So, while it may not seem like the best time to start a new business, if you do some research, there’s a chance for you to thrive. Here are some recession-proof small businesses that can survive the next economic decline. The classic way to start a rental business is buying a condo or townhouse and renting it out on an annual, seasonal, or monthly basis to a tenant.
- People who may not be able to afford to buy a home during a recession, and people who were forced to sell for financial reasons, still need a place to live.
- You can even track your small business tax deductions from the same app.
- While acquiring capital may be a challenge once a recession hits, there is still time to enact this strategy.
- This means you have the information you need to adapt quickly as financial markets shift and can focus on strategies to help your business weather any financial storm.
- This might mean negotiating a different payment schedule or discussing the price of your service package.
- Customer service is a great way to acquire loyal customers at little or no extra cost.
You can take advantage of that shift by starting a staffing agency where you connect businesses and workers. Companies may be willing to pay to get help finding good job candidates. When looking at different recession-proof businesses, consider doing freelance work. You can work for yourself in almost any industry and be able to find clients. It’s also hard to predict when a car will need other repairs, but it can happen. If you open an auto shop, you may be able to continue to get clients as the economy fluctuates up and down.
Accounting and Tax Services
This is especially the case for homeowners looking to sell their properties to combat financial struggles. Work with your vendors to make sure that terms are agreeable for everyone during financially tough times. This might mean negotiating a different payment schedule or discussing the price of your service package. This could involve renegotiating with suppliers for better rates, approaching vendors that offer lower costs for business services, and reevaluating salaries or employee perks. In the latter, for example, you may consider pausing the purchase of in-office snacks.
- Building a company from nothing is a tremendously difficult endeavor.
- Budget travel is clearly an in-demand industry right now, especially with America’s increasingly remote-work flexibility.
- This can go a long way toward reducing anxiety around economic downturns.
- It may also allow you to pay off low debt levels faster, since your money is of lesser value.
- Businesses regularly need cleaners to sanitize and disinfect lobbies, bathrooms, employee workspaces, and other public areas.
- Implementing these nine tips today can help you to help build a recession-proof small business.
That’s why the automotive industry has proven to be historically recession proof. After a global pandemic, shipping supply issues, and stock market fluctuation, the possibility of a recession has been sweeping the news. And even with the recently implemented Inflation Reduction Act, we’re unlikely to see costs drop anytime soon. So, whether it’s raining, the sun is shining, or there is a recession, there is always a need for delivery services. This is why courier and delivery services are among the top recession-proof businesses. Courier and delivery services tend to be less vulnerable than other sectors to a recession.
Keep your personal credit in great shape.
Button-down shirts that have frayed get mended, appliances that don’t quite work get repaired, and cars end up at the mechanic. Here are some ideas for businesses that can survive and potentially even thrive in a poor economy. Interestingly, comfort food and drinks are key to remaining optimistic and motivated for some.
Online reselling of luxury bags, clothes, and accessories is common during an economic downturn. Thanks to eBay, Poshmark and thredUP, it’s easy for anyone to resell items online and ship the products to consumers. According to Forbes, around 33 million consumers purchased pre-owned clothes for the first time in 2020. This industry is also projected to double in the next 5 years, reaching $77 billion. While inflation has soared and the stock market has stumbled, there are recession-proof businesses that could help you profit during times of uncertainty. When money gets tight, one of the best things you can do is reevaluate your spending.
Car Maintenance and Repairs
During a recession proof business ideas, studies show that people are more likely to tackle home improvements. Vehicles will still need servicing throughout a recession as people continue to commute to and drive for their jobs. Individuals will still need accounting services to help them through tax season. Small businesses will still need bookkeeping services to help them manage their books or, in some cases, prepare for bankruptcy. Convenience and dollar stores provide sustenance to people who might not have larger grocery chains nearby. Keynesian economics comprise a theory of total spending in the economy and its effects on output and inflation, as developed by John Maynard Keynes.
Recession-proof businesses have revenue steadily coming in, whether the economy is up or down. Staying recession-proof is all about being needed by your customers, regardless of how the economy is faring. When it comes to staying agile and managing cash flow efficiently, NetSuite Financial Management software has every tool your business needs in a single application. NetSuite financial management solutions expedite daily financial transactions, reduce budgeting and forecasting cycle times, ensure compliance and accelerate the financial close.