We are all hearing the bad news of businesses filing for assistance and laying off their workers. What’s more, most experts are saying we’re in a recession that will last for years. Still, have you heard of a recession-proof business?
If you’ve been thinking of starting a business, there are a few you can create even in a recession. The first step is to check the options on our list of the best recession proof businesses.
What Is A Recession-Proof Niche or Industry?
Companies that provide services identified as basic needs are generally less likely to be impacted during a recession. So, as you are considering which direction to go in, check the boxes for necessity niches.
Some of these may include:
• Repair or maintenance services (building HVAC is an example)
• Public works industries (water or electricity)
• Providing a mandated type of service (inspections)
• Providing staple items like food (grocery store)
What is a recession anyway?
By definition, a recession is when there is a decrease in financial activity, or there is a negative dip in the GDP (Gross Domestic Product) in two fiscal quarters back-to-back.
Our 5 Best Recession-Proof Businesses
Starting a small business may seem like a fool’s folly during a recession, but if you’re ready to meet the challenge and survive,and have done your strategic business planning you will come out on top as the economy improves.
#1 Virtual Assistant
The Virtual Assistant designation is relatively new in the job market. They truly shine during a recession as many companies don’t want to hire support staff, and would rather keep those funds for more essential expenses. Of course, this leads them to outsource many of those tasks to a Virtual Assistant.
During the last recession in 2008 unemployment rose to 10%, but in May 2020 we were looking at 13.3%, and that was an improvement. This means the market is good for Virtual Assistants right now.
#2 Debt Collection Agency
This business is likely an obvious one. Unemployment is rising, and even with government assistance, people find it hard to pay all their bills. This business is simple to begin out of your home.
#3 Childcare Services
Even though parents are struggling, childcare is one of the last expenses they’ll cut. It’s even more essential if both parents are working and that’s why this business is recession-proof.
#4 Health Services
Even though the current rising unemployment rates are straining the US economy, this could help home-based health care providers. What’s more, these services have already been rising rapidly in the last decade.
This demand is also likely to continue as there more people from the boomer generation entering retirement. These seniors will need assistance to manage their essential needs even in a recession.
#5 Technology Service Providers
With an influx of remote workers and companies scrambling to protect their data and provide new technology to their workers, going forward, there will be a more significant demand for technology and its service providers.
On June 8th the National Bureau of Economic Research declared we had entered a recession.
While it’s difficult to forecast when it will end definitively, we do know that the committee is hopeful that things will begin to turn by the third quarter making it a great time to launch a recession-proof business. Keep checking back here for more breaking business news.