What are the best recession proof business ideas for 2020? Can you successfully start a business during an economic recession? Is there any startup business idea that is recession proof? If you seek answers to any of the questions above, then I advice you read on.
In a recent poll involving 1,000 residents of the U.S, 65% said that they think that economic conditions in the country are worsening. Nearly half have already cut back on their spending and almost 20% are apprehensive about the stability of their jobs. Now that recession has come and gone, is there hope for businesses to thrive, much less survive and recover?
One of the situations most entrepreneurs dread is a recession. It cripples businesses and reduce the morale of entrepreneurs to undertake new business ventures. During recessions, many people lose their jobs, as businesses lay off many of workers in a bid to cut costs. As a result, job security is always the number one priority during these hard times, and workers flock toward the so-called recession-proof businesses.
Recession-proof businesses, as the name implies, are businesses that are not affected by during an economic meltdown. Such businesses either continue to thrive magically or survive unscathed, at least. I was recently discussing with a friend of mine concerning the last recession; its impact on our businesses and the lessons learned. We pondered on the idea of setting up a business whose growth will not be hampered by a recession.
Now if starting a business and staying strong during a recession is a way to go for you; then here are the top 5+ proven recession proof businesses that will guarantee job security when the economy goes grim:
12 Best Businesses That Thrive During a Recession in 2020
1. Food and beverages
I love the food business because no matter the economic situation; people must eat. But I am not talking about pooling your hard earned money and starting a restaurant business; although if that seems like a feasible thing to do, it just might work.
However, going into the restaurant business still has its risk and a very high one at that. Instead, you might consider going into a food and beverage business by focusing on offering healthier stuffs. These days, going into a recession is even a better excuse to eat healthy because it encourages people to cut down on their consumption and to avoid unnecessary purchases.
- Organic food products
Most of the food products available nowadays are harmful to health because they have either been preserved with chemicals that are harmful or they are not pesticide free. And people are becoming more aware of the health benefits of pesticide-free farm produce such as vegetables, fruits, sauces, condiments, and so on. So, you can start a small farm and adopt strictly organic methods, which would be your unique selling point.
You can also consider alternative menus that are tasty and creative or specialized cafes and diners or even vegetarian eateries. Concept plus good taste are usually the best ingredients to a successful recession proof food business.
People will always take snacks and fast foods, regardless of the economic trends. So, if you start a business that produces cookies, bread, pastries, cakes, and so on, you will have a steady stream of business. Even if you are not good at baking, consider hiring one or two individuals for a start.
Even in tough times, people want to look clean and good. And they will manage to squeeze out some bucks just for that. So, starting a laundry business is a very good idea, as it is also immune to the harsh effects of economic meltdowns. To start this business, you will need a washing machine, dryers, pressing irons, etc and you may need to hire one or two people.
When the economy is grim, people get frustrated. And out of desperation to get some quick bucks, they indulge in various forms of crime, especially burglary. Even when the economy is smiling, homeowners and owners of other valuable property hire security guards to protect their assets. And this becomes even more necessary during recessions. So, the demand for security guards is always on the high.
5. Vet services
Most people love pets and could spend any amount to keep them healthy. So, starting a business that renders veterinary services is a good way to make steady profit. Even if you are not a vet, you can hire one to work with you.
Regardless of the times, someone somewhere will always be in need of good, professional health service. This is an industry that has experienced some significant growth over the last few years. And it doesn’t show any signs of slowing down any time soon.
If you have the resources, training, manpower and capital; then becoming involved in a business that offers health services will assure you of a comfortable market. Consider businesses that focus on offering affordable preventive solutions to people, alternative health care and home health.
Couples enjoy sex all the time even though they don’t want babies most of the time. Similarly, teens and young adults engage in casual sex all the time. These are the reasons why there’s always a huge demand for contraceptives; whether or not the economy is fine. So, if you start a business that focuses on selling contraceptive devices and pills, you will never feel the impact of a recession.
People apply cosmetics religiously. In fact, some people apply their facial treatments and make-ups several times a day. Of course, recessions are no excuses for anyone to look ugly. So, people will always pay the price for retaining their good looks. A cosmetics business is, therefore, a money-spinner anytime.
8. Garbage or waste collection
Though this may seem a dirty job, it’s a very lucrative one that is immune to the adverse effects of recessions. People always need to dispose of wastes and garbage, and they usually find this difficult. If you start a business that relieves them of this hardship, you will make lots of profit in return.
9. Funeral services
Yes, this is a recession proof business, morbid as it may sound. It deals with an inevitability, which means you will never run out of customers. Funeral services get a steady stream of business no matter how the economy is performing.
People die every day, and the only way for people to give their dead ones a befitting burial is to engage the services of funeral homes. So, the economy doesn’t have an impact on the fortune of funeral services. You could either get involved in selling services or offering related products. Cremation service, which has increased in popularity in the last few years, is also a good option.
10. Repair services
Repair services are also recession proof businesses. There will always be people whose kitchen sinks clog, whose air-conditioning breaks down, whose roof starts leaking or whose car suffers from overheating. What these mean is pure business opportunity, even when economic times seem shaky. And even if potential clients try to delay much needed repair, they will still come to you for help eventually.
But it’s worthwhile you note that many, if not all, of these businesses require specialized training, skills and equipment. However, once you have these resources, you will have access to a recession proof business that does not only offer a potential for high margins, it’s also a venture that won’t require you to wait too long for a return on your investment. Provided your services are tops, it’s likely that you could be in business for a very long time.
It may seem surprising but starting a business involving dating and matchmaking could help you tide the recession over. Recession or no, people will always be looking for someone special either for dating or marriage. Already, this business has hit over $650 million in sales.
As a recession proof business, starting a personals venture could mean good profits and steady work. And no one even has to leave home. Some of the most popular companies today are those that offer online dating (Internet speed dating included) to their clients. With sufficient support, attractive and secure platforms and savvy, targeted marketing, this type of business is set to fly.
Whether you are good at teaching academic subjects or vocational skills, you will always get people who would pay to learn from you if you start a tutoring business. Start by approaching potential students in your neighborhood and telling them about your tutoring service. Probably later, you will advertise using broader media.
In conclusion, if you are looking to start a business that would guarantee peace of mind even when other businesses are facing hard times, consider any of the businesses discussed above. But before venturing into any business, it’s very important that you find out more about it to know the likely challenges you may face as well as other necessary information about it.
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