The year 2009 marked the end of a global recession that hit America hard. Most people believe that starting a business during a recession is just as good as throwing your money into the sea. But, there are still recession proof businesses that can do well during economic downturns, also known as counter-cyclical businesses. Many entrepreneurs have identified new niches and started successful businesses during unfavorable economic times. Check out this list of business ideas that do well regardless of the overall economic climate.
During the last recession, steady business was recorded for accountants. One study found that 80 percent of small scale traders still had confidence in accountants. That a business involving tax accounting would survive recessions is therefore a sensible claim. The reason is simple: business owners do not cut their costs by working on their tax issues on their own. They still need accountants and this makes businesses in the financial services industry quite lucrative during a recession. Other related businesses included bankers and attorneys.
Stocking the fridge
During tough economic times, people tend to purchase the most important supplies. Food is the most vital of all products people need. Buyers are interested in buying large amounts of items needed on a daily basis. These include detergents, laundry agents, sugar, flour and cooking oil among others. And, if you have a business that sells food and personal effects in bulk, you would reap huge profits.
Recessions lead to the loss of jobs for many people. The increase in unemployment creates a huge influx of people searching for new jobs. So, if you can take the opportunity to offer resume-writings services, you could easily survive the recession.
Car repair services
Studies prove that the auto repair service business soars during recessions. Noteworthy, few people want to buy cars when their financial situations are tough. Instead, they repair their current cars and use them. If you are a skilled auto mechanic, you should consider starting a related business. If you are not a skilled auto mechanic, but a skilled business person, you should consider franchise ownership. Fortunately, when the recession ends, you will still maintain your customers and ultimately, your profits.
Virtual assistance services
Virtual assistance registers exponential growth during a recession. The majority of organizations do not want to contract expensive workers or support staff. This means that they have to outsource most of their functions. As a VA (virtual assistant), you can serve as an accountant, administrative or support assistant. It needs dedication but you will reap immense benefits from it, For instance, you get to work from the comfort of your home. Plus, you only need strong internet connection, a computer and other easily-available accessories.
When things get tough, many people contemplate selling their houses. A lot of real estate investors, buyers and sellers need staging services during such times. Home staging refers to the activities you do to a home to make it more appealing to a buyer. This includes cleaning, painting and rearranging it. In some cases, it could also involve refurbishing the décor and repairing any faulty systems. The idea is increasing the chances of fetching a higher price.
This may sound funny; but, yes, the candy business thrives extremely well during recessions. In fact, a large chunk of candy brands were invented in the Great Depression. The 2008 recession also boosted the sweet tooth as American candy companies recorded a profit rise of up to 30 percent!
But how does such a business do so well when people actually don’t have enough money? Psychologists agree that candies—inasmuch as the sweet tooth is not healthy—have the ability to soothe stress. A recession comes with quite a lot of anxiety and people use sweet things to keep it away.
Health care services
Are you a vet or doctor? If yes, you can start a home health care business or pet related business and you will reap great profits. Both the senior population and pets are continually in need of medical attention. People are likely to face a few health issues during tough economic times which causes additional stress and the need for treatment does not end for our furry friends no matter what the economy. All these problems need to be addressed in turn keeping health care and pet care services in demand.
By Kelly Mangum