A possible recession has been on the minds of many small businesses and entrepreneurs throughout the United States. Analysts are uncertain, though, if or when a recession will begin.
According to a recent poll conducted in 2022, 70% of the 49 economists polled believe that a recession will happen in 2023. The Financial Times and the University of Chicago’s Booth School of Business conducted the study.
Thankfully, not all industries have to worry about a recession. Even if one does happen, certain businesses will continue to thrive since they are essential. Interestingly, some companies do well when consumers cut back on spending, especially if they are choosing a competitively priced service or product.
So, what industries should you consider? Listed below are ten small business ideas that can withstand the rocky conditions surrounding a recession.
Accounting is not going anywhere. Even with economic downfalls, Americans still have to pay taxes, including small businesses. Sometimes, the government will also increase grants and other financial programs for in-need Americans that accountants understand and can assist in completing.
Possibly the most recession-proof industry has to be healthcare. Without healthcare services and health insurance, everything in an economy and society falls apart. Healthcare providers have nothing to worry about, even amid a recession.
Thankfully, many hospitals and offices provide financial relief covered by grants and charities for those who cannot pay the steep bills.
Consumers need to eat; however, during a recession, many consumers take significant pay cuts and cannot afford to eat extravagant dinners. Instead, consumers run to grocery stores to stretch their dollars as much as possible. Grocery stores and distributors have an advantage over restaurants and quick food spots.
Beer, Wine, and Liquor
There is a massive demand for beer, wine, and liquor that does not decrease during a recession. If you are going to go into the beer, wine, and liquor industry, it is good to have a variety of alcohol ready.
Not all alcohol is recession-proof. During the 2008 recession, we saw wine and beer sales tank, while liquor increased substantially.
Money runs tight during a recession, but consumers still need to purchase essentials for their homes and lives, including clothing. Bargain and cheap stores are nearly recession-proof since they are the first place people turn to when they are tight on funds.
Pet care/Pet products
While spending does take a hit during the recession, pet care and pet products that are essential for pet owners do not shift; instead, this industry is considered recession-proof. Pets are beloved family members and loved ones for many consumers.
Renovations tend to stop during a recession, but home repairs are still necessary. Just because a recession begins in the country, does not mean that life stops. Instead, bursting pipes and air conditioning trouble can require handypersons and other tradespeople’s services. If you can provide home services at unbeatable or competitive prices, your business has a chance of surviving the recession.
Small and large businesses cut back on expenses during a recession, but project management tools and managers are increased. Project management tools are especially needed as they are affordable and easy to use online. Many people begin working from home, or their hours are cut, requiring a new and improved scheduling service.
Even as a recession hits and consumer spending decreases, childcare and child products are still needed. Children go rapidly and constantly need new clothes, diapers, food, and toys to stimulate their minds.
Beauty services (Hair, makeup, skin)
Beauty services are almost entirely recession-proof. Many people in the world care about what they look like and want to keep up appearances. Beauty services do not just include beauticians, though, but beauty products. If you can invest in beauty products like hair dye, makeup, and healthy skin products, you have a chance of surviving the harsh economic conditions of a recession.
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