It is clear that the state of the economy can make or break a business, but there are some industries that are able to weather the storm better than others. Regardless of whether the economy is in a recession or the stock market is soaring, these businesses are able to continue bringing in sales and can even see a profit. If you are interested in getting into a recession-proof business, there are several great areas that you can consider.
- Discount Retail
During times of economic downturn, low prices will trump politics. Thrift stores, dollar stores, and low-cost superstores like Wal-Mart have traditionally done quite well during times of economic instability, as do trendy resale shops. People are still willing to spend money on new clothing items and other accessories, but they are more likely to go out of their way to look for a bargain or low prices.
- Health Care
Regardless of the economy, people are still going to need reliable health care solutions. Emergency services and chronic disease management will all be essential in the future, especially with the aging Baby Boomer population. Health care facilities also tend to be innovative with technology and willing to adapt to new trends in order to do business more efficiently. For example, telemedicine services that involve web conference calling in order to connect patients with providers at other hospitals are gaining in popularity, and this method of treating patients could eventually save money, making it a viable solution for even a sagging economy.
- Non-Cyclical Business
Non-cyclical businesses are able to survive through good and bad economic times because they provide necessary services. Funeral services are a great example, as funeral homes will see consistent business, regardless of how the stock market is faring, although customers may choose cremation rather than burial – a much less expensive procedure. Public utilities like gas, waste disposal, and electricity will be necessities for living in a comfortable and clean society, and as long as the IRS continues to keep things confusing, taxes will always be there to give work to accountants. Other industries that could fall under the category of non-cyclical businesses include repair technicians and veterinary services.
- Removals and Repossessions
For the repo man, bad news can mean big business. Repossessions will involve taking custody of vehicles and other property when an owner fails to make payments. While repos are common during times of economic stability, recessions see a major increase in the number of vehicles that are repossessed.
Another service that will profit during this time is junk removal. If a bank forecloses on a home, an indebted homeowner may skip town, leaving possessions or junk behind. For this reason, junk removal services can count on having business, regardless of what is going on in the economy.
- Luxury Retail
Unfortunately, the economy isn’t going to affect everyone equally, and even during times of a recession, there are still plenty of people out there with money to burn. In the United States, luxury retailers like Yves Saint Laurent and Gucci were among the first businesses to bounce back after the recession, boasting an increase in sales of 23% while modest retailers were continuing to starve for customers. Additionally, a luxury car dealership in Manhattan, said that year was one of its best ever for total sales.
- The Federal Government
Despite spending cuts and the economic downturn, the federal government seems to always be actively hiring new and orienting employees. The aging federal workforce is the major reason for this hiring boom, but it is clear that despite problems with the economy, the federal government will continue. However, local and state government job security is a much different story, as many states are required to enact steep budget cuts during times of economic crisis.
Do you have thoughts on other businesses that seem to be recession-proof? We’d love to hear your thoughts.