When considering what industry to enter when starting your own business, it’s easy to get carried away thinking about how much profit you can make and how fast. However, you must consider the bigger picture, such as how your business will survive changes in the economy. The good news is that even though we’re in the midst of a recession, there are recession-proof businesses in various industries to choose from.
Let’s dive in.
The Best Recession-Proof Businesses Ideas for Economic Downturns
These recession-proof businesses should be able to weather the storm even during times of economic uncertainty. From the healthcare sector to the tech industry, this list includes business ideas of all shapes and sizes.
Amazon FBA
You might be surprised to learn that Amazon FBA (Fulfillment by Amazon) is one of the best recession-proof businesses around.
Thanks to Amazon’s vast, ready-made customer base and robust logistics network, FBA sellers can reach a wide audience with minimal overhead costs compared to a brick-and-mortar e-commerce business. Even during tough economic times, people still shop on Amazon, largely due to the convenience.
One of the best things about starting an Amazon FBA business is that you can adjust your product offerings in response to consumer demand. This makes it an attractive option for anyone looking for a recession-proof business with minimal upfront investment.
Anyone can start an FBA business, even if you don’t have a large upfront investment. Check out our guide on how to start an Amazon FBA business with very little money to find out everything you need to know about this profitable recession-proof business venture.
Marketing Agency
During economic downturns, many companies intensify their efforts to maintain or grow their customer base. This makes effective marketing more important than ever.
When times are tough, businesses seek to optimize their marketing spend. By starting a marketing agency, you can offer your clients innovative, cost-effective strategies, particularly in digital marketing, to ensure their brand remains competitive and visible.
Digital marketing businesses’ scalability and low initial overhead for digital services allow them to adapt quickly to changing market needs and client budgets. This makes them an excellent option for anyone looking for a recession-resistant business to start.
Virtual Assistant
With more and more people working from home, taking on remote working projects, and starting their side hustles, the need for virtual assistants is increasing. This makes it the perfect business model for anyone looking for something that can thrive during an economic downturn.
Since the start of the pandemic, we have become much more comfortable with the thought of virtual offices. This means that offering virtual assistant services to small business owners is more viable than ever.
Traditionally, hiring an assistant to help with your business was a big cost. You would need to pay for office space and all its running costs. You would also need to pay a salary, holiday pay, and pension contributions for any member of staff you needed to hire.
This meant that many couldn’t afford it. However, with virtual assistants, the flexibility in hours offered, and the fact that you don’t need a physical office space for them, it suddenly becomes a much more affordable prospect.
So, if you have excellent admin skills and a good work ethic, becoming a virtual assistant could be the perfect recession-proof business idea!
Food and Beverages
No matter how the economy is performing, people will always eat and drink. In fact, food and beverages are often emotional purchases. This means that even during economic downturns, people want to ‘treat themselves.’
Whether you want to offer affordable food services, luxury cocktails, or something else altogether, you will find that there is demand for it. Small businesses like grocery stores and takeaways can often see an increase in business during a recession. This is because, in many cases, people tend to dine out at restaurants less than usual to save money.
As with any business, it’s important to do your research to see what local competition you have. That said, with social media showcasing all sorts of food businesses, anything goes, so put your skills to the test and start a business within the food and beverage industry.Â
Financial Services
Over recent years, the trend of starting your own business or becoming a side hustler has grown. This means that financial services like accounting and bookkeeping services are more in demand than ever.
You might assume that during an economic recession, people won’t need accountants, but that is far from the truth. When the economy is struggling, businesses need to be more efficient than ever.
This means that having an accountant on hand to help with things like tax preparation and business expenses is essential, regardless of the state of the global economy.
Outside of this, financial planning and consulting services that can help large and small businesses save money, apply for funding, seek out loans, manage cash flow, and overcome financial difficulties will also continue to be in demand.
Both businesses and individuals will be seeking financial stability. Offering services that can help them through economic slumps can only be positive.
IT and Software
With remote working on the increase, many people work from home without the backup of an IT support team they usually would have in an office.
However, not everyone has the skills to install computer systems, fix problems, or know which software is best for their needs.
If you have excellent IT skills and knowledge, offering these remotely is a great idea. You could even consider local IT and software services. This would be a popular option for those who want a home computer but need help setting up everything.
Plumbing
Plumbing is undoubtedly one of the most recession-proof businesses in the world.
Skilled tradesmen will always be in demand. Because of this, starting a business based on essential services such as plumbing is a good idea.
It’s easy to assume that an economic crisis will mean that people won’t be looking for bathroom refits and remodels. However, that doesn’t mean that plumbing and utility services won’t be in demand.
The recession proof nature of this business means there will always be a need for emergency call-outs. Plumbers with a good local reputation are likely to be the ones who are called upon first.
Electrician
Much like plumbing, electricians are an essential service that is always in high demand regardless of the economic climate and the state of the housing market. No one wants to be without electricity, so when something goes wrong, most people call an electrician immediately.
Alongside creating a website for your business, you could reach out to property management services to set up partnerships. This can create a solid business guaranteed to survive tough economic times.
Pet Services
Pet services are an excellent choice for many people looking for a recession-proof start-up.
It’s just a fact that people are happy to do without many things, but most people always ensure their pets are well cared for regardless of their financial outlook.
Some examples of business opportunities in the pet industry include:
- Dog Walking
- Pet sitting
- Grooming
- Pet food
- Pet supplies
- Obedience training
- Pet blogging
A savvy pet service can take care of these basic needs. However, careful planning and logistics are a must. You should ensure the highest hourly pay is gained for your efforts in this recession-proof industry.
Healthcare
The healthcare industry is undoubtedly one of the most recession proof industries around. After all, people don’t stop getting old or sick during when a recession hits. This makes offering healthcare services a great option for anyone looking to start a recession-proof business.
People often need help at home for a variety of reasons. You’ll find that you can gain both long-term and short-term customers; hopefully, who will be able to tell others of your great service and help your business grow.
Studying for qualifications is a great way to expand the level and variety of healthcare you offer.
Check out our extensive list of healthcare business ideas to get you started.
Cleaning
Whether you want to offer domestic or commercial cleaning services, cleaning is an industry that will continue to be in demand even during an economic downturn.
Businesses must maintain a clean and safe environment. Because of this, most opt to hire professional services to do so. In fact, since the COVID-19 outbreak, many businesses have taken hygiene more seriously than ever. This is great news for a cleaning business looking for new customers!
Domestic cleaning also continues to be in demand. As the cost of living rises, people are working harder and longer hours. Because of this, some help at home to keep things neat and tidy is often very welcome.Â
Make sure you offer an efficient and reliable service. If you can do this, your business and domestic cleaning services will surely be in demand for some time.
If you’re unsure where to start, check out our guide on how to start a cleaning businesses to set you on the path to success.
Online Tutoring
If you have skills and knowledge in a particular area, offering online tutoring services is a great idea. Education is generally considered one of the most recession-proof businesses.
These days, learners are much more open to remote learning. This means that your customer base of potential students is much larger than if you were teaching a subject face-to-face.
The great news is that video conferencing services such as Microsoft Teams, and Zoom are software choices that many people feel comfortable with, so introducing online learning doesn’t have to be scary or complex.
Childcare
With people working longer hours, the need for childcare and nanny businesses is steadily increasing. This makes childcare one of the most recession-proof industries in the world.
This can be anything from full-time care to help that wraps around school hours. This can be a great choice of business to start up if you have your own children because you can tailor the hours to work with your existing commitments.
Offering other essential services like school drop-offs and pick-ups will help you grow your business and gain new clients. Increasing your hours can also help when school holidays roll around.Â
Car Maintenance and Repairs
During times of financial uncertainty, repairing a car rather than buying a new one is the only option for many car owners. With many people lacking the hands-on skills needed to carry out their own mechanical repairs, it gives ample opportunity for someone with those skills to start their own auto repair business.
Offering at-home call-outs, affordable repairs, and being reliable means you’re likely to stay in demand – especially if you team up with great social media marketing and local advertising.
Car repair businesses often grow thanks to word of mouth and positive recommendations. So, doing a good job gives you a much better chance of your business expanding.Â
Final Thoughts on Recession-Proof Businesses
Hopefully, these recession-proof business ideas have given you some insights into the best type of business to start. One of the most important things to remember if you want to make your business recession-proof is that your business model should be both flexible and scalable.
You should also ensure that you have enough cash reserves to survive any economic slowdown.
The good news is that starting a business during an economic recession can set you in good stead for the future. You will know that if your business can survive a recession, it will thrive once the economy starts to pick up again.
