With the current state of the U.S. economy, industry experts have predicted a recession is possible in the near future – which about 66% of Americans have on their minds. Every generation will be impacted by this possible economic decline, and many are concerned about affording life after retirement, keeping up with rising costs, creating secure financial plans, and maintaining their businesses.
If you’re looking to start a business that’ll weather the current and upcoming economic storm, here are seven recession-proof business ideas to consider.
Travel will continue to be a prominent part of daily operations, with people needing to drive to work, school, or for leisure. Not everyone understands how to repair their vehicle if it breaks down, needs an oil change, or requires other fine-tuning maintenance. Car repair businesses will continue to thrive during a recession due to their necessity and demand. Additionally, with the evolving industry, repair and auto shops are useful for dealing with recalled parts or replacements and services specific to a manufacturer.
With rising costs, it’s unlikely people will replace old or broken appliances in the home. Rather they’ll seek a professional or repair company to fix them. This option is both cheaper and more sustainable. Buying new items may be more difficult in households with stricter budgets or are completely out of the question with the need to reallocate finances. Those interested in and skilled at home repair will have a perfect market space to retain customers for the long haul.
The uncertainty of the economy has caused some worry about individuals’ financial situations in both the present and future. Some generations worry their plans will be ineffective with the current economic challenges, while others are scrambling to create plans in the first place.
As a recession becomes more likely, the chance of individuals seeking financial planners increases. This type of business will be beneficial to clients looking for help to rebalance their portfolios, revisit budgets, convert funds, pay off debt and more.
Baby products and child care
Despite changes in spending habits during a recession, parents will prioritize their children’s needs. This includes shopping for formula, diapers, children’s clothing, and other necessary tools or materials critical for parents. Businesses that sell baby products, especially online shops, are vital and provide access for all kinds of parents.
In addition, child care is a necessity in today’s society where most parents are working in and outside of the home for the majority of the day. The need for daycares, nannies, babysitters, and school-age programs will always be necessary.
Retail consignment and thrifting
Consignment shops and thrift stores will become more popular as prices of clothing and furniture rise. Buying used items isn’t always a person’s first thought, but it’ll benefit those with smaller budgets who cannot afford to buy new. Everyone needs clothing, which makes this industry recession-proof and sustainable.
Another benefit to consignment and thrift stores is the ability to purchase used furniture and household appliances or decorations for a lower cost. Those moving or deciding to renovate their homes can create their dreams on a budget.
Food and beverage
Grocery and convenience stores, food and beverage manufacturers, and food delivery services are great businesses to start because they’re highly profitable. Everyone needs food and drinks – whether it’s picking up items from the grocery store for the week or going out for a quick meal. Food delivery has also become popular with more people working from home and having busier schedules.
The healthcare industry is one of the most stable industries to enter with rising demands and advancements in medical practice and science. There will always be a need for pharmaceuticals, contraceptives, therapies, nursing, dentistry, radiology and other healthcare services. Additionally, healthcare products like vitamins, supplements, at-home tests, thermometers and other items will continue to be in high demand.