller companies and startups to take the stage.
- Health Services – Health-related services will continue to do well due to the same reasons why the food business will thrive. It’s a basic necessity. People will need medical check-ups and other related services. That’s why hospitals, private clinics, vets, and other related businesses will thrive during a recession. Companies that make medicine, and sell them like pharmacies and drug stores, will also do well even in economic downturns.
- Security Services – Many experts found that crime rates have increased during the past recessions. Some research reveals that economic downturns can fuel burglaries and robberies. To anticipate the increasing crime rate, many people will hire security people to protect them, especially business establishments. Firms that offer safety personnel to companies will thrive. Businesses that sell and install home security systems, like CCTV cameras and electric fences, will likely do well too.
- Decking Installation, Maintenance, and Repair – Another industry that has a high chance of doing well during a recession is the decking construction, repair and maintenance industry. People will continue to build essential garden decking, and in time, needs repair and maintenance as well. Composite decking will also thrive because of the ease of maintaining them. Innovations in flooring, especially with regards to health and safety, will also be something people will look out for during downturns.
- Repair Services – Everything will be broken at some point, whether we like it or not. Because of this, repair services will be doing well, even in recessions. Whether it be house repair or computers, or even shoes and clothes, these services will never go out in business as long as there are enough people who need it.
- Online Marketing Services – When it comes to business marketing, online advertisements can be a cheaper option. Since many entrepreneurs are looking for more affordable means of advertising, they will likely turn to online marketing services. It includes products and services, including Search Engine Optimization (SEO), graphic design, web building, content creation, and social media marketing.
- Other online Services – Other than services directly related to marketing, other online businesses will also thrive. Some of these include Information technology, video streaming sites, as well as freelancing, will also endure the impact of an economic downturn.
- Laundry Services – Laundry services, such as laundromats and dry cleaners, will continue to operate and thrive even in recessions. It’s because it has become a part of almost everyone’s lives. It has become a necessity for busybodies and regular people alike.
- Car Repair and Maintenance – People will use cars even if the world suffers global recessions. With that said, there will always be a constant demand for car repair and maintenance services. Fixing their vehicles will be a necessity for most people.
Nevertheless, recession time bring difficulty for many people as it impacts economically to them. But it can be a good opportunity for people to find out different ways to thrive and eventually grow professionally.
