When starting a business during good times or bad, it is extremely important to figure out what businesses do well in a recession and which ones simply do not. Basic economics of elastic and inelastic goods tell us which products/services people can live without during an economic downturn and which they can not live without. Not all is cut and dry though, it is important to do your due diligence on the ground floor by studying consumers, business owners and looking at economic data. Even companies like Starbucks will try to claim that their business has turned upward during the recession because even though people might not have jobs, their $4 coffee is one of the simple pleasures they do decide to splurge on. Here is a list of 10 recession proof industries…
No matter what’s going on, people still get sick and injured. Some studies have also shown that healthcare needs increase during recession due to the associated stress.
2. Repair services
Computers, cars, jewelry, houses. If it can be fixed, people will choose repairs over buying new replacements to save money.
3. Staffing services
During times of economic uncertainty, companies hedge their bets with temps rather than commit to hiring more long-term employees.
Even in economic decline, people want the best education for their children. Supplemental learning centers, tutoring services, and test preparation franchises are all good bets.
5. Senior care
Home care services are growing fast. These typically non-medical services offer an excellent alternative to expensive retirement centers for seniors who are still in good health.
6. Business services
From payroll to PR, companies save money by outsourcing services rather than paying full-time staff.
This is one business that improves when the economy slips. During these times, coupons are equally attractive to both upper- and lower-income shoppers.
8. Debt settlement
With personal debt at an all-time high, demand in the debt settlement industry is as great as it’s ever been.
9. Resale shops
From sporting goods to designer duds, consignment shops offer a win-win scenario for shoppers and sellers alike. Already a $12 billion industry, the resale industry is expected to grow 5% this year while many major retailers take a tumble.
10. Property management
A good property management company can protect the owners’ investments during dicey times. It doesn’t matter if real estate is selling or not—the only time property management could suffer is if the population lowers.
This article originally appeared on FranchiseHelp the franchise listings and data portal