A possible recession has been on the minds of many small businesses and entrepreneurs across the United States. The analysts are uncertainhowever, if or when a recession begins.
According to a recent survey conducted in 2022, 70% of the 49 economists respondents believe that a recession will occur in 2023. FinancialTimes and the University of Chicago Booth School of Business conducted the study.
Fortunately, not all industries have to worry about a recession. Even if this happens, some businesses will continue to thrive because they are essential. Interestingly, some businesses do well when consumers reduce their spending, especially if they choose a competitively priced service or product.
So which industries should you consider? Below are ten small business ideas that can withstand the harsh conditions surrounding a recession.
Accounting is going nowhere. Even in an economic downturn, Americans still have to pay taxes, including small businesses. Sometimes the government will also increase grants and other financial programs for needy Americans that accountants understand and can help complete.
Perhaps the most recession-proof industry is health care. Without health services and without health insurance, everything collapses in an economy and a society. Health care providers have nothing to fear, even in a recession.
Fortunately, many hospitals and offices offer financial assistance covered by grants and charities for those who cannot pay the high bills.
Consumers need to eat; however, during a recession, many consumers take deep pay cuts and cannot afford to eat extravagant dinners. Instead, consumers are running to grocery stores to stretch their cash as much as possible. Grocery stores and distributors have an advantage over restaurants and fast food outlets.
Beer, wine and spirits
There is a massive demand for beer, wine, and liquor that does not diminish during a recession. If you are thinking of getting into the beer, wine and spirits industry, it is good to have a variety of spirits ready.
Not all alcohols are resilient to the recession. During the 2008 recessionwe have seen wine and beer sales pile up, while alcohol has increased dramatically.
Money is tight during a recession, but consumers still need to buy essentials for their homes and lives, including clothes. Cheap and cheap stores are almost recession proof since they are the first place people turn to when they run out of funds.
Pet Care/Pet Products
Although spending will suffer during the recession, the pet care and products that are essential for pet owners are not changing; instead, this industry is considered recession proof. Pets are beloved family members and loved ones for many consumers.
Renovations tend to stop during a recession, but home repairs are still needed. It is not because a recession begins in the country that life stops. Instead, bursting pipes and air conditioning problems may require the services of handymen and other tradesmen. If you can provide home services at unbeatable or competitive prices, your business has a chance of surviving the recession.
Businesses large and small cut spending during a recession, but project management tools and managers are increased. Project management tools are especially needed because they are affordable and easy to use online. Many people are starting to work from home, or their hours are reduced, requiring a new and improved scheduling service.
Even if a recession hits and consumer spending declines, childcare and children’s products are still needed. Children are fast-moving and constantly need new clothes, diapers, food and toys to stimulate their minds.
Beauty services (hair, makeup, skin)
Beauty services are almost entirely recession proof. Many people around the world care about their looks and want to keep up appearances. Beauty services do not only include beauticians, but beauty products. If you can invest in beauty products like hair dye, makeup, and healthy skin products, you have a chance of surviving the tough economic conditions of a recession.
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